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• Shifting Demographics
Banks have long ceased to address
the needs of a comfortably and predictably homogenous
segment. Significant demographic shifts across
the globe are creating new opportunities of limitless
scope. Trends like a large surge in minorities’
in countries like the US (the Hispanic population
is a case in point); an aging population in Japan,
Germany and some other European countries; emergence
of Islamic banking as a large and growing niche;
rapid rise of the globally mobile neo rich, vast
youth population and rising middle class in the
BRIC economies; and the growing segment of new
age Internet-savvy customers worldwide - are creating
a paradigm shift
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in the banking landscape. These trends
are creating a fundamentally new set of challenges
and opportunities for banks worldwide. These new customer
segments characterized by low stickiness, high level
of access to information and diverse expectations
are forcing banks to innovate constantly to stay ahead
of the curve and succeed in the Flat World.
• Ubiquity of Technology
Technology has become all pervasive and is perhaps
the single biggest force enabling and driving the
Flat World. Thanks to the Internet and mobile revolutions,
customers today have instant access to a whole range
of financial information and tools while making their
financial decisions. Banks, the
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world over, are moving from using
technology to drive automation and efficiencies, to
leveraging technology for differentiation. Technology
has moved from the realm of operations to the realm
of strategy in the Flat World. Newer technologies
like Services oriented Architecture (SoA) and Business
Process Management (BPM) are enabling banks to redefine
their business and operating model and drive unprecedented
levels of efficiency, productivity, globalization,
customer convenience and innovation across the value
chain.
• Regulation and Compliance
Banking is amongst the most highly
regulated sectors globally. New regulations
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