德勤 -零售银行业的未来 十大举措 助你将不确定性转化为竞争优势 The future of retail banking Ten moves to help you turn uncertainty into advantage

Deloitte.

Retailbanking

10movestoturnuncertaintyintoadvantage

Introduction

Retailbankingisatadefiningcrossroads.Shiftingdemographics,influencesfromotherconsumer-facingsectors,andacceleratingtechnologicaladvancesaretransformingcustomerexpectations.Atthesametime,banksarenavigatinganincreasinglycrowdedfinancialservicesecosystemwherecollaboration—and

competition—haveblurredtraditionallinesandintroducednewplayers.Layerinanambiguousregulatorylandscape,mountingfraudpressuresandtheongoingneedforcostvigilance,andthequestionisn'tsimplyjusthowtostaycompetitivebuthowto

thriveandexcelinthisevolvingenvironment.

Thrivingrequiresmorethanobservation—itdemandsaction,andtheretailbanksthatproactivelyshapetheirfuturewillbetheonesthatleadit.Tonotonlyattractbutretaincustomers,banksmustsharpentheirvaluepropositions,rethinkinternal

operations,andinvestincapabilitiesandpeoplethathelpthem

connectinmoremeaningfulways.Thisisespeciallycrucialasit

becomeseasierthaneverforcustomerstochangehowtheybankandwhotheybankwith.Digitalinnovation,tailoredservicemodels,andstrategicpartnershipswillbekey,aswillpreparednessfor

regulatorychangesandastrongtechnologyinfrastructure.

That'swhynowisthetimetoact—notwithreactiveordefensivemeasuresbutwithforward-lookingmovesthatarerelevantandcreaterealadvantage.Deloittehasidentified10strategicactionsthatcanpositionretailbankstotakecontroloftheirtrajectory.Thewayweseeit,thefutureofretailbankingisn'tsomething

tobracefor—it'ssomethingtodefine.

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Contents

1.Personalizeforasegmentofone4

2.Reducechannelfriction5

3.Leveragedatatoaddresscustomerpainpoints6

4.Progressivelymodernizeyourcore7

5.Stayaheadofregulatoryexpectations,withnoregrets8

6.Standguardtogether9

7.Partnerforspeedandaccess10

8.Winthesmallusinesscustomer12

9.Evolveoperationstofundgrowth14

10.Cultivatetalenteyondtheankingule15

3

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1.Personalizeforasegmentofone

Retailankingdoesn’texistinavacuum.Bankingcustomersareconditionedytheirexperienceselsewhere—fromstreaming

platformsrecommendingcontent,tofashionsitessuggesting

purchases,tohealthappstailoringwellnessplans.Theyexpectproductsandservicesthatareuniquetothemandofferedatjusttherighttime.

Yetwhenitcomestoanking,mostcustomersareunderwhelmedbyaone-size-fits-allexperience.Whileover70%ofconsumersratetailoredofferingsashighlyimportantforbanksandotherfinancialinstitutions,1only14%ofbanksprovidecontextuallyrelevant

experiences,2andfewerthanoneinfourconsumersfeeltheirankproactivelyanticipatestheirneeds.3

Thislagisn’tentirelysurprising—traditionalretailankingwas

designedforthemasses.Buttoday,peopleareradicallyredefiningwhat“value”meansintheirrandrelationships.DemographicandculturalchangesintheUSpopulationhaveinfluencedbanking

needs.Consumersstillneedankstohandleasictransactions,uttheynowexpectguidance,insights,andsolutionsmatchedtotheiruniquecircumstances.

Toclosethisgap,anksshoulddevelopadistinctivevalue

propositionthatreflectstheintegratednatureofcustomers’

financialneeds.Manybankscurrentlyoperateinsiloswithblinders etweenpersonalanking,mortgagelending,usinessanking,andwealthmanagementaccounts.Successinthehyper-personalized

erademandsreakingdownthosearriersandrecognizingeach

customerasawholeperson.Yes,Janemayeknowntoherank

onlyasamortgageholder,utshe’salsolaunchedafoodtruckonweekends,recentlyadoptedapuppy,andismarriedtoJohn—thingsthatherbankwouldbenefitfromknowing.

