INDUSTRY SURVEY
The Deloitte
2013 Banking
Industry Outlook
International banks, beset by a myriad
of new regulations and the negative
impacts of the financial crisis, are
finding it increasingly challenging
to provide improved returns for
shareholders. What is of concern is
that this scenario is having a similar
effect on South Africa’s banks.
R
eflecting on the release of the Deloitte 2013 Banking
Industry Outlook, Roger Verster Financial Services
Industry country leader at Deloitte noted that banks
were presently coping with the introduction of the
most comprehensive set of regulations that the
global financial services industry has seen in 70 years.
‘Even though our banks were not responsible for, nor directly
involved in the challenges that enveloped the global economy, they
are caught by the fact that they are active players in a regulated
global market. They therefore have to contend with the regulatory
and economic aftermath that has resulted,’ says Verster, adding
that current trends in the banking industry have implications for
South Africa.
‘A common element that comes across in trying to achieve the
quest of meeting regulatory demand, providing a better customer
experience and uncovering growth opportunities is that of data says
Verster. It is now essential that the long-held goal of structuring and
putting to use the huge amounts of data generated by South African
banking is effectively resolved,’ he says.
‘The financial services industry has become a technology business
and the effective and creative utilisation and analysis of the
massive amounts of data they have access to, will be one of the key
characteristics that will differentiate the future winners from the
losers in banking. Although cost containment will continue to be
an area of focus, especially given the relatively high cost to income
ratios in South African banks, there is a point at which it becomes
difficult to drive costs down sustainably.’
‘In common with their global counterparts local banks must
continue to focus on driving differentiation and excellence in
serving their customers. These initiatives will support them as they
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BANKER SA
Edition 5