Agile transformation of the banking industry is imminent: report

Source:Global Times Published: 2019/4/11 20:58:40

To cater to consumers' rising demand, more and more banks have chosen to deploy a digital banking strategy to gain competitive edge on the market, and agility is the most important means of implementation for digital transformation, a report released by consulting firm McKinsey & Company said on Thursday. 

The report said today's world market is full of uncertainty, complexity and ambiguity, and companies need to be more agile in order to survive. The Chinese banking industry also faces many challenges, including the rapidly changing needs of the fast-changing environment, the emergence of disruptive technologies, the acceleration of digital and information transparency, and increased competition for talent.

John Qu, senior partner at the company, said that the growth rate of core indicators of the domestic financial industry slowed significantly in past years. The average profit growth rate of China's commercial banks is much lower than it was before 2014, and most banks find it difficult to achieve double-digit revenue growth.

Qu said that the Chinese banking industry is not only facing competition from within but also challenges from overseas financial giants. The agile transformation of the banking industry is imperative.

As an innovative organizational form, agile organizations break the traditional organizational structure of fragmented and hierarchical to achieve a balance between stability and flexibility. 

McKinsey found that agile business models can increase product development speed by five times and decision efficiency by five times, the report said. 


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