Post on 16-Apr-2017
Creating the Future ofGlobal Financial Services
Ross DawsonChairman, Future Exploration NetworkAuthor, Living Networks andDeveloping Knowledge-Based Client Relationships
Risk
Relationships
Finite players play within boundariesInfinite players play with boundaries
- James Carse
Critical uncertainties
Driving forces
Implications
Scenarios for financial services
Opportunities
Scenario thinking
Critical uncertainties
Driving forces
Implications
Scenarios for financial services
Opportunities
Scenario thinking
Scenario thinking
Source: Shell Global Scenarios to 2025
Forecasting and scenarios
Thinking about the future of drilling
Source: Global Business Network & Peter Schwartz
Life is full of surprises
Source: Global Business Network & Peter Schwartz
Networks are based on standardsSenior executive
interviews
Financial servicesDisruptions-trends
-uncertainties
Develop preliminarystrategic
frameworks
Explore past, present and future
Workshoppreparation
Scenario Project - Process Map
Catalysts for strategic
conversation
Developscenario agenda
Drivers of alternative futures
Preliminaryscenario frameworks
Scenario teamdevelops scenarios
Application indivisional strategy
process
Group strategyimplications
Scenario Book
Future VisionWorkshop
Ongoing annualgroup and divisional
scenario-basedstrategy process
Growth and success
Scenario thinking
Strategic capabilities
Responsiveness
Critical uncertainties
Driving forces
Implications
Scenarios for financial services
Opportunities
Scenario thinking
Driving forces
1. Economic shift2. Demographic shift3. Greater expectations4. Commoditization5. Connectivity6. Integration 7. Modularization8. New payment mechanisms9. New capital markets10.Value of relationships
BRICs are overtaking
Source: Goldman Sachs
Demographics is destiny
We expect more
Prices are being driven down
Source: UK Office of National Statistics
Connected to financial advice
Integrated information flows
The modular economy
New payment mechanisms
New layers for capital markets
Relationships matter
Driving forces
1. Economic shift2. Demographic shift3. Greater expectations4. Commoditization5. Connectivity6. Integration 7. Modularization8. New payment mechanisms9. New capital markets10.Value of relationships
Critical uncertainties
Driving forces
Implications
Scenarios for financial services
Opportunities
Scenario thinking
Critical uncertainties
1. Globalization2. National stability3. Regulation4. Privacy5. Volatility 6. Industry structure7. New entrants8. Currencies9. IT Security 10.Climate change
Is globalization inevitable?
The integrity of nations
Regulation drives industries and economies
Privacy, service, and pricing
Will complexity drive volatility?
Industry consolidation
Banks get new competitors
How many currencies?
Will IT systems be secure?
The impact of climate change
Critical uncertainties
1. Globalization2. National stability3. Regulation4. Privacy5. Volatility 6. Industry structure7. New entrants8. Currencies9. IT Security 10.Climate change
Critical uncertainties
Driving forces
Implications
Scenarios for financial services
Opportunities
Scenario thinking
Key dimensions
Aggregation: Fragmentation to Consolidation
Technology uptake: Traditional to Transformational
Scenario Framework: Global Financial Services in 2020
ConsolidationFragmentation
Transformational
Traditional
New frontier
MegaServices
Agent economy
BarriersRising
AGGREGATION
TEC
HN
OLO
GY
UP
TAK
E
New frontier
MegaServices
Agent economy
BarriersRising
AGGREGATION
TEC
HN
OLO
GY
UP
TAK
E
New Frontier
Strong global growth and availability of capital Deregulation and international cooperation India flourishes Google, eBay, and telecoms firms become major
financial players Margin pressure across industry Rise of mobile payments and e-cash Shift away from branches Intensely customized service to all tiers of clients
New frontier
MegaServices
Agent economy
BarriersRising
AGGREGATION
TEC
HN
OLO
GY
UP
TAK
E
Barriers Rising
Rise of protectionism China splinters Euro breaks up Wealth disparities rise Investors demand focus Banks specialize/ global monolines Proliferation of intermediaries High margins for successful players Terrorism impacts financial markets and insurance
New frontier
MegaServices
Agent economy
BarriersRising
AGGREGATION
TEC
HN
OLO
GY
UP
TAK
E
Agent Economy
Fluid global economy Highly modular outsourcing across borders Governments lose control/ consumers gain control Consumers and business shift wholesale to online Agents seek best price for everything/ customer
loyalty nil Constant product innovation Markets are volatile Customer service and call centers are automated
New frontier
MegaServices
Agent economy
BarriersRising
AGGREGATION
TEC
HN
OLO
GY
UP
TAK
E
Mega Services
Rise of BRIC results in multiple superpowers Trade liberalization wins Global financial services consolidation Integration across financial services sectors Profitability high but cyclical High customer expectations Banks diversify into other personal services, partly
through alliances Niche service providers emerge to support the market
leaders
Scenario Framework: Global Financial Services in 2020
ConsolidationFragmentation
Transformational
Traditional
New frontier
MegaServices
Agent economy
BarriersRising
AGGREGATION
TEC
HN
OLO
GY
UP
TAK
E
Critical uncertainties
Driving forces
Implications
Scenarios for financial services
Opportunities
Scenario thinking
Key capabilities for success in 2020
Specialization
Integration
Scalable relationship management
Cross-selling
Responsive strategic re-positioning
Two layers of technology in organizations
Ad-hoc networks
Standardized processes
Shifting relationship channels
Critical uncertainties
Driving forces
Implications
Scenarios for financial services
Opportunities
Scenario thinking
The flow economy
Opportunities for Indian FS Industry
1. Best-of-breed modular services
2. Adapting microfinance expertise
3. Financial Services Virtual Operator support
4. Global mobile payments
5. Branded global Joint Ventures
6. Support India’s success
Critical uncertainties
Driving forces
Implications
Scenarios for financial services
Opportunities
Scenario thinking
We have a choice
Online resources
“Dawson has pulled off the nigh-impossible: improved on what was already a terrific book. Even more than before, this is essential reading for professional service firms.” - David Maister, author, Managing the Professional Service Firm
www.rossdawsonblog.comCommentary, free chapters, and downloads at:
“I’m not sure that even Ross Dawson realizes how radical – and how likely – his vision of the future is.” - Seth Godin, author, Purple Cows
Create the future of financial services!