Key Ways Big Banks Can Accelerate Innovation

Most new entrants are technology firms of all sizes that are looking revolutionize the banking industry as they revolutionized almost all major industries in the past 15 years. These firms apply concepts such as artificial intelligence and 24/7 connectivity to create innovative ways of performing tailored banking operations at lower cost and with greater convenience for the consumer. Retail banks however have an opportunity to maintain relevancy over the upcoming decade, but in order to do so they must harness technology either through in house innovation or partnerships to accentuate they’re current competitive advantages such as personalized

Let’s take a look at what this game changer in the banking sector has to offer.

The change and advancement in technology are a significant factor in the banking business. Technology has led to tremendous improvements in this industry. Since the commencement of this millennium, people have shown great love for their mobile phones (Ozaki 1992). It necessitated the invention of mobile applications (APPs). From the introduction of the mobile banking, APP people rarely go to the banks. All their transactions get done simply by the stroke of a finger. Businesses face a challenge of adapting to changes in the technology sector. Mobile banking either through actual investing or any other means is on the rise.

FinTech is an emerging financial services sector in the 21st century and banks will begin to act as a platform to many FinTech Firms, which will help the future growth of the banking industry. We define investing in the banking industry to be a safe move and, in the long run, will continue to

In the current global order, where the world has become a big village, consumers take a global look at the products and services in terms of price, quality, delivery and after-sale services. This trend has sown the seeds of competition in every sector of economy and banking sector is no exception to this event.

Banking, from its early days of inception, has undergone rapid changes, most especially within the past ten years, also as a result of major world events such as the 9/11 terror attacks and the consequential reactions of governments and within the industry itself. (Morgan McKinley UK)

Banking industry is highly competitive as there is high exit barrier. Moreover, competitors are large and quite equally balanced. Additionally, as banking industry has emerged for hundred years, just about everyone who needs banking services already has them.

Group Capital’s mission is to broaden the finance options beyond the traditional model (banks) and provide access to a diverse offering of financial products and services. Their financing options may aid an existing business to scale or support a startup fund their innovative idea. The banking industry focuses less on small business lending. For banks, lending to small businesses, in small dollar amounts, can be expensive and risky. These lower dollar loans are imperative for startups and small businesses. Group Capital will facilitate investor transactions via one of their branded websites.

Technological advancement has had a gigantic effect in the banking industry. Over the past few decades, the financial services industry has changed considerably with banking transforming from the pen and paper method to the computers and internet method. The pen and paper method took weeks or even months for the transaction to be eventually completed, and then the dramatic introduction of the computer and internet method which changed that time frame to only a matter of seconds to be completed, which reduced the amount of time and labor needed to complete a transaction significantly. Banking is considered one of the most important economic sectors with it being severely influential and responsive to any little change, whether it is domestic or international. Some extreme changes that were brought about by the development of this new technology turned into a globalized nature for the financial services industry. One stroke of a key on a computer could and would change a person 's life extensively or even have a global impact. The new technologies that were created and introduced changed how the consumers managed their money from that time on. Technology has helped to protect peoples’ hard earned money and make it much more impossible for people to be able to write out bad checks or even holding up a bank. The advancement in technology however, also came with some security risks as most things do, that could affect the money that people trusted with the bank and

The banking system and ways that people can withdraw and/or spend their money has changed over the years and continues to do so. People originally made payments with physical money which moved onto credit cards, debit cards and contactless cards (Lambert, 2011). From 1971 electronic commerce appeared which brought along digital wallets like Paypal (van Ketel and Nelson, 2005).The banking system, includes commercial, investment and national central banks, has also been changing. Exposed weaknesses have been exploited and created

Today, the fundamental challenge facing many financial institutions is cost pressure, margin compression, and the growing mass market. Competition is rife and a focus on low-cost products and services are causing long-standing banks and financial institutions to be continuously chipped away. Nigel Wells (chief architect of the hsbc.com) and Jeff Wolfers (senior strategy manager of the hsbc.com project) from IBM United Kingdom Ltd., believe the answer to this problem is to return to the core values that made banks respected institutions in the community: trust, privacy, and personalised service. In 1925 these values were delivered face-to-face over a bank managers’ desk. Nowadays, other channels such as ATM’s, telephone banking and internet banking mean that it is nearly impossible for banks to implement these essential core values, of which the organisations originally stood allowing them to provide that essential and desired personalised touch.

Several macroeconomic factors indicate that the basic ingredients for successful creation of a digital ecosystem are rapidly falling in place, far exceeding the supply side capabilities that support the Indian government’s agenda of financial inclusion. For instance, digital banking offers numerous advantages that work towards improving the same, largely riding on the fact that Indian consumers have shown tremendous preference for digital technologies, with

Our analysis explores the current banking industry environment. This industry contains banks that provide loans and other financial services to their clients that include commercial and business clients and individual consumers. We looked at strengths and weaknesses to assess the strongest US banks and what makes them successful. We focused on opportunities in the banking industry, the rise in mobile banking technology, better customer service, and capitalizing on the rising need for home loans to underserved consumers. Additionally, the banking industry faces threats including regulatory issues, cyber risks, and future devaluation of the dollar. Expansion to new markets and innovations were also analyzed. We included strengths and weaknesses of the top four banks, though we ignored the internal analysis on the US banking industry as it is not possible to adequately analyze an aggregated industry of banks and this is a firm level analysis.

“What’s special about banks?” Benston (2004) raised this question while offering six bank functions that render it ‘special’. Raising this question again today at a point in time where the banking system has been through a major crisis and a number of non-bank financial institutions have emerged to take up bank-like roles, this question may be aptly expanded and reframed in the following way: Is the role played by banks any different as compared to other non-bank financial institutions? Is there still any role which is specific to the way banks operate and cannot be replicated by these other institutions? Is it possible in the near future that banks will become obsolete and will completely be taken over by other non-bank institutions? This essay is an attempt at answering these questions in context of the various theories of banking and financial intermediation that have been put forth in the past. A review of the heterogeneous literature on this question will make it clear that it is an ongoing debate without any settled robust conclusion.

We have mention Branch and ATM network, Customer Service and Innovation as one of the key success factors for a bank, but all these will be unfruitful if there is no proper ICT platform to support them. To be able to take full advantage of the opportunities in the market and combat threats a bank must have an up to date strategically planned and implemented ICT infrastructure. In 2010 CRDB and NBC made entire bank systems upgrades, announcements were made on Radio, TV, Newspapers of the changes and their implication to the services offered. This is an example of organizations that have