Although sophistication and complexity are growing, banks have unwittingly embedded in their structure some significant barriers to innovation, which make it difficult for them to leverage breakthrough technologies that are being championed by other industries. Companies in adjacent business domains that adopt innovative approaches in technology, and consumer goods and services are outstripping banks in customer momentum. TowerGroup finds that fundamental innovation in banking is becoming the top strategic business driver for 2007. A central challenge for banks is to transcend their traditional business confines and partner with leading innovators in other industries.
Based on TowerGroup research by Guillermo Kopp, vice-president of financial services strategies and IT investments at TowerGroup. (gkopp@towergroup.com)
