The ecosystem effect on financial services in China

Violet Chung, a partner in McKinsey’s Hong Kong office, discusses the questions CEOs should be asking themselves: how to acquire and retain customers and how to obtain and use data from the ecosystems that they build. She also addresses how digital disruptors have redefined how customers interact with platforms.

What is your perspective on the top three most disruptive, powerful forces shaping China’s banking sector 10 years from now?

Video

Sure, I would say there are the following forces. The first would be the entrance of digital attackers, the likes of Alibaba and Tencent. They have redefined how consumers have been engaging with platforms, and they have disintermediated many of these boundaries between channels.

The second is the expectation of consumers. Consumers want things the way they want it, when they want it, how they want it.

The third is the emergence and leveraging of data. Data, analytics, and the capability around that is the most important thing that companies would need to be able to acquire, and to be able to leverage as a competitive advantage.

How should CEOs be responding to these forces as they think about their business strategies in the coming decade?

I think CEOs should think about building their ecosystem strategy. What I mean by that is thinking about how they acquire customers at a lower cost, how they think about retaining customers, and connecting with customers through their ecosystem of partnerships.

I think they also need to think about how they can help improve and obtain data from the ecosystems that they build. From there, be able to disrupt and change the relationship they have with their end-consumers and with their partners.

Related Articles