Flat World
Maximize Globalization
What we are witnessing today is the emergence of a new and qualitatively higher level of globalization. Trends like the opening up of emerging economiesRead
Maximize Innovation
In a world where service is increasingly seen as a hygiene factor, where new players and new products emerge seemingly out of nowhere, and where commoditization of products is the order of the dayRead
Maximize Diversity
Emergence of several new customer segments across the world is creating tremendous opportunity for banks to grow rapidly and gain new market share. While old loyalties are fast dying, new ones are being created.Read
Maximize Agility
Every dimension of a bank’s business today demands an unprecedented shift in speed and agility.Read
Minimize Cost
The flattening of the world is throwing multiple opportunities for banks to dramatically reinvent their operating model leading to reduced complexity, greater standardization and lower cost.Read
Minimize Risk
The Flat World context brings with it a host of risks; from risks on the compliance front with a growing host of regulationsRead
We at Finacle believe that the four key forces flattening the banking world are as follows
Emerging Economies
With the rapid opening of economies in Asia, Latin America and Eastern Europe, (specifically the BRIC – Brazil ..., Russia, India, China – economies), banks across the world are scrambling to tap this emerging mega opportunity. With these economies increasingly being seen as key drivers of the world economy and rapidly growing in size and complexity, global financial institutions are fast moving in to bridge the gap in their BRIC strategy. They are realizing that these economies are the key to their future growth and market leadership. The scramble is visible across India, China as well as several other emerging economies and several leading European and American banks.
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.
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 world over, are moving from using technology to drive automation and efficiencies, to leveraging technology for differentiation.
Regulation and Compliance
Banking is amongst the most highly regulated sectors. New regulations (Basel II, SEPA, IAS39, Sarbanes Oxley, etc.) ...are emerging at a rapid pace and compliance is an imperative for the bank’s survival and success. While compliance may be viewed as bringing in tremendous complexity and increase in risk and cost of doing business, if handled right it provides an excellent opportunity to build trust and manage enterprise risk effectively.
