Financial Business Environment: Profitability and Digital Innovation Profitability of Financial Institutions Under these conditions that I have just described, how is the environment evolving for financial institutions in the major economies? During the last few years, U.S. and European financial institutions, which bore the brunt of the Global Financial Crisis, had to slim down and restructure their balance sheets in response.
These linkages should critically determine all aspects of banking operations including the kind of products and services offered, the pricing strategies, delivery channels adopted, sectors/ sub-sectors receiving focused attention, technology platforms adopted, etc. This linkage with the real sector will ensure relevance of banks as a key pillar in the economic system and enable them to fully meet their crucial role in nation building.