Stumbling Giants: Transforming Canada's Banks for the Information Age
Canada’s big six banks weathered the 2008 financial crisis very well. Their adherence to tried and tested twentieth-century products and services made them a safe harbour in the financial storm. However, as the modern global information economy continues to develop, the banks must confront their innovation crisis, or they will fail.
In Stumbling Giants, Patricia Meredith and James L. Darroch embark on an audacious and startling examination of Canada’s big banks. With banks earning forty percent return on equity from traditional retail banking, pressure from investors with short term interests has discouraged technological innovation and adaptation. Meredith and Darroch reveal the socio-technological disruptors threatening the banks’ three primary product divisions – lending, wealth management, and payments – and offer innovative yet realistic recommendations for improvement. Meredith and Darroch’s new vision for the Canadian banking industry involves a broad cross-section of Canadians – policy makers, regulators, customers, suppliers, investors, and bankers – and is a call to action for all interested stakeholders to work together in creating a banking system for the twenty-first century.
- Division: Scholarly Publishing
- Imprint: Rotman-UTP Publishing
- World Rights
- Page Count: 256 pages
- Dimensions: 6.0in x 1.0in x 9.0in
"As Meredith and Darroch suggest, the Canadian banks have only one option to effectively adapt to the Information Age. The banks must collaborate with each other and all stakeholders to create efficient and accessible 21st century banking services for Canadians."
David Dodge, former Governor, Bank of Canada
"This is a serious contribution to an important public policy issue and will likely (and hopefully) stimulate good discussion and debate."
Fred Gorbet, former Deputy Minister of Finance and Chair, Financial Services Program at the Schulich School of Business
"Meredith and Darroch have written an excellent book that addresses the entire Canadian banking industry in an insightful and comprehensive way. I highly recommend it to anyone interested in the industry."
David Denison, former CEO, CPP Investment Board
"Stumbling Giants is a must-read. A thoughtful study of the Canadian banking industry, it will challenge policy makers and financial service leaders to rethink the shape of the industry. With a tsunami of new entrants and new technologies transforming the old retail banking model, the banks have no higher priority than to innovate themselves to meet the changing needs of customers in the digital age."
Barbara Stymiest, former Member of Group Executive, RBC Financial Group
"Over the past 30 years the Canadian banks have neglected the small business banking goose that laid the golden eggs. As Meredith and Darroch point out, while aggressively pursuing consumer mortgage and loan growth and fee income, bankers lost the ability to effectively assess risk and price small and medium-sized business loans. This does not auger well for growth in the Canadian economy."
Brien Gray, former Executive Vice President, Canadian Federation of Independent Business
Author InformationPatricia Meredith is a global thought leader in transformative governance. She works with leaders in both the public and private sectors to take on the challenges of the information age. An accomplished author, consultant and educator, she is a fellow of the Clarkson Institute for Board Effectiveness at the Rotman School of Management, University of Toronto. Her previous publication, Catalytic Governance, is also published by University of Toronto Press.
James L. Darroch is an Associate Professor of Strategic Management and and the CIT Chair in Financial Services, Schulich School of Business, York University. His research focuses upon strategic management with an emphasis on governance and enterprise risk management in financial services firms.
In 1997, he joined the working group for the Toronto International Centre for Financial Sector Supervision (Toronto Center). From 2002 to 2006 he was Co-Program Director for the Risk Management Curriculum at the Bank of Montreal. He is currently Director of the Financial Services Program, and co-director of the Masters Certificate in Financial Services Leadership and the Professional Banking Program offered by the Schulich Executive Education Centre.
Representative of his current research focus is: “The Limits of Strategic Rationality: Ethics, Risk Management, and Governance,” Journal of Business Ethics, 92:3 (2010) (with David Weitzner).
Table of contents
1. The Banks Lose Their Way
2. From Branches to Smartphones
3. Innovation in the Mortgage Market
4. Small and Mid-Sized Business Blues
5. Where are the Customer’s Yachts
6. Canada Trails the Third World
7. Long Live the Branch
A Banking System for the 21st Century
2018 Donner Prize- Winner in 2018
Subjects and Courses