The importance of understanding where your expertise lies

Video feature

14 November 2017

In a special video interview for Efma, Alan McIntyre, senior managing director at Accenture, outlines the changes banks are undergoing to compete in the financial services industry and explains what banks can do to better serve their customers including determining who they want to serve.

“I think one of the important things for banks to do is make clear choices about how they want to compete in the digital economy. In the past banking has been somewhat protected and vertically integrated business, and one of the things that’s changing through both technology and also through regulation is the traditionally integrated bank is being chopped up into pieces” says McIntyre.

He explains that banks need to decide how much of the customers need set they want to serve as they must focus on this rather than trying to fulfil all the roles available.

“Many traditional universal banks have tried to be all things to all people; they’ve tried to satisfy everything from mass market through to large corporate. That’s one dimension, do you want to serve everyone or one particular segment or niche,” he says.

McIntyre adds that “the other choice is how much of the value chain do you want to participate in, traditionally banks have had their balance sheet, their manufactured product, they’ve controlled distribution, they’ve tried to control as much of the value chain as possible. Now I think there are opportunities to just be a front end manager, to be a back end utility player. So I think the combination of those two dimensions gives you lots of different options.”

He concludes by explaining that regarding the options banks have, “there is a default option where ‘we will just keep being what we’ve been in the past’ and I think if you look outside financial services, the level of disruption in the media in entertainment in retail suggests that an evolutionary approach of just being what you’ve always been may not be enough”

Watch McIntyre interview:

Keywords : Business strategy/Model , Bank Products & Services

Geography : International