Blog article
See all stories »

Object reference not set to an instance of an object.

Comments: (5)

A Finextra member
A Finextra member 06 October, 2014, 13:421 like 1 like

Not sure how to interpret that article title,  which is in opposition to what our data show. Digital banking and omni channel is growing each year in the  US.  Any smaller FI can use market benchmarking data to truly fast follow by identifying only the missing vital technologies that will lead to the desired performance improvement. 

Mark Mixter
Mark Mixter - Open Text - Chicago 06 October, 2014, 16:31Be the first to give this comment the thumbs up 0 likes

David are you saying Digital/Omnichannel will only work for organizations with the size and scale to effectivily implement and innovate?

David Gibbard
David Gibbard - OmniChannel & Digital Banking - Suwanee 06 October, 2014, 17:18Be the first to give this comment the thumbs up 0 likes

What is occurring is a divide between the "haves" and "have nots". The pace of technological change is growing at a rapid pace. A pace that the vast majority of North American financial institutions (banks and credit unions) cannot absorb. They simply do not have the resources or expertise to learn about, consider, plan, purchase, implement and support customer/member facing solutions that their customer/members will expect. The huge marketing budgets of the national and super regional banks will continue to drive customer/member expectations for US banks and credit unions to match the technology solutions being introduced by the national and super regional banks.

Over the past 5 years the national and super regional banks have demonstrated their ability create a technology gap that the vast majority of banks and credit unions will not be able to make-up.

The national and super regional banks are investing heavily in technology solutions and start-up financial technology (Fintech) companies in order to ensure they maintain and widen their lead on customer facing technology solutions. According to Fortune.com, Fintech venture investment is set to hit $8 billion by 2018 as big banks look for ways to navigate an ever-evolving digital landscape.  The Millennials are evidence the gap is widening.   

 

A Finextra member
A Finextra member 06 October, 2014, 22:02Be the first to give this comment the thumbs up 0 likes

David, I agree with the gist of your reply above, but that's not at all what your headline said. Your headline said that omnichannel and digital banking worn't work in America", and then what you said in the cmoments below is that it works for national and super regional banks but not other banks (or credit unions). those are two very different points, and both of them cannot be correct. 

Best to consult data in these matters, rather than to speculate or generalize. What the data say is in direct conflict with your title, and somewhat consistent with your comments to your original article above. If you look at just our digital consumer segment (run on behavioral and attitudinal analytics) it is only the top four banks--and particularly the top two--that have the biggest advantage over the rest of the US retail FIs. there are a few, USAA and Navy included--who can stand up to BAC and Chase--but not many more at this point in digital banking evolution. 

David Gibbard
David Gibbard - OmniChannel & Digital Banking - Suwanee 06 October, 2014, 22:30Be the first to give this comment the thumbs up 0 likes

James, fair comment, but when 99.???? percent of the banks and credit unions in the US will not be able to match or closely match the digital technology and technology based solutions roll-out of the national and super regional banks then their market viability is in serious doubt.

The article did not say consumer adoption would be a problem, but as long as consumers of all but the largest banks continue to expect their bank and credit union can keep digital pace, those institutions are in trouble. They must find a way to change their business model or paradigm or face irrelevance to most retail financial consumers.   

The article is intended to point out an option or new business model that may solve their problem. When the problem impacts over 99% of US FIs it means it does not work for them.