Banks today face convergent disruption— an array of challenges that include tougher regulations, traditional and nontraditional competitors, and digitization.
To meet these challenges, banks need a next generation core platform capable of supporting three key operational building blocks for competitive advantage by 2020:
- Optimization and simplification
- Continuous innovation
And they need to consider new business models— emerging digital lenders, digital hybrids and retail correspondents— or transform themselves to become more digital, truly customer-driven and innovative at the core.
The stakes will be much higher in 2020, no matter which business model is pursued. But for lenders willing to develop a roadmap today, the opportunity exists to become an industry leader by both investing proactively rather than reactively and by embracing and integrating new technologies, channels and strategies.