Toemoreattunedtocustomers,retailanksneedtoapply

advancedsegmentationtechniquesthattapehavioraldatalife-stageinsightsandreal-timepatternstoilluminatetheneedsofparticularsusegments,micro-segments,andultimately,

segmentsofone.

Thepayoffforbanksthatevolvetodeliverhyper-personalized

financialofferingsishardtoignore.Thosethathavedonesoareseeing30%higheraveragedepositbalancescomparedtothoseplayingtheoldgameofsign-uponusesandpromotionalrates.4While“hotmoney”tacticsattractdeposits,theyoftendolittleto

uildlastingrelationships.Banksthatanticipaterealneedsandsolverealproblemswithpersonalizedguidanceandofferswilllikelyeprimedtowininthelongrun.

Asanestimated$84trillioninwealthshiftsfromoomerstoGenX,millennials,andGenZ,5 anksmustrethinkrelevance—tailoringofferstoreflectdistinctgenerationalpainpoints,values,andengagementpreferences.

Considerationsforexecutives

•Whatstepsareyoutakingtoemedcustomercentricityintodigitaltransformationandservices?

•Howcanyouimprovesegmentationtosupportanunderstandingofcustomersatthemicrosegmentlevel?

•Whatdelieratechoicescanyoumakeeachdaytosupportdoingwhat’srightforcustomers?

CMOCOOCXO

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2.Reducechannelfriction

Today'sconsumersexpectbankingtobeseamlessacrosseverytouchpoint—buttoooften,theyencounterafragmentedreality.While77%ofconsumersprefermanagingtheiraccountsdigitally646%stillvisitbranches,7highlightingacriticaltruth:digital

andin-personexperiencesaren'tcompetingforces,butcomplementarychannelsthatmustworkinharmony.

Consideracommonscenario:Acustomervisitsabranchforloanguidance,latercheckstheirapplicationstatusonline—onlyto

findthemobileappoffersnoupdates.Whentheycallcustomerservice,theymustrepeatedlyverifytheiridentity,onlytolearntherepresentativecan'taccesstheirapplication.Thesemomentsoffrictionexposetheartificialboundariesbetweenchannelsthat

bankscreate,oftenstemmingfromorganizationalsilos,inwhichsales,service,andmarketingteamsoperateindependentlywithmisalignedincentives.Yetcustomersdon'tthinkinchannels

—theyjustwanttheirbanktowork.

Thepathforwarddemandsthreekeyactions.First,banksmust

realignincentivesaroundcustomeroutcomesratherthanchannel-specificmetrics.Contactcenters,forinstance,typicallyprioritizecall-handlingspeedoverissueresolution,forcingcustomerstobouncebetweenchannelstogetanswers.Anew,cross-functionalmetric,

bycontrast,wouldfocusonsingle-contactresolutionofcustomer

inquiries.Second,asbanksmodernizetheirdigitalplatforms,they

needtointegrateinternalandbranchplatformssotellersandotherbankprofessionalshavethesamevisibilityasdigitalchannels.Finally,banksmustguidecustomerstothemostappropriatechannelfor

theirneeds,whetherthat'shands-onhelpormobileself-serviceoptions.Newtoolsmakeitpossibletoconnectcustomerdataandexperiencesacrosschannelsandthenconnectcustomerstoappropriateself-servicechannelsforlow-complexityneeds

orroutethemtoknowledgeableservicerepsattherightmoments.YetrecentDeloitteresearchindicatesonly26%offinancialservicescompanieshaveimplementedtheseomnichannelroutingsolutions⁸.Truechannelintegrationmeanssolvingcustomerneedswithasingletouch,regardlessofwhereitbegins.Admittedly,thisstrategymay

