DIGITALISATION IN THE BANKING SECTOR – THE NEED FOR NEW CUSTOMER-CENTRIC BUSINESS MODELS

Abstract

This publication is part of a broader examination with regards to digitalisation in the banking sector and the necessity of customer centric business models. The study also considers the importance of perpetual alignment between business models and customer needs to avoid market share losses. This research paper examines at the extent to which digitisation in the banking sector is needed and why customer centricity plays an important role. In terms of methodology, a divergence analysis between banks’ current business models and customer needs will be described which underpins the research question. This article presents recommendations for banks in terms of how to dynamize business models and optimization of channels. However, digitalisation in the banking sector is not only an ongoing trend, but also poses a significant challenge to most institutions. This article picks up on this and presents key challenges as well as opportunities for financial institutions to deal with it.