Skip to main content Skip to Footer

Banks get agile to improve customer experiences while reducing fixed costs

Pop-ups, pods, scrums and sprints are the new agile banking models.

OVERVIEW

According to Accenture analysis, retail banks spend 50 to 70 percent of their cost base on distribution models that cannot give them a competitive edge.

In the digital banking era, retail banks can defy convention and help grow market share through other means than branch network expansion. How? With agile distribution and marketing.

Moving from antiquated to agile demands big changes to the very core of distribution and marketing—from the branch network and digital channels through people, processes and enterprise technologies. By thinking big, starting small and scaling fast, agile banks can reduce fixed costs, grow revenue and improve the customer experience.

ANALYSIS

Retail banks are in an excellent position to make the transition to agile distribution and marketing because they already have three elements:

Digital and physical

1. Digital and physical

Unlike digital-only competitors, traditional banks combine the digital and physical.

Analytics insights

2. Analytics insights

With the right customer data, banks can create and test real-world scenarios to define markets, product format and customer micro-clusters.

Innovation jumpstart

3. Innovation jumpstart

An affinity for collaboration positions banks to evolve by purchasing start-ups or white-label capabilities to integrate into the value chain.

RECOMMENDATIONS

Being agile means working agile. To do this, banks must introduce agile practices into the distribution decision process:

Using highly-granular techniques to define markets, segment customers and improve channels.

Using highly-granular techniques to define markets, segment customers and improve channels.

Offering modular, features-driven products so customers can curate their own best-fit product offers.

Offering modular, features-driven products so customers can curate their own best-fit product offers.

Relying on dynamic market forces and customer feedback loops to shape products.

Relying on dynamic market forces and customer feedback loops to shape products.

Being willing to work from available data instead of getting stuck in the race for perfection for data that takes months to collect.

Being willing to work from available data instead of getting stuck in the race for perfection for data that takes months to collect.

SUGGESTED CONTENT