Three key themes for banks to save themselves: Accenture has highlighted three key themes about whether the banks are going to disrupt their business model or are on the verge of reimagining the whole organizational structure digitally. However, the global investments in the Fintech ventures are on the rise.
According to Accenture, investment in these ventures tripled to $12.21 billion in 2014 against $4.05 billion in 2013, reflecting the increase in the interest of the financial services industry players. In this regard, Accenture interviewed the top 25 executives who are involved in these ventures. These prominent personalities have charted out the following three broad themes:
Openness: The organizations are taking external technology solutions, knowledge capital and resources rather than depending on their own intellectual capacity. On the other hand, the organizations are also opening up their intellectual property, assets and expertise to outside innovators to help generate new ideas, change organizational culture, identify and attract new skills, and discover new areas for growth.
Collaboration: Previously, organization used to engage themselves in partnerships or joint ventures in the area of their competencies and expertise. However, now the organizations are collaborating in the areas that are outside their scope of activities. Thus, the firms are beginning to partner with firms in new industries in order to generate value.
Investment: This is the key feature that is at the heart of new innovative financial start-up. Now, more than ever, established players are financing these new start-ups in order to complement their operations with the products of these start-ups.
By incorporating these themes the banks are disrupting their own business model and getting ready for the future challenges rather than sitting on the sidelines and watch their impending doom.
The report clearly indicates that the future challenge or risk for the banks won’t be the rise or fall of interest rates rather it would be their ability to embrace openness, collaboration and investments in the technology firms that would save them from the obsolescence.