initiallyraisethecostofservicingbecauseitoftenincreasesthe

involvementofhumanagents.However,bankssoonseethevalueofone-contactresolutionemergingbecauseitcanleadtostrongercross-sellrates,lesscustomerattrition,andloweracquisitioncostsforfuturecustomers.Whenamortgagespecialistcaninstantly

accessacustomer'sfullhistorywiththebank,orwhenamobilealerttriggersproactiveoutreachfromafinancialadvisor,itdoesn'tjust

eliminatefriction—itforgesrelationshipsthatarethewellspringofgreaterlifetimevalue.

Considerationsforexecutives

·Whatfactorsareperpetuatingsiloeddigital,branch,andhuman-assistedchannels?●

·Whereandhowcanyourorganizationremovefrictionbetweencontactcenterandself-serviceexperiencestodriveconsistentservicedeliveryacrossplatforms?

·Inkeycustomerjourneys(e.g.,mortgageorigination),whatredundanciesorfrictionpointsbetweendigital,branch,andhuman-assistedchannelscanbereduced?

·Howcouldyouadjustincentivessothatbusinessunitsacrossdigital,branch,andcontactcenterareworkingtogethertodeliverthedesiredcustomerjourney?

·Whatchangescanyoumakeintraining,hiring,andculturetosupportanomnichannel,customerfirstapproach?

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3.Leveragedatatoaddresscustomerpainpoints

Retailanksaresittingonatroveofcustomerdata,generatedfromcountlessdailyinteractionsacrossmultipletouchpoints.While66%ofconsumersarecomfortablewiththeirfinancialinstitutionsusingtheirdatatopersonalizeexperiences,9manyanksdonotleveragethisdatatoenhancecustomervalue.

Thechallengeliesnotindataaundanceoraccess,utinits

application.Toooften,anksusecustomerdatatopromote

productsratherthansolvecustomers’realneeds.Justaskanyonewho’srepeatedlyfilledoutthesameformswhenopeninganotheraccount—informationtheankhastuckedawayutdoesn’t

effectivelytap.Orconsiderfrauddetectionsystemsthatmistakenlydeclinelegitimatecustomertransactions,leadingtocustomer

frustration.Thesefrictionpointsunderscorethedisconnect

etweenhowanksorganizeandutilizedataandhowcustomerswishtointeractwiththeirinstitutions.

Fixingthisrequiresafundamentalshiftfromaproduct-centricto

customer-centricapproach.Mostbanksstillsilodatabyaccount

type,preventingaholisticviewofcustomers.Acentralized

customerdataplatform(CDP)isacrucialstartingpointforcreatingaunified“goldenrecord”foreachcustomer.Whilethistakes

effort—reconcilingdiscrepanciesbetweenGregJones(whohasa

personalcreditcard)andtheverysameGregoryP.Jones(whoholds

amortgage)—thepayoffisworthit,enablingsmoothercustomerinteractions,fromprefilledapplicationformstomoreintelligent

frauddetection.Italsohelpsanksspothiddenopportunities,likerecognizingthatGregJonesalsohappenstoeasmallusinessownerhidinginplainsightwithinapersonalaccountandthen

offeringhimmoretailoredbusinesssolutions.

Andthat’sjustthebeginning.Beyondinternaldata,bankscanunlockdeeperinsightsbytappingnontraditionaldatasourcesfromfinancialaggregatorstogaincrucialcontextintocustomers’lives.Acustomersuddenlybulk-orderingextra-smalldiapersmightbenefitfrom

financialplanningforfutureeducationexpenses.Acustomerwith

anexpiringcarleasemaysoonneedautofinancing.Theseinsights,whencombinedwithexistingfinancialdata,allowbankstoanticipateneedsratherthanjustreact.

