(Source: Charles Schwab)

The Banking Industry of the Future

The securities industry can be regarded as the first sector in the financial industry to have embarked down the path of modularization. Mutual funds was the first major area involved in this first step toward modularization. Mutual funds are now mainstream products of banking and wealth management. The banking industry should not overlook the following episodes.

The mutual fund business model can be broken down into two process areas: 1) selecting investments or investment destination (portfolio building), and 2) sales of the created mutual funds. In the former, the products (portfolio) are designed and created (produced), while the latter involves the sales of investment firm securities (mutual fund beneficiary certificates), with sellers undertaking the office processing such as customer transaction reports.

In the closed model era of brokers and mutual fund firms, the norm until the 1960s, mutual fund firms would outsource sales to securities companies (full service brokers). This resulted in mutually beneficial consignment-based relationships between the investment trust companies and securities firms that endured for a long time with a fixed fee structure (investment sales commissions paid from the customer to the securities company) and securities trading fees (paid by the mutual fund company to securities company). These sales formats have since diversified.

No-load funds entered the market starting in the 1970s, spurred on by the liberalization of commissions for the brokering of securities, sluggish demand in the stock market, and the emergence of discount brokers that did not offer investment advice. This era was characterized solely by diversification of sales methods, and was entirely absent changes to the closed model that covered planning, manufacturing, and sales.

However, change descended on the market in the form of the mutual fund supermarket revolution. With the launch of Mutual Fund OneSource in 1992, Charles Schwab offered multiple funds that customers could purchase without paying a commission, but for which Schwab’s mutual fund management arm collected an annual management fee based on asset balance. Metaphorically speaking, this approach was akin to companies putting mutual funds on the shelves of a supermarket and charging commissions only for the products sold. The interface between mutual fund companies and securities companies opened up, and the creation and sales components were decoupled and functionally modularized.

More change is on the horizon. An era is coming in which the banking industry should orchestrate a shift to a structure that hinges on modular demand to respond to new needs fostered by digital technology and the new demand of the emerging digital generation.

Industry players should be ditching vertically integrated direct sales, or so-called keiretsu, which are tantamount to direct sales routes; instead, they should establish delivery models that are more dynamic and open. Omnichannel initiatives are not only opportunities for firms to launch or shut down these channels, but also to revisit and reconsider their optimal delivery model. Moreover, collaborating with non-financial sector players, including start-ups, opens the door to the possibility of accessing vast and new untapped market frontiers.

Robo-advisor initiatives can be expected to accelerate the speed of advances in modular demand structure. Presumably, coming delivery channels will seek to optimize information and investment expertise, driven by approaches that respond to the needs of investors by providing automated advice and harnessing bankers as human support mechanisms.

To be continued – Click here


Related releases:

Legacy Modernization in the Japanese Banking Industry, Part 1

Legacy Modernization in the Japanese Banking Industry, Part 2



政府の掲げる「岩盤」規制(bedrock regulations)改革に反して、法律や制度以外にも、成長戦略の妨げとなる「岩盤」が存在する。






  • 組み合せ
    2015年1月に発表された、大垣信用金庫と西濃信用金庫の合併は、「5年後、10年後の経営戦略を考えた。人口減少、市場縮小を見据えた前向きな合併」との両金庫発表(1) 通り、合併後の規模は預金量で7千億円と中堅並みだが、高い自己資本比率に注目すべきである。大垣が12%台、西濃は15%台という優良な信金同士の組み合せは、単独でも生き残れる信金が、より戦略的に動き、地域シェアの維持向上と、一層の規模の経済を狙ったものと解せる。岐阜県は、十六銀行(資金量5兆円)、大垣共立銀行(4.2兆円)、岐阜信用金庫(2.1兆円)と優れた地域金融機関が多く、全国有数のリテール金融激戦地。業界の将来動向を写す合併とみなされ得る。
  • アウトルック
    適切な規模と健全な経営内容を持つ信金同士が戦略的な提携・合併を経て、適切な数の組織が生き残るとの見方が支配的であろう。米国のクレジットユニオン業界(2) 同様に、存続のためのバーは更に高まり、既に都市部を中心に、2兆円規模を超える大手信金が多数誕生している。今後は、規模と健全性、効率性に加え、信金ならではのニッチなサービスを提供し、ローカルなニーズを満たす戦略が不可欠と想定される。
  • 課題と戦略

