March 31, 2015
Corporate and retail banks are facing competition from innovative business models and new competitors. Historically, banks have innovated slower than other businesses, however additional pressure is now being added by shrinking margins and tighter regulatory requirements. Innovation is the key to growth and competitive differentiation. The banks most likely to survive are those that are willing to effectively develop new products, services, and channels in response to the changing market environment.
To date, the banking industry has not seen much disruptive innovation aside a couple of peer lending services, the only mild threat to conventional banking thus far. New banking technology and platforms are driving innovation in financial services.
To this point, the Internet has been at the forefront of channel innovation but now other revolutionary channels are emerging. It is processes, rather than a breakthrough…read more
By Alexander Rauser