There’s plenty of chat about how vulnerable the financial services sector is to being significantly disrupted. From a consumer (human) perspective, we are coming to expect a lot more than good service and competitive offerings from our financial services partners. By good service we include attentive, quick, personalized, easy and cheap to access (no waiting on costly helplines or in patience-testing queues). We want intelligent responses, queries that are fully solved and solutions that meet our changing needs and pockets. And we expect this in more ways than traditionally we’ve been offered (telephone, face to face, website), because we are starting to understand that technological advancement and applied thinking is making this possible.
So here’s Mondo. Time for a new kind of bank.
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We’re building a smart bank from the ground up to deliver intelligent banking on your smartphone. Think timely alerts, useful data and instant payments. We’d love your help.
Be one of the first 500 people to try the bank of the future.’
Would you sign up for Mondo?
The point is there is a large vacuum between what we are beginning to realise is possible, and what we are currently offered, a chasm that over time will be crossed.
In response to the need to up their game, the EFMA 7th Annual Innovation in Retail Banking Report shows a growing trend for banks to invest in start-ups through dedicated venture funds or on an ad hoc basis. Banks have an opportunity to collaborate and partner with start-ups to launch new products and services, and thus drive innovation and transformation. To maximize benefit, you need to reposition your view of start-ups as disruptive competitors, and start working more closely with them.
‘More and more banks are setting up accelerators/incubators, or are working with independent accelerators/incubators.
Investment in innovation has been increasing consistently for the last few years at most banks according to our surveys. There are signs that this investment is making a difference in that innovation performance is also perceived to be improving.’
But let’s hold up a real mirror on what we’re doing internally too. It’s not so much about the hub and the ideas (although these are obviously important). It is about the people (humans) who will make them a reality for your consumers (humans). What they do, every day, is key – the activity, outputs and mindsets that you encourage, reward and enable, with employees, suppliers, contractors, consultants and wider networks.
Investing in hubs and start-ups may bring an innovative streak into your mainframe, creak it a little, but the people who drive your business forward day in and out need the right mind and skillsets, skills of the future. They need to be equipped for the innovation age we operate in. That includes leaders and others in so-called positions of ‘authority’. Without an honest appraisal of what happens on the ground, innovation is at most idealism.
So apply this ‘start-up’ partnership modelling, like EFMA says we can do with innovation hubs and new fintech entrants, to people performance.
What is your investment in people and skills innovation hubs?
Who are you partnering with for this element?
How are you preparing your teams for continued ‘failure’ – which is famously touted by the top management thinkers and business gurus as the bedrock of true innovation? How is your mainframe skillsbank increasing over time with the sort of skills you need to build for the future? What skills will you need? How do you enable experimentation, partnership working, social collaboration? How are you spotting, enabling and rewarding innovative thinkers and doers within your organisation? They are not the people who typically show up on your traditional talent management ladders. Nor are they necessarily motivated by the promise of climbing the corporate ladder.
If you don’t want to be out-disrupted, you need to think about the people and partners who can take you there, the way business gets done on a daily basis, and what sort of players you’re liberating in your organisation. For the new skills economy is rapidly dawning, and the corporate ladder is practically dead.