The future of banking: Time to rethink business models


Because of the digital revolution, the banking industry, which was traditionally distinguished by reliable and vertically integrated business models, is going through substantial change. Historically, regardless of their age or size, banks were in complete control of their value chain, producing and distributing their products. However, the current model is being questioned by new digital-only players. In contrast to traditional banks, these digital actors are selectively participating in multiple business tiers, decomposing classic products into micro-services, and developing new products by merging components from different suppliers. They can quickly launch innovative products on a big scale and with lower consumer acquisition costs thanks to this modular, adaptable strategy. These digital rivals are thus concentrating on the weaknesses of well-established banks. As a result, there is an apparent change in banking and payment revenues from traditional institutions to these new entrants in many markets.

The “Future of Banking” research looks at the business plans of big banks and digital-only companies, emphasizing the radical changes that value chain fragmentation and product componentization will bring about in the world of banking. Banks that operate exclusively online are outperforming traditional vertically integrated banks in the digital space by employing flexible, non-linear strategies. These dynamic businesses are better positioned to handle impending market disruptions because they can quickly adjust to additional fragmentation and product changes. Banks might increase revenues by over 4% yearly by reevaluating their business models and adopting the cutting-edge tactics of newcomers in digital-only banking and financial services.

Large banks need not completely abandon their profitable vertically integrated models. Instead of shifting to a completely new model, the strategy should adopt a mix of traditional and non-linear models throughout the value chain. Success no longer hinges on sole ownership of the value chain or selling proprietary products. By designing value for end customers or the subsequent players in the chain, banks can distinguish themselves and grow. This entails a visionary and flexible approach, crafting offerings that genuinely address customer needs and intentions.


  1. Digital-Only Strategy: Accenture’s research highlights the innovative approaches of digital-only banks. Their adaptive business models provide them with a distinct advantage over traditional banks.
  2. Future Banking Success: The banks poised for success are those open to diverse business strategies, selecting the most effective components to align with their vision.
  3. Reflection for Huntington Affiliates: For those of us at Huntington, this underscores:
    • The importance of self-assessment.
    • Recognizing our unique strengths.
    • Identifying areas where we outshine competitors.
    • Pinpointing potential segments for external collaborations.
  4. Value of Collaboration: While collaboration’s importance is a known factor in design, its critical role in shaping digital banking strategies is now even more pronounced.
  5. Redefining Banking: This insight nudges us to approach banking with a revitalized perspective, appreciating its nuances in a renewed light.

“Future of Banking Business Models.” Accenture, Accenture, 27 Feb. 2023,