Designing the Twenty-first-century Financial Institution for Value

Abstract

Competing in the twenty-first-century business landscape requires that financial services organizations rethink not only product offerings but also the very nature of how value is provided to customers. New market entrants hungry to acquire customers are rapidly rising to meet the competition head on by commoditizing prices and providing convenient technology access to products. Previously, technology-differentiated companies with deep pockets provided a competitive buffer between competitors. Now technology is within easy reach of any potential market entrant, blurring the lines between added value and customer service. The combination of skilled talent and technology, coupled with the ability to shift resources to take advantage of opportunities, is the essential ingredient for being competitive. A highly skilled employee needs little direction other than a clear understanding of the desired end result, reducing the need for a hierarchical organizational structure.