Today’s leading financial services companies are operating in a new and more complex environment; one where the fundamental definition of how customersexperience and interact with a bank is being challenged and redefined. Leading companies are also facing competition from a myriad of nontraditional providers and as we’ve seen, banks of all sizes have been burdened with increasing regulations and mounting demands for skilled resources. One bank executive summarized the environment best — we are operating in a marketplace under siege.

The goal for leading banks is twofold. First, to proactively capitalize on disruption by growing market share and increasing margin; and second, to vigorously protect high value segments and clients. Banks who are successful at both will create shareholder value and a long term competitive advantage.
While simple in concept, the path to implementation requires a keen understanding of digital disrupters and enablers, customer experience, and strategic value drivers such as:

- The demographic shift
- New technology
- Unstructured data
- Digital labor
- New payments infrastructure
- Cyber security and strategy
- Digital identity
- The sheer speed of change

Digital disruption will create winners and losers. Winners will be characterized as those with a clear strategic vision, an appetite for customer analytics andtechnology, and a stomach for volatile innovation returns.

This paper looks at these and other themes in order to provide insights into a successful digital strategy. Please feel free to contact us to discuss any of these ideas further.
Author: Jim Negus, Principal, KPMG in the US, +1 213 955 8507