In an earlier post I talked about risk management spending and whether money is being allocated to the right places.
Managing the investment across finance, risk and technology is important, but it isn’t the only step banks and financial institutions should take. Nontraditional players are entering the market and digital technologies are upending traditional business models in unexpected ways. While it is tempting to think we can simply band together as an industry and devise a strategy for “riding out the storm,” that option simply is not available.
Financial technology (FinTech) companies are bringing new solutions that can help banks and financial institutions keep pace in a market that seems to be changing at the speed of light. In this video are examples of creative new solutions enabled by new technologies.
The model Accenture recommends is what we call the Everyday Bank approach, in which a bank becomes central to its customers’ every day and more significant financial needs. Banks know more about the financial positions, structures, needs, behaviors and patterns of their client base, more than any other institution, thanks to digital technologies and the resulting analytics they capture. Banks can help build ways to become a financial center to customers—to change the relationship between customers and their financial services providers.
In my next post I’ll look at some of the next steps banks and financial services providers can take to pave the way for the future. Please also see other snippets from my talk at RiskMinds, or view the presentation slides.