Banks are facing a world where profit is being compressed by:
• Historically low interest rates
• COVID-19 related credit losses
• Patchy economic recovery
• Fintech competition
The good news? Research shows that elevating their operational maturity helps banks outmaneuver the threats that tomorrow poses.
3. Intelligent Operations | Banking Industry View
Digitally-focused
banks have benefited
from market
valuations that, on
average, were 18%
higher than less
digitized peers in
2019, and 27% higher
in 2020.
What’s the upside of being
future-ready?
Note: Values calculated as simple mean of 97 banks with P/BV data in all periods.
Source: Accenture Research on S&P Capital IQ data.
Source: www.accenture.com/_acnmedia/PDF-102/Accenture-Banking-Does-Digital-Leadership-Matter.pdf
1.05
0.94
2011
Digital focused Digital active
0.99
1.19
1.01
2019
0.83
1.03
0.81
2020
0.75
The rest
Price to book value ratio
5. Intelligent Operations | Banking Industry View
This holds true
particularly in
areas such as AI,
analytics and
automation.
Banks have failed to scale in key
innovation areas that measure
operational maturity 78%
Data
75%
71%
Analytics
74%
64%
Leading practices
68%
67%
Business-technology collaboration
74%
65%
Agile workforce
71%
58%
Automation
67%
61%
Stakeholder experience
65%
57%
AI
60%
Currently in wide use or at scale (Banking)
Currently in wide use or at scale (All industries)
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Data is one of the
bright spots for banks
This is not surprising given banks have large
amounts of data that can be used for identifying
customer behavior patterns and targeting
appropriate products, such as mortgages and
other loans, at competitive prices.
Extracting the full value of data takes technology
enablement—particularly in areas such as AI,
analytics, automation and cloud.
78%
of banks use data today widely
or at scale — slightly above the
75% cross industry average.
7. Intelligent Operations | Banking Industry View
Three ways to become future-ready:
03
02
01
Know how
to leapfrog
maturity levels
Know the
key steps
Know the
ultimate goal
9. Intelligent Operations | Banking Industry View
01 Know the ultimate goal
of banks expect
business and technology
functions to collaborate
fully by 2023.
43%
are doing this today.
11%
In many leading banks the CTO and
Head of Operations now report into
a single executive who can take a
holistic view of how technology can
enable an effective operations
transformation.
Bring business
and technology
together
21. Intelligent Operations | Banking Industry View
Appendix
Four levels of operations maturity:
Predictive
Concentrate mostly
on core process
improvements and on
improving quality and
compliance controls.
Stable
Future-ready
Efficient
More productive, they
incorporate tested
methods, such as Lean
Six Sigma and process
standardization and
deploy automation
technologies.
Focus on how automation
can support and augment
human ingenuity. They
deploy technologies and
leading practices with
that goal in mind.
See increased efficiency
and profitability, improved
stakeholder experiences and
better business outcomes.
They are more agile and
resilient than others.