How Rolling Forecasts Empower Banks to Navigate Uncertainty and Drive Growth

Introduction

Banks today face relentless pressure to navigate economic volatility, tighter regulations, and evolving customer demands. At the same time, rapid interest rate hikes, geopolitical shifts, and competition from fintech disruptors reveal just how outdated static forecasting methods have become. These traditional tools are built on rigid assumptions and fixed timelines, making the methods ineffective in today’s dynamic banking environment.

Enter rolling forecasts: a game-changixng approach to financial planning that offers continuous updates and real-time insights. Unlike static forecasts, rolling forecasts provide banks with the flexibility to respond dynamically to market conditions, optimize resource allocation, and anticipate risks. Adopting this forward-looking strategy empowers banks to transform their financial planning into a competitive advantage.

The Role of Forecasting in Banking

Forecasting is essential for banks, guiding decisions on capital allocation, liquidity, and long-term planning. Yet traditional methods often fall short in today’s fast-changing world.

Created annually or semi-annually, static forecasts rely on fixed assumptions and outdated data. This rigidity leaves banks exposed to sudden shifts — such as unexpected rate hikes, new regulations, or changing customer behaviors. For example, a static forecast might lead to overcommitting resources based on outdated projections, leaving the bank unprepared for a liquidity crunch.

These static methods also isolate functions like treasury, accounting, and finance, creating silos and misaligned strategies. In an industry where precision is key, banks need a forecasting approach that evolves with the market and anticipates future challenges.

What Are Rolling Forecasts?

Rolling forecasts represent a fundamental shift in how banks approach financial planning. Unlike static forecasts locked into a fixed period, rolling forecasts operate on a continuous cycle, extending the forecasting horizon with each update.

A rolling forecast always projects 12 to 18 months ahead, rather than focusing solely on a calendar year. Then, as new data becomes available, the forecast adjusts the outlook based on new information. By incorporating real-time data and market insights, rolling forecasts create a living, breathing financial roadmap that adapts to an organization’s changing needs.

Yet rolling forecasts are much more than just a planning tool. They ultimately empower banks to proactively navigate challenges, turning forecasting into a strategic advantage.

How Rolling Forecasts Benefit Banks

Rolling forecasts give banks a competitive edge by enabling agility, precision, and proactive decision-making. Here’s how they transform financial planning in today’s fast-changing environment:

1. Stay Agile in Uncertain Times

Banking markets are anything but static. With rolling forecasts, banks have the flexibility to pivot quickly when market conditions shift — whether it’s fluctuating interest rates, new regulatory requirements, or geopolitical shocks. Incorporating scenario modeling with rolling forecasts lets banks explore multiple outcomes and make proactive, informed decisions.

2. Forecast with Real-Time Accuracy

Static forecasts are often riddled with outdated assumptions, leading to costly missteps. Conversely, rolling forecasts are fueled by real-time data and thus paint a clearer, more accurate picture of financial health. This approach allows banks to spot trends earlier, enabling banks to seize opportunities and address challenges before they escalate.

3. Allocate Resources with Precision

Rolling forecasts help banks allocate resources more effectively, whether it’s deciding on capital investments, staffing needs, or expense management. By providing a real-time understanding of financial priorities, banks can balance short-term liquidity needs with long-term growth strategies.

4. Anticipate and Manage Risks Proactively

Risk is inevitable in banking, but rolling forecasts help mitigate that risk. With continuous updates, banks can spot risks early and take swift action. Integrating real-time data and stress testing ensures compliance while preparing banks for unexpected challenges.

5. Unite Teams with Shared Insights

Rolling forecasts encourage collaboration across finance, treasury, and accounting teams by providing a unified, up-to-date view of the bank’s financial position. This shared vision helps teams align their efforts and make more consistent, data-driven decisions that support overarching business goals.

Technology: The Catalyst for Rolling Forecasts

The power of rolling forecasts is amplified by technology, including artificial intelligence (AI), machine learning, and unified platforms such as OneStream. With these advanced tools, banks can automate repetitive tasks, integrate data seamlessly, and generate actionable insights. The technologies not only streamline forecasting processes but also unlock deeper, more predictive capabilities that drive better outcomes.

Steps to Implement Rolling Forecasts in Banks

Adopting rolling forecasts requires more than just a mindset shift — a structured approach is also crucial. Here’s how banks can successfully implement rolling forecasts:

• Commit to Continuous Updates: Establish a regular schedule (e.g., monthly or quarterly) to keep forecasts fresh and actionable.
• Centralize and Integrate Data: Break down silos by consolidating data from all relevant functions, creating a single source of truth.
• Leverage Advanced Technology: Use intelligent tools to automate updates, model scenarios, and generate insights with precision.
• Empower the Finance Team: Equip finance with the skills and training needed to transition from static to dynamic forecasting.

Conclusion

In today’s ever-changing financial landscape, rolling forecasts are no longer a luxury — they’re a necessity. They give banks the agility to adapt, the precision to plan, and the foresight to lead. By moving beyond static methods, banks can optimize resources, enhance collaboration, and mitigate risks effectively.

Learn More

With OneStream’s unified platform with embedded financial intelligence, implementing rolling forecasts is simpler than ever for banks. Don’t let outdated forecasting hold you back. Learn more about how you can make the most out of rolling forecasting and best practices for success.