{
  "docId": "019dd923-5de0-76bd-a167-d97b47181c2f",
  "docSlug": "df6f7ffbb24bfbd2",
  "documentTitle": "Banking: The future is back",
  "authorId": "Accenture",
  "authorName": "Accenture",
  "documentKindSlug": "consulting-deck",
  "documentKindLabel": "Consulting deck",
  "sourceTypeSlug": "strategy_consulting",
  "sourceTypeLabel": "Strategy consulting",
  "presentationDate": null,
  "orientation": "landscape",
  "aspectRatio": 1.778,
  "pageNumber": 14,
  "pageCount": 48,
  "prevPage": 13,
  "nextPage": 15,
  "slideType": "industry_trends",
  "function": "summarize",
  "density": "overcrowded",
  "nDataPoints": 2,
  "notes": "The slide uses a narrative format to explain the 'scale' trend in banking, referencing Morgan Stanley's performance and the concept of diseconomies of scope.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "quote_block"
  ],
  "metadataConfidence": 0.9,
  "imagePath": null,
  "slideHref": "/slides/019dd923-5de0-76bd-a167-d97b47181c2f/14",
  "deckHref": "/decks/019dd923-5de0-76bd-a167-d97b47181c2f",
  "deckJsonHref": "/decks/019dd923-5de0-76bd-a167-d97b47181c2f.json",
  "deckAnchorHref": "/decks/019dd923-5de0-76bd-a167-d97b47181c2f#slide-14",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Scale continues to be a formidable advantage in banking.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd951-a673-77f6-86b7-9b4a322ce363",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.27,
        "x": 0.38,
        "y": 0.16
      },
      "kind": "paragraph",
      "text": "When Morgan Stanley announced its third-quarter results in October last year, which included a 13% increase in trading revenue and a 32% surge in profits, CEO Ted Pick, noting that the bank's biggest rivals had also recorded impressive gains, said: “There is an element of the leaders pulling away from the pack.”",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "048d7b14-167d-44bd-8016-16f1d2dd7ec5",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.27,
        "x": 0.38,
        "y": 0.33
      },
      "kind": "paragraph",
      "text": "Scale continues to be a formidable advantage in banking. Our analysis of the world’s 100 largest banks by assets reveals that, in most countries, the largest bank also has the highest price-to-book-value ratio.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "4da3e5ec-732e-4f12-9d22-00bcd329e4be",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.27,
        "x": 0.67,
        "y": 0.16
      },
      "kind": "paragraph",
      "text": "Economies of scale play a major role in the operating model, where investments often incur fixed or semi-fixed costs—the bigger the user- or customer-base, the lower the unit cost. Capital-rich banks are better able to take advantage of emerging technologies, and as generative AI looks set to transform most of the tasks in the average bank, the ability to sustain this investment could prove decisive.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "539b9729-2108-43af-8f87-98953db5d65f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.42,
        "w": 0.27,
        "x": 0.38,
        "y": 0.44
      },
      "kind": "paragraph",
      "text": "It goes without saying that large, global banks have stronger brands, making it easier to attract customers, scarce talent and business partners. When it comes to markets, scale makes a big difference. Large banks typically have access to more diversified funding sources, including substantial deposits from institutional clients and “free” money in retail checking accounts—deposits that are “stickier” than most. Large banks also enjoy lower interest rates on bonds and more credibility in global capital markets. They are often “too big to fail”, which lowers their perceived credit risk. All of these factors reduce their funding costs. Bigger banks have the capacity to handle larger, more complex transactions which generate higher fees and commissions. They are also better equipped to diversify their product portfolios and pursue niche markets without fearing that these markets will be unsustainably small.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "85e2bca4-d1e6-4606-81a9-717713b03239",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.2,
        "w": 0.25,
        "x": 0.08,
        "y": 0.37
      },
      "kind": "paragraph",
      "text": "As the gap between the biggest banks and their smaller rivals widens, scale is becoming the ultimate competitive edge in banking. It empowers institutions to achieve superior efficiency, harness diverse funding, and capitalize on emerging technologies to dominate markets and sustain profitability.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "8dca0971-5052-4018-969b-ac6c05a3cf75",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.27,
