Facing low interest rates, deleveraging, recurring scandals and increasing capital requirements, banks have struggled in recent years. The prospects for many of them are no better going forward. Where once, a score of institutions aspired to be globe spanning, universal banks, the ambitions of many would-be financial titans, have been tempered by crisis and overreach.

This doesn’t mean that there haven’t been winners as well as losers. The very largest banks have generally increased their market shares as some when bankrupt and other second tier competitors have struggled to stay afloat in the face of still negative economic headwinds. It is worth highlighting however that a widespread loss of trust has also opened up more space for companies offering a particular set of financial services to precisely defined market niches. Furthermore some nation champions are retreating to their domestic markets where they can grow from their local opportunities. There is a need to reconnect with clients and rebuild tarnished reputations.

This is a process of business model change, thoughtful reevaluation and ultimately reinvention for much of the banking sector. In this, innovation is essential and banks will have to structure their innovation such that they clear deliver value more than merely repackaging risk. Too often, advances and new ideas in banking services are coming from outside of the banks themselves. Many new business lines exist today due to technological changes, from peer to peer currency transactions and mobile payment systems to online lending platforms and crowdfunding. But while new market entrants are encroaching on a variety of financial services, this is an incomplete story.

There is a quiet evolution taking place in the banking sector. Much of this is playing out in the banks themselves as they strive to offer new value propositions, to differentiate themselves from their rivals and to meet harsher regulations.

One area of growth lies in offering tailored customer services. This isn’t a question of offering a kinder greeting but of building out a new product set. Better data analysis and management are a leading edge to these trends. One example is the opportunity to leverage varied customer data to scale wealth management services for a mass audience. This means that the sort of advising long received by high net worth individuals could be offered in something approaching a customized form to more modest savers.

Reaching still lower down the income spectrum, companies are bringing formal services to the unbanked around the world. This is aided by mobile payments and facilitated by dramatically lower transaction costs.

For insight into banks delivering real innovations, read Don Trotta’s article in The Good Bank http://event.wavecastpro.com/thegoodbanklive/ Good Banks Get Innovation Right)

The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views of The Economist Intelligence Unit Limited (EIU) or any other member of The Economist Group. The Economist Group (including the EIU) cannot accept any responsibility or liability for reliance by any person on this article or any of the information, opinions or conclusions set out in the article.