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Smarter Money

Ones and zeroes can help the world be smarter about dollars and cents

Banking on—and in—the future

Though the global economy is still shaking off the effects of the past and current financial crises, banks in both emerging and developed economies have an opportunity to manage enormous capital growth and wealth creation. To regain customer confidence and earn their slice of the increasingly competitive market, banks must transform themselves.

Smarter retail banking. Watch the video.

Smarter retail banking
The banking industry has to fundamentally reorient their business models, by moving from product-centric silos to customer-centric strategies. See how it's done. Watch the video (00:05:22).

2.5v people, half the world's adults, do not currently use formal financial services to save or borrow. Bans will have the opportunity to manage this global growth in wealth. Source: Boston Consulting Group, Socio-Economic Impact of Mobile Financial Services, (April 2011)

At the same time, the needs and nature of the financial services customer base have shifted dramatically. Today, 2.5 billion people―or half the world’s adults―don’t use formal financial services to save or borrow.1 Banks are struggling to regain the trust of customers, counter-parties, regulators and governments after the tumult of the financial system in 2008.

In a competitive landscape that favors the fastest and the smartest, banks and financial services firms that invest in systems for sophisticated insights and predictive analytics will be better positioned to emerge as market leaders. There are new ways to understand your customer better, have more information for risk decision-making, and develop products precisely for the needs of the customer.
Here’s how we see it happening.

A series of conversations for a smarter planet

Globally, 44% of customers say their confidence in the banking industry has decreased. Source:,2011


Four imperatives for banking transformation

Attract and retain customers

Make your customer an organizing principle to re-align data insights, operations, technology and systems.

IBMRevolution of the Customer Focused Enterprise
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IBMBank on the Customer
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Increase flexibility and streamline operations

React faster to changing market conditions while creating long-term sustainable differentiation in the marketplace.

IBMCore Banking Modernization: an Overview
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Watch the video.Customer innovation and growth in financial services
Watch the video (00:03:58)

Drive innovation while managing costs

Financial institutions who have transformed the way they innovate their payments and transaction processing, and effectively manage costs are gaining a sustainable advantage.

IBMNew Business Models for Transaction Banking
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Address risk and regulations

Maximize return on equity, combat fraud and mitigate operational risk while achieving compliance objectives.

IBMCompliance Uncompromised
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Watch the video.Integrated risk management in banking
Watch the video (00:05:20)

41% of financial services executives indicate major or transformational levels of change need to occur to meet three year profitability margins.

1 The Financial Access Initiative, a consortium of researchers at New York University, Harvard, Yale and Innovations for Poverty Action, "Half the World is Unbanked," (October 2009).