19 December 2014

Elizabeth Lumley

Elizabeth Lumley - Finextra

154Posts 566,856Views 164Comments

Disruption in Retail Banking

Growth in internet and mobile technologies has transformed many industries and economies. The market forces and competitive landscape has completely changed in many sectors. iTunes has fundamentally changed music industry, Amazon has driven most big brick and mortar book sellers out of business, Expedia is one of the worlds' biggest travel company….. the list goes on. Internet and mobile technologies are big disrupters for most industries. What started (and tapered a bit!) with the dot com boom of 2000 has become a lethal threat to most business models today. Powered by mass adoption in mobiles phones, proliferation of smart phones and cheaper band-width, internet and mobile technology have changed many industries. The banking industry in has been dominated by a handful of big global or regional banks for 100s of years. While the credit crisis has shaken this industry, the core market forces for the industry have not changed. Will Innovation in Internet and Mobile technologies disrupt retail banking? Will there be 5 new names in global top 10 retail banks in 2020?
A post relating to this item from Finextra:

The luxury of failure

28 May 2014  |  3076 views  |  0
Andrew Tarver, founder of Capco spin-off Boldrocket discusses how the financial services industry needs to learn how to "put down that spade and stop digging" sometimes.

It's not do or do not do; it's try and try and try...then do

28 May 2014  |  5620 views  |  0

A while ago I attended a conference (I know, shocker) where someone on stage commented that no bank would ever have been allowed to release 'Square', with the amount of bugs the US payments startup experienced at its launch. Square, as you all know, offers the square-shaped merchant dongle that enables mobile transactions.

Now this isn't a discussion on whether or not the Square dongle was launched with bugs. But it is a wider comment on one of the main issues around whether banks are even able to innovate effectively.

The entire 'Silicon Valley'-type start up culture is based on a decades-old mind set where hordes of developers released code and applications onto user groups, forums and yes, even the greater public, and then have the hive fix any emergent bugs. One of the first stories I ever wrote was about the trouble Intel got into by releasing a chip, which hadn't been probably tested, which caused several fund managers to experience 'calculation errors' in their investment portfolios. In 1995 the general public weren't aware of this type of creative operation - however today it is almost conventional wisdom to always avoid release 1.0 of any service or application.

But let's get back to banks and innovation. Banks deal with money, more often than not, your money. Banks haven't done well on the PR front over the past few years - but their cornerstone of secure, regulated current accounts and deposits is their main finger hold on the public's trust. That position of trust, inhibits banks from developing and launching services that might be less than, let's say, secure or reliable.

So what is this industry to do?

We sat down with Capco spin-off Boldrocket founder Andrew Tarver last week. He's betting the future of this industry and by correlation, the future of Capco, on this concept that projects should be allowed to fail. That failure is good.

That there are times when "you should put down the spade and stop digging".

I find this fascinating. In an age where you get guru and expert telling rows on upon rows of the dark suited amongst us 'what the future will be like' (it has something to do with digital and mobile, right?) here is someone who is saying: 'We think the future will be like this (yes, digital, mobile etc...) but we not entirely sure how it will all pan out - so we are going to try. And if we fail, we're going to stop and try again.'

I worked for an editor, eons ago, who used to quote Yoda after all her demands because she thought it made her sound like a baddass. 'You do or do not do, there is no try."

I've never been a black and white world kind of girl. They key to success is not 'do or do not do' it is try, try again, try one more time, try this instead, have a glass of wine, sleep on it, can we try this now?...then do.

(told ya I'd blog more :-) 

TagsInnovationStart ups

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job title Multimedia and Special Projects Editor
location London
member since 2009
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I am the multimedia and special projects editor at Finextra.

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