WEBVTT

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(pensive music)

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<v ->Our economic future is murky.</v>

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Will interest rates continue to rise?

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How long will they stay elevated?

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Will there be a recession?

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Deep or mild?

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Prolonged or short?

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What geopolitical or natural force will pop up next?

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Yet a few things are certain.

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The era of easy money is over, and there is a set

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of actions that financial institutions can take

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to position themselves well for whatever comes next.

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(upbeat music)

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Even as rising rates boost profits in the short term,

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the uncertainty of what's around the corner

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is making financial institutions and investors cautious.

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(horns hooting)
(traffic whooshing)

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Investors are expressing concern

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about the potential for credit losses

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but banks can take control of the situation

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by leveraging AI and mining the transaction data they have

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on their customers

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to identify clients in financial distress sooner

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and take supportive and corrective actions more quickly.

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This will mean investing in technology

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and streamlining workflows to automate credit processes

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for less risky customers

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and flag risky credits that require manual intervention.

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Financial institutions that do this will be able

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to create lasting competitive advantage.

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There are several no-regret actions to take

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to ensure future success.

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Continue and accelerate investments

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in digital to provide that superior customer experience.

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Leverage personalization to build greater engagement

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with your customers and drive loyalty,

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leverage M&amp;A in order to acquire digital talent

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that's going to be critical for the future.

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Review your pricing structure and price points

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with customers to ensure you're being compensated

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for the value that you provide.

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And take a clean-sheet,

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zero-based approach to reviewing your cost structure.

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(upbeat music)