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There’s a great email leaked to the world just 13 days ago on Reddit.
The email is from a Wells Fargo employee to CEO John Stumpf, and reads as follows:
With the increasing focus on income inequality in the United States. Wells Fargo has an opportunity to be at the forefront of helping to reduce this by setting the bar, leading by example, and showing the other large corporations that it is very possible to maintain a profitable company that not only looks out for its consumers and shareholders, but its employees as well.
For some time, I’ve banged on about banks must redesign for a digital core. It’s no longer a world that can live in a batch overnight update, when real-time everything is here.
This has been shown again and again by outages, and all of the incumbent banks are struggling to move from old world to new. In particular, this world is illustrated by the channel debate. As I keep saying, the use of the word channel is a last century hangover, that describes ‘adding to the branch-based core’.
Channel is from the old world, where we built a bank for the physical distribution of paper in a localised network. Now, we are transforming to the digital distribution of data in a globalised world, we have to redesign that core. Channels are replaced by access points, and the totality underlying these access points is a single, consistent, real-time digital core.
That is the huge challenge for banks: how to move from old core to new core, and how to move from a physical infrastructure to one that is digitalised.
Talking of how fast things change, here are a few Friday facts to make you smile (or feel ill).
The UK Office of Communications (Ofcom) run regular surveys on our digital lifestyles.
This year the impact of smartphone and tablet computing hits the radar and shows how things have changed fast.
For example, this year’s survey finds that that the average UK adult now spends more time using media or communications (8 hours 41 minutes) than they do sleeping (8 hours 21 minutes - the UK average).
I was watching this great advert documentary about Amazon on the BBC this week.
It’s a rocking organisation that most of us mere mortals watch with wonder.
From packing and selling books in a garage over the internet, it’s become a global behemoth (although Alibaba is bigger in China). Amazon generated almost $75 billion in revenues in 2013, up 22% on the prior year. Just here in good old blighty, every person in Britain spends over £70 a year on Amazon. And with Amazon Prime, Instant Video, Kindle Fire, Amazon Web Services, Cloud Player, Mayday and more, the innovations and growth seem to just keep on going.
Another presentation that surprised me in Oslo came from Tor Jacobsen, CEO of TSM Nordic.
It surprised me as I had no idea about TSM, a mobile wallet provider owned by Telenor and DNB – Norway’s biggest mobile network operator (MNO) and biggest bank – and will launch in the Norwegian market later this year under the brand name ValYou.
This video provides a brief overview of how it’s being promoted:
I gave a presentation the other day and, as usual, concluded
that banks should position themselves as data vaults. One person then asked: what data should a bank make secure? which is a good question to
ask, as it led to a healthy debate and improvement of clarity of view.
Today, we produce exabytes of data every hour. How much data? Well, it’s hard to quantify as the data
explosion of the last decade is so immense, but this slide gives you a good
I got a copy of a fascinating survey by ING yesterday on
mobile social banking. The survey asked 12,000 people in 12 countries in Europe about banking in the digital age, and here’s their summary of the main conclusions:
1. More than a third – or 37% – of consumers already use mobile banking. The Netherlands
is the most developed mobile banking spot, based upon the measure that takes
internet penetration into account. Turkey is the mobile banking hotspot, with
the largest share of internet users who use mobile banking.
I guess it was the mention of Apple (whose glossy rosy tint
has reduced of late).
Or maybe it is that core message about designing for humans
rather than money.
In fact, I did toy with the idea of Banks designed for humans, not geeks as a title, as the
techno crowd fall into the same fervent misnomer as the branch crowd.
Equally, most get this wrong because they built their
operations for one point of emphasis – branch, call centre, internet – and now
are struggling because no longer do we deal with channels,
we deal with a human at their point of need or want or desire or thought.
This is what the data geeks are really drilling down for: to
get to the customer 24*7 as they have financial needs, wants, desires and
thoughts, and that is why today's title is Banks designed for humans by geeks.
perennial discussion of whether we need branches or not comes up again this
week. It’s a regular debate on the blog
and in the Financial Services Club, with various entries that are relevant to
contribute towards the debate: