20 Aug Digital strategy execution drives a new era of banking
Digital disruptors are attacking the banking industry, redefining customer expectations and reshaping industry boundaries. From competitors to customers, processes to people, banking leaders who want to lead in a digital economy need to make fundamental changes to how they operate. This study shows which changes have to be made and how.
Competitive pressures are being rewritten. On one hand, start-ups are driving fundamental changes in customer expectations and impacting specialized revenue streams. On the other, established, large digital leaders are extending banking services into non-banking digital ecosystems where they are already dominant. Instead of the traditional bell curve response of a typical product or service life cycle, a series of quick-fire innovations produces a “shark fin” business model,1 where disruptive products or services are embraced and discarded in fast succession.
Digital can transform the business of banking, with the potential to drive up return on equity (ROE) by more than 5 percent for both mature or emerging market banks.2 But in a climate of such rapid change, time is of the essence. By executing the right digital strategy using two-speeds, three governance roles and a single “being digital” mind-set, banks can fully realize their digital future.
By becoming an “everyday bank”—one that offers integrated financial services and non-financial services solutions to meet a range of lifestyle needs—banks have an opportunity to reposition their services and be digital.
But as the nature of competition rapidly evolves, Big Bang digital disruptors3 are attacking the banking industry, redefining customer expectations and reshaping industry boundaries.
As competitive pressures increase, banks need to operate at two speeds: One speed is disruptive: The rapid adoption of new options for business growth—such as launching a new mobile payment service and establishing the accompanying ecosystem. The other speed is transformational: fast change required in the core business of banking—reshaping digital customer, enterprise and operational banking strategies.
Learn the clear insights of this report from Accenture Global here!
