Forward by Deloitte,
The entry barriers to traditional Banks have been disrupted with new specialized entrants and emerging business models which have blurred the lines between business and technology. The traditional approach to creating value in Banking through growth and efficiency and advantages realized through acquisition, new markets and product offerings will likely be short lived. A Bank's ability to manifest opportunities out of the disruptive environment based on Technology and external partnerships to create customer value will determine its success in the future.
With several new players entering the banking scene, the sector is set to witness unprecedented changes in the times to come. The Financial Inclusion agenda has led to several types of banking models–small banks, payment banks, and on tap license for new banks. The agenda has also taken a step forward to include new non-bank players in the Fintech space who are vying to grab a larger share of the Banking value chain. While, on the one hand, this allows last mile connectivity and lowering of cost to the end customer, it causes huge disruption in the banking environment, possibly leading to a realignment of players in the market as we look ahead to the year 2020.
"Banking on the future : Vision 2020" select key changes that banks need to make in their go-to market approach, starting with shortening their strategy cycles to months instead of years, getting better at reading signals of change in this disruptive environment, and becoming tactically focused on being operationally lean and agile in response to market conditions. This will result in choices being made to adopt or partner with fintech businesses offering digital interactions and to accept that there are alternatives to core legacy IT systems offering greater speed to revenue generation, effective operations and better customer experience. Technology has democratized businesses by creating access across all levels and by creating a level playing field.
This Report provides a broad view of the shape of things to come by focusing on Payment Banks as a model and on Mergers & Acquisitions as a route to consolidation and growth. The report emphasizes the role of Technology and touches upon Cognitive and Artificial Intelligence, Robotics Process Automation, Block chain and Fintech as emerging areas.
Download >> Banking on the Future: Vision 2020
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