With bad news, now coming from Europe, showing no signs of letting up, the debate rages on about how to fortify the world’s financial systems. That we will see more regulation and government intervention, is a no-brainer, but that apart, I foresee some ‘collateral’ developments as the banking sector goes about putting its house in order.

The feverish growth of yesteryears will become a thing of the past, making way for a new normal that is firmly grounded in reality. Sharp manufacturing and asset growth, unnatural bonuses, stock-market surges will all be scrutinized carefully to avoid repetition of earlier misdemeanors. Many institutions, presumed too big to fail, may fight for their very survival, particularly once government support dries up.

If the crisis was precipitated by the greed of a few, recovery has been led by the generosity of many as corporate and banking institutions try to give back to customers in monetary and other ways. They will seek value over volume by taking a more discerning approach towards their products, services, processes, customers and partners.

I also see banks going back to basics, making products and services simpler, fairer and more transparent similarly their processes also getting simpler, convenient and transparent. They will also look up to other industries such as telecom and consumer electronics that have leveraged innovation and efficiency to make products progressively smarter, faster, simpler and cheaper. And while doing so, I expect banks to redouble their customer focus, paying heed to individual needs and identities. Customers are wary of trusting too easily and even when they do, want to maximize value for every penny spent. In such circumstances, banks will no longer be able to push the same offering to one and all, regardless of need. The age of right-selling is upon us.

The good part is that these moves will lead the industry towards a more progressive outlook which respects security, compliance, openness and places long term survival over short term gain. And it remains to be seen whether banking will forsake simple innovation for the disruptive variety, which generally gathers momentum during economic upheaval.