We project that traditional banks could lose more than one-third of their market share by 2020, either to banks partnering with new entrants (such as Google, Apple, or Amazon) or to “adopters” (current players that adopt new business models, such as large banks today that become highly
digital and agile). Given this competitive threat, it is critical for traditional full service banks to proactively decide how best to compete in order to protect and grow their business
To be clear, many traditional full-service banks will succeed by advancing their existing business models and combining them with superlative execution. However, we think three new models will also emerge as highly successful, competitive strategies by 2020.