Global banking CEOs optimistic about revenues but see technology and regulation as key threats to growth – PwC research
Global banking CEOs optimistic about revenues but see technology and regulation as key threats to growth – PwC research
Ninety percent of global banking and capital markets CEOs are confident that their revenues will increase over the next three years, according to PwC’s 17th annual CEO Survey, which includes responses from 133 banking CEOs in 50 countries.
It was also found that the number who believe that the global economy will improve over the next 12 months has almost tripled since last year – 56pc now compared with 19pc last year.
This buoyant outlook is reflected in the fact that more than half plan to take on more staff over the coming year, with most of those anticipating headcount increases of at least 5pc.
However, limited availability of talent continues to be a concern, with 61pc citing it as a threat to growth.
Over-regulation, slow or negative growth in developed markets, and the response of governments to fiscal deficits and debt burdens pose the greatest challenges to their prospects with eight in 10 CEOs seeing their operating costs rising and half believing that their ability to pursue market opportunities and innovate are hampered as a result of regulation.
“Eighty percent of global banking and capital markets CEOs continue to believe that too much regulation is impeding growth,” said Ciaran Kelly, financial services partner, PwC Ireland.
“The regulatory overhead is a new norm that the banking industry needs to take account of in the new banking environment.”
Other findings indicate that technology and innovation will have a major impact on the way banks operate, grow revenues and innovate.
For example, 86pc of banking and capital markets CEOs identify technological advances as the trend that’s set to have the greatest impact on their businesses and two thirds cite demographic shifts as likely to have a transformational impact; more than 70pc of banking and capital markets CEOs see cyber insecurity as a threat to their growth prospects; more than 60pc see the speed of technological change as a threat to their growth prospects; and CEOs see building on their existing market share as the main opportunity for growth, with product and service innovation close behind.
The full report is available here.
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