Small steps toward digital transformation aren’t enough
Banks need to accelerate their digital transformation to better manage through economic uncertainty. Tools to harness data are especially urgent, as this can facilitate better risk analysis, nimbler reactions to market developments, and greater resilience. It's time to finally leave behind arduous, manual processes, where analysts sift through spreadsheets or parse through disconnected data sets.
In an era where technology permeates every aspect of our lives, the banking sector has yet to fully embrace the transformative potential it offers, especially for risk management.
But the collapse of three regional banks in the spring — and the fact that many U.S. banks are scrambling for deposits — makes it clear that the health of the banking system is at stake.
My hope is that this crisis has served as a wake-up call for the banks that are not adequately assessing their exposure and that those banks now recognize the tremendous potential of technology when it comes to liquidity and risk management, portfolio optimization, and contingency planning.
If we can encourage banks to embrace digitization to support stronger risk analysis and management, the entire sector has the potential to benefit.
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