In our Blue Skies scenario, the U.S. economy recovers fully and is experiencing strong growth. Unemployment is below 6 percent, driven primarily by the expansion of next generation manufacturing in the United States.
The banking system stabilizes at the national, regional, and community levels supported by growth in consumer and commercial lending. Branches focus on providing advice and successfully integrate digital channels to allow consumers to perform both sales and service activities in the channel of their choice. U.S. banks also begin to emerge as global leaders in delivering a differentiated customer experience.
European banks are stable, with growth driven by fast-growing Eastern European markets, many of which are integrating into the EU. They expand into emerging markets in Asia and the Middle East to capitalize on the growth in commercial and consumer lending in these regions.
The geopolitical environment is at its most stable in the past 25 years, which translates to new trade agreements in Asia Pacific and the Atlantic. China is an established military power and recognizes the need to maintain strong relationships with emerging economies across Asia and Latin America in order to benefit from access to these markets.
While several large non-bank players benefit from technology advances and become fully licensed to operate as banks, retail banks continue to maintain strong customer trust compared to the non-banks. A number of digital players make high-profile splashes in their attempts to steal market share, but ultimately end up acquired by incumbent banks after quickly exhausting their capital.
In our Blue Skies scenario, the U.S. economy recovers fully and is experiencing strong growth. Unemployment is below 6 percent, driven primarily by the expansion of next generation manufacturing in the United States.
The banking system stabilizes at the national, regional, and community levels supported by growth in consumer and commercial lending. Branches focus on providing advice and successfully integrate digital channels to allow consumers to perform both sales and service activities in the channel of their choice. U.S. banks also begin to emerge as global leaders in delivering a differentiated customer experience.
European banks are stable, with growth driven by fast-growing Eastern European markets, many of which are integrating into the EU. They expand into emerging markets in Asia and the Middle East to capitalize on the growth in commercial and consumer lending in these regions.
The geopolitical environment is at its most stable in the past 25 years, which translates to new trade agreements in Asia Pacific and the Atlantic. China is an established military power and recognizes the need to maintain strong relationships with emerging economies across Asia and Latin America in order to benefit from access to these markets.
While several large non-bank players benefit from technology advances and become fully licensed to operate as banks, retail banks continue to maintain strong customer trust compared to the non-banks. A number of digital players make high-profile splashes in their attempts to steal market share, but ultimately end up acquired by incumbent banks after quickly exhausting their capital.
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