路面店舗や職員の渉外活動、地域社会に強い信用金庫と、ネットや通信販売、全国規模のマスマーケティングに強いネット専業(銀行、保険、証券)が組み戦略的なO2O(Online to Offline)チャネル展開やオムニチャネル(Omnichannel)マーケティングを実現すれば、メガバンク、メガ保険との立ち位置の違いからユニークなサービスが展望され、少子高齢化、地方経済の衰退が叫ばれる中で、新たな金融デリバリーモデルが展望されよう。その際のKFSは、テクノロジーの活用と新たなリソース、特にマーケティングノウハウとなるはずだ。


(1) 合併趣意書 (大垣信金、西濃信金)

(2) 米国のクレジットユニオン業界からの示唆は、下記セレントレポートなどに詳しい。









証券サービスにおいては、FIXプロトコルとSTP ( Straight Through Processing ) の推進は機関投資家や個人投資家に、新たな収益機会をもたらすのみならず、電子取引、アルゴリズム取引、HFT、SORなど、業界地図を塗り替えるトレンドの誘因となった。機関投資家におけるHFT(高頻度取引)や電子取引比率の高揚、個人投資家にデイトレーダーやオンライン証券の隆盛は、業界構造に破壊的な変化をもたらした。

保険サービスはどうか。顧客の保険リテラシーの向上は、「勧められる」から「比較する」時代への変化を加速する。主体的な保険取引の行動様式に合致した販売チャネルを構想する時、銀行サービス、証券サービス、ひいては、小売市場全般におけるオムニチャネルの動向は看過できない。特に、O2O (Online to Offline)コミュニケーションや‘People like you’ 機能(例:これを買った人はこれも買っています)など、デジタルネイティブチャネルのマーケティング手法が、保険販売チャネルの常識となる日も遠くないだろう。



一方で、業界や個別金融機関に固有な文書やメッセージ形式が災いし、複雑な商品の事務手続きは、業務プロセスの自動化(STP:Straight Through Processing)にほど遠い。このことは、事務コストや金融取引リスクのみならず、販売チャネルの多様化においても、大きな障壁となる。


今日、デジタル技術の普及は、この潮流をドライブし、デジタル化は全てを改善するキーテクノロジーとなろう。逆に、デジタル化出来ないプロセスは、極めて付加価値の高いプロセスか、削除すべき工程かもしれない。バックオフィスのBPO(Business Process Outsourcing)やシェアードサービスも有効な手段となる。ここでも、多様化は規模の経済、範囲の経済を通じて、新たな事業機会を産み、また、事務処理の改善のみならず、顧客接点の改善においても、セルフサービスと事務処理完結は、不可欠な対応と言える。もはや、デジタル化され自己完結していないプロセスは、顧客からも、販売チャネルからも選択されない。


2014/12/22(月曜日)に報道 された、凸版印刷 、東急リバブル、三菱東京UFJ銀行、三井住友信託銀行、ソニー銀行、三菱UFJ信託銀行の4行の取り組みに、その萌芽を見ることが出来る。






A Recap of Celent’s Recent Innovation Form on Innovation and Digital Strategies in Tokyo, Part 2: Panel Discussion

This is the second and final installment recapping the Celent Innovation Forum in Tokyo held on October 17.


