The banking industry is undergoing major changes thereby challenging incumbent market participants. How can banks cope with recent developments such as (i) the surge of new technologies (e.g. Block Chain), (ii) growing pressure and opportunity to digitize processes, products, and services and (iii) the rise of new competitors caused by regulatory initiatives to decrease entry barriers for new market participants (e.g. PSD II) and establish innovative and sustainable business models?

The objective of the business project is to establish a deep understanding of current developments in the banking industry, recognize strategic levers and derive innovative and sustainable business models that enable banks to be profitable in the future.

In particular, the students will acquire profound knowledge of digitalization trends, technologies and regulatory restrictions and requirements in the banking industry and understand the challenges and opportunities recent developments bring about.  Based on extensive research, students will develop strategic options for existing banks and assess those options from a customer perspective, e.g. by developing use-cases, customer journeys.

The students’ gain will be:

• Deep knowledge of the financial industry
• Insights into the digital strategy of banks
• Profound knowledge of new technologies potentially applicable in the banking industry
• Knowledge of strategic impact resulting from regulatory requirements
• Networking with zeb consultants and insights into the consulting business

The business project will run in several phases, enabling students to sequentially establish their recommendations.

First, students will profoundly research the following three core topics and assess their potential for banks:

• Rise of new technologies (e.g. Block Chain)

• Ongoing pressure and opportunity to digitize processes, products and services

• Regulatory intervention to facilitate market access for new market participants (e.g. PSD II)

Subsequently, based on gathered information and recognized key levers, students will derive business models that strengthen banks competitive advantage and, thus, enable them to reap profits in a new market environment.

Finally, measures to increase a banks’ value proposition to customers shall be derived. In particular, students shall create use-cases and customer journeys that illustrate how customers benefit from the recommended measures and why customers should stick with their bank.

Students will be constantly supported by a team of zeb consultants specifically familiar from the project background with the topics of digitalization, new technologies and regulatory requirements. Furthermore the students will be offered a workplace at the zeb.Office.

Assessment is based on the quality of the mid-term presentation and end-term presentation, the participation during the classes, group members’ peer rating, and the final report. This implies anability to work in teams. Students failing to participate in their teams will lose the marks for that piece of work and thereby fail the entire course.

Group level (70%): mid-term presentation (20%), end-term company presentation (30%), final report (written report, approx. 1500 – 2000 words)/ PPP slides (20%). For the PowerPoint presentations data will be used from all sources.

Individual level (30%): peer review (20%), participation (10%)

• Interest in digitalization, new technologies and the banking sector
• Strong ability of strategic and “out-of-the-box” thinking