From Online To Digital – Part 2

by robfindlay on 26. Jul, 2010 in Uncategorized

The following article I wrote for FINSIA’s InFinance magazine (June 2010) accompanies the presentation I gave here. Again the writings here are my own opinion based on light desktop research. If you want proper journalism, go here or here!

‘The world is changing very fast. Big will not beat small anymore. It will be the fast beating the slow.’

Rupert Murdoch made this comment in February 2008 about the future of the newspaper business.

This view of the future applies to all industries, particularly those with large and small players, with old and new organisations, and with the threat of disintermediation and business model disruption on the immediate horizon.

The newspaper business is currently feeling this pain; travel and real estate are facing irrevocable change within their industries; and banking will be next.

Innovation is one of the ways we can counter or even capitalise on this event horizon.

How customers manage their money

A customer might log on via the internet to: view their account balances; make payments and transfer funds via an iPhone app; pay a friend back for a lunch debt by bumping phones together; or find an ATM on the way to lunch using augmented reality; then video chat to a call centre agent via Skye regarding their financial advice needs; or discuss these needs in person with a retail representative using a collaborative touch screen table; and share this information later with friends that have similar needs.

All of this can be done today using existing online and digital technology. And not one of these tasks needs to be facilitated by a traditional bank brand as we know it. A collection of offerings from brands such as Mint.com, Apple iPhone, Skype, Facebook and PayPal can replicate the banking function, and even the relationship, as we used to know it. This is part of the new future that large financial services organisations must prepare for.

A perfect storm has emerged …

So why is this upon us? And what is happening that is making this change occur at such breadth and pace? A perfect storm has formed on a range of fronts:

  • Economic conditions were drastically shunted. In a post-GFC economic environment, business models have been stretched and tested. While Australia’s banks and financial institutions have fared relatively well through the global financial crisis, the Australian market has not been totally unaffected, and pressures on wholesale funding remain an ongoing issue.
  • Consumer behaviour changed irrevocably. After 10 to 15 years of economic prosperity, consumers have become far more comfortable with certain kinds of debt instruments and they are now able to make purchase and service decisions much quicker, and with greater knowledge and understanding.
  • Technology capability embedded itself in our lives. Information technology is ubiquitous, with people’s lives seemingly busier than ever amidst the promise and presence of technology designed to make life simpler and more efficient.
  • Changing business models now compete alongside traditional models. This new access to consumption and technology has created new industries and supply chains that deliver products and services to consumers.
    … with lasting consequences
  • Trust and security are now highly valued. Large banks and financial services have some advantages here, but they need to convince customers through actions rather than words.
  • Customers have greater access to products/services and more knowledgeable about their options.
  • Control of the conversation is now shared between the consumer and the organisation. Consumers can now have conversations with other consumers more easily than with large corporations like banks.
  • The preferred channel for certain tasks is becoming clearer, with online and digital channels widely preferred for simpler tasks, and face-to-face or voice-to-voice channels preferred for more complex tasks, such as sales conversations or problem resolution.
  • Digital interfaces are evolving from a graphical user interface (GUI) (click a link using a mouse on a PC browser) to a natural user interface (NUI) (touch a button using your finger or hands on a mobile device).
  • The proliferation of offerings from hardware and software providers such as Apple, Google, Microsoft and Nokia means we must evolve digital interactions from website development to multiple platform display and support.
  • Peer-to-peer lending as provided by brands like Zopa means anyone can provide the financial offering of a bank.
  • Disintermediation is a reality unless a strong focus on customer centric servicing and adoption of new technologies is established.

Incremental innovation must be accompanied by seismic shifts

There are essentially three key components of creating an innovation response to the new paradigm:

  • establish an innovation culture and process;
  • create strategic innovation awareness and change; and
  • move fast on the tactical dimensions of online innovation.

Rather than a scatter gun or an ad hoc approach to innovation, an innovation culture needs to be created.

In this environment: people become aware of and open to the idea of lateral thinking; a flow of innovative thinking, ideas and practices is generated; processes are developed to enable this flow of ideas to flourish until they are proven; and a method of measurement will be required to analyse the quality, performance and ultimately the return on investment associated with new ideas.

In his excellent book Innovation and the Future Proof Bank, James Gardner, former head of innovation at Lloyd’s TSB, describes five strategic dimensions of business innovation, each with varying levels of potential disruption:

  • new business models (PayPal can be described as a disruptive model, Zopa even more so);
  • new channel capabilities (mobile is the predicted boom area);
  • new markets (e.g. gen Y and the emerging markets in Asia);
  • new experiences (better processes such as a mortgage application process); and
  • new product forms or evolutions (the credit card was perhaps the last real product innovation).

