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Banking on a new model
December 12, 2022
Each of the three business models – daily banking, navigating life events and building and protecting wealth – if executed successfully, could provide a much-needed boost in profitability for retail banks, with target cost-to-income ratios between 40% and 50%.
Cost-reduction levers would differ for each model but would include optimisation of branch networks and maximum automation of customer acquisition/onboarding, credit underwriting, servicing and more. In addition to increased product penetration across the customer base, income levers include new revenue streams with ecosystem partners.
The adoption of platform-based business models will unleash a kind of internal disruption, requiring banks to give up revenue in some areas as they position themselves for fast growth in the target business.
Important Links:
- 4-IN-1 Professional Diploma in Banking, Financial Services & Insurance (PDBFSI): https://ask.careers/courses/4-in-1-professional-diploma-in-banking-financial-services-insurance-pdbfsi/
- Mumbai: https://ask.careers/cities/mumbai/
- TSCFM: https://ask.careers/institutes/tscfm/