Banking & Financial Services Innovation Crucial for a Competitive Edge

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Highlights

How are financial institutions planning to use technology to compete between now and 2025 in an increasingly digital world?
To what extent will they innovate versus optimize in such areas as how they compete, what they offer, how they create demand, and how they lead employees?
Will they enter new markets outside traditional industry boundaries, and are they concerned about competition arising from unconventional places?

To address these and related questions, in 2021 Tata Consultancy Services surveyed more than 1,200 global companies with an estimated average revenue of $14.6 billion across 17 industry sectors. The sample included banking and credit institutions; and securities and investment banking firms, 37% from the UK and Europe, 23% from North America, 22% from Asia-Pacific and 18% from Latin America.

Insights in this article

Banking and

Essential Takeway

Financial

Banking and Financial Leaders

The TCS 2021 Global Leadership Study also compared the strategies of two subsets of financial services firms: “Leaders,” which had both superior revenue and profit growth from 2015 to 2019, compared to other companies in their industries, and “Followers,” which reported inferior financial performance during that time. The logic: The second half of the 2010s was a highly digital era, and companies with the best financial performance did many things right, so they are the ones to learn from, especially when compared to those with the worst financial performance.

Essential takeaway

Only 45% of banking and credit institutions and 40% of securities and investment banking firms are limiting their strategic outlooks to traditional industry boundaries. This compares to 55% of all respondents to the 2021 survey.

Financial institutions are catching on to the need to strategize through the lens of digital ecosystems rather than relying only on traditional industry boundaries. Both retail banks and investment banking firms are more likely than companies in other sectors to plan through the lens of cross-industry digital ecosystems.

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Extraordinary expertise leads to remarkable results.

Want to be a global change-maker? Join our team.

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TCS works hand in hand with world-leading investors.

TCS is here to make a difference through technology.

We are with you for the long run.

Extraordinary expertise leads to remarkable results.

Want to be a global change-maker? Join our team.

Find the latest news about TCS in our Newsroom

Recent Press releases

Recent News

Recent recognitions

Upcoming events

TCS works hand in hand with world-leading investors.

TCS 2021 Global Leadership Study

Discover TCS

Highlights

Insights in this article

Banking and Financial Leaders

Essential takeaway

TCS is here to make a difference through technology.

We are with you for the long run.

Extraordinary expertise leads to remarkable results.

Want to be a global change-maker? Join our team.

Find the latest news about TCS in our Newsroom

Recent Press releases

Recent News

Recent recognitions

Upcoming events

TCS works hand in hand with world-leading investors.

Discover TCS

Highlights

Insights in this article

Banking and Financial Leaders

Essential takeaway

Belief in action

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