The pace of change we are witnessing today in the banking industry is unprecedented. The banking ecosystem is constantly evolving as new players enter the market, new regulations are imposed by the regulators and institutions, and new technologies disrupt consumers’ banking expectations and perceptions. Banks now, more than ever, must redefine their business models to rapidly adapt to these changes rather than just focusing on building bigger ‘digital’ banks.
In the past, banks typically have focused on digitizing their legacy systems to improve the customer experience, decrease costs and manage their risks. We believe banks in the future will adopt entirely new operating and business models, evolving to better face the opportunities that digitization offers.
Banks will need to define their role in the ecosystem and determine if they should provide products and services, customer experiences, or banking operations and technology. This will involve speculation and scenario analysis: what will the relevant ecosystem look like, who are the disruptors, and what are the medium-to long-term trends?