Banks are more worried whilst Google is NOT a bank

I received one interesting comment about Google, Apple, Facebook and Amazon (GAFA) and co getting into banking from one bank: why would they?

His response was based upon the fact that he’s more worried about Google when they’re not a bank than when they are one.

“If they bought a bank – let’s say they acquired Citibank – then this would be good news”, he said, “because that would kill them.”

Google would become stuck with compliance, audit and integration issues and would be dragged down like all banks are.
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When Banks say “Innovation” they really mean …

Innovation is hard work. And despite the decline in the Innovation Rating, the absolute level of Innovation feels to be substantially exaggerated. In my estimation, the Innovation Rating for the Banking Industry as a whole should be no higher than ‘C-‘, and that’s being very generous.
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25 years of digital financial services innovation

With the Web becoming more sophisticated, so do mobile and online financial services. According to our recent research, over 70% of consumers now view the ability to manage their money digitally as vitally important. With the World Wide Web having this week celebrated its 25th birthday, it seems like the perfect time to reflect on how far digital financial services have come and where we go from here.
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10 Big, Hairy Innovation Ideas from Bank Innovation

Dozens of ideas came out of Bank Innovation 2014, which spanned two days earlier this month and contained 12 sessions about cutting-edge financial innovation, as evidenced by the discussion around the event on Twitter at the hashtag #BI14.

So which of the ideas should not be ignored? We’ve highlighted the 10 “big and hairy” banking innovation ideas that will propel the industry into the future. Ignore them at your own risk.

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Two Drivers of Financial Innovation

In many ways, financial innovation has taken a backseat to financial stability concerns since the start of the financial crisis, as firms focused first on survival and then on complying with a blizzard of postcrisis regulations. However, banks have largely restored their financial condition and many of the major changes in regulations have moved into the implementation phase. Absent another shock to financial stability, the importance of financial innovation is likely to grow over the next several years. I look at two of the biggest drivers of past innovation in banking services, technology and regulation, to better understand likely trends in future innovation.
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Incremental Change Killed Blockbuster… Are Community Banks Next?

When massive seismic shifts rocked Blockbuster and Sears, how did they respond? With small, incremental changes… And we know how that played out. Community banks are in the fight of their lives, and it’s going to take more than slight adjustments if they are going prevail.
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Don’t Just Innovate for the Fun of It

Innovation has to serve a purpose, and it must scale.

That was the message of Citigroup‘s JP Jolly when he took the stage at Bank Innovation 2014 this week to describe the process of updating Citi’s mobile app for its corporate clients. He described the process of updating the tablet and smartphone apps that serve 96 countries and dozens of languages. Such are the details a global bank must attend to.
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