1、Transforming service models in Financial Services:Insights and food for thoughtMay 2025In collaboration with WAVESTONE|2Wavestone IntroductionService model transformation,powered by tech,is critical for Individual Segment,to improve experience and cost-to-serve.Banks need to recognize the growing di

2、fferentiation of customer profiles and align services&operating model to stay relevant.The retail banking sector is currently navigating a period of significant challenges:new interest rates environment,saturated market&ageing population,polarization of wealth,increased competitive pressure.Customer

3、s are increasingly inclined toward remote and digital interactions.In this new reality,differentiation is ever more about relationships&proximity:no longer defined geographically,rather by a banks ability to offer timely,personalized expertise and services.Banks have not remained idle in rethinking

4、their service models,developing new ways of to market&deliver services and improving cost-to-serve.Traditional service model based on a single advisor assigned to each customer has faded to glory.Reduction of physical branches and boost of digital services are largely under way.However,banks are sti

5、ll“stuck in the middle”,with first steps initiatives raising new challenges:pile-up of channels adding costs rather than revenues,insufficient omnichannel approach.To go forward,service model transformation will require:Strategic choices:design&marketing of clear value propositions aligned with the

6、banks core assets and objectives for the individual market,translated in efficient resource allocation;there is no“One Size Fits All”modelHolistic operationalization,combining smart tech investments,channel orchestration&augmentationStrong change management:all teams will be impacted:new objectives&