The potential to create shared value through retail, commercial, and investment banking is enormous. The banks that can realize this potential will recast their role in society through a lens of mutual opportunity: for banks to increase long-term profitability and for society to leverage the unique financial capabilities of banks to drive progress.
- The financial crisis resulted in growing competition, client demand, and regulation, creating a unique opportunity for banks to reconsider their purpose and practices.
- The shared value opportunities vary for retail, corporate, and investment banks, but include: furthering client prosperity, fueling growth of regional economies, and financing solutions to global challenges.
- Three myths act as barriers to creating shared value in banking: a profit vs. purpose tradeoff mentality, low ROI expectations, and insufficient scale.