What are the major drivers of innovation in the banking sector? An overview

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Higher interest rates , sustainability and technology : these are the three structural dimensions on which banks must intervene, not only to prevail over direct competitors, but above all to accelerate change, identifying and exploiting new growth paths.

Among the major phenomena reshaping the banking industry is undoubtedly iceland whatsapp resource the rise in interest rates , which will catalyze product innovation and motivate companies to continually reinvent themselves. The low and static interest rates that have dominated the macroeconomic system for the past decade and a half have provided businesses and homeowners with low-cost resources, but the benefits to banks and depositors have been limited. The banks that succeed in the year ahead will be those that project their products out of the silos in which they have been confined, and embed them in an integrated offering designed to meet the totality of the individual customer's needs.

Another topic of absolute interest for all entities that offer financial services is that of sustainability , environmental, social and governance ( ESG ). When companies and governments incorporate sustainability into their operations – from the transition to a zero-carbon economy to the great issue of rights, inclusion and diversity – they not only participate in the progress of the community but also achieve important business results.
Finally, companies that know how to read the context are digitally transforming every part of their business through investments in data management platforms , automation tools and artificial intelligence applications . Within a broader strategy that transforms the way banks operate and communicate, the use of technology is making a key contribution to breaking down the silos, primarily informational ones, that kept data flows separate along the value chain. If organizations have the opportunity to equip themselves with alternative business models to the traditional one, now outdated, business functions, connected to each other like never before, can serve customers through new, more effective ways of interacting.
So far we have provided an overview of the three major drivers of innovation in the banking sector. Let's try to delve deeper.