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  • user 3:35 am on March 15, 2018 Permalink | Reply
    Tags: , , Creating, , , , , ,   

    European banks face challenges in creating future value 


    seen as lagging in their digital transformation program saw a decrease of 11% in

    When it comes to future value for shareholders, banks are lagging badly behind GAFA (Google, Amazon, Facebook and Apple) companies, and they also trail financial () companies. Our analysis of Capital IQ data in 2017 indicated that future value represents 49% of the total value of GAFA companies and 40% of the total value of fintech companies, with “future value” defined as the premium investors are willing to pay beyond the value of current operations.

    Future growth value of banks launching an aggressive digital transformation program was 20%, but banks seen as lagging in their digital transformation program saw a decrease of 11% in future value. Clearly, innovation is a key driver for creating future value in banking, but banks cannot simply snap their fingers and magically transform themselves into innovators.

    Our experience shows that there are five key steps to creating future value through innovation:

    1. Become a data-driven organization.
    2. Create a culture that is both open and agile.
    3. Align customer experience and user experience to principles established by GAFA companies.
    4. Drive innovation with an eye to attracting talent and reshape roles (such as moving into new areas like artificial intelligence).
    5. Transform compliance requirements into business opportunities.

    Getting on board the digital transformation train is not easy, as the pace of change is accelerating. To capture trapped value, banks need a disciplined, systematic approach to change, acknowledging that change is a constant evolution rather than a single event. Speed is becoming the critical factor for both decision-making and transformation.

    Banks need to transform their core businesses, determining what is required just to stay viable, and then what is needed to increase profits. But they should no longer be thinking in terms of moving from phase to phase. Rather, they should create an innovation architecture and work on getting the timing, scale and direction right, so that they can manage the investment process and the allocation of capital in both core and new businesses. The ultimate objective should be a circular path of growth and renewal.

    It is worth keeping in mind that banks cannot succeed at digital transformation without a) identifying, training and retaining the right people and b) helping their people understand and adapt to the of the digital era. The order of magnitude of the hiring, training and adapting involved is far beyond anything banks have experienced so far. Banks, as well, have a social responsibility to deal fairly with their employees. I will discuss these and other “people” factors in my next blog.

    The post European banks face challenges in creating future value appeared first on Accenture Banking Blog.

    Accenture Banking Blog

  • user 12:18 am on December 30, 2016 Permalink | Reply
    Tags: , , Creating, , , Patenting,   

    Creating a ‘Blockchain Industry:’ Patenting the Blockchain 

    Patent filings for have more than tripled since 2014; this spike includes patents filed by exchanges such as Coinbase, payment processors like Mastercard, and like Goldman Sachs and the Bank of America. According to a report conducted by law firm Reed Smith, the most popular areasRead More
    Bank Innovation

  • user 12:18 pm on October 28, 2016 Permalink | Reply
    Tags: , Creating, , , Tink,   

    Creating the virtual bank – Tink makes the Fintech 100 

    This week saw the release of The 100, a collaborative report put together by H2 Ventures and KPMG. The report takes a global look at the 50 established fintech businesses and 50 emerging stars and is a must read for anyone wanting to understand the industry landscape. Behind lendingRead More
    Bank Innovation

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