The banking industry in Europe is beset by challenges from many directions. Regulations such as the Dodd-Frank Act and Basel III will ensure that compliance remains a headache for banks, at the same time that pressure is building from new entrants to the market. A new generation of start-up banks in countries such as the U.K., and from technology firms like Apple and retailers like Marks & Spencer, are encroaching on the banking space. They are forcing banks to cut costs and innovate in order to stay competitive and indeed relevant in the emerging landscape, which is increasingly centered around mobility, analytics, and personalized banking services.
Part of the answer to all of these pressures is the industrial utility model, which can allow banks to train their focus on customer-facing innovations while keeping the commoditized parts of their business as low cost and efficient as possible.
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