The disruptors in the banking industry are rewriting the rules followed for decades. But, these new rules will only suffice until the next wave of disruption comes along. As a result, banks and credit unions must be agile and responsive. Bold strategies are required.
Digital disruption is occurring at every level of the financial services industry. New competitors, new channels, new processes and new consumer expectations are shifting the banking industry paradigm. In response, banking executives are balancing the need to be an agile responder, while realizing that many of the changes required will take time.
“Instead of the traditional bell curve response of a typical product or service life cycle, a series of quick-fire innovations has produced a ‘shark fin’ business model, where disruptive products or services are embraced and discarded in fast succession,” Accenture states in their report, ‘Digital Strategy Execution Drives a New Era of Banking‘.
Disruption in banking continues to be a hot topic across the industry for banks and credit unions, as well as for payments and technology providers. And much of this disruption is occurring from with the latter two groups, offering novel solutions to pique the interest of banking customers – particularly millennials.
This is why it is so important for financial institutions to be vigilant in their periodic assessments of their markets, and consider making bold actions, including partnerships and/or acquisitions of promising solutions, that could allow them to better serve their customers and members.
Overview by Ed O’Brien, Director, Banking Channels Advisory Service at Mercator Advisory Group
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