The past decade has already seen a lot of industry structures being redefined with leaders going bust and new age companies taking their place. One of the industries that seems to be on the cusp of going through a similar upheaval seems to be the banking industry. If you look at what a bank does at its core, it is only two things: Collect money...
01 September 2016 Innovation in Financial Services
If you happen to notice of late, all banks now have been relegated to a commodity status. It doesn't matter which bank you want to do business with, you will find that all of these banks offer very similar services, with very similar fees. We can use our ATM cards on the ATM machines of any bank. All banks offer internet banking, some easier to u...
27 May 2014 Finance 2.0
Can banks transform themselves to remain relevant both in the financial economy and for the network economy? Traditionally, the role of the banks have been to be collect money from people who have money, aggregate the same and loan out the money to people who needed it. The banks were needed as there was no way that people who had money could know ...
30 August 2013 Innovation in Financial Services
Totally agree. I am actually surprised at the number of banks still doing business, with no clear differentiators!
Maybe one way to differentiate for banks could be to charge for transactions. What can they do to get their customers to pay for the transactions?
I think that the low trust for banks is due to their own mistake. Cost savings and improved efficiencies drove all banks to discourage their customers to visit their branches and hence driving banks to become the faceless, heartless corporate machinery. And once that happens, the trust level automatically goes down.
In my opinion, retail banking is in for an overhaul sometime soon in the future.
27 May 2014 19:13 Read comment
Great blog post with some interesting thoughts.
18 Sep 2013 06:01 Read comment
Another thing that the banks can do is to connect their various customers and enable commerce between these customers. This opens up another source of competitive advantage for the banks. If done well, this can create a viral growth as the value of the network will grow exponentially with every additional node and will become more and more difficult to break this network --> Sustained competitive advantage for the bank that gets this right the first time.
31 Aug 2013 04:35 Read comment
Finance 2.0
Innovation in Financial Services
Roshan SequeiraDirector at IQN Data Solutions Private Limited
David ParkerDirector at polymath consulting
M RDirector at Halo
Derek DempseyDirector at Empyrric
Ben BoorerDirector at Secretariat
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