In the panel discussion following the keynote address, titled “Digital Strategies in Financial Services: Challenges and the Future Landscape," three expert panelists from the financial and IT sectors enthusiastically shared their thoughts on innovation initiatives, their implementation, and the outlook for the future. Although focused on banking services and retail payment services, the impassioned discussion drew on their respective expertise in mobile banking, M-POS (mobile point of sale), and cloud services, reflecting their enthusiasm for innovation and progressive initiatives.


After providing a brief overview of their companies and business operations, discussion turned to topics including digital banking payment services as well as factors accelerating and hindering the adoption of digital services. Below are some of the many noteworthy panelist comments.



“The more innovative services are the more prone they are to trigger friction with existing values. Overcoming the resulting this conflict and unease is a very important element. Innovative services with a capacity to disrupt are to be offered after the communication and similar efforts necessary have been taken to resolve these.”


“There are limitless ideas and hints that can be found, but often the biggest obstacle to achievement is inside your own company or yourself. The key to success is how organizational leadership and individual passion can be sustained to achieve specific goals.”


“The position of banks gets increasingly challenging as diversification continues in the payments business. Banks need to take into consideration the entire ecosystem and consider group partnerships and synergies in light of their roles and strengths. The yardstick for making decisions should be whether taking an action will create added value for customers.”


“A company’s business domain is the key to success. The refrain ‘make commerce easy’ means enhancing the all-around efficiency of a customer's business by increasing the time spent discussing products and communication with customers—two factors traditionally at the core of doing business. Moreover, as new services are designed one after another, companies should ensure that they do not stray from their area of business.”


“Our company is a technology company and we design payment services rooted in innovative technology. The spread of advanced technology to all corners of the industry will make it possible to offer services to everyone. That is the vision of our company.”


“The keys to success will be the pursuit of convenience, security, and superior design. Toward that end, you need to look at things from the simplest perspective and build services from scratch. In financial services, people tend to think that if an approach differs from historical ways of doing things, then it is inherently dangerous. That is a mistake. Why assume that existing methods are safe?”


“Cloud services have the potential to dramatically impact the world—dramatic in the sense of fundamentally changing the people’s lives and making them wonder how they ever lived without them. We can learn about these possibilities from other industries.”


“Companies that move from the theoretical and the drawing board to implementation are the companies that will succeed. In that process, companies can confirm the core value and effectiveness of their business. In today's world, a company can't maintain competitiveness without technology driving the business.”


“The cloud is an avenue for initiatives to tackle current-day business challenges, such as tackling unforecasted surges in traffic and global expansion in addition to the initial core-value focus, in particular from the perspective of mitigating failure costs.”


“Apple Pay will be embraced as a payment service that has sought to provide added value. At the same time, it is fair to expect that it will also highlight differences between social and commercial practices internationally and in Japan.”


“The establishment and destruction of ecosystems are key. Apple is always undertaking new challenges. Disruptive innovation in the music industry has changed more than the structure of the industry—it has also fundamentally altered the lifestyles of consumers. What is going to happen when it comes to retail payments?”



Celent believes that the three panelists embody the spirit of what it means to be an innovator in that they do not rest on their laurels or grow complacent after success, instead looking ahead in pursuit of the next project, heightened improvements, or further growth. The panelists were visibly united in their passion for innovation. Moreover, the panelists’ shared enthusiasm for implementing innovation and leading their teams to innovate helped to shed light on the essence or the “DNA” of what it means to be an innovator. Innovation is people-driven evolution. The event proceedings all served to reinforce anew that skillfully harnessing digital technology and developing digital services innovation are people-driven endeavors and that the “expectations and ambitions” of people are of the utmost importance.


Finally, we would like to express our deepest gratitude to everyone who participated in the event and particularly the panelists who took time to share their opinions and expertise. Celent hopes that this event was both educational and inspiring, and that it will prove a catalyst to further innovation.


The discussion in Tokyo was carried over to innovation roundtables in Singapore and Australia. Celent will continue to work with leaders in financial innovation in Japan and in Asia to discover and illuminate cutting-edge thinking in the industry.


