Unbundling the bank
“Technology is the primary business driver in the banking industry” or so Craig Heimark said during his session at QCon today, not that the business is really aware, all they see is the changes in the competitive landscape. However, as he argues this change is driven (although enabled might be a better word to use) by the massive growth of communications challenging and forcing a reconfiguration from centralised vertical models to decentralised models made up of single value specialists.
The consequence is to create increased value to the consumer at the expense of margins; the higher the volumes the lower the margin. This leads to mass customisation and the eventual unbundling of services driven by consumer demand.
Not dissimilar, IMHO, to the service revolutions that we are predicting across other verticals and a breath of fresh air after my experience talking about the Software and Services at the recent "Implementing SOA in the Banking industry" conference I attended last month where their view was consolidation at all costs.
However, Craig has left the bank and is now building technology that will aid this disruption ... so the innovator leaves the corporation buy more on the innovation squeeze in my next blog.
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