India: Impact Of Covid-19 On Project Finance And Banking Transactions 21 September 2020 . (A case study of Zenith Bank of Nigeria Plc) The major objective of the study is to ascertain the level of awareness and adoption of TQM practices among staff of Zenith Bank in Enugu metropolis and also determine the … Some of these forces were already in motion before COVID-19. . Greenwashing—relabeling and branding existing business activities as supporting a green agenda—is also an unpleasant reality. Some banks have already demonstrated leadership in multiple ways, but most crucially, through financial commitments. Apply Now Save. Regulators were also keen to receive more detailed and frequent reporting from banks on the various risks they were facing. In March 2020, State Bank of India (SBI), India’s largest lender, raised US$ … And of course, the pandemic has tested the cyber resilience of banks, as the virtual/distributed work model became the norm. And third, advanced technology is expected to be at the heart of everything banks do. The first thing I’d like to cover is to discuss how you can go about gaining and understanding the banking industry. In addition to these enterprisewide initiatives, implementing LoB–level cost transformation efforts may be required. 1. Of course, the goal of these changes should be to boost productivity, creativity, and collaboration. Establishing new talent models should facilitate flexible, self-organizing teams that come together for a common purpose. View in article, Erica Volini et al., Beyond reskilling: Investing in resilience for uncertain futures, Deloitte Insights, May 15, 2020. New team structures should be tied directly to how work gets done. Banks should also buttress risk sensing. Get the Deloitte Insights app. Workplace redesign should also be a key focus as institutions strike the right balance between the workplace and virtual/remote arrangements, based on the specific needs of various roles/jobs. Risk Modeling a high priority for the banking industry. School Projects on Banking Studying the banking industry can benefit many types of students. The most obvious is that banks, globally, need to counter the strong headwinds to achieve profitability, given compressed NIM from lower rates and lower demand for loans. Banking leaders around the world have faced an array of challenges on the talent front, from shifting to a remote, distributed workforce to finding ways to keep employees engaged and productivity high. Until the current economic disruption subsides, CFOs and treasurers should continue to focus on preserving liquidity and boosting capital. 1.3 SIGNIFICANT OF THE STUDY. To meet the demands of the new realities, projects that once took months or even years were accomplished in just weeks, such as the banks' response to the US Paycheck Protection Program (PPP). Until now, cloud migration efforts were predominantly focused on cost reduction, modernizing the technology stack, and more recently, virtualizing the workforce. Scope of the Project Bibliography and References ABSTRACT OF THE PROJECT As we are beginners and have no practical experience in the field of software development and moreover the Banking System is very wide. However, traditional branch closures could be partially offset by drive-throughs and next-gen branches that enhance customer experience. In our example, we start with a simple example of a retail bank. Considering this ever-evolving risk landscape, banking risk leaders should reboot their risk frameworks to ensure long-term resilience. Even before the pandemic, the future of work was top of mind for many banking executives. Team leaders should also focus on ensuring that employees feel a sense of belonging at work. View in article, Jim Miller, “Financial services COVID-19 pulse survey,” slide 35, J.D. View in article, J.D. Societies around the world now expect banks to help address income inequality, racial and gender inequity, and climate change. See who INNOVIEW has hired for this role. Meanwhile, regulator concerns about financial crimes in the areas of cyber fraud and anti-money laundering increased. Unemployment rates around the world could remain at elevated levels for the foreseeable future. As of Q2 2020, the top 100 US banks had provisioned US$103.4 billion, in contrast to US$62.5 billion for the top 100 European banks and US$68.8 billion for the top 100 banks in Asia-Pacific (figure 1). Caution should be exercised, and due diligence efforts may need to be modified to account for COVID-19’s unique impact on asset quality and industry competition. View in article, Damian Walch, “Operational resilience: Ready for the next crisis?,” Deloitte Dbriefs, July 15, 2020. These folks have the banking domain knowledge they need t… Yet despite the rapidly growing demand for online products and services, many U.S. and European retail banks have struggled to fund the projects necessary to modernize all front- and back-office operations. Shortage of skilled talent in the cyber risk area often remains another obstacle, especially for smaller institutions. These new assumptions and risk assessments should be more directly embedded into stress-testing exercises. Given their unique and vital role in the global economy, banks should be at the forefront of leading social change and mitigating climate risk by reallocating capital, enhancing risk frameworks, providing greater transparency, and improving data and reporting standards. Our survey of 200 global banking executives revealed that this challenge is particularly acute in Europe, where almost 60% of survey respondents indicated that employee fears of returning to work will hamper their ability to succeed after the pandemic. One of the most notable effects of the pandemic is the scale and acceleration of several megatrends, and deceleration of others (figure 3). Credit risk models may also need to be updated to factor in the effects of climate change on individual credits. Banks may need a new set of tools, expertise, and processes to create a new M&A playbook that will withstand the postpandemic realities. This integration is at the heart of the future of work. 26. These efforts should also be extended to other societal challenges, such as financial education, health care access, and affordable housing. Some of these challenges also translate to the social sphere. Banks that invested in digitizing their businesses over the last decade demonstrated higher agility and resilience in adapting to COVID-19-led changes than others.37. The finance function should also take on a more strategic role by actively establishing a two-way information exchange, empowering business units with real-time business insights46 and smarter scenario-planning tools.47. It is