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To leveling the understanding:

This difference should be taken in account.

There is a fundamental difference between the banking business and all other businesses: The bank business 'holds' the client assets.
Other businesses need to 'sell' their assets to customers.
This difference is crucial.
So, the differential focus is to ensure the maintenance of customer assets safely and reliably, while providing the customer complete control over the management of their assets.
The customer should have its tools (not bank tools) to handle/use its assets properly.
Only then the bank will offer the 'products' for the handling of customer assets, according to the banks interests!

Complementing my previous comment.

To leveling the understanding:

             This difference should be taken in account.

There is a fundamental difference between the banking business and all other businesses: The bank business 'holds' the client assets.

Other businesses need to 'sell' their assets to customers.

This difference is crucial.

So, the differential focus is to ensure the maintenance of customer assets safely and reliably, while providing the customer complete control over the management of their assets.
The customer should have its tools (not bank tools) to handle/use its assets properly.

Only then the bank will offer the 'products' for the handling of customer assets, according to the banks interests!

The question is not 'keeping the digital barbarians at bay', digital transformation or keeping the indians making smoke signals.
It's how bank's customers will feel comfortable in managing its assets with the bank. See below my comment in another post.
Do we really believe that a very fresh 'fintech startup' will 'magically' come up with a miraculous enterprise solution for old banks? (Citi: 200+ years; Santander; 150+ years; BBVA: 150+ years, among others...)

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"The more direct control that a customer has to understand its financial position, greater confidence it will have in the bank holding its assets."

So, it doesn't matter if it is mobile, ATM, Branch, videotext, beacons, smoke signs, etc.

Then, what matters is that the customer DOES control its financial position (not only current account) at any time, any place and by any means.

There won't be a 'branch network', there will be an omni network handling a single source of knowledge.

It's more than time to replace ('transform') the 50 year old architecture by a new one.

Just remembering: In today's market there is no 'best' coresystems, only 'least worst' ones, since all treat the banking business by line-of-business instead of corporately! (and they are very expensive...)

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Michael,

THAT'S the point!

"The more direct control that a customer has to understand its financial position, greater confidence it will have in the bank holding its assets."

So, it doesn't matter if it is mobile, ATM, Branch, videotext, beacons, smoke signs, etc.

Then, what matters is that the customer does control its financial position (not only current account) at any time, any place and by any means.

There won't be a 'branch network', there will be an omni network handling a single source of knowledge.

It's more than time to replace ('transform') the 50 year old architecture by a new one.

Just remembering: In today's market there is no 'best' coresystems, only 'least worst' ones, since all treat the banking business by line-of-business instead of corporately! (and they are very expensive...)

Yes, they should!

But first they have to change the traditional way of handling financial activities (a.k.a. core systems).

“The more direct control that a customer has to understand and manage its financial position, more confidence it will have in the bank holding its assets.”

The purpose of the banking business is not to build technology, but to use technology to make the banking business agile, efficient, and complete.

Bankers do not know Technology.

ITyers do not know Business.

Then you create a vicious circle where you cannot modify the business because of IT, and you cannot create a new IT because business cannot be modified!

The vendors, the creators of technology, have the responsibility to build solutions to improve the performance of the business!

Remember the saying of Henry Ford: “If I asked people what they wanted, they’d have said ‘faster horses’.”

What is the Banking Business?

The Bank borrows money by x% interest and lends by y%.

Also keeps, safely, the money for customers.

It also provides some intermediary services for which it charges fees.

It maintains accurate records and history of all financial activities.

So simple is the banking business from the time it was invented by the Knights Templar until a future, not yet known.

As ‘cosmetics’, appear the various ways of making banking: loans, deposits, payments, recoveries, settlements, automatic debits, etc., as well as the physical means of executing them through Branches, ATMs, Internet, Mobile, NFC, Virtual Wallets, POS, Beacons ....

Here, in this area of ‘cosmetics’, is where you can create 'innovations', attract customers, new products, new ways of interactions, integration with the 'socials', geo-positioning, etc., etc...

However the basics of banking business won't change.

To handle swiftly those ‘cosmetics’ you have to get rid of the current ‘core banking systems’ replacing (or transforming) them by a new way of performing processes, corporately instead of by lines-of-business, with just a single source of knowledge - the ‘single truth’ - for all customer channels, management and compliances.

And all of that with simplicity, agility, and low processing cost!

To whom who like to exchange ideas on that, I'm available on joao.bohner@gmail.com.

Those are the bricks to construct the path to transform the legacy core banking systems to a new paradigm to cope with the current and future world.

How many 'unbanked' will be financially included if bank's operational costs drops tenfold (not 10%) ?

That's my proposal through "The Bank of the Future" Enterprise Architecture. I'm open to discuss.

The simplest thing Apple has to do now is get a 'Banking License' buy my Enterprise Architecture "Bank of the Future" and function as a bank, without the legacy of the 'entangled Core Systems'.
The iBank will be extremely agile, flexible and, most importantly, at least ten times cheaper than current Banks (not 10%).
Apple may start with its Treasury Department.