Disruption - The future of banking and financial services: How to navigate and seize the opportunities is available now.
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One of the worst recessions for the past 100 years, businesses failing, a revolution in technology, increasing financial constraints, compliance stifling the ability to be nimble, changing consumer behaviour, and a market driving products towards commoditization – this is the perfect storm facing the banking industry.
Disruption provides a critical understanding of the impact of the current economic crisis and the current industrial revolution on financial services, the new trends in the sector, and the opportunities for banks to leverage their unique assets and pre-empt challengers from gaining meaningful market share.
The book also provides top-level advice about transforming financial services organizations by finding the right balance between short-term requirements and the imperative of long-term change. This balancing act is what the authors call the “ambidextrous approach”, which requires focus on two strategic initiatives: performance and innovation.
To remain relevant and viable in this turbulent market, traditional banks need to adopt an ambidextrous approach.
That means balancing short- and long-term priorities and exploiting existing markets while experimenting with new ones – capitalizing on historical strengths while also embracing radical change.
This change has to come from the very top of the organization, driven by a new breed of ‘explorer’ CEOs.
Creating an appropriate culture must be a top priority for the CEO of any truly ambidextrous organisation. This requires a change of mindset that encourages initiative and a willingness to accept change and not punish failure.
For while there’s still money to be made in traditional financial services, it soon won’t be sufficient to support the huge and unwieldy corporations that conventional banks have become.
Banks must innovate and diversify now, or face obsolescence.
ABOUT THE AUTHORS
Ignacio García Alves
Global chairman and Chief Executive Officer
Ignacio led the effort to bring the company back to a private Partnership on the 125th anniversary year of its foundation in 2011. He is the architect of the strong growth and successful transformation of the company and he has been (re-)elected Global Chairman and Chief Executive Officer three times since then.
Global Practice Leader, Financial Services
Prior to joining Arthur D. Little, Philippe worked for Bain & Company, where he served as Partner & Global Head of Financial Services. He worked in leadership positions in its Boston, Brussels, Paris, and Dubai offices. From 1993 to 2016, he supported clients across many geographies, with particular emphasis on large-scale bank transformations.