Byshiftingfromaccount-aseddatasilostoacomprehensive

customer-focusedapproach,ankscanturntheirvastdata

reservesintosomethingvaluale—solutionsthatmakelifeeasier,notjustsalespitches.Thisopportunityisn’tjustaboutupgradingdataplatformsandtools—it’saoutreimagininghowyouservecustomerswhohaveentrustedyourinstitutionwiththeirmost

personalfinancialinformation.

Considerationsforexecutives

•Wherecouldautomation,AI,orbetterinfrastructurebestaddressinefficienciesinproduct,customersupport,oronoardingprocesses?

•Howareyouusingdataandanalyticstopredictchurnandproactivelysolveissueseforetheyescalate?

•Whatstepsareyoutakingtoevaluateandintroducenewtechnologies,suchasiometric

authenticationforfaster,moresecureaccess,AItoauthenticatehigh-risktransactions,andmachinelearningtodetectpotentialfraudinrealtime?

•Howcanyouestapplydata-drivenautomationtoreducemanualfrictioninonoardingcustomers?

CXOCTOCDO

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4.Progressivelymodernizeyourcore

Retailbanksarefacingacoreconundrum—literallyandfiguratively.Theirlegacycoreplatforms,onceconsideredthebackboneof

reliability,arenowroadblockstoinnovation.Thesedecades-oldsystemstendtomakeitdifficult,ifnotimpossible,tointroduce

innovativenewproductsandfeaturesanddelivertheexperiencescustomersexpect.

Atthesametime,replacingtheseplatformsisnoeasyfeat.Afull-scaletransformationcomeswithpotentialrisks,fromoperationaldisruptiontoprohibitivecoststoconcernsoverthesecurityandresiliencyofcloud-basedplatforms.Thesheercomplexityofa

multiyearoverhaulcanfeeloverwhelming.

Yet,standingstillisn'tviableeither.Newdigital-firstentrantsareprovingthatbankingcanbefrictionless,customer-centric,and

highlyinnovative.Withcloud-nativecorebankingsolutions,

thesechallengersareredefiningwhat'spossible—offeringintuitivecapabilities,novelproductarrays,real-timeinsights,andmore.

Deloitte'sDigitalBankingMaturity2024globalresearchfoundthat

digitalchampionsareprioritizingfeaturesthatenhancecustomer

engagement,suchassimplifiedaccountopenings,Al-drivenfinancialmanagementtools,andadjacentserviceslikeinsurance,realestate,andhealthcaresolutions.10Withoutmoderncoretechnology,

traditionalretailbankswilllikelystruggletokeepup.

However,banksdon'thavetotacklethistransformationinonegiantleap.Therearepragmatic,progressiveapproachesthatmodernizewhilemitigatingrisk.Oneapproachisahollowingoutstrategy一

graduallyreplacingoutdatedfunctionalitieswithmodernalternativesuntil,eventually,theentirecoresystemhasbeenupdated.Anotherapproachisthesidecarmodel,whereaseparatedigitalbanking

ecosystemisbuiltalongsidetheexistingcore.Newcustomersonboardintothismodernsystem,whilelegacycustomersaregraduallymigratedover.Oncethetransitioniscomplete,theoldplatformisretired.

Eachbankmustdeterminethepathforwardbasedonitsunique

legacyinfrastructure,competitivepressures,andlong-termstrategy.Butonethingisclear:clingingtooutdatedtechnologywilllikelyputbanksatacompetitivedisadvantage.Thefutureofretailbankingliesinunlockingproductinnovation,enhancingcustomerinteractions,improvingfraudprevention,andmore.Whileafulltransformation

maytaketime,incrementalstepscandeliverearlywins,helpingsecureexecutivebuy-inandpavingthewayforresilience

inthemarket.

