Most transformation leaders converge toward a federated model: centralized platforms with distributed digital squads aligned to customer journeys. Full centralization improves efficiency and controls but inhibits innovation; full decentralization accelerates experiments but increases cost and fragmentation. Wealth firms increasingly adopt hybrid models integrating advisory, research, product, and compliance in shared digital platforms.
Industry Differences
Banking: federated IT + product squads + shared services
Insurance: hub-and-spoke due to underwriting + actuarial + distribution
Fintech: lightweight, product-led, growth squads
Wealth: platform-led with advisor tooling integration
Channels Impact Model rigidity increases with intermediated channels (brokers, advisors) versus direct. Embedded finance requires partner integration ops and SLAs.