The firm recommends that banks pay specific attention to retaining control of the customer interface and information. In addition, as consumers become more comfortable with technology, they can easily unbundle financial services and select the best product from separate providers. This scenario makes it easier for software providers to become the intermediaries between customers and their financial institutions, acting as both agents and integrators, D'Acierno said. Further, the replacement of even a small number of checks with electronic payments will have a significant impact on banks' collected balances, due to the elimination of handling, mail, and float, he said. In addition, consumers prefer banks over technology companies for bill payment, while corporate customers also want to maintain electronic relationships with a financial institution.
Most banks lack the resources and appetite to compete as network providers or processors.
Therefore, they must develop new payment vehicles and delivery channels that will offer real opportunities to provide new services to customers. Develop a retailing vs. a manufacturing orientation Recognize and eliminate organizational barriers to change. Management must have the vision and commitment to support the development of fundamentally new business systems.