All the major banks know that the cost-of-living crisis is out of control. Central banks around the world have begun the most aggressive round of interest rate rises in more than two decades due to the pressure of inflation.
The outlook of 2022-2023 is not so promising. The latest Financial Stability Review, issued by the European Central Bank (ECB) recently, has warned of greater financial instability. It pointed to growing dangers on a number of fronts. It said higher inflation and lower growth could increase market volatility and "challenge debt service capacity as financing costs rise."
On one hand, interest rate directly affects banks. They need to strengthen their liability play. But the space now gets more competitive. On the other hand, the problems in the fragilities of the corporate world could be transmitted to the banks which have financed them. To attract more customers, stabilize the business and make sustainable revenue, banks need to focus on more predictable revenue streams, such as subscription pricing, etc. Also, other services like pricing as a service, or packaging pricing should be considered.
The key take-aways
Discuss the 2022-2023 banking situation, challenges, and forecasts
Identify emerging revenue models for a more profitable tomorrow
Three things you can do now to reshape your business
And many more