Bank Governance Leadership Network, November 2019
Digital transformation efforts in banking are increasingly about rethinking longstanding approaches and expanding into new business offerings and models for delivering existing and new financial services. New models, such as platform banking and subscription-based models, and new data security services, have spurred speculation about the potential for banks to identify new sources of revenue and new ways of serving customers.
Questions persist regarding the scalability and sustainability of some of these models, and about the new entrants deploying them, yet the innovations in product and service delivery that are appearing across the ecosystem are already influencing traditional bank models. And although big tech players have not yet entered the industry as aggressively as some had expected, that may be changing. BGLN participants have taken note and are revisiting their own business models and strategies by entering new markets and business lines, introducing novel delivery channels, exploring more partnership opportunities, and leveraging technology in new ways that go beyond doing the same things faster and more efficiently.
On June 13 in New York and September 25 in London, BGLN participants met to discuss the potential for new business models to materialize in banking and related changes to operating models. The conversations covered the evolution from legacy models to new models, and the competitive landscape and expansion of partnerships.
This ViewPoints synthesizes the key themes which emerged from these discussions, and from conversations with network participants before and immediately after these meetings. The meetings also included discussions on innovative approaches to compliance. Themes from those parts of the discussions are summarized in a separate ViewPoints. This ViewPoints is organized around the following sections:
• Transformation efforts and new possibilities
• Ongoing changes to the ecosystem