Banker S.A. June 2013 | Page 51

IT Currently, most banks are focused in the “improve cost management” space. But, as this paper argues, a return to acceptable levels of ROE requires banks to look at opportunities to leverage utilities and suppliers. optimisation of supply chain logistics, for the “protected areas” of automotive design itself to be addressed. Now, the design function accesses the best talent and tools, regardless of their location. For financial services, this “access all areas” approach to design, innovation and talent will create the most conducive environment for leading product design, redesigned customer interfaces and new partnering models. about our customer proposition? Which services and products could be better funded, designed and delivered by collaborating with a commercial partner? How can we acquire a healthy slice of commercial revenue from services that traditionally focus on internal customers? While this requires new ways of thinking and a profound culture shift in many departments, it still remains the most viable strategy for tackling falling demand, surplus capacity and stagnating ROE. AN OPPORTUNITY, NOT A THREAT ost Pure cng CHANGING THE FACE OF BANKING Banking industry leaders realise that, in no cutti We anticipate that a wave of “first movers” will adopt sense can they continue to count on superthe financial services industrialisation model in the next profits from a return to overheated markets, two to three years. They will sharpen their competitive and still less on limitless central government this solve m. edge. Their products and services will be assembled from liquidity injections. proble best-in-class components, increasing the probability that The “to do” list is both clear and challenging. they will outperform competitors’ in-house products. Get ROE on t Ʌ