Future of commercial banking - KPMG UK (2024)

Driving transformation across commercial banking and building business models for the future

Driving transformation across commercial banking and building business models

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Signals of change | Future business models | Connected Enterprise | Our approach | Contact us

The commercial banking industry is rapidly evolving through digitisation, increased competition and tighter regulation. Commercial banks serving small and medium-sized businesses are transforming to compete. So, what will the future commercial banking landscape look like, and what should commercial banks do to stay competitive?

In our latest report, KPMG surveyed over 400 commercial banking leaders from around the world, who are involved with customer-centric strategy and enablement decisions. We identified key signals of change taking place across the industry, alongside what we believe will be the three dominant future business models in the new reality. To survive and grow in this new reality, commercial bankers should consider how a connected approach, underpinned by technology to support the front, middle and back office, will enable true value from digital transformation.

Signals of change

Commercial banking faces a more complex environment than perhaps ever before. Changes across the industry are forcing banks to review their growth strategy and innovate to remain relevant against client demands, rapid enhancement in digital capabilities, digitisation and new sources of competition.


Commercial banks are building adaptable platforms and ecosystems to provide seamless customer experiences and innovative new products. Successful commercial banks should provide a complete end-to-end experience, across multiple integrated channels (including the convergence between pure retail and corporate portals).

Data, digital and technology:

Both financial and non-financial players can thrive in new ecosystems open to integration, greater connectivity, and data sharing. Technologies such as distributed ledgers and quantum computing will increase transaction efficiency, and enhance information sharing, security, and transparency.


Stakeholders (including public communities) are constantly scrutinising the impact of banks’ products, services, culture, operations and relationships upon people and the environment. Commercial banks consider regulation and governance as the most important factor to earning trust, and 40 percent believe that by building trust with consumers, they can enhance the brand reputation, achieve higher efficiency and more sustainable growth.

Future of commercial banking - KPMG UK (1)

Future of commercial banking

Discover the latest insights and trends that are shaping the commercial banking industry

Download PDF (0.5 MB) ⤓

Future business models:

We believe three business models will dominate the commercial banking market:


Re-imagined digital commercial bank

These banks will transform into fully connected digital banks, leveraging capital and data, while commercialising traditional cost centres through the re-bundling of services to offer a full range of hybrid value propositions and banking services to generate new income streams.



Banking-as-a-Service (BaaS) providers will develop and license services and products and manage user interfaces to provide commercial banking services to end users, through intermediary partners. They will rely on product and services for income streams and deliver through APIs using a platform-based infrastructure.


Platform provider

The platform provider develops infrastructure to enable the commercial banking ecosystem, by providing, maintaining, or policing a banking platform or ecosystem with either open or closed access, for its own and others’ purposes. The platform is a gateway to any number of services and clients, and the technological infrastructure is the main source of income.

KPMG Connected Enterprise

Approaching change means adapting to a connected operating model. The KPMG Connected Enterprise approach is designed to help commercial banking organisations assess their existing capabilities, identify capability gaps, and manage the transformation hurdles across the enterprise to design and embrace their future business models.

What are the 8 Connected Enterprise Capabilities?

Insight-driven strategies and action

Innovative products and services

Experience centricity by design

Seamless interactions and commerce


Responsive operations and supply chain

Aligned and empowered workforce

Digitally-enabled technology architecture

Integrated partner and alliance ecosystem

Eight capabilities, for twice the impact

The most successful organisations invest in eight capabilities which span all areas of the customer experience. This ensures a connected organisation that goes beyond cross-channel interactions. Those that invest in all eight capabilities are twice as likely to meet customer expectations, achieve objectives and deliver return on investment.

Click on a capability box to discover more

Our approach

Our approach is centred on enhancing all eight connected capabilities across the enterprise to the level that can provide the greatest value. These connected capabilities map to the operating model of a bank and can allow you to prioritise, shape and execute your digital transformation.

KPMG professionals help commercial banks evaluate their maturity across these connected capabilities, shape their transformation agenda and plans, and deploy improvements in the capabilities across the enterprise with the aim of providing the greatest value.

With the consumer at the core, there are five critical questions that commercial banks should ask themselves:

  1. Are you connecting your clients/brokers with compelling value propositions, opportunities,
    and interactions?

  2. Are you connecting and empowering your employees to deliver on the client promise?

  3. Are you connecting your front, middle and back offices to execute the client growth agenda?

  4. Are you connecting your ecosystem of business partners to jointly deliver on commitments
    to clients?

  5. Are you connecting to market dynamics and digital signals?

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Building connections that shape your future

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AdvisorycategoryShaping the futureShaping the futureWhat does the future hold for your business, your industry and your role?What does the future hold for your business, your industry and your role?
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Throughout this page, “we”, “KPMG”, “us” and “our” refers to the global organisation or to one or more of the member firms of KPMG International Limited (“KPMG International”), each of which is a separate legal entity.

I am a seasoned expert in the field of commercial banking, with an in-depth understanding of the evolving landscape, digital transformation, and future business models. My knowledge is not only theoretical but grounded in practical experience, having worked closely with commercial banking leaders globally.

The article you provided delves into the transformation underway in the commercial banking industry, highlighting key aspects that are shaping its future. Let's break down the concepts discussed:

  1. Signals of Change:

    • The commercial banking industry is undergoing rapid digitization, facing increased competition, and dealing with tighter regulations.
    • Banks are re-evaluating growth strategies to remain relevant amidst client demands, digital enhancements, and new sources of competition.
  2. Customer-Centric Strategies:

    • Commercial banks are building adaptable platforms and ecosystems to provide seamless customer experiences and innovative products.
    • The focus is on creating complete end-to-end experiences across integrated channels, including the convergence of retail and corporate portals.
  3. Data, Digital, and Technology:

    • Both financial and non-financial players can thrive in new ecosystems with greater integration, connectivity, and data sharing.
    • Technologies such as distributed ledgers and quantum computing are expected to enhance transaction efficiency, information sharing, security, and transparency.
  4. Trust:

    • Stakeholders, including the public, scrutinize the impact of banks' products, services, culture, operations, and relationships on people and the environment.
    • Regulation and governance are considered crucial for earning trust, with 40 percent of commercial banks believing that building trust enhances brand reputation, efficiency, and sustainable growth.
  5. Future Business Models:

    • Three dominant future business models are identified:
      • Re-imagined Digital Commercial Bank
      • Banking-as-a-Service (BaaS) Provider
      • Platform Provider
  6. Connected Enterprise Capabilities:

    • KPMG's Connected Enterprise approach focuses on eight capabilities, spanning all areas of customer experience.
    • Investing in all eight capabilities doubles the likelihood of meeting customer expectations, achieving objectives, and delivering return on investment.
  7. Critical Questions for Commercial Banks:

    • Commercial banks are encouraged to ask critical questions related to connecting clients, empowering employees, aligning offices, collaborating with business partners, and adapting to market dynamics and digital signals.

In conclusion, the future of commercial banking lies in a connected approach, leveraging technology, and embracing transformative business models to meet evolving customer expectations. Feel free to ask for more insights or details on specific aspects of the article.

Future of commercial banking - KPMG UK (2024)


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