Major regional banks issue wake-up call for traditional banking system in new ‘Disruption’ book

Disturbance, a new book from leading business publisher LID, explores the future of banking in a market where the rules have fundamentally changed. The authors – Ignacio Garcia Alves, Philippe de Backer and Juan Gonzalez – are leading thinkers from one of the world’s leading management consultancies, Arthur D. Little, and draw on many years of experience and insight to describe the challenges that traditional banks face from new competitors and offer a model for change and survival.

Disturbance includes original interviews and thought-provoking testimonials from leaders and major players in the banking world, who openly share their views on the future of financial services and banking. The book provides a critical understanding of trends within the industry, including the impact of the Covid-19 pandemic, and crucially identifies opportunities for universal banks to leverage their unique assets and prevent new entrants to dominate the market.

Ignacio Garcia Alves, Global CEO of Arthur D. Little, saysDisturbance details how a new generation of more nimble and aggressive players is disrupting the financial services industry and advises traditional banks on how to deal with the serious challenges they face from these disruptors. It is a ‘thinking tool’ designed to spur action which we hope will resonate particularly with industry players who already have a strong sense that the bank has fundamentally changed, with its model legacy facing an existential threat. In saying this, we do not intend to be alarmist. Instead, we want readers to think about what these changes mean for the industry in terms of risk and opportunity.

Philippe de Backer, Managing Partner and Global Practice Leader of Financial Services at Arthur D. Little, comments“We can only conclude from our research and analysis that the traditional banking model we all grew up with is no longer suitable. The rules of the game have changed so much that banks have no choice but to adopt a different model, one that is much better suited to the world as we know it today. However, this requires both significant investment and a major shift in banking culture.

Juan Gonzalez, Partner at Arthur D. Little, adds: “The arrival of disruptive and tech-enabled players in the financial market should be a wake-up call for banks, because if they want to survive the threat, they need to act quickly. Banks are conservative organizations that tend to move slowly, but we hope that Disturbance will help them understand the changes that are coming and ultimately adapt more quickly.

Dr Bernd van Linder, CEO of Commercial Bank of Dubai, said: “I think the future will be one of partnerships and will be one of a hybrid model, in more ways than one. Thus, we will see a multitude of hybrid models, between digital banking and physical banking, and between proprietary banking and partnership banking.”

Sandeep Chouan, Group COO, Abu Dhabi Islamic Bank, said: “My view (on the universal banking model) is that we are going to experience the same revolution that the automotive industry has experienced.”

Disturbance is a must-read for anyone who wants an in-depth analysis of the current state of the banking market and its future development. It’s a book for financial services executives who want to get ahead of the game and make the right decisions to help their business thrive rather than stagnate.

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