NEW YORK, Jan. 29, 2014 (GLOBE NEWSWIRE) -- The banking industry is at a pivot point where an increased focus on generating new sources of revenue through better connectivity with customers will be critical to drive future growth, as significant earnings improvements realized from cost reductions and rapidly declining expenses for loan losses are waning, according to KPMG's "Banking Outlook 2014: An Industry at a Pivot Point" report.
"Banks must switch from a business strategy anchored in defense – selling businesses, reducing headcount, and offshoring, in order to cut costs – to one centered on offense that is all about selling products and services that meet customer demands and needs," said Brian Stephens, national leader of the Banking and Capital Markets practice at KPMG LLP. "The banks that embrace change and systematically transform themselves to become more customer-centric will achieve a competitive advantage in the marketplace."
The KPMG report provides insight into the following areas that can help banks drive top-line growth:
Next Industry Crisis: IT?
"The next industry crisis could revolve around IT, given the value and volume of the data banks generate, the attraction of that data to cyber thieves and vandals, and the complexity of banks' IT systems and their reliance on those systems – some of which are highly integrated while others are disjointed," said Stephens. "In addition, as more banks partner with third-party vendors and service providers – whose networks are connected to other banks, subcontractors and third parties – to expand their offerings and boost efficiency, the risk that an attack on one could morph into an attack on many is increasing."
About KPMG LLP
KPMG LLP, the audit, tax and advisory firm (www.kpmg.com/us), is the U.S. member firm of KPMG International Cooperative ("KPMG International"). KPMG International's member firms have 155,000 professionals, including more than 8,600 partners, in 155 countries.
Ichiro Kawasaki KPMG LLP 201-307-8640 Twitter: @ichiroakawasaki