These are the dimensions in which innovation can enable your business to make a seismic shift towards the future, or be obliterated by an unforeseen threat.

On a smaller level, for those digital and online channel managers under the channel strategic dimension, there are tactical online innovations that can be made. Current trends in this space include mobile and wireless ideas, security and biometric innovation, user-generated content and social media, the simplification and improvement of the user interface, and the massive area of micro, contactless and other payments innovations.

Regardless of your approach, simply keeping your hand on the rudder and steering forward in a straight line may not give you the edge against competitors. The level of innovation that your business needs to stay ahead of the competition may be something as small as a specific channel idea, or an entire business model change.

But, standing still is not an option.

Sidebar content:

10 insights on digital innovation in financial services

  • Digital technology is already here.
  • Digital is the ultimate scalable environment.
  • Mobile services will boom in all forms.
  • The role of physical outlets will not diminish, but will change forever.
  • A multi-channel mix is unavoidable.
  • Your brand needs to be anywhere, anytime on any device.
  • The power is in the cross-integration.
  • Good user experience and design are critical differentiators.
  • Customers are more in control now than ever – don’t waste that opportunity.
  • It’s not just about online and social networks, it’s about digital connections and relationships.

Quick thanks: To Brett King for opening this part of my brain. Buy his book!

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Half-caf decaf with a twist of lemon

by robfindlay on 05. Jul, 2010 in customer experience

Choice – always not enough, or simply too much. Wherever you look there are thousands of books to choose from, dozens of configurations in the PC you buy, so many different products lining the supermarket shelves that you either can’t find anything, or get so particular in your ’settings’ that life becomes about the detail.

I do feel however, that this situation is of course more about companies creating opportunities for themselves rather than customers demanding it. Who in their right mind needs some of the things we can purchase today – the snuggie, wedgie-proof underwear, juice with Fish Oil (… just eat fish!) – they’re all out there. And yet, what is it that makes you really happy? A simple meal with real food, a good book about a human story, seeing something as old and real as the Pyramids. When we’re buying we’re in a retail environment and hence we’re being swindled.

Its not new and yet we fall for it. (Living in Singapore now, I’ve been exposed to the national sport of shopping, so my retail senses are heightened).

This leads me to the idea of bundling. The video above from the film L.A. Story shows even in the faddish 90s how ordering coffee become a degree-qualified act. Being in Starbucks recently I found myself very slowly running through 6 words in a deliberate, clear voice to ensure I understood what I was ordering let alone the overly chirpy staff member could simply shout it again towards the coffee machine crew (no ticketing system to make sure? mental).

I the next day went to another similar chain, where there were some very friendly (and calm) people. I got a smile, a coffee, a bagel and the (most excellent) Financial Times newspaper for about $6.50. A bargain.

Even better, I got the same thing again the next morning, as my loyalty behaviour kicked in.

But then, the day after that, I went to the smaller, more unique shop next door.

A handcrafted design and style, with a some more ‘alternative’ staff and ambience, and I got a simple coffee. For $4.

Which I liked. More than any other here in Singapore.

So much so that the bundle became insignificant. The core product worked and I liked it. It didnt matter what puffery and magic it came with – the coffee was good.

Their core product was good, and if I wanted more, I could have asked for it. But I didn’t need it.

My needs, as they say in the biz, were met. Not necessarily exceeded, but thats fine. It was just a coffee.

And it wasn’t a decaf half-caf with a twist of lemon.

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The 10 roles of the Change Agent

by robfindlay on 06. Jun, 2010 in innovation, strategy

So, you feel like an odd one out. You wonder why no one in the room can see the blinding obvious. What we should all be doing. But its the standard politics, or lack of accountability that seems to be stunting your organisations ability to head in the RIGHT direction (or the right one as you see it!) as opposed to the same old trodden path, which as we all know, will lead to the looming demise of many businesses and industries.

1. The Dreamer
You’ll need to think of quite illiogical possibilities, of seemingly odd pairings of ideas, of ideallic future states for the business that will require drastic transformation, yet seem impossible to ignore or aim for. You’ll need to articulate these visions in ways that non-change agents can understand, and sell the future, and the first step towards it.

2. The Strategist
You’ll need to formulate a way to get the right movement forward to align with the objectives of interested parties – like management, shareholders, etc. You’ll need to create both incremental change that adds to a large amount, or introduce ground breaking change that is too compelling to ignore.

