Changing Tides: How Banks will Transform by 2020

Changing Tides: How Banks will Transform by 2020

New technologies are rapidly becoming more and more recognized by bank executives as both a major value-add for customer experiences, as well as an enabler of more effective operations.

In a world of accelerating change, banks are clambering to determine how to position themselves for success. What should retail banks focus on over the coming years?

On the whole, retail banks only have two options going forward, and they will need to decide which path they will take. Will they strive to innovate and shape the future, or ignore change to maintain business as usual?

The pace of change is increasing and banks need to do more than ever to ensure they are well-positioned to succeed in the future. PWC released a comprehensive report on the financial and technological climate that banks will experience as early as 2020. The PWC report identified several priorities for banks to succeed going forward.

Developing a Customer-Centric Business Model

By 2020, banks that succeed will transition to a customer-centric business model, in which all of their operations are tailored to the unique demands of the customer’s personal experience.

Rather than organize based upon channels or products, customers will see banks as places where their needs are met rather than places they are pushed into products.

Simplifying Business and Operating Models

By focusing on the customers, banks can work backwards to analyze their operations and simplify the staggering complexities that most are faced with today.

Complicated processes, technology, and back offices all contribute to an operation that can be simplified to create better service, profitability, and lower costs. Additionally, often times these complexities interfere with the customers’ experience, creating frustration and suboptimal retention rates.

Enabling Innovation, and the Capabilities Required to Foster it

Today, banks aren’t looked at as sources of innovation, but rather entrenched organizations that are slow to change. But if you’re in a major retail bank, you know this is quickly changing.

A widespread recognition is emerging that partnerships third-party relationships may be the most effective way for banks to reap the benefits of innovation.

By looking to other ecosystems to capitalize on their innovation, banks can leverage relationships and integrate innovations without having the burden of developing in-house.

How important is innovation?

PWC’s survey shows companies rated the most innovative anticipate experiencing growth of 62% compared with the global average of 35%.


Banks are hungry for growth. Enhancing customer service is the number one priority for banks globally. Banks need to be willing to recognize the need for change, anticipate what will best serve their needs, and become excited at the prospect of integrating technologies that will empower them to succeed in this truly opportunity-rich landscape.


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