To stay competitive in their existing core businesses, financial service incumbents will need to invest in digital transformation much more deeply than they have previously in order to realize dramatic cost reductions.
However, retooling existing businesses for digital efficiency will not in itself create shareholder value. Competitive pressure will mean that most cost savings are ultimately passed on to customers. Digitizing incumbents’ existing businesses, if done well, will preserve shareholder value, but not increase it.
In Section 2 of our State of the Financial Services Industry 2017 report, we examine how financial services incumbents can develop new sustainable competitive advantages within ecosystems that are being reshaped by digital forces.
The Three Archetypes
Identifying New Sources of Value: A conversation with the authors of The State of the Financial Services Industry 2017