3. The Agitator
You’ll need to be prepared to take a different view to those in the room, to put the mirror of the real world up to the face of the business, and show whats really going on. You’ll need to bring some harsh and simple reality to the table, and fight to get this heard. This may not prove popular. But not many change agents are, and rarely survive long.

4. The Networker
You’ll need a strong network across the business to simply survive, let alone thrive. But you’ll also need to use the network to get some of the less formal or traditional initiatives potentially happen. A seemingly random collection of people from across a business, sometimes called a multi-functional team, can achieve odd results when doing things ‘under the radar’

5. The Connector
You’ll be in a rare position that your new network will make you vital in creating connections across the business. When you hear about project A relates to topic Z, and so does project B, you connect the people together and become a key link in reducing double up in the business.

6. The Influencer
You’ll realise that agitation doesn’t always work, but given its your natural instinct to do so, its hard to play the game. Influencing others to make a positive change of direction will become a skill you’ll need to garner funds, resources, approval, etc.

7. The Designer
You’ll need to appreciate the finer craft of delivery, and of customer and user experience, as this will prove the difference in uptake in your ideas. A new idea packaged in a better way than others can manage means a better chance of success – just ask Apple about their iPod.

8. The Journalist
You’ll need the curiosity of the journalist – about every topic, in every field, in any time – as others will throw all manner of logic to rebutt your ideas. You’ll also find that this wide understanding of the world feeds your creative mind, and creates left-field thinking. And just like a journalist you’ll need excellent communication and writing skills!

9. The Project Manager
You’ll need to be very organised to get ideas flowing through, and people in line to assist you. You’ll need to show the business that you can create structure where they thought structure couldn’t exist.

10. The Deliver-er-er
You’ll need to produce the goods, deliver to market, and create customer response. This can take time, often means short term flame and pain, but in the long term must align to a change strategy.

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The Bank Channel Is Moving On

by robfindlay on 30. Apr, 2010 in blogs, customer experience

I know I’ve been neglecting you recently, and there’s a reason for it. I’ve been a bit distracted, you see.

Some news here at The Bank Channel.

I’ve decided after 3+ years to make a move. And its not just down the road to another Aussie bank.

My current role here at NAB is Customer Experience Manager in Direct Channels. And its been a great job, working with some fantastic people. Especially recently, where some new management has given the department some incredible energy and credibility. I know the future looks bright. Look for big things later this year.

To all my colleagues and friends at NAB, I say thank you for the most formative years of my career to date.

But I could simply not resist the call of an opportunity thats recently come along.

I’ve been approached to lead the Customer Experience Strategy & Innovation at Singaporean bank, OCBC. Brand, Customer Experience, Culture Change, Innovation are all part of my new role.

Its incredibly exciting.

Working with some global leaders in CX who I respect enormously, and for a CEO who is truly committed to creating truly customer centric experiences and service, in an amazing city state in the heart of Asia is for me (and the family of course!) an opportunity to good to refuse.

This will take place within the next 2 months.

The Bank Channel will of course evolve, improve and gain strength, and with the support of my new leaders and peers. I hope you can remain with me during this time. A new look TheBankChannel.com will be live by this time too.

Onward!

PS If you’re ever in Singapore from June onward, please contact me and catchup.

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Own the process, share the outcome

by robfindlay on 30. Apr, 2010 in strategy

A colleague and I were taking the 10000th person through our project process and progress, and we were trying to articulate our stakeholder engagement philosophy, when it occurred to me why it had gone so well to date.

Normally, a project like the large online project we ran usually ends up with the standard ‘design by committee’ outcome, or struggles to avoid it but somehow can’t avoid it. What we’ve managed to do with this project is engage dozens of people, help them understand the change we’re undertaking, and let them leave the briefing feeling like they’re across the process, and even support the decisions we’ve made and give ongoing support.

So we’ve been able to own the process yet share the outcome.

Controlling the way the project is run is different to allowing all to understand and support this control, and even be involved in the decision making process. This has been a unique benefit that you should strive for in your project – it creates an efficient and focussed outcome.

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From Online To Digital

by robfindlay on 15. Apr, 2010 in innovation

Here is the presentation I gave recently to the FINSIA Innovation in Retail Banking conference

From Online To Digital
View more presentations from The Bank Channel.

UPDATE – An article in FINSIAs InFinance magazine has just been published in their June 2010 edition.

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