Arthur D Little (ADL), a strategy consulting firm, has established a team dedicated to accelerating the transformation of financial institutions in Japan. The team will work closely with the firm's global finance practice to help clients of all sizes and business models in the financial services industry, including domestic and international banks, securities firms, insurance companies, and new entrants, transform themselves in a rapidly changing world.
In "Disruption - Can banks strike back?", Global Finance Practice discusses the challenges facing traditional banks as new competitors emerge and the banking models that need to change and survive. The rise of digital natives and the entry of other industries into the banking industry are reshaping the landscape. However, the financial soundness and name recognition of existing banks cannot be built overnight. To ensure that this advantage is not squandered, we believe it is important to embark on fundamental reforms without fear of change, and we have identified six priorities for action.
Flexible setting of "battle plans" with a medium-term vision of the future (3-5 years) and formation of an ecosystem with different industries, including FinTech companies, to realize these plans.
One-stop customer understanding that maximizes data analytics, moving away from traditional perspectives such as attributes and purchase history
Promote organizational innovation, including incubation of start-ups, to fully benefit from accelerating improvements in finance-related technology
Align leaders who can find direction from an incomplete set of unrelated information, and build a diverse management team that can help drive change
Fostering a multifaceted organizational culture that promotes future change across the company without being limited by past successes
Developing strategic and consistent partnerships to meet diverse customer needs, without being fixated on achieving them on a stand-alone basis in the own bank
Yoshiro Makita, a partner in the firm's Financial Services Practice in Japan, offers the following observations in response to this discussion. “The basis of competition in the financial services industry continues to change with the advancement and penetration of digital technology. However, the emergence of non-financial businesses with cutting-edge digital technology is creating new competitive dynamics for these strengths. As this paper discusses, there is a need to redefine their strengths in terms of creating new value for customers through collaboration with the competitive advantages of other companies and industries”.
ADL, together with its global network of experts, is committed to making an unparalleled difference for clients in financial institutions and related industries by combining a full range of solutions to meet the challenges and growth opportunities presented by changes in technology, regulation, and client needs.
Sourced from ADL