Positioning as a “supplier”: economies of scale help survival
In the disruption scenario, “component suppliers” in the financial services industry will suffer the
same fate as suppliers everywhere – for better or worse: if they succeed in continuously renewing
their product portfolio and if they benefit from sufficient economies of scale, they have a good
chance to achieve a competitive positioning. If they remain small and less innovative, they will
disappear. To achieve an enduring market position, they will likely have to offer competitive
services beyond the boundaries of Germany in order to benefit from larger economies of scale
(e.g. In the European banking market).
The thinning out of infrastructure – which can already be observed in the areas of brick-and-mortar
shopping sites, schools, post offices or telephone boxes, amongst others – will hit local banks
disproportionately hard. Their advantage of close proximity to their clients will become less and
less relevant (“phone box of the 21st century”).