Scots are reputed to be an independent group, and recent gains by the Scottish National Party in Parliament support that claim. If Scotland separates from the UK, the ramifications for the banking sectors in both nations would be profound. What are the specific initiatives being recommended to ensure a stable Scottish banking industry?
Banks have built historic reputations on being steady and solid, traditionally making incremental improvements to operations based on an understanding of change as something that is occasionally necessary, but preferably avoided. Yet in a market distinguished by uncertainty, the only way to be ready for the future is to invest in change itself.
Our everyday lives are now embedded with personalised products, services and experiences. Whether it is what appears on our social media feeds, the new series Netflix suggests to us, clothing suppliers which will curate a new wardrobe selection, or supermarkets providing offers based on your previous purchases; personalisation now reaches almost every sector.
Banks are currently facing a serious generational divide, and it’s an issue that requires urgent action, lest banks lose out on the customer of the future. For most adults today, the likelihood is that they opened their first bank account in a branch, accompanied by their parents. However, with the acceleration of digital banking, this assurance has dissolved.
One pleasant surprise of the pandemic has been the shortage of business bankruptcies, despite recurrent lockdowns that have drained their incomes. But is this rosy picture a cruel illusion to be removed as governments stop propping up small companies? Banks will soon find out if government life support has simply delayed the inevitable.
The COVID-19 pandemic has driven a step-change across the European payments industry. We’ve seen an acceleration of cashless payments across markets where cash has historically been dominant. And an exponential increase in e-commerce activity as consumers were forced to stay at home during national lockdowns
Employee wellbeing has been rising up the HR agenda in recent years, with employers increasingly recognising the benefits of happier, healthier workforces. Mental health problems can affect anyone regardless of the industry they work in, but some sectors see a higher prevalence of wellbeing issues than others.
Banks are suffering from a problem: cash. Not long ago, many struggled to maintain liquidity, then COVID-19 arrived. Consumers and businesses have flooded them with deposits, as governments have doled out aid, uncertainty has made safe havens attractive, and continual lockdowns have restricted activity. But this is likely to change soon.
The US federal government’s participation in climate action is progressing, including Congress’s proposal for a Clean Energy and Sustainability Accelerator, a national green bank that would foster investment in green energy. Green banks have popped up in states, but establishing one at the national level would lead to a greener outcome.
Financial crime has thrived during the pandemic. It seems obvious that the increase in digital banking, as people were forced to stay inside for months on end, would correlate with a sharp rise in money laundering (ML) and other nefarious activity, as criminals exploited new attack surfaces and the global uncertainty caused by the pandemic.