The banking industry continues to focus more resources on digital transformation in the quest to update legacy systems and provide consumers with the ability to bank anywhere and at any time; online and mobile banking continues to grow exponentially.
Regulation and compliance are also a focus with more emphasis on artificial intelligence and machine learning to prevent fraud before it occurs rather than after the fact. In February, S&P Global closed its $1 billion acquisition of Kensho Technologies, Inc. which provides analytics, artificial intelligence, machine learning, and data visualization systems to global banks and investment institutions. Traditional banks continue to invest in new technologies to enable them to reduce costs, reduce fraud and provide a better customer experience.
- Current revenue growth rate is less than the average of the last 3 years, indicating that the market may be flattening or declining
- Current gross profit margin exceeds the average of the last 3 years gross profit margin, indicating supplier pricing power
- Current EBITDA margin exceeds the average of the last 3 years EBITDA margin, a condition that may attract new entrants