They want financial solutions that are proactive and reflect real-time activities and needs, not pre-scheduled product campaign messages that provide minimal value. Evaluation of your strengths, weaknesses, opportunities and threats - SWOT analysis. Finally, a strategic plan increases operational efficiency, helps to increase market share and profitability, and makes the overall business more sustainable in the long term. Fundamental changes in the financial services industry provide both challenges and opportunities to strategic planners. For the past few years, the top trends mirrored the top strategic objectives mentioned by financial services organizations worldwide. Your strategic planning process is your key to making these course corrections. Citation Lester, D.R. The problem is that in other research done by the Digital Banking Report, and virtually every consultancy, financial industry influencer, and even financial organization, the progress on any of these objectives is far less than the potential. Their benefits range from strategic analysis, decision making to multichannel execution. to payment transactions (Apple Pay, Google Pay), to P2P (Venmo, Facebook, Square Cash), every part of the payment product line has moved away from traditional financial organizations. Strategic planning has been used in the banking industry for many years now, but its importance has been seriously reevaluated since the financial meltdown of 2008. Over the years, your destination may change - slightly or significantly. There are several elements that are important for inclusion in any strategic planning process: Assessment of your current environment: market, economy, regulation, legislation and other elements that will influence your organization. These are iterative improvements in the use of data and analytics as opposed to the transformational improvements needed. As the economy continues to rebound from the Great Recession and inflation rises with the recovery, U.S. Corporate Planning : Strategy, Operation, Budget, and Investment 2. Share your strategic plan with all employees and discuss everyone's role in contributing to your bank's success. This is important as a written plan allows all participants to read and appreciate - employees, board of directors and regulatory agencies. Today’s consumer is wiser than ever around statements made by banks and credit unions regarding “product improvements” and “simple and easy”. Analyze peer and market data. LinkedIn By Jim Marous, Co-Publisher of The Financial Brand, Owner/CEO of the Digital Banking Report and host of the Banking Transformed podcast. Regardless of which app rises to dominance, as the boundaries between point-of-sale and digital commerce become increasingly blurred, the ultimate winner in the race to make payments a more seamless, less time-consuming experience will be the consumer – but only if organizations act on the strategic planning goals that have been set around this important product set. All content © 2021 by The Financial Brand and may not be reproduced by any means without permission. One of the first banking services to be impacted by fintech firms and big tech organizations was payments. Strategic planning (or business planning) is central to the success of your organization. Strategic planning has been used extensively both in the private as well as in the public sector to improve the performance of organisations. Register now. Too often, bank executives and directors will construct a strategic plan from old plans, strategies found online or just brainstorming based on emotion or intuition. (1995), "Management Strategies in the Banking Industry", Management Research News , Vol. This study examines the strategic planning practices carried out in the high-performing banking industry in the Indonesian context. Your strategic plan ensures that employees and others are working together toward the same goals and objectives. S. L. ADEYEMI DEPARTMENT OF BUSINESS ADMINISTRATION UNIVERSITY OF ILORIN ABSTRACT The purpose of this paper is to analyze the CEO’s strategic role in the strategic planning system in the Nigerian banking industry. If an organization is not committed to implementing the strategy, the planning effort may turn into a demoralizing factor . A survey conducted in February 1980 on planning practices in 134 major U.S. commercial banks found that 76% of them had institutionalized the prepara Strategic Planning is the process of defining your desired future state and setting your direction - where you want to get to and how you will get there. Many banks are now required to submit strategic plans to the U.S. Department of Treasury in order … they do not want to visit a branch unless absolutely necessary. With the influx of new competitors that are offering better financial solutions by combining data, analytics and digital technology, traditional financial institutions need to prioritize the entire data and analytic function. 5 Topics Banks Should Discuss During 2019 Strategic Planning Deposit Flight. The result was not only an increase in loan volume, but increased customer satisfaction and a cultural shift within the organization that there was a commitment to becoming a digital bank. Unfortunately, most organizations either don’t understand the difference, or are unable to move away from traditional banking enough to think like a technology organization. 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