Maximize revenue growth in retail banking
October 8, 2018
October 8, 2018
Traditional banking industry strategies for growth are struggling to keep their promise. The average operating income growth rate across the top 100 banks globally by total assets was one percent (based on three-year CAGR, 2014-2017 in U.S. dollars). Even in such a low-growth environment, igniting growth is possible. But only for those banks that truly understand and meet the imperative for customer hyper-relevance, winning at the point where customers and prospects evaluate their buying options. We call this Banking as a Living Business, where a bank focuses on deeply-personalized experiences to be hyper-relevant in the eyes of customers across multiple physical and digital channels.
The average operating income growth rate across the top 100 banks globally by total assets was 1%.*
*Source: Accenture research analysis on S&P Global Market Intelligence data
The spark for igniting growth is the way in which Banking as a Living Business operates. It can make good on every interaction to engage with and sell to consumers by taking on three market positions: become a Trusted Financial Services Advisor and progressively create ecosystem gateways, namely being an Orchestrator of Ecosystems and being a Participant in Ecosystems “On GAFA*”. By combining these three in a single gravitation force that draws in more consumer interaction and better converts on that interaction—empowered by eight key enabling capabilities—banks can maximize revenue growth well into the future.
Banks are moving to a Digital Driven Economy and an Open Ecosystem business model, as a variety of companies like Salesforce, partner to provide a much richer and wider customer experience. This means companies will start fulfilling the financial customer needs across different segments that incumbent banks and insurers cannot satisfy. Also, financial institutions will move from a Financial Life Management approach to another that looks to serve the customer in all aspects, while interacting with them in relevant life moments.
This report is part of the Banking as a Living Business Series.
DOWNLOAD REPORTBanks will need to focus on and activate key enablers of Banking as a Living Business to stimulate growth and increase Return on Equity. These range from a mobile-first approach, an application programming interface factory and AI-powered experiences to digital products and services. Fundamental to most of the enablers are flexible and scalable technology platforms that help banks respond and adapt quickly. Based on our experience and analysis, banks can aspire to achieve a number of key performance metrics, including double-the-market revenue growth and double the customer acquisition rate.
We are helping banks reap such rewards. Contact us to see how we can help you.
There is room for banks to achieve double-the-market growth, despite the industry dynamics.