Banks could access $380bn untapped revenue pool by reaching underbanked populations
A report from Accenture titled, "Within Reach", states that banks could tap into $380bn in market revenue, "by targeting micro-enterprises and bringing unbanked and underbanked adults into the formal financial system". The report goes on to explain that a large part of this potential revenue can be attained by banks offering mobile banking services, particularly to those in underdeveloped parts of the world, including large parts of Africa. It highlights Zambia National Commercial Bank, which has 200,000 mobile banking customers, who previously had no access to traditional financial services. Alibaba in China is also highlighted, for using customers' commercial transactions recorded on its e-commerce platform to create credit records, and then conducting SME lending.

The banking industry has been fragmenting and de-layering for some time now, as challenger banks and bigtechs chip away at the value chain. While this neo-normal has created some opportunities for collaboration, it has also presented banks with a stark choice: commit to continuous technological innovation or risk yielding competitive advantage.

Yet this isn’t just about digital transformation. With share and revenue leaking out of the banking sector to other industries—especially to bigtech—we believe the time has come for banks to challenge their long-established conventions and beliefs. To sustain their relevance, they need to truly understand their markets and what it takes to succeed in each of them. They’ll have to be willing to shape new business models, partner in unconventional ways, rediscover their purpose and humanity, and commit to constant innovation.

Accenture is here to help—not as a vendor, but as a strategic partner. Sharing the risks and rewards, bringing technological expertise, a global perspective and the ability to deliver. Enabling flexible architecture in the cloud, with market-leading tools and solutions. Using technology to find value in your data, in order to create amazing customer experiences. Putting our reputation on the line, right next to yours—and delivering on our promise of technology and human ingenuity.