Page 2 - index
P. 2
2
It is time for retail banks to change. Current branch-based distribution Accordingly, each bank needs to define
Faced with a daunting array of models are no longer sustainable in its own target business model in light
market, regulatory, customer, cost and most developed countries and are unable of its history, market, positioning,
operational challenges, many banks are to meet the rapidly evolving customer ambitions, etc. We think there are three
struggling to post even moderate growth. needs and requests for easy access and business models banks should consider
simplicity across their banking services. when defining their own model:
Projected revenue growth rates, according
to an Accenture analysis of 2011-2014 Accenture believes there is a clear path 1. One that builds on enhanced
business plans for a group of 30 global forward for banks that begins with the multichannel experiences to
banks, estimate 6.5 percent average shoring up of core business operations to engage customers and meet their
growth (4 percent Europe/North America improve efficiency, customer relevance and financial needs effectively (the
average) following -0.5 percent retail profitability—in other words, “doing the “Intelligent Multichannel” Bank),
revenue growth for 2008-2011. Bankers basics right.” While some banks may excel with the strategic application of
are beginning to realize that it will be a simply by improving on the basics, including analytics at the core of this model
challenge to meet these growth targets and “smart-sizing” their distribution networks, 2. One that leverages social media
know they have to win three critical battles: others need new business and operating interactions to increase customer
restoring customer trust and engagement, models to compete and grow going forward. intimacy (the “Socially Engaging” Bank)
defending their payments business Keeping one eye on the present and one eye
against progressive disintermediation on the future is the key paradigm we have 3. One that places the bank at the center
from new entrants (e.g. Google Wallet, defined as “Banking 2016—Next Generation of an ecosystem selling financial and
PayPal) and avoiding commoditization. Banking”, drawing inspiration from some non-financial services, leveraging
notably innovative retailing models. in particular the power of mobile
technology (the “Financial/Non-
Financial Digital Ecosystem” Bank)
The money on the table can be significant.
A bank working aggressively to implement
all three of these business models can
double its annual revenue growth rate
(from 4 percent to 8-plus percent in
developed markets) while reducing its
cost to serve by 20 percent or more.
Regardless of the models being pursued,
bank governance overall must evolve,
giving appropriate weight to customer
metrics in the key areas of reputation,
commercial performance, service
performance, sales performance and the
capabilities required to support them.
Accenture Distribution and Marketing ServicesAccenture Distribution and Marketing Services
It is time for retail banks to change. Current branch-based distribution Accordingly, each bank needs to define
Faced with a daunting array of models are no longer sustainable in its own target business model in light
market, regulatory, customer, cost and most developed countries and are unable of its history, market, positioning,
operational challenges, many banks are to meet the rapidly evolving customer ambitions, etc. We think there are three
struggling to post even moderate growth. needs and requests for easy access and business models banks should consider
simplicity across their banking services. when defining their own model:
Projected revenue growth rates, according
to an Accenture analysis of 2011-2014 Accenture believes there is a clear path 1. One that builds on enhanced
business plans for a group of 30 global forward for banks that begins with the multichannel experiences to
banks, estimate 6.5 percent average shoring up of core business operations to engage customers and meet their
growth (4 percent Europe/North America improve efficiency, customer relevance and financial needs effectively (the
average) following -0.5 percent retail profitability—in other words, “doing the “Intelligent Multichannel” Bank),
revenue growth for 2008-2011. Bankers basics right.” While some banks may excel with the strategic application of
are beginning to realize that it will be a simply by improving on the basics, including analytics at the core of this model
challenge to meet these growth targets and “smart-sizing” their distribution networks, 2. One that leverages social media
know they have to win three critical battles: others need new business and operating interactions to increase customer
restoring customer trust and engagement, models to compete and grow going forward. intimacy (the “Socially Engaging” Bank)
defending their payments business Keeping one eye on the present and one eye
against progressive disintermediation on the future is the key paradigm we have 3. One that places the bank at the center
from new entrants (e.g. Google Wallet, defined as “Banking 2016—Next Generation of an ecosystem selling financial and
PayPal) and avoiding commoditization. Banking”, drawing inspiration from some non-financial services, leveraging
notably innovative retailing models. in particular the power of mobile
technology (the “Financial/Non-
Financial Digital Ecosystem” Bank)
The money on the table can be significant.
A bank working aggressively to implement
all three of these business models can
double its annual revenue growth rate
(from 4 percent to 8-plus percent in
developed markets) while reducing its
cost to serve by 20 percent or more.
Regardless of the models being pursued,
bank governance overall must evolve,
giving appropriate weight to customer
metrics in the key areas of reputation,
commercial performance, service
performance, sales performance and the
capabilities required to support them.
Accenture Distribution and Marketing ServicesAccenture Distribution and Marketing Services
