Banks must seek new competitive advantages in response to changes in customer
trust, demographics, and demands as well as profit margins reduced by higher
capital requirements, compliance costs, and lower fee income.
While most banks have made customer-centricity one of their highest priorities, the recent global
financial crisis has led to an erosion of customer loyalty. Meanwhile, banks find that distribution
through branch networks and the Internet are inadequate for satisfying demands among younger
customers for service “right here, right now.”
An evolving market brings additional challenges such as higher costs of capital and funding. As
investors and banks increasingly share risk, banks face greater government supervision of the
industry, new requirements for capital coverage, and higher compliance costs. Greater
transparency in pricing has caused, especially in the retail markets, a reduction in (or even the
elimination of) fees, which is further eroding margins.
As customers demand real-time, multichannel, and mobile transactions, it has become clear that
customer-centricity requires changes in business and operating models to rebuild margins and
maintain customer loyalty. To attract everyday customers, banks need real-time processes that are
accessible via all channels (including mobile and tablet devices) to deliver relevant up-to-theminute
analysis whenever they are needed.