Banking or Financial Ecosystem: Which Will Outlive the Other
KEY CONCLUSIONS
The outlook for further bank development depends largely on the bank’s ability to build its ecosystem
“Companies and banks can follow three possible development paths. The first is to do nothing, to wait and watch what is happening on the market and then try to use someone else's idea or technology that is already there. The second is to create global systems, where banks are trying to offer services around services not directly related or not related in any way at all to banking products. The third strategy is to build niche ecosystems that focus on specific zones or a bank’s strengths,” Chairman of the Management Board of ROSBANK and Member of the Group Management Committee of Societe Generale Ilya Polyakov said.
An ecosystem can significantly expand the range of services
“An ecosystem is a service or company that meets the financial and non-financial needs of customers and does it in partnership with other companies,” Partner and Managing Director of BCG Max Hauser said.
“An ecosystem is technologies, a common brand, the use of data, rapid scaling, the lowering of the cost of attraction through the ecosystem effect and scale. It is a lot of services and not only in one area,” Chairman of the Management Board of Tinkoff Bank Oliver Hughes said.
“You need to invest in something related to a service or delivery of this service or product. And it doesn’t have to be a bank; it can be a service that partners with a bank,” Chief Executive Officer of Qiwi Sergey Solonin said.
PROBLEMS
Banks will have to change their work model to compete with non-financial organizations
“Banks will no longer be needed. Non-financial needs will be primary, and financial needs will come after; calculations will take place invisibly,” Chief Executive Officer of Qiwi Sergey Solonin said.
“Ecosystems emerged as systems for providing goods to citizens, and then payments, then transfers – that is, financial services mixed with non-financial ones. It’s possible that one of these companies will get a banking license, and that will really be a huge competitive challenge,” Chairman of the Supervisory Board of Moscow Exchange PJSC and Member of the Board of Directors and Independent Director of Rosneft Oleg Vyugin said.
“The evolution of financial services is moving towards becoming imperceptible, and it is the model for what the bank of the future should look like: it is something that the customer does not notice. Banks are still very far from this,” Chairman of the Management Board of Raiffeisenbank Sergey Monin said.
A shortage of talent
“People don’t really want to go to work in a bank because it seems like a boring job,” Chairman of the Management Board of Raiffeisenbank Sergey Monin said.
“The biggest battle and fight is the battle for personnel”, Chairman of the Management Board of Tinkoff Bank Oliver Hughes said.
“The more digital technologies become, the greater the importance of the human factor and skills to winning,” Chief Executive Officer and Member of the Board of Directors of AlfaBank Vladimir Verkhoshinskiy said.
SOLUTIONS
Absolute focus on customers
“More than anything now in the bank we pay attention to the customer experience, the best possible customer service,” Chief Executive Officer and Member of the Board of Directors of AlfaBank Vladimir Verkhoshinskiy said.
“It is important for banks and ecosystems to build the customer experience and build on the client. The winner is the one who offers the most convenient, reliable service and is able to stand out somehow,” Chairman of the Management Board, of ROSBANK and Member of the Group Management Committee of Societe Generale Ilya Polyakov said.
“The client needs an interface, a client experience, a whole range and set of processes, mainly online, that provides a comprehensive approach,” Chairman of the Management Board of Tinkoff Bank Oliver Hughes said.
“If we all put the knowledge of the whole world together, then we increase the service provided to the client, and therefore our profitability,” Senior Executive Vice President and Head of Digital of The Bank of New York Mellon Corporation Roman Regelman said.
Further development of digitalization
“Digitalization is very important. The digital approach makes it possible to increase the efficiency of client and customer service in comparison with traditional forms of interaction,” Chief Executive Officer of Europe, the Middle East, and Africa (EMEA) of Deutsche Bank AG Ashok Aram said.
Adequate remuneration to attract the right staff
“If you can provide your employees with a good job and decent pay, talent will flow in,” Chief Executive Officer of Europe, the Middle East, and Africa (EMEA) of Deutsche Bank AG Ashok Aram said.
For more information, visit the Roscongress Foundation's Information and Analytical System at roscongress.org/en.
