Financial Crime World

Delaying Investments: A Necessary Step to Ensure Business Continuity

The COVID-19 pandemic has brought unprecedented challenges to the global economy, forcing businesses to re-evaluate their investment strategies. For financial institutions, maintaining trust with customers and ensuring the safety of their funds is crucial.

To mitigate the risks associated with delayed investments, banking executives must prioritize several critical factors:

  • Maintaining Customer Trust: Ensure that customers understand that financial institutions are still safe and secure.
  • Preparing for Massive Withdrawals: Develop contingency plans to manage potential cash outflows.
  • Managing Cost Base and Profitability: Assess the impact of reduced cash inflows on operational costs and profitability.
  • Supporting Clients with New Products: Consider introducing new products or services to support clients during these challenging times.
  • Offering Government Stimulus Packages: Evaluate the feasibility of offering government-backed stimulus packages to customers.

The Shift Towards Connected Banking

In the face of unprecedented disruption, banks must adapt their business models to prioritize customer-centricity. This requires a fundamental shift towards connected banking, where the entire organization is aligned around the customer’s needs and expectations.

According to KPMG’s research, adopting a “connected enterprise” approach involves breaking down organizational silos and focusing on creating a seamless experience for customers across all channels.

Anticipating Customer Needs

To succeed in this new environment, banks must become insight-driven organizations that anticipate customer needs and respond with agility. This requires a deep understanding of customers’ physical and psychological needs, as well as the ability to craft market-leading propositions.

Data-Driven Decision Making

The use of data analytics is critical in enhancing customer experience and driving business growth. Banks should leverage data to gain valuable insights into customer behavior, preferences, and needs, enabling them to create personalized experiences that meet their evolving demands.

Conclusion

As banks navigate the uncharted waters of the COVID-19 pandemic, it is essential to prioritize customer-centricity, agility, and data-driven decision making. By adopting a connected banking approach, financial institutions can not only survive but thrive in this new economic reality.

Farhan Syed, Partner and Head of Advisory at KPMG Lower Gulf

“The key to success lies in putting customers at the heart of our strategy, planning, and execution. We must continually ask ‘what does this mean to my customers?’ and ‘how will my customers respond?’”