Financial regulations are good for #Trulioo which is in the business of providing trust #identity information about individuals and now for businesses as well.
Financial Technology
Winnie-the-Pooh isn’t normally considered a business guru, but it turns out that A.A. Milne had a pretty good grasp on the challenge of digital transformation. “How does one #become a butterfly?’ Pooh asked Piglet in one of the stories. ‘You must #want to fly so much that you are willing to give up being a caterpillar,&8217; Piglet replied. &8216;You mean to die?&8217; asked Pooh. &8216;Yes and no,&8217; Piglet answered. &8216;What looks like you will die, but what&8217;s really you will live on.”
Leaders at many retail and commercial #banks are having similar conversations as they figure out how to win in a digital economy that is beginning to make their old business models look somewhat caterpillar-like. The big banks that succeed in the decade to come will be those willing to transform themselves by shedding the old versions of themselves in favour of something quite different.
The first step for many is to become outstanding Digital Relationship Managers, coupling their traditional strengths with a modern, open model approach to serve a wide range of customer needs and segments. It means having organisational agility and vibrancy that can quickly capitalise on the continuous and personalised stream of data generated by the digitisation of everything to satisfy the customer’s ongoing needs—both financial and non-financial.
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The next step forward for these banks is to think of themselves as a #Living Business in ways that challenge traditional industry boundaries. That transition is about being hyper-relevant and embedding vitality across the organisation to adapt to changing customer needs and behaviour, beyond banking. It’s a transition that is not evolutionary but revolutionary. A bank that is a Living Business is not a better caterpillar, but more akin to a financial services butterfly. To take flight, banks will need to draw on ecosystem partnerships and plug-and-play functionality for all products and services, to refresh services and reinvent business models as fast and as often as needed. “Run the business” will essentially be automatic, while most talent and investment will be aligned against “change the business” activities. Many transactions will come through digital natives, such as Google, Facebook or equivalent multi-use digital platforms. Some transactions will be text-based, but a huge portion of interactions will be voice-based. From within that digital conversation, banks will need to identify the opportunities for a smaller number of higher-value transactions where it seamlessly provides more complex services, such as financial advice to its customers.
While the potential to grow revenue streams that come with Banking as a Living Business are enticing, banks will also have to embrace the more daunting aspects, such as prioritising their customer-oriented initiatives and cutting the caterpillar-improvement programs that do not map to the bank’s future business model.
Must banking as we know it die? Yes and no. Traditional concepts of the bank will die as banking moves from something customers step outside their regular activities to do and to a business that is fully integrated and embedded with the rest of their daily lives.
I join my colleagues at Accenture, Allen International, and Fjord to share further details in our new report, Banking As A Living Business: Driving Hyper-Relevance And Vitality Beyond Industry Boundaries. I invite you to read it as you contemplate what’s ahead for the banking industry.
The post What banks will want to become: a living business appeared first on Accenture Banking Blog.
#PayPal #wants this to be the year it grows closer with merchants and small businesses. The payments company launched what it’s calling “Business in a Box” for new small businesses — a specially tailored set of tools designed to make opening an SMB as quick and painless as possible. The new product follows the launch of […]
Bank Innovation
US bank lending to SMBs has been flat in recent years, while alternative lenders have seen robust growth. If #banks do not move quickly to engage with SMBs digitally, they risk losing even more share of the market to fintechs. Banks possess a wealth of strategic advantages in the battle for SMB business, but they must actively leverage these in order to stay competitive.
McKinsey Insights & Publications
#European #banks are in the midst of a ‘perfect storm’ of negative interest rates, regulatory pressures and market disruption, and are in search of new sources of value. A recent Accenture roundtable discussion concluded that European banks have the opportunity to develop innovative #transaction banking offerings using #virtual accounts, such as virtual #cash #management, to address changing market needs and create new business #models.
Jeremy Light, Head of Accenture Payments, EALA, speaking at the breakfast roundtable.
The roundtable, co-hosted with Cashfac (a leading cash management #technology provider), was organized in Amsterdam on January 31st, 2017 and saw participation from industry leaders from European transaction banks, as well as a trade body and a #fintech.
Accenture led the discussion by providing insights on the evolving transaction banking landscape and the promise of virtual cash management, and explored the role virtual accounts can play in driving a growth strategy for banks. Cashfac demonstrated the key capabilities enabled by its proprietary “Virtual Bank Technology” and illustrated how it has enabled transaction banks and corporate treasurers to realize their strategic ambitions.
The post Virtual cash management: A catalyst for new business models for European transaction banks appeared first on Accenture Banking Blog.
Rather than shuffle data from analytics to line of business apps, the analytics are getting integrated into the apps.
Tom Groenfeldt – Financial Technology
In this series, we’ve looked at new challenges financial firms face with regard to anti-money #laundering and #know your #customer regulations (AML/KYC). Our paper, Anti-money laundering and know your customer programs: Sustainability through managed services, and the companion SlideShare consider the various challenges facing firms. We hone in on workforce challenges, in particular, in Leveraging enhanced talent development programs to increase anti-money laundering workforce effectiveness.
There’s good news! In this series we’ve explored several options and alternatives for building a strong AML/KYC program and workforce, whether using home-grown talent, managed services or virtual help.
The question, though, is: How can an enterprise choose the #best, most appropriate solution for the set of concerns it faces? Should a particular process be handled by robotic process automation (RPA), a managed services team or an internal resource?
Continue reading the post What’s the best anti-money laundering and know your customer approach for your business? on Accenture Banking Blog.
The crowdfunding platform Indiegogo has moved its payment processing for not-for-profit campaigns to #Stripe, Bank Innovation has learned. Indiegogo’s for-profit payment processing already relied solely on Stripe, so this means all #credit #card payments on the crowdfunding platform now use the service built by the billionaire Collison brothers. Not-for-profit processing was formerly done by FirstGiving, […]
Bank Innovation
#Fintech, the marriage of finance and #technology, has been part of the business world for decades. In recent years, the explosion of innovation has brought even more attention to this sector. As a #small business owner, you should keep tabs on the fintech industry. Here’s a few #reasons why it&8217;sRead More
Bank Innovation
#Wirecard has crossed the pond and found the U.S. to still be the land of opportunity. After quietly acquiring Citi #Prepaid #Card Services for an undisclosed amount (in cash) in June, Wirecard is now gearing up for transaction volumes of $ 6 billion as early as 2017. The Aschheim, Germany-based payments processor expects thatRead More
Bank Innovation
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