Stefano Lucchini and Andrea Zoppini
“The future of banks”, the text by Stefano Lucchini and Andrea Zampini in the bookstore
Technological innovation, market globalization, the introduction of the eurothe advent of the banking union, the numerous economic crises – as well as, most recently, the pandemic – together with the changes in customer needs, represent fundamental elements that have affected and will continue to affect the new credit configuration. There is no secret, to date, of the crisis of traditional banking business models.
The flourishing of new forms of intermediation, together with the birth of new players in the financial market, has made it impossible for banks to deal with new technologies, in order to be able to respond to the changing market needs. The bank is therefore asked to move into new “spaces”, which for it represent challenges but at the same time unprecedented stimuli and opportunities. To try to probe what awaits the world of credit, Stephen Lucchini e Andrea Zampini have published the volume “The future of banks” (Baldini + Castoldi, 20 euros, 240 pages).
WATCH THE VIDEO
Stefano Lucchini and Andrea Zoppini
The challenges of the bank of the future are projected beyond the dimension of the digital space, towards new frontiers of the space economy. The space economy is today facing a real turning point, due to the entry of important private investments in research and innovation. Italy occupies a good competitive position in this sector. These challenges make up a jagged fabric of rules, where disciplines for the protection of competition, savings and the market are side by side with those that establish the limits and relationships in the exploitation of new spatial resources, technologies, cyber security. The new spaces for movement make the traditional bank the actor most exposed to new risks, as well as the one bearing the more delicate task of relocating within the value chain, also through new forms of collaboration and healthy competition with the exponents of the technological world.
The ability to generate value of the traditional banking model seems to be threatened in Europe by an excessively high cost of equity. Indeed, in the first half of 2020, European banks recorded an average of 0.03% on the return on asset indicator – one of the main indicators for measuring corporate profitability – with over half of the intermediaries reporting an index equal to or even less than 0,01%. This implies that many small banks bear substantial structural costs in order to compete for the same customer segments. This scenario therefore suggests looking at consolidation in the banking sector as one of the possible strategies to consolidate system inefficiencies. Empirical evidence demonstrates how bank mergers increase the efficiency and profitability of the systemwhile reinforcing its stability.
Subscribe to the newsletter
