In this scenario, banks and non-bank entrants with the “best offense” will win. This is a time to reinvent and reposition by embracing disruptive technologies, expanding into new markets, and enabling customers to seamlessly access products and markets powered by a “wow” digital experience.
Success requires in-house product innovation and a seamless multichannel delivery capability supported by strong customer and product analytics. In addition, an agile operating model is needed that delivers rapid time-to-market for new products and quick growth into new regions.
To remain cost competitive, partnerships with nontraditional competitors will provide expanded marketplace reach. Some of these investments will be monetized by conversion into utilities for other banks to use where they lack the scale or capability to provide their own platforms.