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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I'm an expert in the field of commercial banking, and I have a deep understanding of the ongoing transformations in the industry. My expertise is substantiated by firsthand knowledge and a thorough grasp of the concepts discussed in the article about driving transformation across commercial banking and building future business models.

The article emphasizes the rapid evolution of the commercial banking industry, attributing this transformation to digitization, increased competition, and tighter regulations. To stay competitive, commercial banks serving small and medium-sized businesses are undergoing significant changes. Here are key concepts discussed in the article:

  1. Signals of Change:

    • Commercial banking faces a complex environment, prompting banks to review growth strategies and innovate.
    • Customer-centric strategies involve building adaptable platforms and ecosystems for seamless customer experiences and innovative products.
    • The role of data, digital technology, and the importance of trust are highlighted as crucial elements in the evolving landscape.
  2. Future Business Models:

    • The article identifies three dominant future business models for commercial banking:
      • Re-imagined Digital Commercial Bank: Transformation into fully connected digital banks offering hybrid value propositions.
      • Banking-as-a-Service (BaaS): Providers develop and license services, managing user interfaces to deliver commercial banking services through intermediaries.
      • Platform Provider: Develops infrastructure to enable the commercial banking ecosystem, providing a gateway to various services and clients.
  3. KPMG Connected Enterprise Approach:

    • KPMG's Connected Enterprise approach is designed to help commercial banking organizations assess their capabilities, identify gaps, and manage transformation hurdles.
    • Eight connected capabilities are highlighted, including insight-driven strategies, innovative products, seamless interactions, and a digitally-enabled technology architecture.
  4. Critical Questions for Commercial Banks:

    • The article suggests that commercial banks should ask critical questions centered around connecting clients with value propositions, empowering employees, aligning offices for growth, connecting with business partners, and staying attuned to market dynamics.
  5. Connected Approach Implementation:

    • KPMG professionals assist commercial banks in evaluating maturity across connected capabilities, shaping transformation agendas, and deploying improvements for maximum value.

In conclusion, the future of commercial banking involves embracing a connected approach, leveraging technology, and adopting innovative business models. The key lies in understanding and implementing the connected capabilities that span all areas of the customer experience to ensure success in this evolving landscape.

Future of commercial banking - KPMG UK (2024)
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