The Latest Headlines From Across The Banking Sector - January

Welcome to a new year for Banking Headlines. We kickstart 2022 looking at two of the big trends in the sector at the moment - Data and the Future of Work.

Becoming data-driven

• Yapily, the leading open banking infrastructure provider, reported that UK banks have continued to invest in open banking technology as usage continues to grow. Fintechs will have access to much more data than before, allowing them to make more informed decisions using big data
• Data underpins many of the hot topics in the banking industry such as digital transformation and customer experience, and as a result, Data Management should be at the forefront of every organisation
• Financial Institutions understand that the data they hold must be treated securely, sensitively and in line with ever increasing regulation. However, data is a powerful tool and banks are in a unique position in the data they hold
• Consumers themselves have become accustomed to data driven customisation in their day-to-day online lives and as banks progress through their digital transformation, their customers expect the same tailored approach
• Most banks are looking beyond regulation and risk and paying attention on how this data can deliver benefits to customers. They are increasingly relying on data to improve customer experience & cross-sales, enhance operational performance and streamline reporting
• With less face-to-face customer interaction, there is less opportunity to build customer relationships. The best way to fill this gap is for banks to become even more data driven

PEN Point Of View:

The successful companies of the future will be the ones that that use large quantities of data quickly. Making informed investment and customer decisions faster than their competitors and evidencing how and why they have made those decisions if they ever come under scrutiny will be critical. We have real experience in supporting organisations on their journey to becoming data-driven, so if you’d like to hear more, please contact us.

Back to the office?

• By the end of January government restrictions on office working were effectively lifted, resulting in varying responses from organisations, with the banking sector showing an eagerness for a return to office in some form
• The headlines indicate a mixed approach across the sector, a majority of organisations are taking their time, meaning we won’t see offices ramping up to full capacity straight away, if at all, and unlikely there will be a return to ‘normal’
• Organisations need to be considerate in their approach, particularly when research such as that from the company Slack this month indicates a number of workers would consider switching jobs rather than being forced to return to the office
• Whatever the approach, there will no doubt be several lessons learned over the course of the pandemic, high on the list being readiness for any future disruptions
• PEN are hosting a virtual roundtable in March to discuss future ways of working and managing the return to office. If this is of interest, do get in touch.

PEN Point Of View:

The abrupt end to government restrictions opened the door to organisations making their own decisions on how the workforce should return to the office. We expect the sector to continue to grapple with the best approach to hybrid working for some time, with more investment into technology to enable this. However, as the benefits of office-based interactions are rediscovered, we won’t be surprised to see organisations mandating more time in the office.

And in case you missed it…

• Starling Bank topped a Customer Experience Excellence report in the UK, beating organisations from financial services and other sectors
• Two of the leading Fintech banks took steps into new business areas, with Revolut launching a pet insurance product and Monzo recruiting for an investment and wealth unit
• For the first time, a full list of banks’ ESG credentials has been compiled, ranking 30 global Finance providers against one another for provision of ESG / sustainable finance

Each month we send out a regular email summary of the latest headlines from across the Banking sector that have caught our eye. If this sounds like something that interests you, please sign up to our monthly Banking Headlines here.