C-suite employee to oversee a team that is responsible for “ecosystem intelligence", being proactive to keep an eye on signs of emerging disruption.
Banks in the present scenario need to think beyond everyday banking thanks to budding digital ecosystems that are causing economic disruptions and pushing banks for next major stage of banking technology - beyond the present advancements of mobile payments, digital loans and other financial services.
Banks are the top third industry to have digital disruption. And one-third of bankers believe that established banks are most likely to face the greatest risk of disruption, states the latest Accenture report. The disruptions are going to affect the market so much that more than 80% bankers said that organizations are increasingly pressed to reinvent themselves and evolve their business before they are disrupted from the outside or by their competitors, as per The 2016 Accenture Technology Vision for Banking Predictable Disruption.
Another 85% of bankers said that industry boundaries for banks are being erased and new paradigms are emerging with every industry being significantly impacted, as per the report.
Nearly half of the bankers globally (45%) said that financial services companies are going through significant digital business transformation or digitally-enabled change and 27% believe that Internet of Things (IoT) will cause a complete transformation of the industry.
Banks have certainly seen their share of disruption over the last few years—from online banking to peer-to-peer lending to blockchain based payments and money transfers, etc. With increasing ties to industries and business models but for coming disruptions, banks need to gain a proactive grasp on the upside of disruption, as per the report.
“Each bank’s journey will be unique, and the rewards will go to those that can foresee disruption and be proactive” quoted the report.
The 2016 Accenture Technology Vision for Banking Predictable Disruption highlighted these strategies to stay ahead of the disruption:
Appoint a C-suite employee to oversee a team that is responsible for “ecosystem intelligence", being proactive to keep an eye on signs of emerging disruption, engage with industry experts, look for upside opportunities and champion responsive strategies to protect the bank’s future.
Maintain an inventory of the ecosystems related to or relying on your business and prioritize the list according to those with the greatest potential for risks against and rewards for your organization. Hold ongoing conversations among bank leaders on how the ecosystems might reshape the banks’ strategy.
Challenge your team to develop innovative ideas on how to use emerging digital ecosystems. Envision your competitive position, new value chains, and new use cases for the ecosystems where you plan to compete.
- Craft the strategy that will bring these ideas to fruition. Start to line up the resources, stakeholders, and investments necessary to forge this new path.