Banks need to re-invent themselves - or disappear

To some extent it is already happening, but, argues Deloitte Consulting, if banks and similar financial businesses don't get more aggressive about new strategies, they will soon cease to be both effective and profitable.

"The explosion of online 'attackers' has changed the rules for the financial services industry," says principal consultant Jim Reichbach. "At the same time, it has created an extreme sense of urgency, forcing firms to respond quickly."

But there is some danger here, Deloitte notes. In the rush towards e-business, while it is important to get the electronic platform correctly specified and in place, it is equally important to focus on the changing business role and where value can be added in new or old ways for customers.

Deloitte is also forecasting an HR side-effect, the same one recently experienced (at least as described in the official comment) at PricewaterhouseCoopers. Staff with new e-business skills may not be the same staff who had the Y2K skills previously in demand. If they are not, the result will be a more difficult transition from one challenge area to the next, marked by a need for re-training or new recruiting.

Elliott Chase