Considerationsforexecutives

·Whatobstaclesstandinthewayofmodernizingyourcorebankingplatforminordertobettercompeteandhavegreateragilityinthemarket?●000

·Whichprogressiveapproachtowardmodernizationisbestsuitedtoyourorganization?00

·WhatstepswouldbenecessaryforyourorganizationtomigratefromaCapex-intensivelegacymodeltoanOpExmodel?●o

·Howwouldtransitioningfromlegacysystemstoamoderncoreenableyoutodesignoperationsandprocesseswithgreaterflexibility?

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5.Stayaheadofregulatory

expectationswithconfidence

ThechangeinpresidentialadministrationinWashington,D.C.,

marksanewchapterintheevolvingregulatorylandscape.Whilemanyemergingankingruleswerealreadyunderrevisionand

deate,thearrivalofnewleadershipringsashiftinperspectivesandpolicypriorities,addingalayerofcomplexitytoanalready

dynamicenvironment.

Thisleavesretailanksinatentativeposition—questioningchangewhilesimultaneouslyracingforitsimpact.Somemayetemptedtotakeawait-and-seeapproach,utthatcouldeamistake

thatonlycompressesthetimelineinwhichanksmustcomply.

Thelastdecade’strajectorysuggeststhatconsumerprotection,

financialdatasharing,andproductinnovationwillcontinuetobe

acoreregulatoryfocus,withinevitalechangeanticipated.Astheregulatoryexpectationsshiftandthespecificsofneworrevised

regulationsunfold,forward-thinkinganksaren’twaitingforperfectclarity—they’reforgingaheadwithconfidentactionsthatwillhelppositionthemasindustryleadersandconsumeradvocates.

Thisproactivestanceisn’tjustaboutfuturecompliance—ithasproventoegoodusiness.Amongconsumers,ankscurrentlyenjoyhighertrustlevelsthangovernmentinstitutions,11an

advantagetheymustprotectyecomingtheircustomers’

go-tosourceforproducts,services,andreliablefinancialinformationthattrulybenefitcustomersandenhancetheirfinancialwell-being.Thealternativeforretailanks?Watchingtheirroleasatrusted

financialpartnerslipawaytootherbusinessentities.

Toremainrelevant,retailanksmustleadthroughtheirinnovationoftrustworthy,easy-to-useproductsandservicesthatimprove

customers’lives.Banksmustinitiateconsumer-friendlydialogue—notsimplyrespondtoregulatoryconcerns—aouttopicssuchasfeetransparency,personalfinancialdatarights,andconsumerchoice.

Bytakingthelead,ankscanshapetheconversationinstead

ofplayingcatch-uptoregulatoryexpectations.Strengthening

consumerprotectionprocessesandcontrols—onissueslike

overdraftfeesandfairlending—uildstrustwhereitmattersmost.Bankscanleveragecomplaintdatatopinpointandfixfrictionpoints,enhancingthecustomerexperience.Seamlessdigitalandphysicalintegrationiskeytoo,providinghassle-freeaccesstoonoarding,

producteducation,andotherservices.AI-poweredanalyticscan

takethisevenfurther,boostingefficiencyandpersonalization.

Pairedwithotheropportunitieshighlightedinthisreport—suchasunifyingcustomerdata,modernizingtechnologies,tighteningfrauddefenses,andstreamliningoperations—thisproactiveapproach

turnscomplianceintoacompetitiveedge.

Whilethedetailsofemergingregulationsareinflux,thepath

forwardwilldemandcontinuousadaptation,enhancedtransparency,andafocusondeliveringtangilevaluetoconsumers.Retailanksthattakeno-regretsactionsnowcannavigateuncertaintywhile

reinforcingtheirroleastrustedcustomeradvocates.

Considerationsforexecutives

•Howhaveyouadaptedyourregulatoryscenarioplanningandstresstestingtoenalepreparednessforvariouspotentialregulatorydevelopments?

