Bank

Strategy

Australia boasts a sophisticated and diverse banking sector. The sector is a central artery in the body of Australia's economy.

During and following the GFC, Australian banking institutions continued to perform strongly relative to international peers. ADIs remain profitable, adequately capitalised and well-positioned to meet the various global regulatory requirements.

However, the Australian banking sector is currently undergoing transformation. This is due to a confluence of various factors including:

  • accelerating technological take-up;

  • introduction of open banking;

  • FinTech innovations;

  • subdued credit growth; and

  • demographic changes.

"The accelerating pace of change from regulatory and technological developments brings the unprecedented potential to transform retail banking"
 
- UK Financial Conduct Authority

Our Expertise

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Strategy & Planning

Gen Advisory has the depth of experience to advise ADIs and FinTechs on the following:

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Current and intended markets

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Customer-centricity

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Strategic Future Plan

Outlook

As has been widely publicized, banks globally need to adjust to a new, more challenging era for banking. Australian ADIs  are no exception.

Australian ADIs are currently being squeezed by the new world of ultra-low interest rates, subdued credit growth, and low inflation. With mortgage lending rates projected to continue to fall, ADI net interest margins (NIMs) are likely to face sustained downward pressure.

 

Opportunity

 

The new era, however, also brings new opportunities.

 

With the impending mandatory Open Banking regime as well as recent advancements in financial technologies, far-sighted ADIs which are able to capitalize on the opportunities which FinTech and RegTech present will enjoy a competitive advantage over their peers.

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Strategic risk

Business diversification

Growth and exit strategies

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Industry and regulatory

developments

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FinTech opportunities

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Overseas expansion