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The future of banking: Time to rethink business models

November 9, 2021

4-MINUTE READ

In brief

An age-old model gets turned on its head

There’s value in going non-linear, our report shows

76%

digital-only players with non-linear models.

44%

digital-only players emulating traditional vertically integrated models.

<2%

traditional banks with vertically integrated models.

Crafting a kaleidoscope of business models

Sell the bank’s own products

Control all layers of the value chain, from manufacturing to distribution, in a traditional model of vertical integration

Build a distribution-driven ecosystem

Distribute financial products of all kinds from other companies, or even non-banking products.

Sell banking capability as a service

Reach scale by manufacturing technology or business processes that are invisible to end-clients.

Create new propositions through bundling

Build or package fragmented micro-products or products for distribution through other companies and digital experiences.

By rethinking their business models and embracing the innovative strategies of digital-only banking and financial services new entrants, banks could boost revenues by nearly 4% annually.

Michael Abbott

Senior Managing Director – Global Banking Lead


Alan McIntyre

Senior Industry Director – Banking


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