Dubai PR Network, Online Press Release from Dubai and Middle East
 
Money, Business & Investments(Banking & Investments)
Filter PR by
  
Financial Institutions Can Out-Innovate Fintechs Through Greenfield Approach, According to Oliver Wyman
 
Annual State of Financial Services Report “Time to Start Again” Released at Davos
 
Dubai, United Arab Emirates, January 22, 2019 –   The next big wave of innovation in financial services will be driven by incumbents starting with a blank canvas, according to Oliver Wyman’s 2019 State of Financial Services report titled “Time to Start Again” launched today at the World Economic Forum Annual Global Meeting in Davos.
 
The report describes an emerging new approach – “Greenfield” – where existing firms break free from the constraints of their legacy systems, business and talent models. It is based on new subsidiaries, new technology, and new customer solutions.
 
“For an industry whose product - the movement and storage of money – is electronic, the processes are still far too manually intensive” said Ted Moynihan, Managing Partner and Global Head, Financial Services, Oliver Wyman. “Established firms will look to free themselves from the shackles of their legacy infrastructure and embark on future journeys unencumbered.”
 
Examples are beginning to be rolled out. RBS Group will soon launch Bó, a greenfield digital offering, built with new technology in under 12 months. National Australia Bank (NAB) has had success with QuickBiz, a fully digital unsecured lending solution, and German insurer ERGO has built Nexible as a challenger to its existing auto-insurance business. Goldman Sachs launched Marcus in the US and Europe, allowing it to enter consumer banking.
 
The Power of New
 
Digital challengers are providing the inspiration and motivation for existing firms to embark on new builds. South Korean digital bank Kakao attracted 6 million signups in less than a year. Monzo, Revolut, and others in the UK grew their customer base from 0.6 to 2.5 million customers in a year. In the US, Chime has opened more than 2 million no-fee transaction accounts. In the foreign exchange market, XTX gained 10 percent market share in just three years, making it the second-largest player in 2018.
 
Some of these businesses may not yet be profitable, but over time the digital challengers and greenfield businesses will use what the report calls “flywheel momentum,” collecting more data, developing new propositions with that data, and attracting more talent. 
 
Enter Existing Financial Services Firms
 
To be successful in the future, financial institutions need to have the same advantages as digital challengers. For example, the average number of customers each person in a challenger bank serves is over 2,500, compared to 1,000 in existing banks. Digital challengers launch new products or services in two weeks, compared to three to six months release timetables for traditional firms. 
 
Greenfield is an attempt to deliver a customer offering to match or exceed the challengers. Using modern technology, an open platform, and third-party services, new banking and insurance platforms can be built within a year, at a cost of between $10 million and $60 million. Financial services firms will hope to outcompete fintechs with greenfield platforms, while having the advantage of tremendous resources and an existing customer base from day one.
 
In the process, the new greenfield businesses will help catalyze and drive change across the organization. “The new will transform the old and create a better financial system overall”, concluded Moynihan.
 
The Oliver Wyman Time To Start Again report is available here. This year’s report is broken into four segments: The Power of New, How the New Can Transform the Old, The Greenfield Approach and Flywheel Momentum.  The report features the first in-depth interview with Mark Bailie, former Group COO of Royal Bank of Scotland and current CEO of Bó.  
 
Key exhibits from the report include:
  • Exhibit 1: The Impact of New Business Models 
  • Exhibit 3: Introducing Greenfield
  • Exhibit 4: The Old vs. The New
  • Exhibit 10: A Year in the Life of a Greenfield Build


Posted by : Dubai PR Network Editorial Team
Viewed 9876 times
PR Category : Banking & Investments
Posted on : Tuesday, January 22, 2019  12:52:00 PM UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of DubaiPRNetwork.com.
Previous Story : Saudi Finance Minister to Bloomberg: 2.6% GDP Growth In 2019
Next Story : Barclays: Equities to Outperform Bonds as Global Economy Exp...
Email this article Print this article

Share this article with your friends and followers
NewsVine
Back to Section Home

Related Stories



 
 
Most Viewed Press Release posted in the last 7 days
Inventive, Futuristic and Daring Translucent is a Distinguished Milestone for Police. [5697-Views]
Show your Nanny some love and treat them to a Complimentary Haircut throughout August and ... [4691-Views]
Introducing Lunette: A Tool to Empower Women [4288-Views]
Corum Golden Bridge Titane DLC - black beauty for the man of style [4118-Views]
Robinsons Showcases Malone Souliers' Stunning New Collection for Pre-Fall 19 [3886-Views]
Marks & Spencer Unveils Its Autumn 2019 Kidswear Collection [3666-Views]
Aesop's Parsley Seed Skin Priming Regimen [3459-Views]
Ferragamo Urban - 2019 Fall/Winter Collection [3404-Views]
GUESS - The Perfect Tote [3373-Views]
Ralph Lauren Debuts “Wear Your Story” Denim Campaign [3190-Views]
Sandro: The Power Suit [3190-Views]
Corum Admiral Legend 42-Icon ahead [3172-Views]
Same Favourite Fragrance, New Innovative Products From the Ritual of Karma [3154-Views]
The future of photography and videography is in Canon's hands, with five 2019 EISA Awards [3154-Views]
GEMS Education students shine with excellent A-Level examination results [3117-Views]
Hormann announces speed rolling shutter DD S6 [3074-Views]
Al Ain Hospital doctors save young girl from 2.5 cm pin in her lungs [3062-Views]
Dubai Delivers on Tourist Volumes Again, With a Strong 8.36 Million Overnight Visitors in ... [3056-Views]
Forecasting Mesmerising Sea Views and Exotic Seafood at Gonu [3038-Views]
Tazio Nuvolari Vanderbilt Cup [3032-Views]
Autumn / Winter 2019-20 Men's and Women's Sneakers Collection [3032-Views]
Exceptional Playtime with Soundcore Vortex [2995-Views]
Rock Chic Edit with GUESS [2983-Views]
Jaguar I-pace: Redefining What It Means to Be a ‘CAR' [2965-Views]
Modular Sofa's by Boconcept [2928-Views]
 
RSS Facebook Twitter LinkedDin
 
Top Sections
 
Top Stories