We understand that a complete
transformation to a new digital business
model is not realistic for many banks.
They have too much institutional heritage
and momentum tied to their existing
model, and in many cases they may lack
the investment capital and risk-tolerance
required. However, doing nothing as the
market undergoes such radical shifts means
that this segment will lose market share
and experience a continued slowdown in
revenue growth. In addition, they will find
themselves competing against a wave of
new upstart competitors, which will have a
built-in financial competitive advantage in
the form of lower operational costs.