Innovation in the face of disruption

Abstract

The coronavirus crisis has accelerated various trends across industries, predominantly in favour of digitalisation and the need for innovation. Consumer behaviour is changing rapidly in response to the crisis, as customers expect their banks to mirror the personalised, quick delivery experiences offered by the BigTechs and the companies outside of the financial world. With regard to innovation in times of crisis, financial services companies are faced with a choice between a defensive approach, where they safeguard their current operations — already hugely under pressure — and an offensive approach, which is crucial to avoid losing relevance, market share and profits. The dilemma banks face concerns how to save costs and safeguard their current operations while addressing immediate customer needs and investing in the future. This paper describes shifts in customer behaviour and explores opportunities for banks to disrupt themselves and invest in new business models with a focus on platforms.