FinTechs Are Surpassing Banks On Cross-Border Payments
TransferWise had launched a Borderless Account for people and companies that do business across national baoundaries.
Financial Technology
Updates from user Toggle Comment Threads | Keyboard Shortcuts
-
user
-
user
4 Challenges to Blockchain Adoption From Fidelity CEO
#Blockchain is a #technology that can cause a lot of frustration, but can also create a lot of joy. That’s according to Abigail Johnson, CEO of financial services giant #Fidelity Investments. Fidelity is making strides in pioneering the #adoption of blockchain technology and digital currencies; aside #from a number of partnerships in the space (including […]
Bank Innovation -
user
FIs Should Follow Deloitte’s Blockchain Lead
Remember when #blockchain was going to kill financial services? It seems to be building them up instead. Take companies like Deloitte: with several new partnerships, projects, innovation labs, and consortium memberships, financial services giant Deloitte might have a better grasp on blockchain’s potential than a couple shiny new fintechs. The company– which has been on […]
Bank Innovation -
user
Pendo Systems Uncovers A Global Bank’s “Dark Data” At High Speed
#Pendo #Systems can find important information in millions of pages documentation. This is often called #dark #data because it has not been stored in standard database. It exists, but it has been hard to find.
Financial Technology -
user
Citi, Nasdaq Blockchain Partnership Speaks to Growing Incumbent Comfort
What’s better than a #blockchain project? How about a finished one. #Incumbent Citibank, established financial player #Nasdaq, and shiny new blockchain startup Chain have partnered to bring blockchain to Nasdaq customers, the companies announced today during the Consensus 2017 conference. A project three years in the making — according to Adam Ludwin, CEO of blockchain startup […]
Bank Innovation -
user
CardLinx Retail Tech Forum on Commerce Bots and Artificial Intelligence Spearheads Cross-Industry Collaboration
Interactive forum with speakers from Hilton, Discover, Verifone and others will be held on Sept. 12, 2017 in Chicago. #Retail sales as a percentage of GDP exceed 50% for the largest economies in the world, and increasingly the future growth of the retail sector will be tied to the development and adoption of new #commerce […]
Bank Innovation -
user
Blockchain Explorers Are Becoming the ‘Majority,’ IBM Finds
#Blockchain experimentation is #becoming the norm. Just about 33%–or a third—of organizations are “actively engaged with” (or at least considering) blockchain technologies, according to the study on blockchain exploration released today by IBM. From the report: Of particular interest in this study are those organizations that are already experimenting with, piloting or implementing blockchains — […]
Bank Innovation -
user
Survey: Help Us Make Bank Innovation Better (and Win $100)
In its ongoing pursuit to be the go-to hub for #fintech insights and ideas, #Bank #Innovation has garnered a dedicated following of more than 65,000 monthly readers, nearly 40,000 Twitter followers, and almost 21,000 exclusive LinkedIn group members. Most of our best coverage comes directly from our audience, so we ask you: How can we make Bank Innovation #better? Please take a moment to complete […]
Bank Innovation -
user
Consumers Expect Innovation to Come From Banks, Not Fintechs, Not Even Facebook
Despite all the shiny #fintechs out there, #consumers still #expect #innovation in financial services to #come directly #from #banks. Almost half of the consumers –49% of women, and 45% of men&8211; said they are most excited to see new financial product launches at banks, according to a study released yesterday by EY. All other alternatives […]
Bank Innovation -
user
Four new, urgent bank models fit for winning in the digital economy…and beyond
As a youngster, former U.S. President Ronald Reagan couldn’t decide what type of shoes he wanted. Unwilling to wait any longer for an answer, the local cobbler ended up giving Reagan one square-toed and one round-toed shoe. Reagan later commented, “I learned right there and then that if you don’t make your own decisions, someone else will make them for you.”
Today’s retail and commercial #banks also find themselves in need of “new shoes”. Their old business model is wearing thin and is unfit for a #digital world. It’s being eroded by inhospitable macroeconomics, new de-risking and open banking regulations, #fintech growth, consumer behavior increasingly favoring non-traditional players, and other market-specific drivers. If banks fail to make an explicit decision on evolution of their business model, other more decisive actors will decide for them.
Archetypal bank business models fit for the digital future…and beyond
Source: Accenture
We identified four archetypal business models that can be successful for banks:
- Digital Relationship Manager—the first choice for most big banks that have the investment capacity to expand on their vertically-integrated #bank business model, and serve a wide range of customer needs and segments. Appearing evolutionary, success requires radical, revolutionary change—from true physical-with-digital channel integration and real-time, hyper-relevant contextual advice to customer-driven solutions (not products) and a curated ecosystem approach where the bank can profit from the platforms of digital natives, like Google and Amazon®. It is indeed a new pair of shoes. Also, Digital Relationship Managers are more likely to evolve further to Banking as a Living Business, the industry’s next growth curve focused on relevancy and vitality #beyond banking.
- Digital Category Killer—where banks focus on doing one thing very well to serve a narrow niche. Today’s exemplars include PayPal® in payments, Quicken Loans® in mortgages and Betterment in wealth management. Done well, the Digital Category Killer can force itself into new distribution channels (like being a provider to a Digital Relationship Manager), because it creates customer demand. Still, its success depends on other banks’ inability to do many things equally as well, and it can be difficult to diversify and look for a way to expand the single offering towards long-term growth.
- Open Platform Player—offering a customer-centred platform through which other best-in-breed product providers can interact with customers, create and sell products and services, and share value. Our consumer survey indicates that an increasing number of customers are willing to build their own bank through such a platform. Yet as more digital time is being spent on a smaller number of multi-functional platforms, the Open Platform Player must avoid being assimilated into the broader platforms of the digital natives.
- Utility Provider—narrowing the bank’s customer focus and value chain participation to offer end-to-end product solutions or simply a regulated entity for others to book deposits and loans in. Success means mastering the packaging and provision of compliant financial services for others, while using specialist talent and #technology to keep overhead costs as low as possible. While the utility model can be a good, steady, non-threatening way to earn income, giving up end customers is a daunting prospect for most banks and establishing differentiation can be hard.
Rather than ending up with mismatched shoes that limit their ability to compete, banks can decide to control their own path. They must map their strategic evolution and de-prioritize initiatives that don’t help them along that path. They must then have the focus and discipline to execute, rather than be tempted to hedge their bets and end up with mismatched shoes.
I invite you to read the full report, Winning in the digital economy: The urgent business model choices facing retail and commercial banks. In it, we detail each archetypal business model, offer a high-level starting point for banks to take a realistic view of their fit to each one, and identify a few key execution rules for building a bank that can win in the digital economy.
The post Four new, urgent bank models fit for winning in the digital economy…and beyond appeared first on Accenture Banking Blog.
Reply