Profitability is very welcome, but it should no longer be accompanied by low risk-bearing capacity. Instead, any long-term strategy for profitable banking must be built on its value added for 2/4  BIS central bankers' speeches  customers, business partners and society. As Europe’s low-interest environment persists and digital transformation continues, the economic value of banking services is co-evolving.
Adaptation is taking place right now. German banks already increased their share of commission and fee income last year. Banks will have to lower their high costs and adapt to the digital age in the years to come. Which of the traditional business models and organisational set-ups still fit into today’s financial landscape?