— Credit risk poses greatest threat to growth, with culture, regulatory action, tax and cybersecurity also top of mind.
— Nearly 50% say the future of banking will be exclusively digital and virtual within a decade; 39% to have metaverse presence within a year.
— 77% expect recession within a year; 42% see managing the risks and costs of inflation as a key challenge.
NEW YORK, June 28, 2022 — Executives from the largest banking institutions are focused on addressing a multitude of risks and challenges, such as credit risk (credit card and loan defaults/delinquencies) and inflation, while investing in digital strategies and offerings that will include the metaverse, according to a new survey from KPMG LLP, the U.S. audit, tax and advisory firm.
“Banking executives are proactively tackling various risks and threats to their banks’ growth — including credit and cyber risk — while investing in the future,” said Peter Torrente (@PeterTorrente), National Sector Leader, Banking and Capital Markets, KPMG LLP. “Banks with a customer-first mindset and digital-now strategy will be best positioned to succeed amid the ongoing economic uncertainty.”
The KPMG State of Banking Survey features insights from 100 senior executives – many representing some of the largest banks in the industry with nearly 40% having assets totaling $100 billion or more – on key challenges and opportunities facing the banking industry. The key findings of the survey are below.
Economic and industry outlook
Threats to growth
Digital investment vs. brick-and-mortar
Mergers and acquisitions (M&A)
Environmental, social, governance (ESG)
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