Banks could boost revenues by four percent by embracing digital-first models

Traditional banks could increase their annual revenues by nearly four percent if they embrace the innovative business models used by digital-only players, according to an Accenture report.

A business survey of about 100 bank employees with more than 200 players in 11 countries in North America, Europe, Asia-Pacific, and Latin America has the potential to earn the additional US $ 518 billion by 2025.

Accenture introduces two traditional business methods: direct, common business methods; and models that do not use the bank line as a “package”.

The proposal states that although most traditional banks have used the first regime, they can grow significantly by opening up their existing products with partners and other departments to build and distribute new products.

In particular, by applying the legal framework in line with the standard integrated trade regime, they can increase annual growth by up to 3.8%.

The proposal states that between 2018 and 2020, only digital players will do better than traditional banks. But those who used unstructured trading systems achieved a 76% annual gross margin (CAGR) in revenue, while mathematicians showed only high-quality, combined sales of just 44% CAGR.

Accenture recommends accepting one or a combination of the following: sell banking products; build a natural environment for sharing; sell a financially viable service, or create new information through installation.

Dilnisin Bayel, MD on Accenture policy and group strategy, UK, said: “Being number one is no different. To get big, outdated banks have to work well. A lot of business practices over time.

“This will require them to change their minds to think about flexible models to use in design, distribution, testing, and advertising.”

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