From this side of the Atlantic, the European Union (EU) can seem like a weird thing—most of us aren’t exactly sure when it started, how far it stretches or even what it exactly is. What we do know is that it’s a case study in constant evolution: It dates back to at least the ’50s, when six nations formed the European Coal and Steel Community and, later, the European Economic Community. However, the current European Union actually takes its name and primary structure from the Maastricht Treaty of 1993. The monetary union, the source of the Euro, was born in 1999; the constitutional basis for the EU, the Treaty of Lisbon, arrived 10 years later; and countries are still joining (Croatia became a member only last year).
Financial institutions are faced with a strategic dilemma: how to manage the polarity of customer needs without alienating one group or the other.
Financial institutions are facing extreme polarity in the financial needs and wants of the baby boomers, on one side of the spectrum, and the millennials on the other. The shift in demographics and advances in technology are forcing financial institutions to make difficult strategic decisions on product and services moving forward.
A new wave of technological change is right beyond the next hill, really in the next couple of years. Its most visible symptom is the hyper-connectivity to the Internet, which fuels the evolution of:
- bitcoin-inspired distributed systems
- open APIs (application programming interface) as a new way to consumer business services on the internet
- crowd-sourced identity schemes
- open source hardware and applications
BIAN is trying to build the perfect bank.
This week BIAN, which stands for the Banking Industry Architecture Network — will release version 3.0 of its Service Landscape, a “bank on paper” that covers all the major business processes of a bank — some 280 at this Point.
You can find data to tell you just about anything about banking these days. That’s not a good thing.
This morning I came across two banking studies that, while not exactly contradictory, seem to be implying two opposing Trends.
As banks go through their annual strategic planning exercise, they need to make sure they include a rigorous implementation plan.
Facing limited areas for growth and increased competitive concerns, more banks are reviewing and revising their strategic plans. For many, their focus centers on providing increased direction concerning priority market segments and related products and solutions. Banks are also dealing with technology-based issues, involving both which technologies to invest in and how to manage the technology partners that often seem to be determining the tactical choices a bank can make.
I did my annual tour of the West, teaching Bank Profitability in the Executive Development Program for the Washington, Oregon, and Utah Bankers’ Associations. As part of the day-long curriculum, we discuss industry trends. And since I have dozens of next generation leaders in the class, I ask them, what is the next game-changing trend in our industry?