Banking on our future
The Australian banking sector must act now to meet the challenges and opportunities presented by the mega-trends which will shape our economic future, according to A.T. Kearney.
The management consultant firm has published new research warning Australia risks becoming an isolated and stagnant economy reliant on locked-up unproductive capital, if local banks become short term in their strategic focus.
The research articulated a forward-looking vision, which outlines five trends likely to shape the economy, all of which can be seen both as threats and opportunities. These are: a maturing population; emerging Asia; the impact of digitalisation; risk averse and expensive global capital and scarce natural resources.
If Australia is to capitalise on its success over the past 20 years and build an increasingly rich and diversified economy, the banking sector must play a leadership role, the research stated.
"The sector has performed remarkably well over the past decade, but if we look ahead, the economic environment is only going to become more challenging and it is in this context that Australian banks have the chance to help our economy shine and be seen as the key factor tilting our odds of success in favour of a healthy, vibrant economy despite whatever macro trends evolve in the coming years," A.T. Kearney, partner Nigel Andrade said.
He added the banking sector plays a crucial role in managing the interface between core economic functions — deposits, lending, transactions and advisory, and identified four areas in which the banking sector can take the lead in helping our economy.
The identified areas are: supporting the unlocking of capital to fuel the future economy, developing and delivering financial solutions to core growth sectors of the economy, facilitating risk adjusted Asian opportunities and pioneering the charge into the digital economy.
According to A.T. Kearney, if the banking sector can develop initiatives to address these four key areas now, it will be even better placed to contribute to economic growth in the future.
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