•WhatstepsareyoutakingtouseAI-poweredanalyticstoautomateregulatoryreportinganddriveaccuracyandtouildacentralized,compliantdataarchitecture?

•Howcanimplementingzero-trustsecurity,enhancingcyerresilience,andimprovingthreatdetectionandresponsehelpyourorganizationcomplywithpotentialregulations?

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6.Standguardtogether

Thecat-and-mousegamebetweenretailbanksandfraudstershasreachednewlevelsofintensityandcost—withrecentyearsmarkinganescalation.AsfraudstersmasteredgenerativeAlfornefarious

purposes,identityfraudandpaymentfraudsurgedin2024.

Deloitte'sCenterforFinancialServicespredictsthatGenAlcould

enablefraudlossestoreachUS$40billionintheUnitedStatesby2027,fromUS$12.3billionin2023.2Thefinancialtollismounting:arecentstudyshowedthatfinancialinstitutionsspentmorethanfourdollarsonfraudremediation(e.g.legalfees,recoveryprocesses)foreverydollaroffraud-relatedactivityin2023,anincreasefrom2022.3

Critically,theseattacksaren'trandom—fraudstersdeliberately

targetinstitutionswithimmaturecapabilities,repeatedlyexploitingknownvulnerabilities.Noraretheyinvisibletocustomers—and

banksoftenfalterinfindingbalancebetweenriskmitigationand

customerexperience.Tothwartintruders,manyinstitutionsresorttoaddingcustomerfriction—layeringonauthenticationhurdlesthat,whileeffectiveatreducingfraud,frustratelegitimatecustomers.

It'stimeforbankstotakeaproactiveandcomprehensiveapproach.First,banksneedtoestablishanoverarchingdefensestrategy

ratherthanfragmentedapproachesacrossdifferentproductlinesorengagementchannels.Toooften,itisunclearwithinabank's

organizationwho"owns"fraud—andasaresult,noonedoes.

Greaterorganizationalalignmentaffordsanopportunitytobringthebrightestmindstobearon,arguably,mostbanks'biggestproblem.

Second,fraudthreatenseverystageofthecustomerlifecycle

—fromaccountopeningtopaymenttransactionstomerchantdisputesandmore.That'swhybanksneeddifferentanglesof

defense,eachtailoredtospecificvulnerabilitiesyetintegratedintoacohesiveapproach.Thiswillrequireidentifyingandprioritizinghigh-risk,high-valuetouchpointsinthecustomerjourneyand

comparingtheseagainstpotentialweaknessforexploitation

tounderstandtheappropriatesafeguardstodeploy.Forexample,deploymentofnewdigitalidentifyverificationtechnologiescandriveimmediateimpact,consolidatinghistoricallydisparatetoolsacrosschannelsintounifiedprotection.

Finally,astrongdataandtechnologyfoundationisparamount.

Bycombininginternaldata,includingsentimentanalysis,withthird-partyintelligenceincludingdarkwebmonitoring,bankscandeveloprisksignalindicatorsandpredictemergingpatterns.Arobust

foundationwillsupportdecisioningmodelspoweredbyAlandmachinelearninganalytics,givingbanksanedgeagainstevolvingthreats.

Standingguardagainstfraudtakesconstantvigilanceandevolution.Butbanksthatgetthisrightcantransformfraudpreventionfromatopcomplaintcategoryintoadifferentiatingstrength,protectingcustomerswhiledeliveringthesmoothexperienceslifedemands.

Considerationsforexecutives

·HowcanyoubestsupportandjustifyinvestmentinareaslikeAlforfrauddetectionanddigitalidentificationauthentication?○

·Whatstrategiesareyouimplementingtoimproveuserexperiencewhileminimizingfraudrisk?○00○

·Howareyouaddressingthethreatsposedbydigitalidentityfraud,includingphishing,deepfakes,and

syntheticIDs?○

·Whatareyourkeyprioritiesforimplementingadvancedbiometricauthenticationmethodssuchasfacialrecognitionandfingerprintscanning?