        "x": 0.67,
        "y": 0.33
      },
      "kind": "paragraph",
      "text": "This is not to say that bigger is always better. In their pursuit of economies of scale prior to the Global Financial Crisis, some banks convinced themselves they could be all things to all customers. Their attempt to expand operations across most parts of the globe resulted in massive organizations that were difficult to manage and often featured sub-scale operations in certain segments and countries. Over the past 10-15 years, many of these banks have changed their strategy to combat what came to be known as “diseconomies of scope” by divesting non-core assets or subsidiaries.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b4f40ca4-95af-4248-b357-8ebd355cbb64",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "There is an element of the leaders pulling away from the pack. — Ted Pick, CEO of Morgan Stanley",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd951-a673-77f6-86b7-9e40ca3628b1",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.2,
        "x": 0.05,
        "y": 0.31
      },
      "kind": "title",
      "text": "What's the trend?",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b36ac440-b0d7-432d-93d3-62c7473663f4",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [
    {
      "name": "Action Titles",
      "slug": "action-titles",
      "agent": "Architect",
      "layer": "slide",
      "matchId": "019dd95a-0bbb-77da-b1d7-de314b4f4351",
      "evidence": "Title states the insight: 'Scale is becoming the ultimate competitive edge in banking...'",
      "confidence": 90
    },
    {
      "name": "Audience Definition",
      "slug": "audience-definition",
      "agent": "Storyteller",
      "layer": "slide",
      "matchId": "9ea568d0-fe53-440a-b5b6-81ebc7279713",
      "evidence": "It goes without saying that large, global banks have stronger brands, making it easier to attract customers, scarce talent and business partners.",
      "confidence": 0.7
    },
    {
      "name": "So What? Test",
      "slug": "so-what-test",
      "agent": "Architect",
      "layer": "slide",
      "matchId": "019dd95a-0bbb-77da-b1d7-e2ea9d303fd0",
      "evidence": "Title goes beyond topic to spell out 'so what' — efficiency, funding, tech leverage",
      "confidence": 78
    },
    {
      "name": "Storytelling Effect",
      "slug": "storytelling-effect",
      "agent": "Storyteller",
      "layer": "slide",
      "matchId": "fab1efbc-ce82-4023-9f64-d4ce0bd62447",
      "evidence": "When Morgan Stanley announced its third-quarter results in October last year, which included a 13% increase in trading revenue and a 32% surge in profits, CEO Ted Pick, noting that the bank's biggest",
      "confidence": 0.6
    }
  ],
  "frameworks": [],
  "arcBeats": [
    {
      "to": 45,
      "from": 6,
      "beatId": "019dd95a-0680-7418-8209-303a18385e57",
      "arcName": "The Triple Take",
      "arcSlug": "triple-take",
      "beatName": "The Implications (So What)",
      "beatSlug": "triple-take-the-implications-so-what",
      "evidence": "Ten trend chapters with charts/data and 'so what' action titles",
      "position": 2,
      "confidence": 88,
      "parentBeatName": "Reflection",
      "parentBeatSlug": "reflection"
    },
    {
      "to": 16,
      "from": 4,
      "beatId": "019dd95a-0680-7418-8209-3d9d41f161be",
      "arcName": "Voyage and Return",
      "arcSlug": "voyage-return",
      "beatName": "The Unknown",
      "beatSlug": "voyage-return-the-unknown",
      "evidence": "Intro + trends 1-3 push into digital, non-bank, scale-driven landscape",
      "position": 2,
      "confidence": 62,
      "parentBeatName": "Complication",
      "parentBeatSlug": "complication"
    }
  ],
  "loops": [
    {
      "to": 16,
      "from": 13,
      "name": "Benchmark Gap",
      "slug": "39-benchmark-gap",
      "bestFor": "Performance improvement, competitive analysis, target setting",
      "matchId": "019dd95a-07fd-712f-b772-ceadbcb4a912",
      "evidence": "p.14-15 compare top-100 banks; p.15 segment waterfall with PBT shows scale leaders pull away; p.16 forecasts winners by scale",
      "position": 4,
      "objective": "Argue scale is the winning benchmark",
      "structure": "Our Performance -> Industry Average -> Best-in-Class -> The Gap = The Opportunity",
      "confidence": 78,
      "description": "Compare performance against best-in-class to quantify the opportunity"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}