Google, Apple, Facebook and Amazon (GAFA) have become masters at exploiting customer-created value.
DIGITAL TRANSFORMATION IN BANKING
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Beyond the Everyday Bank
How a GAFA approach to digital banking transformation will change everything.
WHY GAFA? WHY NOW?
Consumers – especially those in their 20s and early 30s – are becoming increasingly receptive to having their banking services provided by a non-traditional financial services company.
Now is the time banks need to figure out how best to compete in the emerging consumer-to-business (C2B) era.
DIFFERENT ROLES A BANK CAN PLAY
Banks can learn much from GAFA about the innovative ways in which
to position themselves in their customers’ lives. In particular, they
should consider operating across a combination of the following roles:
Relationship player
The bank owns the relationship with customers, leveraging partners to provide solutions.
Platform provider
The bank provides a platform for sellers, buyers and content providers to interact.
Core financial services utility/manufacturer
The traditional role of banks in providing financial services.
Innovation playmaker
The bank participates in digital banking ecosystems leveraging a full spectrum of approaches to provide capital and to enter new businesses.
Digital ID enabler
The bank operates a secure platform offering consumers access to digital commerce.THE GAFA BANKING APPROACH: GO DIGITAL. BE DIGITAL
Digitally powered financial platforms
Offer physical and digital choices that are easy to access and use.
Experiential living services
Develop platforms that fulfill the needs of consumers’ everyday lives through partnerships with other firms.
New businesses
Explore new territory such as data monetization and services using blockchain.
DIGITAL ENABLERS
Banks need to develop and deploy four important digital components:
Diffused digital culture
An Enterprise wide digital culture led by leadership.
Liquid customer engagement
Customer engagement and relationship management that is flexible and agile.
Digital IT architecture
Connected, embedded with robotics and cognitive computing and uses distributed consensus ledgers and smart contracts.
End-to-end process digitization
Digital processes are everywhere including back-office tasks.
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