A really interesting discussion with a group of banking people this week about the impact of mobile and tablet computing on the banking world. I call this change the networked consumer, and it's a phrase that is meant to wrap up the whole discussion of the mobile internet and how it is affecting consumers attitudes to money, banking, relationships and life.
The take-away for me was that most of the people did not believe that mobile was a fundamental change to the banking world, but just an evolution in distribution.
That’s interesting as it is at opposites with my own opinion, but then I’m biased as I think this is real change and it is fundamental.
So here’s the opposite opinions explained in a little more depth and I’m interested to know your opinions too?
This is incremental change
We have seen major technological changes throughout the past decades from mainframe automation of the back office to desktop automation of the front office. Now, it is purely a further evolution of change to see the internet and mobile developments giving consumers the ability to self-serve and communicate 24 by 7.
For banks, this has demanded that we adapt, and we are doing just that. Our core systems are being upgraded, we offer apps and mobile access, we are incorporating Facebook and Twitter amongst our services and we are generating innovations in our other outlets – branch, ATM and call centre – to ensure that this is all delivered consistently.
Therefore, we have not underestimated mobile internet demands for change and, incrementally, we are upgrading to maintain competitiveness in delivery.
This is fundamental change
Banks historical structures are being fundamentally challenged by technology.
It is not just mobile, internet, networks or computing change that is creating this fundamental change, but the ability this change gives to empower the customer. That is why so many industries have collapsed over the past twenty years – books, music, films, entertainment retailing being the most obvious industries – and goes further and deeper than this. For example, anyone, anywhere can now connect with anyone else, anywhere else. The whole planet has become connected. That is the big change and banks are only responding to this change slowly and incrementally because they have been protected from that change by their regulatory structures.
If banks did not need licences, they would see far more change. Even with licences, new models of finance are emerging to subvert or displace the need for banks such as Zopa, Wonga and Bitcoin. In other words, banks will be dead meat if they truly believe this is just incremental change.
What do you think?
We will be debating this in depth at the opening session of Innotribe at SIBOS on Monday 16th September in Dubai so please provide views here, or there on the day, and we will see the truth.
Monday 16 September
09:30 - 10:30
Innotribe - INN
Since Sibos Toronto in 2011, the "Future of Money" has become a standard fixture of the Innotribe programme. With standing room only at Sibos Osaka, this session is a perfect way to open our programme – the first stop on our journey together.
Our industry is being challenged by aggressive new-comers who experiment with creative strategies and dramatically different business models. How can banks react? How can we make the ‘cake’ bigger for everybody? Taking inspiration from other industries, there are several choices: unbundle the current model and focus on excelling in one specific area, transform our institutions into long-tail business model organizations, or partner with the newcomers in the business.
In this session, we will identify how the current model is being disrupted and how this impacts costs and revenues. We will co-create the corporate banking business model of the future, using the Business Model Canvas methodology of Alex Osterwalder (www.businessmodelgeneration.com).
To guide us, we have selected six dimensions of influence: social and mobile, infrastructure (technology), transparency, transaction costs, organizational models and big data.
- Scott Bales, Chief Mobile Officer, Moven
- Udayan Goyal, Partner and Co-Founder, Anthemis Group
- Dave Gray, Author, The Connected Company
- Dan Marovitz, Founder & CEO, Buzzumi
- Patrick Murck, General Counsel, Bitcoin Foundation
- Chris Skinner, Chairman, The Financial Services Club
- Hank Uberoi, CEO, Earthport