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5 things banks must do in 2011

Here’s my take on the 5 things banks must do or master this year.

  • When it comes to social media just make a call and try – it wont kill you unless you let it
  • Mobile and internet banking are the absolute no doubt future of real cost effective banking – make that your number 1 priority
  • Sort out your internal technology environment – its costing you millions a year in lost productivity
  • Hire people on values not skills – this is a more important commodity in future
  • Always always involve the customer in anything that ends up frontline, and even back office – at worst you create something that customers want

If you want, number 6 could be ‘Don’t run the bank badly or else you’ll default or close down’

Pretty simple huh?

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Smartphone numbers undeniable

A quick one for you – Whilst we all know the impact of smartphones in the market place, these stats help confirm some of the shifts – note for example slide 16 – voice traffic remained stable, data traffic took off. Credit below to @ChetanSharma

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Meet Martin Cooper

Meet Mr Martin Cooper, the man pictured in the centre. Very possibly he is as important as Tim Berners-Lee, Bill Gates and Steve Jobs, yet many have never heard of him or mention his name.

After serving in the navy during WWII, Cooper went on to study electrical engineering, joining Motorola in 1954. After many years of stellar work, he then headed the car phone division in the 1970s, then going on to develop the device that made the world’s first cellular phone call in the world.

The story, via Wikipedia, goes like this:

“In 1973, when Motorola installed a base station to handle the first public demonstration of a phone call over the cellular network, the company was trying to persuade the Federal Communications Commission to allocate frequency space to private companies for use in the emerging technology of cellular communications. After some initial testing in Washington for the F.C.C., Cooper and Motorola took the cellular phone technology to New York to demonstrate it to reporters and the public. On April 3, 1973, standing on Sixth Avenue in New York City near the New York Hilton hotel, Cooper made a phone call from a prototype Dyna-Tac handheld cellular phone before going to a press conference upstairs in the hotel. The phone connected Cooper with the base station on the roof of the Burlington House (now the Alliance Capital Building) across the street from the hotel and into the AT&T land-line telephone system.

As reporters and passers-by watched, he dialed the number and held the phone to his ear.

That first call, placed to Dr. Joel S. Engel, head of research at Bell Labs, began a fundamental technology and communications market shift toward making phone calls to a person instead of to a place. This first phone weighed about 2.5 lb (1.1 kg). It was the product of Cooper’s vision for personal wireless handheld telephone communications, distinct from mobile car phones. Cooper has stated in jest that watching Captain Kirk using his communicator on the television show Star Trek inspired him to develop the handheld mobile phone.

After demonstrating the prototype cell phone to reporters, Cooper allowed some of the reporters to make phone calls to anyone of their choosing to prove that the cell phone could function as a versatile part of the telephone network.

Cooper is considered the inventor of the first handheld cellular phone and the first person to make a phone call in public on a handheld cell phone. Cooper and the engineers who worked for him, and Mitchell are named on the patent “Radio telephone system” filed on October 17, 1973.”

In short, he invented the mobile phone. To think of the wonder of this moment compared to today’s ubiquitous phone coverage and adoption is a difficult comparison to make. At the same time, its nearly 40 years ago that the mobile phone was first born.

And 2011 looks like the year the phone will take another massive leap forward after a decade of advancing networks, devices, software, peripherals, ecosystems, customer experiences and implications around how we deal with money.

NFC payments will be instrumental in not just paying for something, but being paid for something; in not just communicating with someone, but truly connecting; in not just consuming content, but creating it.

This of course has happened before.

The telegraph connected people and democratised access to information. It truly was a disinter mediating technology.

The radio and television came along to give us one delivery of video content, then the set top box came to give us control on what we were offered (but not what we really wanted to watch, or make ourselves).

The internet came along (through our Netscape browsers), we came, we saw, we created content, and the world was never the same again.

And now the mobile, the ultimate ‘mashup’ of the technologies listed above is here. It delivers small packets of information like a telegraph, bundles of content in various forms like radio and tv on a set top box, and mountains of information and data as the internet does today.

The mobile is almost the ultimate web 2.0 tool – it’s the second coming of the internet and all that it offers. It is personalised, rich, seamless, integrated, relatively cheap, and widespread.

Make no mistake, we’re reaching the end of probably the second generation, since Martin Cooper made that famous call to his counterpart Dr Engel, is over.

The next generation of mobile telephony, content consumption and dynamic commerce is about to boom.

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Does size really matter?

As you can imagine, I’ve been at it for days. I’ve been researching, comparing and fact checking. I’ve been verifying with sources, consulting experts and listening to futurists.

Just joking.

Again, your instincts are right. The Bank Channel is not a source of journalistic accuracy. More a series of random thoughts plotted on professional looking diagrams. Like this one:

 
Here it is. My Screen size vs Capability Matrix. I made a recent trip up to Sin City to see a few of the devices you see here. And I thought of this basic way to plot the myriad of devices that are coming along. 

This is by no means the only way, nor is every device on here, nor are they particularly accurate or to scale. This is of course not the point. Creating some sort of a landscape against which we can comprehend the world of devices now available and soon to be available is important, as it can give you some direction from which to understand their use and prioritise your attention to them.

I have here a couple of axes:

On the left, there is capability / innovation. This axis simply talks about the increasing capability in devices that previously were relatively simple, or play a cheaper, less notable role.

On the bottom axis, there is screen size. Despite the ability to do anytihng, I see screen size as being a critical factor in limiting certain devices in their capability compared to their bigger cousins. 

But this chart is relative, and so the iphone is an incredibly capable device for its size compared to a digital photo frame, rather than to a full PC unit.

Another axis, perhaps on a third dimension, would be DOS>click>touch>multi-touch. But thats a bit too controversial at the moment.

The green highlight shows for me where the leaders are (and in the case of TV always have been). This is where the boundary is constantly being pushed, and the capability grows dramatically.

Its about the appropriate capability for the appropriate device.

All you have to do, is decide which goes with which.

Just a thought. Comments?

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What lies beyond IB?

Perhaps its time to join forces in true 21st century social media style, and come up with an industry wide brief for research so we can all learn more about customers and what they want. In the end, if we did this individually, it would only come down to who has the budget to do it rather than any competitive edge – we’ll all do it eventually.

So, first thing I want your contribution to, and we’ll share the results here on The Bank Channel – we’ll worry about funding later! – is below:

  • What do customers want in internet banking beyond simple data presentation, funds transfers, bill payments, etc. For example:
  • We’ve all seen financial management tools like Mint.com, Yodlee – is this part of the future?
  • Do customers want only single or full provider account aggregation?
  • What part does mobile play in an integrated appraoch? Its not simply IB for small screen…
  • What do customers want in terms of contacting the bank – email? video? voice?
  • What does secure mean in internet banking? What would be the ideal security framework?

Please add your questions via comments – lets build a brief, then get the experts onto it.

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CBA makes a big move in mobile

As I’ve posted this week as part of my Innovation roundup, and subsequent press has also highlighted, CommBank have made a major effort in mobile banking over recent times, with the launch of their latest iteration of Netbank for mobile.

Initial reactions are that this is an impressive, comprehensive offering, particularly in the popular iPhone format.
St George has also announced it will be enhancing its iPhone offering – BPAY, account details and transfers, interest rate info, branch locator, etc.
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