hard to say what the exact implications of COVID-19 will be on how work might evolve. But only 40% and 43% expect increases in investment spend on automation and AI, respectively. Global GDP growth was waning, but the pandemic exacerbated the slowdown. In addition to data quality and governance, another challenge is the prevalence of deficiencies in risk control design and architecture. She has been a member of the Swiss Executive team since 2010 and has over 25 years of experience serving financial services institutions in Europe and the US. The Deloitte Center for Financial Services estimates that the US banking industry may have to provision for a total of US$318 billion in net loan losses from 2020 to 2022, representing 3.2% of loans.3 While losses can be expected in every loan category, they may be most acute within credit cards, commercial real estate, and small business loans. Indeed, our respondents indicate spending on cloud will increase over the next year. Bank rolls out new branch formats for digital age,” StarTribune, September 24, 2020. U.S. Bank rolls out new branch formats for digital age. As vital engines of growth in the global economy through their multitude of roles—financial market intermediaries, asset owners, investors, and employers—banks have a critical role to play in sustainable finance. For instance, the PCAF has developed a global carbon accounting standard, while the Global Sustainability Standards Board is setting standards for reporting.14 But there still isn’t enough coordination and consensus across regions and within the financial services industry.Other persistent challenges are insufficient data and the use of imperfect metrics to assess sustainability activities, performance, and outcomes. already exists in Saved items. So, we limit the scope of our project by computerizing the following fields of the Banking System: - Account Opening. In these and other customer interactions, banks should be sure to maintain the human touch. M&A activity in the fintech/digital lending space should also ramp up because fintechs will increasingly want to expand internationally and seek access to a banking license. Additionally, many banks took or are planning to take several workforce-related actions (figure 6), such as offering flexible schedules to employees. Loans, e.g. They can use branch and office space rationalization as one of the levers to lower fixed costs. Strengthening resilience, accelerating transformation, Redefining the art of the possible in a post–COVID-19 world, Sustainable finance: A unique opportunity for inspiring leadership, Digital customer engagement: The next frontier, Talent: Boosting well-being and productivity through resilient leadership, Operations: Building long-term resilience, and using technology for strategic cost transformation, Technology: Capitalizing on the multiplicative value of different technologies, Finance: Driving strategic value through data, Risk: Creating a new risk control architecture, Cyber risk: Investing for greater resilience, M&A: Rewriting the playbook for a postpandemic world, Key actions to consider in the business segments. There was no existing playbook, so bank leaders had to find new ways to do things. housing loa… AI should be embedded/combined with other technologies, such as cloud, IoT, 5G, and distributed ledger, to create multiplicative value. In both retail and institutional contexts, novel banking platforms to engage customers across the full range of their financial (and possibly nonfinancial) needs could be compelling differentiators and offer new pathways to profitability. FACTORS AFFECTING COMPETITION IN THE COMMERCIAL BANKING INDUSTRY IN NIGERIA ABSTRACT The main objective of this study is to determine the factors that affects competition in commercial banks. They should be afforded opportunities to learn how their work fits into the bigger picture, to gain a deeper appreciation for how they are making an impact within and outside the organization.29. Banks can play a leadership role in driving the sustainable finance agenda but will need to engage with other institutions to solve the many problems in this area. Looking ahead, bank technology leaders should place bold bets on initiatives that could transform businesses, such as core systems modernization. 6. The virtual work arrangements many banks adopted introduced new operational risks. In the initial phase of the pandemic, banks tightened lending standards. Finally, banks’ future talent strategies should be agile and adaptable. Please, sit back and study the below research material carefully. PROJECT MANAGEMENT IN BANKING INDUSTRY Learning From the Experience of Various Projects to receive more business insights, analysis, and perspectives from Deloitte Insights, Telecommunications, Media & Entertainment, Within reach? Banks were making rapid strides in their digital transformation journey, but the pandemic accelerated the pace. Statement of the Problems It has observed that banks have problems with respect to loan and advances. While some unique challenges remain—the lack of common global standards, insufficient data, and unclear metrics to assess sustainability performance and outcomes—these issues are starting to be addressed. First, this can help ensure technologies are used deliberately to change cost structures. View in article, The United States Department of Justice, “Antitrust Division seeks public comments on updating bank merger review analysis,” September 1, 2020. DTTL (also referred to as "Deloitte Global") does not provide services to clients. Today, however, the banking industry faces a new combination of circumstances that are giving special impetus to the need for efficiency. Banking leaders might have to make difficult trade-offs between productivity and well-being. View in article, Beena Ammanath, Susanne Hupfer, and David Jarvis, Thriving in the era of pervasive AI: Deloitte’s State of AI in the Enterprise, 3rd Edition, Deloitte Insights, July 14, 2020. Mark has a technology background and brings more than 24 years of experience helping clients deliver large scale/global programs to drive efficiency and effectiveness in areas of cost reduction, operational risk, performance management, asset efficiency, and regulatory reporting. What is even more impressive is the spike in digital sales—the holy grail in digital banking. View in article, Institute of International Finance, “IIF/UNEP-FI TCFD report playbook,” September 2020; World Economic Forum, The net-zero challenge: Global climate action at a crossroads (part 1), December 2019; UNEP Finance Initiative, “TCFD – Task force on climate-related financial disclosures,” accessed October 26, 2020. 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