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
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).
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
Four imperatives for banking transformation
Make your customer an organizing principle to re-align data insights, operations, technology and systems.
React faster to changing market conditions while creating long-term sustainable differentiation in the marketplace.
Financial institutions who have transformed the way they innovate their payments and transaction processing, and effectively manage costs are gaining a sustainable advantage.
New Business Models for Transaction Banking
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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," http://financialaccess.org/sites/default/files/publications/Half-the-World-is-Unbanked.pdf (October 2009).