How we got here
Rina Pandalai, a financial services strategy lead at Publicis Sapient, argues that a confluence of factors (low interest rates, loan losses, etc.) threaten to wipe out many regional banks. People aren’t visiting physical branches anymore and low interest rates undermine the profitability of deposit/loan-related products.
“The banking industry has really evolved and is evolving fast,” Pandalai said. “We’re entering a period where banks can’t survive because the economics don’t hold up. So, there’s a wave of different banks consolidating and becoming new entities that need to consider things like re-platforming.”
As digital disruptors seize greater market share, the formerly autonomous, recently consolidated banks will need to accelerate new positions in the marketplace. In a matter of months, these banks can leverage cloud to launch new business models that create value, connect with customers and deliver unique products and services.
In the throes of change, financial institutions that master the transition to cloud will emerge with stronger brands and customer experiences. But they need to understand the true scope of the cloud revolution.