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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The powerful combination of personalisation and scalability

“He took the iGoogle idea a bit too literally”

Photo – Incase, Flickr

Think about your favorite coffee shop and the reasons you like it – its probably small, local, comfortable and welcoming.

When you’re there, you enjoy not just the product, or the interaction you have with the staff, but perhaps the time to sit and think, reflect, chat. Its an emotional experience because it taps directly into some of the warmer cockles of our hearts, and cosier parts of our subconscious.

It’s your time, how you like it, in a place that might as well be your other living room.

And then Starbucks came along, and you hated them.

You hated them because they tried to template and franchise that whole notion of the cosy coffee corner, only it was the same as every Starbucks. It had cosy chairs, hand drawn menus, pleasant music, and a buzz where people were coming together.

How dare they pretend to be my local coffee shop.

The retail experience, on a very localised and personalised level, is hard to get right. Starbucks has probably done the hardest work at creating a local or community feel, but have created a footprint that perhaps threatens that ‘artfiical intimacy’ a little.

What’s the opposite – a format that is extremely predictable, formulated and templated.

McDonalds & Apple are probably 2 good examples. This works for them, because this is what customers all over the world expect when they open the door. They expect to see the same surfaces, images, products, etc.

This is why the internet will win.

It’s the perfect machine that scales and offer personalisation at the same time, in (virtual) ways that can’t be matched.

A bank can have millions of customers, but everyone could have an individual, powerful and meaningful experience.

How can we get the balance of personalised enough for customers to feel understood and appreciated, but scalable enough for it to be able to grow to large numbers?

What industries prefer personalised over scale? And vice versa? Let me know.

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From Authority & Governance to Relevance & Connection

Photo – Incase, Flickr

These days, power means something different.

We used to live in an age of Power through Authority & Governance. But things are changing before our every eyes. The single, central and hierarchical structures of previous centuries are fast eroding in their control. Dictators are tumbled, governments and corporations are held accountable (to a point that’s possible), people are taking to the streets, and demanding like never before.

Now, we’re entering an age of Power through Relevance & Connection. People’s abilities to access and influence information, insight and each other has been as liberating for some communities as their actual freedom itself. The power of people connecting has creating huge underground and above ground movements that single points of power like a top heavy leadership structure cannot control.

How will your organisation harness this new seat of power?

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Risky Business

Photo – Incase, Flickr

We hear banks are averse to social media, that they prefer in general not to enter this volatile and unpredictable space. Let’s look at some of the reasons why:

  • Brand and reputational risk: understandably, things can go wrong, and when they do, they get blown out of control, damaging the brand and reputation of the company.
  • Financial risk: the costs associated don’t justify the benefits. No business case.
  • Legal risk: if a bank does or says something wrong, or a customer does the same, what are the real ramifications here?
  • Operational risk: the process with dealing with social media has not been proven by any bank or even corporation

Oh, there’s one more risk I forgot –

  • The risk of not getting involved in Social Media. This is where there is the greatest risk of all.
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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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