The bank of the future has been saved
The bank of the future
Understanding the value of digital innovation and transformation
For centuries, banks have developed their businesses around a limited number of activities, starting with safekeeping valuables and deposits. As deposits grew, money lending became possible. Loan and deposit receipts evolved into paper money—first book money, then electronic money. Later, banks extended their services by providing payment means beyond central bank coins and bills. While banks were extending their offerings and roles in society, their core business did not evolve significantly over the years, except for some adjacent innovations like insurance (savings and products distribution) or providing financial advice. Although the industrial revolutions transformed and modeled the modern economy, they had a limited impact on core banking activities.
However, banks seized opportunities to integrate technologies into their operating models to allow them to deliver services quicker (e.g., SWIFT messages) and extend geographically by using computerization and telecommunication as a business accelerator rather than an innovation enabler. This was a time when technologies were expensive and only accessible by highly capitalized industries.
Today, we are in the digital age, and digital is woven into everything we do. For the first time in history, technology is pervasive and cheap enough that everyone can use it with little or no learning curve, creating business models and opportunities that never existed before. And banking is no exception.
Performance magazine issue 34, January 2021
Performance is a triannual digest, dedicated to investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients.