The post pandemic opportunity for GCC retail banks

SectorFinancial Services

While retail banks globally have reacted to the COVID-19 crisis with speed, dexterity, and purpose, further challenges await in their quest to enhance revenues, upgrade digital capabilities, and build a strong, stable future. Boston Consulting Group’s (BCG) new report, titled ‘Global Retail Banking 2021: The Front-to-Back Digital Retail Bank’ emphasizes the need for banks around the world and in the GCC to retool their offerings and strategies. The report showed the projected revenue outlook of retail banks in key economies in the GCC, which includes the United Arab Emirates (UAE), Kingdom of Saudi Arabia (KSA), and Kuwait in three retail banking revenue growth scenarios. In all three projected scenarios of 2019 – 2024, revenue growth is subdued when compared to the strong growth recorded in 2014 – 2019, a 5.5 percent Compound Annual Growth Rate (CAGR): 2019 – 2024 quick-rebound scenario: estimated to grow from $26.4 billion in 2019 to $28.6 billion in 2024, a CAGR of +1.6 percent 2019 – 2024 slow-recovery scenario: expected to shrink by a CAGR of -0.1 percent to $26.3 billion 2019 – 2024 deeper-impact scenario: the revenue pool is projected to shrink by a CAGR of -2.1 percent “The pandemic has taken a more...