The time is ripe for disruption in banking


Building on yesterday’s debate about Google and co coming into banking, and the previous discussions of such:

… and there’s been loads more, I was shocked to stumble across a survey this week that shows the attitude of Millennials (people born from the 1980s to 2000 that grew up with the internet).

The survey is called the Millennial Disruption Index (MDI), and represents a three year effort by Scratch, a creative agency.  Scratch interviewed over 10,000 Millennials in America, and asked for their views about 73 businesses in 15 industries.  The results are astounding, finding the most likely industry seen for disruption is Banking.
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Customer relationships and demographics are meaningless to Digital Banks, who just focus upon empowering digital communities


There are two popular misconceptions that are legacy from last decade: customer relationships and customer demographics. These do not apply to Digital Banks, but incumbent banks still use them.

On the relationship side, most banks talk about relationship banking. They want to have a relationship with the customer. They need to engage the customer in a great customer experience and all that. It’s all very needy or worthy, dependent upon your view, but again it is misguided.

The key thing here is that I’ve heard this relationship thing for a long time too. It started when banks started discussing share of wallet and lifetime financial management. The whole idea is that the longer you could keep a customer and cross-sell to them, the greater the share of wallet you got and hence the more profitable you became.
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The Evolution of Modern Banking


Times are changing, and today’s digital world is having widespread effects on an array of consumer behaviors, including how we handle our finances. Electronics and mobility are key trends for financial institutions to keep track of, but consumers aren’t ready to sever all ties with their local bank branches just yet.

According to Nielsen data from a custom study conducted in November 2013, the vast majority of U.S. consumers (82%) have entered the digital arena, stating that they banked online at least once in the last 30 days. The high percentage speaks to the prevalence of the digital world in consumers’ lives, especially when compared against the 68 percent of people who said they had visited a physical branch in the same period.
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Is wearable technology the new digital wallet?


A few months ago I joined the wearable technology community by purchasing the Pebble smartwatch, a darling of Kickstarter  crowd funding, the Pebble raised $80 million, the most successful Kickstarter project to date.

At first I felt a little geekish wearing the shiny black device, but as I started to master what it could do, and how to tailor my notifications to suit me I was quite impressed.
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Why There Is No Amazon Of Banking


“Amazon has revolutionized everything from publishing to online shopping. Can it save retail banking? At Retail Banking 2014, bank execs repeatedly invoked Amazon as an example of what they aspire to become. One said ‘Amazon was conceived around the use of data and the customer experience.’ Another called Amazon ‘the most visible example of using data to customize a customer experience.’ Another called the Amazon model a possible savior for the industry.”
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Is a FinTech revolution brewing in Continental Europe?


With the continent’s share of FinTech funding and deals under 6% of the global volumes (and less than 2% in the German-speaking countries), this is not a post about a burgeoning fintech scene in the region.

However, talking to or meeting over a hundred startups, investors and banks for the first study of fintech startups in Germany, Austria and Switzerland, here are five reasons why the fintech scene in the region bears watching:
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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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Are digital banks losing sight of the customer?


In a discussion of the future bank, it appears that we all talk about digital being the focal point but it’s the wrong focal point.

Customer is the focus.

It’s too easy to get wrapped up in the technology and forget about the customer.

That’s what worries me today when I see banks rolling out sexy apps and wearable gadgetry, when the real point is the process, information, service, capability and competency of the bank to evolve their business with the technology.

And to do that at the speed of the customer’s Need.
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Crafting The Modern Banking Experience Around Mass Customization


Technology is increasingly changing consumers’ needs and expectations, creating both challenges and an opportunities in retail Banking.

How is customer demand changing the banking sector and what impact does this have on the most effective business model for major banks? How can banks ensure that they are reflecting the customers’ needs and maintaining their loyalty, while adopting more technology in order to reduce costs?
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Bringing the Full Capabilities of the Branch to Digital Channels


In my previous blog I introduced the series with the idea that financial services firms are now being expected to operate and be “Open 24 Hours.” Underlying this is the transition from the physical business model to the digital business model. This principle can be built upon by exploring the factors that are driving this change and some of the challenges that need to be addressed.

The explosion of digital devices, mobile apps, Wi-Fi everywhere, cloud computing and broadband internet together, provides consumers with increasing ways to explore and shop online. With increased use, shopping and buying online is quickly becoming the normal approach, especially with younger consumers. In fact, a recent study found that 64 percent of generation Y pays half or more of their bills electronically.
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