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Who Walks into a Bank Anymore?

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Who walks into a bank anymore ?

Technology and lifestyle changes have transformed the banking industry. The bank branches on the corner are not the same as those our parents knew, and more radical changes lie ahead. Industry experts agree that the "traditional" bank is on the way out. From 1990 to 2008, more than 100 new banks per year formed, but between 2009 and 2013, less than two per year, according to the Federal Reserve Board1.

"Four in 10 Americans haven’t visited a branch in the last six months," Mark Hamrick, Washington bureau chief for Bankrate.com, told US News & World Report in January, 20162.

As a banking executive, you face a challenge somewhat like changing your shoes while running a marathon. You can’t stop to change, because others will pass you in the race. But, your shoes won’t last until the finish line. It’s a real dilemma!

First, let’s understand some of the reasons for this turbulence.

  • Regulatory barriers, capital requirements and high fixed costs used to keep newcomers out of banking. But technology has removed many of these hurdles by facilitating more direct consumer access to more flexible financial services than the bank branch on the corner … with its 4 pm closing time … ever could offer. 
  • Just as the banks of yesteryear moved beyond being deposit/withdrawal institutions into markets like investment advising and mortgage lending, new competitors … technology companies, retailers, and others … are streaming into financial services to grab a share of the high-margin segments of the industry. Non-banks like Walmart, Orange Telecom, Google (Wallet) and others are here ... now.
  • Save for a few baby-boomers and older generations sticking with visits to brick-and-mortar banks, the switch to mobile banking is hurtling along, with people even wearing their bank via their Apple watches.

So, how does a bank get from here to there in the competitive financial services race? How do you transform a traditional business in the digital era?

The most obvious prerequisite is to pinpoint your goals and be creative in developing ideas for reaching customers. Consider what others have done:

  • Capitol One opened cafés that offer banking with a side of espresso and free WiFi
  • USAA supports biometric logins and offers full mobile control of cards and channels through a wide range of devices
  • Santander invested in robo-advisor SigFig and Cambridge Savings Bank was the first to offer SigFig’s services to its customers

Once your bank decides on a strategy to move to the future of banking, there are important steps that can help you overcome challenges along the way:

  • capture and communicate the new strategy inside and outside the organization
  • evaluate what capabilities you’ll need and devise a plan to acquire them
  • determine which company processes or IT resources require modification
  • assess whether the new business models will create risks for your traditional business

In large organizations, the best way to ensure the success of digital transformation and limit risks is to use powerful enterprise architecture tools. These robust technology tools can help you evaluate and narrow down multiple tactical choices for your plans. After all, automated option analysis is the fastest and most reliable way to innovation and transformation, not just for financial services companies, but for other industries as well. It is a well-proven means used by industry leaders worldwide to quickly anticipate and adapt your organization to change.

With enterprise architecture, the choices are in your hands, rather than in the hands of your competitors.

  • You can develop your criteria for the exploration of options … costs, risks, market share growth, alignment with strategy, capabilities, or any number of elements that are important to your business.
  • You get to clearly see what processes, people, resources, technologies and organizational structures are required for each option and what outcomes you can expect.
  • You can compare the outcomes and decide which is best for your company; the tools will deliver a well-defined roadmap for each option.

The roadmap will show you how to change your shoes in the middle of the race without stopping, and give you a step-by-step plan for getting to the finish line. It will illustrate how to add innovation and agility to your company so that you aren’t left behind in a cloud of dust.

Staying where you are is not an option, because you could be the only person in that big, empty bank branch.


MEGA’s Banking Task Force has experts who can help you through your transformation. Contact us to find out how other banks are winning their race.

1Adams, Robert M. and Gramlich, Jacob P., Where Are All the New Banks? The Role of Regulatory Burden in New Charter Creation, 2014
2LaPonsie, Maryalene, 10 Banking Trends for 2016, U.S. News & World Report, January 7, 2016

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New Member

Technology and lifestyle changes have transformed the banking industry. The bank branches on the corner are not the same as those our parents knew, and more radical changes lie ahead. Industry experts agree that the "traditional" bank is on the way out. From 1990 to 2008, more than 100 new banks per year formed, but between 2009 and 2013, less than two per year, according to the Federal Reserve Board1.

"Four in 10 Americans haven’t visited a branch in the last six months," Mark Hamrick, Washington bureau chief for Bankrate.com, told US News & World Report in January, 20162.

As a banking executive, you face a challenge somewhat like changing your shoes while running a marathon. You can’t stop to change, because others will pass you in the race. But, your shoes won’t last until the finish line. It’s a real dilemma!

First, let’s understand some of the reasons for this turbulence.

  • Regulatory barriers, capital requirements and high fixed costs used to keep newcomers out of banking. But technology has removed many of these hurdles by facilitating more direct consumer access to more flexible financial services than the bank branch on the corner … with its 4 pm closing time … ever could offer. 
  • Just as the banks of yesteryear moved beyond being deposit/withdrawal institutions into markets like investment advising and mortgage lending, new competitors … technology companies, retailers, and others … are streaming into financial services to grab a share of the high-margin segments of the industry. Non-banks like Walmart, Orange Telecom, Google (Wallet) and others are here ... now.
  • Save for a few baby-boomers and older generations sticking with visits to brick-and-mortar banks, the switch to mobile banking is hurtling along, with people even wearing their bank via their Apple watches.

So, how does a bank get from here to there in the competitive financial services race? How do you transform a traditional business in the digital era?

The most obvious prerequisite is to pinpoint your goals and be creative in developing ideas for reaching customers. Consider what others have done:

  • Capitol One opened cafés that offer banking with a side of espresso and free WiFi
  • USAA supports biometric logins and offers full mobile control of cards and channels through a wide range of devices
  • Santander invested in robo-advisor SigFig and Cambridge Savings Bank was the first to offer SigFig’s services to its customers

Once your bank decides on a strategy to move to the future of banking, there are important steps that can help you overcome challenges along the way:

  • capture and communicate the new strategy inside and outside the organization
  • evaluate what capabilities you’ll need and devise a plan to acquire them
  • determine which company processes or IT resources require modification
  • assess whether the new business models will create risks for your traditional business

In large organizations, the best way to ensure the success of digital transformation and limit risks is to use powerful enterprise architecture tools. These robust technology tools can help you evaluate and narrow down multiple tactical choices for your plans. After all, automated option analysis is the fastest and most reliable way to innovation and transformation, not just for financial services companies, but for other industries as well. It is a well-proven means used by industry leaders worldwide to quickly anticipate and adapt your organization to change.

With enterprise architecture, the choices are in your hands, rather than in the hands of your competitors.

  • You can develop your criteria for the exploration of options … costs, risks, market share growth, alignment with strategy, capabilities, or any number of elements that are important to your business.
  • You get to clearly see what processes, people, resources, technologies and organizational structures are required for each option and what outcomes you can expect.
  • You can compare the outcomes and decide which is best for your company; the tools will deliver a well-defined roadmap for each option.

The roadmap will show you how to change your shoes in the middle of the race without stopping, and give you a step-by-step plan for getting to the finish line. It will illustrate how to add innovation and agility to your company so that you aren’t left behind in a cloud of dust.

Staying where you are is not an option, because you could be the only person in that big, empty bank branch.


MEGA’s Banking Task Force has experts who can help you through your transformation. Contact us to find out how other banks are winning their race.

1Adams, Robert M. and Gramlich, Jacob P., Where Are All the New Banks? The Role of Regulatory Burden in New Charter Creation, 2014
2LaPonsie, Maryalene, 10 Banking Trends for 2016, U.S. News & World Report, January 7, 2016