Financial Services: $1 Trillion For The Taking

The report says digital technology will allow banks and securities firms to take a more modular approach to their service offerings, much like the airline industry did in the late 1990s by outsourcing such processes as ground handling and maintenance, to better compete in a deregulated environment, the report said.

"Digital technology makes it easier to split off different stages of the value chain into modules," the report said.

Oliver Wyman believes $1.09 trillion in revenue and costs are up for grabs, with about one-quarter of that being passed on to customers through price competition.

TECHNOLOGY OPPORTUNITES? Data and analytics will be key enablers, and legacy systems will not survive as financial services firms aim for speedy product launches and better customer experience, the report said.