Workshop B: How Innovation and "Consumer Trust" Will Save the Banking Industry
Partner, Global Practice Lead, A.T. Kearney
Partner, Americas, A.T. Kearney
CEO/Co-Founder, DataCoup, Inc.
The basis of competition in retail banking has changed, and with it a new competitive reality is setting in. Market share is moving from traditional competitors to more digitally-oriented players, including the leading national banks and fast-growing, direct-oriented competitors. With approximately 10 percent of US consumers switching their primary banking relationships every year, digitally-oriented competitors' strong value propositions are driving share gains and putting increasing competitive pressure on less well-equipped competitors. We see this same pattern in the adoption of increasingly "frictionless" digital commerce - consumers are aggressively embracing opportunities for digitally-inspired convenience and accordingly moving their allegiances to financial services providers who deliver on the promise of "frictionless commerce".
Against this competitive backdrop, banks have one enduring strength: the trust of consumers. During this session we will review A.T. Kearney's most recent consumer market research on both innovation and consumer trust in banking and payments; explore current market dynamics around banking, digital commerce, and consumer trust; profile leading competitors' efforts to act on innovation and trust; and present a prospective banking industry action plan to build and lever consumer trust in today's competitive retail banking and payments marketplace. We will examine how and why, against the backdrop of an increasingly digital marketplace, consumer trust may emerge as banks' key competitive weapon for playing offense in these challenging times. Based on our market research, we will share our scenarios and forecasts for both the ongoing banking industry consolidation and the growth of digital commerce—and the collision of these two mega-trends. We see a future where banks can most definitely be winners, IF they take the required strategic actions now.
*Lunch will be served