How does a Digital Operating model look for a retail bank?
24.01.2020 at 09:38 h / Edited 24.01.2020 at 11:34 h
Vasudevan Transformation Consultant
I am after any examples or links or ideas on how digital banks are different in way of operating to traditional ones?
Milena Lead, Innovate, Collaborate
26.01.2020 at 19:43 h / Updated 26.01.2020 at 19:46 h
In the rise of the digital technologies, the operating model of the traditional banks has been attacked seriously from all the disruptors on the market. The appearance of the Digital banks is in parallel with the other digital services that have been created and popularised - like payments, online credit services, and others which helps for the fast-developing digital ecosystem where the digital banks combine all the other individual and separate digital services
Here is my view about the core of the operating model of a digital bank:
-> The "Digital first" mindset unlikely for the traditional banks where the institutions still rely on paper and procedure - driven mindset.
-> Flexibility and speed of service are completely different for the digital banks.
-> No legacy systems which result in boosting the efficiency ratios. Some are based on blockchain which completely changes the rules of the game
-> Data driven analysis and operations ensuring precise knowledge, forecasting and prediction
-> Generate revenue through innovative revenue models and products
-> Absolutely new approaches to Compliance and Security. Anti-money laundering and fraud investigation processes don't rely on humans but are AI executed and achieved dramatically better results
-> No front-office....no people at all...every service is online and cloud-based
-> No significant long-term tangible assets.. so no cost of maintenance of huge offices
It's been an interesting time and enjoying to discuss more on this topic
*Attached is a simple presentation that may visualize in a more funny way
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