Situation

The banking industry is facing a rapidly changing commerce landscape. Regulation increases competition and consumes resources.  Competition, including new entrants, is taking advantage of new technologies and new business models. The traditional commerce value chain is changing as new competition enters and traditional banks expand their scope of service. There is also a shift in consumer behavior, where the end consumers want secure and convenient payment services via all channels. This has resulted in an ongoing transaction shift from POS into digital commerce. The industry is also experiencing a consolidation within acquiring and payment solution providers. New and existing Tier 1 merchant demand commerce offerings, incl. Omni and I&I.

Solution

The Avanti team helped the client to develop a new Commerce strategy

• External analysis: Payment value chain analysis, screening of acquisition candidates, SWOT analysis

• Internal investigation: Capabilities required and gap analysis

• Extensive emphasis on stakeholder management and buy-in on new Commerce Strategy

A new commerce strategy was developed based on strategic options to improve and acquire the required capabilities and services to secure a market-leading position. The screening was performed to assess acquisition targets to fill the capability gap. Avanti also supported the bank in driving the Program Management Office for integration of the acquisition.

Result

1. A new Commerce Strategy, including strategic direction, business model and objectives, capabilities required, and assessment of future business value

2. New value proposition and operating model, incl. recommendation of acquisition/ joint ventures candidates to secure rapid capability scale-up

3. High-level roadmap to build/acquire required business and technology capabilities

4. Post-merger integration of the acquisition