The information age is increasingly replacing the industrial age - this has greatly increased the importance of information for a successful and sustainable competitive advantage. This brings with it very far-reaching and complex challenges for companies.
On the one hand, very large amounts of data will have to be processed and, on the other hand, the question arises as to how these data are to be processed - the focus here is on the issue of digitising work processes in operational banking business (corporate and retail banking) and their effects on the real banking workplace. International information - also known as global information channels - is causing the economic significance of material value creation to decline - the immaterial significance of value creation is thus steadily increasing. For only the right information, which must be made available at all times and geared to the company/bank, will pose a challenge that can result in the creation of value in the work process in the respective areas of the bank. This means that the intangible value added is transferred in the form of a transfer of data into so-called business information, thus leading to additional earnings. This business information must be exploited in and from electronic media in such a way that customer contacts can arise from it, information about it can be created and, for example, added value can be created for the bank customer as a service or for sale.
The Internet and digitalisation are unconditional electronic supports that are revolutionising the banking sector. So-called FinTechs, companies which, with technical innovations in the financial services sector, will fundamentally change banking transactions with customers - this is also happening with the demands on the workplaces of bank employees. The FinTech sector (Financial Technology) is extremely innovative and has accordingly built up a dynamic and fast-moving environment. Digitalisation and the Internet with its social and business media have a significant role to play in the working environment of banks.
Table of Contents
1 Introduction
2 Theoretical foundations
2.1 The banking sector
2.1.1 Structure and organisation of the banking sector
2.1.2 Changes in customer needs / customer focus / customer behaviour due to structural change
2.2 Digitisation
2.2.1 Definition of digitisation
2.2.2 Digitisation of the financial sector / business processes with regard to customer focus
3 Process automation / Effects of digitalisation
3.1 Effects on the new technologies / business processes
3.2 Impact on the new business models in terms of customer focus
3.3 Importance of digitisation for the banking sector
4 Abstraction of results
5 Critical reflection and outlook
Objectives and Core Themes
This work aims to examine the impact of digitisation on strategic business processes within the banking sector, specifically through the lens of customer focus. It addresses how digital transformation forces traditional banking models to evolve, the necessity of adopting customer-centric strategies, and how banks must leverage new technologies and partnerships to remain competitive in a digital age.
- The evolution of traditional banking models due to digital disruption.
- Strategies for achieving "customer centricity" in a digital landscape.
- The role of FinTech companies as partners and catalysts for innovation.
- The transformation of IT infrastructure and the implementation of multi-channel banking.
- New requirements for bank employees and organizational culture in the digital era.
Excerpt from the Book
2.1.1 Structure and organisation of the banking sector
The German banking system must be seen in a certain totality, i.e. institutions such as the Bundesbank and the commercial banks as well as banking supervision and banking associations must always be seen in context, since legal, economic and organisational interdependencies are at the heart of this system.
The following figure shows the elements or institutions of the banking system of the Federal Republic of Germany and illustrates the interaction of these in the banking structure.
The banking system in Germany is based on two levels and is structured in the so-called "three-pillar structure".
First level: Customer-oriented credit institutions with the aim of achieving maximum profit.
Second level: European System of Central Banks = ESCB - this includes the Deutsche Bundesbank and its central administrations. The ESCB regulates at European level the supply of credit and the circulation of money for the economic cycle and its economic agents.
In this German banking system, a distinction must be made: Universal bank and special bank.
The universal banks are classically banks that offer all banking products / financial services and are available to all bank customers.
The specialist banks - especially the real estate credit banks - are more important in this banking system than the universal banks mentioned above. The consumer credit banks operating alongside them have lost in importance. Discount broker banks and direct banks are in great demand because of the use of new media in digitalisation and young bank customers in particular make up the largest percentage of the clientele.
Summary of Chapters
1 Introduction: This chapter highlights the shift from the industrial to the information age, emphasizing the critical role of data and digital transformation in banking competitiveness.
2 Theoretical foundations: This section provides a structural overview of the German banking system and defines digitisation in the context of changing customer behavior and financial market dynamics.
3 Process automation / Effects of digitalisation: This chapter analyzes how technology impacts operational efficiency, business models, and the urgent need for banks to integrate multi-channel approaches and customer-centric innovation.
4 Abstraction of results: This section summarizes the key findings, concluding that traditional branch-centric models are becoming obsolete and must be replaced by digital-first, agile strategies.
5 Critical reflection and outlook: This final chapter discusses the necessity for cultural flexibility and innovation, proposing that banks must act immediately to restructure and form strategic partnerships to ensure future viability.
Keywords
Digitisation, Banking Sector, Customer Focus, FinTech, Multi-channel Banking, Business Models, Digital Transformation, Innovation Management, Operational Efficiency, Customer Journeys, Banking 4.0, Financial Services, Smart Banking, Customer Centricity, IT Infrastructure.
Frequently Asked Questions
What is the primary focus of this thesis?
The work focuses on how digitisation affects strategic business processes in the banking sector, with a specific emphasis on maintaining and improving customer focus.
What are the central themes of the research?
Central themes include the impact of digital technology on bank business models, the role of FinTech competitors, the necessity of multi-channel distribution, and the organizational challenges banks face in the digital age.
What is the main research objective?
The objective is to critically analyze how digital transformation necessitates a shift in strategic banking models to ensure customer-centricity and sustainable competitive advantage.
Which scientific methods are employed in this analysis?
The study utilizes literature analysis and the evaluation of trend studies and empirical data from industry sources (such as the Fraunhofer Institute and various banking consultancies) to examine current and future market requirements.
What topics are covered in the main body of the text?
The main body covers the structure of the banking sector, the definition and impact of digitisation, the necessity of process automation, the role of innovation, and the strategic repositioning required for banks to survive.
Which keywords characterize this work?
Key terms include Digitisation, Banking Sector, Customer Focus, FinTech, Business Models, and Multi-channel Banking.
How does the author define the "three-pillar structure" in Germany?
The author describes it as consisting of private commercial banks, public law credit institutions (such as savings banks), and cooperative banks, all of which are subject to specific regional and regulatory mandates.
What is the "Zurich model of customer-centric banking architecture" mentioned in the text?
It highlights three central points for a sustainable business model: consistent customer orientation, business models capable of digitisation, and transformation competence.
What role do FinTech companies play according to the research?
FinTechs act as catalysts and partners, offering innovative, cost-effective technologies that force traditional banks to streamline processes and improve their user experience.
- Citar trabajo
- Dipl.-Betriebs- und Verwaltungswirt und PhD Maged Hassanien (Autor), 2018, Digitisation and its impact on business processes in the banking sector, Múnich, GRIN Verlag, https://www.grin.com/document/974153