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7.Partnerforspeedandaccess

Thelinesbetweenbanks,fintechsandbigtechhaveblurred,

dismantlingtheolddichotomybetweenpartnersandcompetitors.Ascustomersdemandfaster,moreconnectedexperiences,banksareturningtothirdpartiestoaccelerateinnovationandmarket

expansion.Insteadofbuildingnewcapabilitiesfromscratch—acost-andtime-intensiveendeavor—banksareleveragingpartnerships

tomoveatstartupspeed.Onemajorbank,forinstance,launchedacross-bordercurrencyappinjustthreemonthsbycollaborating

withafintech.4

Speedisjustthepartofthemotivation.Whilesomepartnershipssolveimmediatepainpoints,othersaimtofosterco-innovation

inproductdevelopment,customerengagement,andgrowth

strategies.Strategicpartnershipsalsoallowbankstobecomea

hubforeverydayneedsbyextendingintoadjacentareasliketravel,healthcare,orinsurance.

Thekeytoanypartnershiporjointventureischoosingtherightonesratherthanchasingeveryopportunity.Togobeyondthehoneymoonphaseofapartnership,banksmustbecomemorevigilantandfocusedontheircorebusinessobjectives.This

disciplinedapproachcanhelp:

·Startwithstrategicclarity.Everypartnershipshouldhavea

well-definedpurpose,directlytiedtothebank'sbroaderstrategicvision.Whetherthegoalistostrengthenomnichannelcapabilities,enternewregionalmarkets,orharnessadvanceddataanalytics,alignmentiscritical.Withoutasharedvision,partnershipsoftenbecomefragmentedandineffective.

·Designforsmoothexecution.Asuccessfulpartnershiprequiresanintegratedoperatingmodel,whereroles,responsibilities,andreportingareestablishedupfront.Banksandtheirpartnersmustintegrateteams,alignworkflows,andcreatemechanismsfor

communicationtomaintainmomentum.

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·Structureformutualsuccess.Partnershipsthrivewhenbothsideshaveskininthegame.Structuringdealswithwin-win

incentives—ratherthanzero-sumarrangements-helpensure

thateachpartyremainscommitted.Thiscanincludeperformance-basedrewards,co-investmentmodels,orshareddatainsights

thatfueljointinnovation.

·Balanceriskmanagementwithdynamismfrom

dayone.Compliance,security,andoperationalriskscan'tbe

afterthoughts—butriskmanagementburdensshouldn'tsuffocatethepartnership.Abalancedgovernanceframeworkthatincludesongoingmonitoringandriskassessmenthelpspreventregulatorysnagswhilepreservingtheintendedflexibilityinthepartnership.

·Knowwhentoexit.It'sokayforapartnershiptocometoits

naturalend.Banksshouldproactivelyevaluatewhentosunsetapartnershipthathasachieveditsgoals.Partnershipswithoutanevolutionorexitstrategycanbecomeliabilitiesratherthanassets.

Thequestionforbanksisn'twhethertopartner—it'showtodoit

right.Thosethattakeadisciplined,strategicapproach—aligning

objectives,incentives,andoperationalframeworks—cangaintheagilitytoaccessnewmarketsandcapabilitiesfaster,moreefficiently,andwithgreaterlong-termimpact.

Keycapabilitiesdrivingbank+fintechpartnerships

Percentageofrespondentsworkingwithfintechs

SecureIDverificationP2Ppayments/moneytransfer

DigitalwalleintegrationAdvancedsecurityandfraudalerts

Chatbots

Onlinelending

SOURCE:Arizent,StateofDigitalBanking,infographic,accessedMarch2025.

35%29%29%

Feature/capability

45%

45%

42%

Considerationsforexecutives

·Haveyouidentifiedkeyareasinwhichpartnershipscouldacceleratedigitaltransforma