Financial Services 2025: How to grow in the challenging years ahead?
Originally published on Linkedin
My colleague Aneesh Lele and I have authored a new series focusing on a new approach to organic growth for financial services leaders. We fundamentally believe that our theory of strategic change will work for both retail and institutional services, if implemented with rigor and commitment.
How can business and technology leaders of today and tomorrow create business value at start up speed? Why do long-standing problems plaguing large banks and financial services firms continue to persist, even though they spend more than any other industry on technology and innovation?
What is the path to growth when the regulatory environment is becoming increasingly challenging every day, global interest rates experience artificial gravitational pull and organic customer acquisition flatlines across most profitable service lines?
We committed ourselves to this series, FS 2025: How to Grow in the Challenging Years Ahead, to offer leaders a new approach, and a new toolkit that can help win new customers and leapfrog competitors, old and new.
The key to unlocking a new path for growth lies in the recognition that all of the challenges facing large banks have a single problem at the core: a yawning and growing trust gap between society and banks. To close this gap, winning financial institutions will need to become Customer Driven Organizations.
We have found broad alignment on this idea with senior leaders in the industry over interviews. However, as the strategic forces transforming the industry become more volatile and keep on accelerating at an unforeseen pace, executives are being pulled in a number of contradictory directions, forcing tough trade-offs with scarce resources. We describe this dynamic, and its implications in Chapter 2.
In Chapter 3, we describe the core principles to unlock growth, to break the gordian knot caused by those strategic forces, and truly focus on building business value by addressing customer needs. Growing companies consistently incorporate these three core principles across all of their lines of business & functional areas.
Keep reading. Comments welcome.