“Orchestrators” with a regional focus

Local banks will have the opportunity to become orchestrators by making use of their geographic
proximity to their client base and thus becoming an indispensable part of a regional ecosystem
(“local incumbents”). Through intensive relations with local players and institutions across all
fields of public life – business, culture, education, and so on – they assert themselves as providers
of comprehensive financial services solutions.

Suppliers and service providers (e.g. For multi-bank
aggregation or cloud solutions) are integrated via a flexible technological architecture to offer
wide-ranging solutions to clients. This development is facilitated by the continued consolidation
in the public and cooperative banking sectors on a regional level, which creates larger entities
more capable of responding to change.

The toughest competition for these “local incumbents” is the group of “client champions”,
comprising centrally organised banks whose offerings are aligned with customer needs to such
an extent that their capabilities and appearance are increasingly converging toward those of local
banks. This development will be seen primarily in economically powerful, urbanised regions and
metropolitan areas in general.