Managing a bank today is no longer only about the numbers. It is about agility, foresight, innovation, speed and a deep understanding of your customers. However, when soundbites are dominating the headlines, it can be difficult to discern real risk from political froth. 

Large-scale change in the banking industry has resulted in demands for greater transparency and created deep uncertainties in local and global markets. The banking industry has been forced to address key weaknesses and answer questions about liquidity, risk management and lending capability - as well as how it treats its customers. In the struggle to survive, many large financial services institutions are focused on building confidence with their customers and planning ahead for new challenges. 

One such challenge is digital transformation, requiring altering their current technologies to digital solutions. Likewise, emerging technologies such as block chain, artificial intelligence and cloud solutions allow new, disruptive fintech companies and digital platform businesses to challenge traditional models as, without legacy technology, they offer better customer experiences at much lower cost. In several cases the burden of regulation is also still absent. Mainstream banks are having to carefully consider the fast-changing banking and technology landscape in order to respond to the changing demands of their customers, while ensuring that the client experience is taken to a new level of convenience and speed – at reduced cost.

Looking at the operational and risk management functions in a bank, the option to replace repetitive predictive tasks with robots are having a significant effect on operational efficiency, accuracy and speed, as artificial intelligence assists people and organisations in making faster, more informed and cost-effective decisions.

BDO has one of the largest banking audit practices in our profession, providing non-statutory audit services to a wide range of clients, including leading national financial institutions and global banks, as well as smaller regional banks and new entrants such as challenger banks. However, as the new entrants into the market move from transactional banking and deposit taking into more complex offerings like business banking and credit, they will also have to review their business and pricing models – all while the cost of compliance continues to rise.

In South Africa and globally, we have the understanding and expertise needed to provide our clients with the assurance and support they need in a highly regulated and controlled sector. BDO’s advisers are experienced in advising on the regulatory, accounting, valuation, systems and control issues facing clients in the retail and wholesale banking industries, as well as other businesses in retail finance, including consumer credit companies, card issuers, e-money services providers, peer-to-peer lenders and platforms, debt management companies and fintechs.

Our industry leaders remain at the forefront of the conversation, whether by working in the field with clients, participating on regulatory committees, authoring articles on the latest regulations or speaking at industry conferences.