Emerging markets bank: developing a leading digital assets strategy

The Challenge

The emergence of digital assets is threatening to disrupt the financial services industry. As they become more mainstream, blockchain-based start-ups are beginning to offer new financial products and services, and banks across the world are retaliating. This growing level of activity is taking place in a highly immature regulatory environment; however, regulators and central banks are also rapidly evolving in line with the emerging trends.

Our long-standing client, an emerging markets bank, recognised the developments in the digital asset landscape and the moves competitors were making. However, a lack of strategic alignment, internal policy and centralised funding sources delayed their progress in this space. This was amplified by the fact that, at a bank-wide level, there was a lack of understanding about the nuances of different digital asset classes and how they should each be approached differently with respect to research, development and delivery.

To explore the full potential of a digital asset strategy, we helped our client understand the market and regulatory landscape. We also helped them achieve alignment across their departments, where all stakeholders understood and agreed on the direction of their digital asset strategy.

The Approach

To better understand the current market and regulatory digital asset landscape, our team conducted in-depth, outside-in market research. This included an analysis of the global digital asset landscape from a VC funding, technical, regulatory and competitive perspective.

We also interviewed key stakeholders across the bank to gain an understanding of the various needs, concerns and requirements of each department when creating the strategy. We then held cross-functional workshops with key stakeholders to begin defining the bank’s strategic vision, objectives, enabling factors and underlying principles – all of which would make up the digital asset strategy.

In just five weeks, we spoke to over 75 senior and C-suite stakeholders across the bank, gathering their insights, perspectives and guidance on the ideal bank-wide digital asset strategy. This would help us ensure that what we developed was relevant across all business units, functions and geographies.

The Impact

Our client gained a deeper understanding of the digital asset market and the supporting regulatory and competitor landscape which helped to create alignment across the leadership team company-wide. This enhanced understanding supported the delivery of a clear and tangible strategy, which made clear the immediate and long-term steps required for the bank to move forward in the digital asset landscape.

Establishing this strategy has enabled the client to define and rapidly mobilise the initiatives that will enable the bank to safely deliver against their objectives. This includes identifying opportunities for experimentation, potential partnerships and marketing and brand initiatives.