Creating a More Digital, Resilient Bank
It’s safe to say that in banking, disruption is now here. Innovations that were bleeding edge just a decade ago—such as robotic process automation, machine learning, artificial intelligence, and cloud computing—are joining the mainstream. Likewise, fintechs, bigtechs, and digital leaders that emerged during the past decade have already begun to form strategic banking partnerships and to carve out specialized niches. As transformation accelerates, open banking, instant payments, and other advances will create enormous value for fast-moving institutions—while disintermediating those that move too slowly.
Yet as the banking value chain breaks up, banks will get the opportunity to reposition themselves. They will likely pursue a mix of strategies, such as becoming platform leaders, being specialist providers, and promoting infrastructure-as-a-service offerings. The cost basis will also change, and banks will need to be leaner and more efficient if they are to compete effectively against digitally mature peers and fintechs. Overall, banks are reaching an inflection point. While outside forces may have dictated the path in the post-recessionary period, banks now have an opportunity to lead the way.