A glimpse inside the retail bank of the future

Successful Workplace

coins-bankingIn previous blogs we referred to the operating models of retail banks by identifying certain product and channel features that drive the changes in the industry. This post will focus on the evolving operating model and the impacts it has on people, process and enabling capabilities, which is more than the technology that drives most of these changes.

A recent Accenture paper explains why the current branch-based distribution models are no longer sustainable when banks are faced with a triple challenge to their traditional operating model:

  • Restoring customer trust and engagement
  • Defending their payments business against new entrants (including online, mobile and tech companies)
  • Avoiding commoditisation of their products and services

We will explore the operating model impacts in the following layers of a simplified business architecture:

  • Channels
  • Features & Processes
  • Systems & Infrastructure

operatingmodels2Let’s discuss how each layer of the target operating model will be affected by the anticipated…

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Big Data in financial services – State of the Nation

First published on Successful Workplace

Successful Workplace

Big Data in Financial ServicesThis week I was fortunate to attend the 2nd Big Data & Analytics Conference, organised by IQPC and PEX Network in London. The following are my take-aways from what appears to be a relatively confused landscape of business intelligence professionals, data architects, technology providers, and system integrators:

1. Whole market solutions – Financial Services institutions are looking more to data to create ‘whole banking’ and ‘whole market’ solutions, away from historically silo-ed asset class or product-oriented data stores and applications – this suggests there is a strong case for big data solutions that allow business and IT to manage and analyse transactional data across the enterprise.

2. Resistance to public Cloud – An increase in analytical capacity, given the huge amounts of data that can now be brought into a big data solution, does not lead to bringing FS data into public clouds, like Amazon Web Services, any time soon…

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Retail banks should take a lesson from omni-channel retailers

The quest for omni-channel excellence continues…

Successful Workplace

Omni Channel Retailers teaching banksIn a previous post I commented on the lack of innovation in retail banking in the UK and in other European countries. Riding the waves of the digital revolution, there is no doubt that most retailers will eventually adopt an omni-channel (‘OC’) approach to customer service. But is this equally true for retail banks?

With ‘omni-channel’ (‘OC’) increasingly being used in the context of both retail and banking, it begs the question if both OC business models have much in common. From personal experience and from what has been written about the two sectors, they certainly have a lot in common. This article highlights how they compare. What makes OC banking more challenging than its retail counterpart and more importantly: do customers expect the same kind of experience from their banks as they already demand from the digitally advanced retailers?

When buying products online, savvy retail customers are inclined to…

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Without a new approach, new banks are no better than old

Successful Workplace

This blog post looks at the promise of new entrants into the UK retail banking sector. It also discusses in general where retail banks should focus on in order to stay competitive in an industry that is marked by ever more assertive customers and disruptive technology changes.

There is always a sense of expectation when a new challenger appears in the rusty old world of financial services. Over the past five years we had the arrival of an eclectic bunch of newcomers to the party in the UK:

  • Metro Bank (2010), offering more transparency and a better service to customers
  • Virgin Money (2012), establishing full retail banking services capitalising on the Virgin brand
  • Handelsbanken (1973), but only recently gained critical mass, Swedish vintage banking without overheads, focused on personal relations with branch management and staff
  • Co-operative Bank (2009), not new but tripled number of branches buying Britannia Building Society, one…

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