Banks can lower costs and enable growth through service model innovation—especially when applied in concert with sophisticated marketing, analytics and integrated multichannel distribution.
Changes in the banking landscape have placed a spotlight on innovation. Trends such as increasingly demanding customers, banking retailization, and the evolution and revolution of retail banking have rendered current bank service models unsustainable. To position for success in the future, banks require new and innovative business models.
Banks must focus on several model dimensions:
Value-chain innovation and the development of alliances to extend reach.
Marketing and distribution innovation that leverages analytics, multichannel integration and digital marketing.
Product and service innovation, reorganized by customer need with a focus on simplicity and transparency.
Creating new opportunities for business.
By developing a sound strategy based on innovative service models and differentiated capabilities, banks can gain wallet share, decrease cost-to-serve ratios and sustain growth.