Many banks are facing problems created by demographic change, digitalisation, ultra-low interest rates and enhanced banking regulation; and many have begun to address their efficiency and profitability problems. But clearly, they are not yet up for a marathon with a good finishing time. There remains a lot to be done.
Reorienting business models and optimising organisational efficiency will be one part of the fitness regime. Another will be structural reorganisation in the sector. Mergers & acquisitions will continue to play an important role here, too. But only the link-up of healthy players is likely to lead to stronger teams – although, even this cannot be taken for granted.