Banks are no strangers to disruption. Even before the pandemic hit, the industry was racing to stay ahead of fintech startups and satisfy customer demand for 24-hour, digital access to financial services. As business failures and unemployment mushroom, banks are likely to suffer credit losses in the trillions – making resiliency and agility more important than ever.
To manage these challenges, banks must treat all of their business relationships, across internal functions and with partners and suppliers, as elements of a unified entity that operates within a cohesive strategy. That means using digital, data-driven technologies to understand interdependencies between parts of the business that have traditionally been siloed, like risk and customer service or human resources and accounting—then applying those insights to respond dynamically to customer demands and marketplace changes.
How well are banks adopting this holistic view of management – an approach known as systems thinking – that is needed for the digital era? To find out, SAP and Oxford Economics surveyed 3,000 senior executives in 10 industries, with 300 from the banking sector.