A Recap of Celent’s Recent Innovation Form on Innovation and Digital Strategies in Tokyo, Part 1: Presentations

On October 17, Celent hosted the Celent Innovation Forum in Tokyo. We will be posting a two-part recap that covers the key points of the event.


Keynote Presentation 1

The core message of this address was that the current ecosystem is changing and market players need to respond. The business environment is fueling change against a backdrop in which external pressures and factors such as consumer experience and expectations, economic deterioration or improvement, regulation and drastic changes to the competitive environment amplify existing pressures—such as pressures to grow revenue and cut costs. As such, players in the banking and financial industries need to modify their business models through changes in channels and architecture as well as innovation.


At the event, Celent introduced relevant cases from around the world addressing the below three themes in the context of digital and omnichannel frameworks and banking technology—two themes that Celent has consistently advocated.

  1. Digital and omnichannel
  2. Innovation and emerging technology
  3. Legacy and ecosystem migration


After touching on the latest technology trends, including Apple Pay and Bitcoin, the presentation addressed the importance of innovation in the context of Celent’s conceptual framework of creative destruction.


Fig 1 Digital and Omnichannel Framework


Source: Celent



Keynote Presentation 2

This presentation examined innovation initiatives in Japan’s financial services industry focusing on the below four retail payment areas.

  1. Traditional payment methods including cash, credit cards, and debit cards
  2. Second-generation payment methods such as electronic money and prepaid cards
  3. The most successful e-commerce payment services
  4. Omnichannel initiatives that cuts across the above three categories


What emerged as common to these four areas was that the key to success in innovation is the proliferation and use of digital technology, ecosystem creation, and the advancement of open innovation. In particular, the below five points were presented as areas that should we receive prompt attention.

  1. Card payment information multiview and control
  2. Value-added offerings that leverage card payment services
  3. Real-time transaction alerts
  4. Advisory services based on transaction data analytics
  5. Social media integration


Fig 2 Japan’s Financial Services Industry focusing on four Retail Payment Areas


Source: Celent


セレント イノベーションフォーラム「デジタル金融サービスへの取り組み」を振り返って(その2)

セレントは、2月の「ラウンドテーブル:Making Innovation Happen」、6月の「イノベーション&インサイト・デー」に引き続き、10月17日、「イノベーションフォーラム」を開催した。









「事業ドメインが大切。“Make commerce easy”とは、お客様のビジネスを全方位で効率化し、本来の商取引の根幹である、お客様との会話や商品についてのコミュニケーション時間を増やすこと。次々と開発される新サービスも、この事業ドメインから決してぶれない。」






「Apple Payは、ペイメントサービスへの付加価値追求として、歓迎される。一方で、グローバルと日本の社会文脈や商慣習の違いもハイライトされるであろう。」








図 3 音楽産業における、ディスラプティブ・イノベーション


出典:Henry Chesbrough, Open services innovation, セレント

セレント イノベーションフォーラム「デジタル金融サービスへの取り組み」を振り返って(その1)

セレントは、2月の「ラウンドテーブル:Making Innovation Happen」、6月の「イノベーション&インサイト・デー」に引き続き、10月17日、「イノベーションフォーラム」を開催した。










に従って、グローバルな事例を紹介した。Apple Payやビットコインなど最新テクノロジーの動向にも触れた上で、セレントの考えるクリエイティブ・ディスラプション(創造的で、破壊的な影響力を持つ変革)の枠組みを用いたイノベーションの重要性を説いた。


図 1 デジタル / オムニチャネルのフレームワーク







① 現金、クレジットカード、デビットカードと言った、トラディショナルな決済手段

② 電子マネーとプリペイドカードに代表される、第二世代の決済手段

③ 隆盛を極める、電子商取引に付随した決済サービス

④ 以上3区分を横断するオムニチャネルサポート










図 2 日本のリテールペイメント市場における主要決済手段の区分