No matter how banks undergo the journey to sustainable competitive advantage, or what business model banks choose to pursue, they should start to re-rig their ships for success today.
In choosing the right business model, there is no one-size-fits-all solution. The right approach may be a custom solution in which different business models are adopted for different business units, depending on the market requirements within that sector.
Banks can begin the journey to success in 2020 by implementing three building blocks to sustainable competitive advantage:
Optimization and Simplification. Be as efficient and effective as possible in current structure.
Agility. Be able to seize the opportunities in times of change.
Continuous Innovation. Have the ideas, vision and leadership to proactively stay ahead of the market
To capture the emerging opportunities in this era of convergent disruptive forces, traditional full-service banks must shift their operating philosophy from a product-oriented organization to a customer-driven organization able to engage with customers anywhere, anytime on their terms. Most fundamentally, they must embrace and integrate new technologies, channels and strategies.