How Banks Will Profit by Rethinking Their Purpose
A new study from FSG outlines a new path for banks in society.
In the wake of the financial crisis, banks have been under fire from all fronts. While the industry continues to struggle economically, society’s growing suspicion of banks’ intentions is resulting in tighter and more complex regulation. Banks have responded with CSR and sustainability initiatives—but they haven’t been enough.
According to a new study, "Banking on Shared Value," banks are leaving value on the table. The banks that realize the potential to create shared value will recast their role in society through a lens of mutual opportunity: an opportunity for banks to increase long-term profitability, and an opportunity for society to leverage the unique financial capabilities of banks to drive progress. This new approach will enable banks to capitalize on new opportunities and leverage their biggest asset—their core business—to address some of the world’s toughest challenges.
Where is the opportunity? Shared value opportunities will look different depending on the bank. Click the option that best describes you or your interests: (1) retail and commercial banking; (2) commercial and corporate banking; or (3) investment and private banking / wealth management:
Where should banks begin? Traditionally banks operate under three common myths that prevent them from pursuing shared value: A profit vs. purpose trade-off mentality, low ROI expectations, and insufficient scale. Instead, banks can leverage their enormous capability for innovation and market making to shift the conversation, overcome these perceived barriers, and realize opportunities for growth in shared value markets. "Banking on Shared Value" takes these three myths, and turns them to opportunities.
Mark Thain, Vice President, Social Innovation, Barclays, speaks on competitive edge and long-term thinking.