02 Sep The bank as director of its own orchestra
this article was originally written by Jelle Dijkers and was published on KPMG.com
Why would a bank still want to handle all its operations under its own roof? Various industries have been working with outsourced expertise for years. Nike does not produce its own clothing, Apple does not build computers and Uber does not employ any drivers. These companies direct the supply chain to their own likings and deliver a unique and recognizable proposition. Focussing on core competencies allows companies to outsource weaker components of the supply chain and improve the value of your proposition.
Within the financial sector we see that mortgage-lenders often do not handle their own correspondence and administration and neither do they handle customer service.
If a bank takes the position as director of the orchestra they can make use of the expertise of others and harmoniously unite all parts together. Let others play the instruments they master. Bank should choose its core competencies, the activities where true value is created, focus on them and leave the other activities to partners.
The past has shown us that economic developments are hard to predict. Uncertainty in the market asks for maneuverability from banks. Positioning yourself as a director bank, directing the banking supply chain, allows for great flexibility and helps in maintaining the quality of service. As per the situation, the director decides whether to focus more on marketing or on development, creating a unique combination of the orchestra every time.
While everyone can direct an orchestra, a unique sound makes a good director. The target audience is the one where your music can add value. Do you have a higher promoter score? Focus on this! Are you good at administrative processes, make this your core. The director does not only decide what to do, but also how its done; a unique style. The director identifies who should work on his own and who should be given orders to be followed strictly.
The bank as a director of its own orchestra allows for flexibility with regards to new regulations while maintaining a strong and stable brand image can be the recipe for future success. Focussing on core competencies make the bank excel in what it is good at. Small challenger or major established banks, all should think about their capability of handling all processes internally. There are enough partners waiting to help you out.
