GoDubai
  
  
  
  
Citylife > Press Release
  Home Contact us Add to Favourites
Most Recent Postings
More Press Releses
Featured Sections

Event Finder
A daily roundup of exhibitions, promotions and other events in Dubai and the rest of the Emirates.
Submit an Event
Latest Dubai Press Releases >>

 
  Share
Annual State of Financial Services Report “Time to Start Again” Released at Davos
 
Dubai, United Arab Emirates, January 22, 2019 –   The next big wave of innovation in financial services will be driven by incumbents starting with a blank canvas, according to Oliver Wyman's 2019 State of Financial Services report titled “Time to Start Again” launched today at the World Economic Forum Annual Global Meeting in Davos.
 
The report describes an emerging new approach – “Greenfield” – where existing firms break free from the constraints of their legacy systems, business and talent models. It is based on new subsidiaries, new technology, and new customer solutions.
 
“For an industry whose product - the movement and storage of money – is electronic, the processes are still far too manually intensive” said Ted Moynihan, Managing Partner and Global Head, Financial Services, Oliver Wyman. “Established firms will look to free themselves from the shackles of their legacy infrastructure and embark on future journeys unencumbered.”
 
Examples are beginning to be rolled out. RBS Group will soon launch Bó, a greenfield digital offering, built with new technology in under 12 months. National Australia Bank (NAB) has had success with QuickBiz, a fully digital unsecured lending solution, and German insurer ERGO has built Nexible as a challenger to its existing auto-insurance business. Goldman Sachs launched Marcus in the US and Europe, allowing it to enter consumer banking.
 
The Power of New
 
Digital challengers are providing the inspiration and motivation for existing firms to embark on new builds. South Korean digital bank Kakao attracted 6 million signups in less than a year. Monzo, Revolut, and others in the UK grew their customer base from 0.6 to 2.5 million customers in a year. In the US, Chime has opened more than 2 million no-fee transaction accounts. In the foreign exchange market, XTX gained 10 percent market share in just three years, making it the second-largest player in 2018.
 
Some of these businesses may not yet be profitable, but over time the digital challengers and greenfield businesses will use what the report calls “flywheel momentum,” collecting more data, developing new propositions with that data, and attracting more talent. 
 
Enter Existing Financial Services Firms
 
To be successful in the future, financial institutions need to have the same advantages as digital challengers. For example, the average number of customers each person in a challenger bank serves is over 2,500, compared to 1,000 in existing banks. Digital challengers launch new products or services in two weeks, compared to three to six months release timetables for traditional firms. 
 
Greenfield is an attempt to deliver a customer offering to match or exceed the challengers. Using modern technology, an open platform, and third-party services, new banking and insurance platforms can be built within a year, at a cost of between $10 million and $60 million. Financial services firms will hope to outcompete fintechs with greenfield platforms, while having the advantage of tremendous resources and an existing customer base from day one.
 
In the process, the new greenfield businesses will help catalyze and drive change across the organization. “The new will transform the old and create a better financial system overall”, concluded Moynihan.
 
The Oliver Wyman Time To Start Again report is available here. This year's report is broken into four segments: The Power of New, How the New Can Transform the Old, The Greenfield Approach and Flywheel Momentum.  The report features the first in-depth interview with Mark Bailie, former Group COO of Royal Bank of Scotland and current CEO of Bó.  
 
Key exhibits from the report include:
  • Exhibit 1: The Impact of New Business Models 
  • Exhibit 3: Introducing Greenfield
  • Exhibit 4: The Old vs. The New
  • Exhibit 10: A Year in the Life of a Greenfield Build



Posted by : GoDubai Editorial Team
Viewed 7296 times
Posted on : Tuesday, January 22, 2019  
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of GoDubai.com.
Previous Story : Saudi Finance Minister to Bloomberg: 2.6% GDP Growth In 2019
Next Story : Barclays: Equities to Outperform Bonds as Global Economy Expected to Continue Growing
Email this article Print this article

Share this article with your friends and followers
NewsVine

Comments

Back to Top  
Most Viewed Press Release posted in the last 7 days
Longchamp X Nendo A “!” Moment Around Le Pliage®
Color Your World with Wet n Wild Beauty this Spring
Amorepacific Group holds an event for its 1st anniversary in the Middle East
The Region's Most Loved Health & Beauty Brands at Beautyworld Middle East, Thank...
IKEA Collection Launch | TÄNKVÄRD
Johnson's participates in Arab Hospitals Federation
HUGO BOSS watches Legacy Collection
Supercharged Innovation: Galaxy S10 encompasses breakthrough camera technology
Al-Futtaim Toyota rewards customers ahead of the holy month of Ramadan
Enjoy Your Love for Burgers and Arts at Artsy Shacks in Dubai
The Beauty Oasis Spa Introduces ‘glowinface' - a First of Its Kind Facial Yoga T...
Airport Show remains key B2B platform for Saudi exhibitors
Get Instantly plump and luscious lips with Kocostar's Plump Lips Capsule Mask
Protect your little ones skin during summer time with Fifi & Friends
CLAUDE MONET Limited Edition Collection
Celebrate with the new AIGNER Ramadan collection
UAE to spend AED 8.8 bn on personal care 2022 with 2.2% annual growth
Young UAE Karting Star Rashid Al Dhaheri Achieves Podium Success at Prestigious ...
Yas Waterworld earns Guinness World Records title for “Most Nationalities in a S...
Spend an exciting evening with your family learning about science at Foremarke school
Dubai to host the first-ever Mega City Infrastructure Week
Ralph Lauren Unveils the Earth Polo, Made Completely From Recycled Materials
Caparol Paints rebrands packaging on a ‘go green' drive
The Asbestos Disease Awareness Organization (ADAO) Launches 15th Annual “Global ...
Abdul Latif Jameel Energy continues advance in Australia in drive to grow capaci...
UAE's First Digital Government presents Ajman's Digital Transformation Journey a...
GUESS Partners with Model Roz To Unveil Its Beautiful New Ramadan Collection
Malabar Group Headquarters (M HQ) wins the Forbes India Design Awards 2019
Bayut acquires Lamudi Middle East in aggressive expansion move
Dubai School represents UAE at Landrover 4x4 World Championship 2019
LG's Premium Living Space Solutions Impress at Innofest MEA 2019
Tumi Introduces Alpha 3
Mohammed Bin Rashid Space Centre and National Geographic Announce Four-Year Part...
Record results and renowned awards for Dubai Customs in 1st quarter 2019
Ministry of Health & Prevention confirms that: The Dietary Supplement “Extracted...
Express Yourself With the New Scents of Life Fragrance Collection From the Body Shop
DP World, UAE Region to Unveil Door-to-door Solutions at GPCA
Worldwide Distribution Center Showcasing Thousands of Health and Beauty Products...
Samana Developers launches Samana Hills in Arjan with 8 year payment plan
TMS launches Ship Finance and Trade conference
Emirates completes installation of Expo 2020 Dubai livery on 40 aircraft
Dubai Theme parks industry estimated to generate $ 5 billion in annual revenue b...
Tally Solutions to host latest edition of SMB Pulse in Dubai to help boost SMEs'...
Can tech insulate construction and support growth?
Emirates Post Recognized for Outstanding Customer Services by Universal Postal U...
All-New Kindle Now with an Adjustable Front Light For Just 359 AED
CND™ Sweet Escape: The Collection Awaken the Senses
Ericsson and ABB join forces to accelerate wireless automation for flexible factories
Stand Proud and Be Part of Building Lasting Jiu-jitsu Legacy
Curtin University adds six new programs and rollouts expansion plans for their t...