21 January 2018
Ward Hagenaar

Ward Hagenaar 2015

Ward Hagenaar - Connective Payments

8Posts 50,004Views 11Comments
Innovation in Financial Services

Innovation in Financial Services

A discussion of trends in innovation management within financial institutions, and the key processes, technology and cultural shifts driving innovation.

The biggest threats to banks are banks themselves

17 June 2011  |  6364 views  |  1

We have been speculating a lot on the role that social media giants like Google, Facebook and technology companies like Apple or Square could play in the financial services arena. They have been positioned as a threat to the banking position with regards to payments and potentially other P2P products like lending.

In fact they are a threat and an opportunity when in comes to customer loyalty and customer centric behaviour. Not by competing them, their scale and customer drive are incomparable, but by cooperating with them. As the Google Wallet and Offers proposition shows, they are very willing to leave the infrastructural payments to the current providers. So with drive, an open mind and hard work a lot can be achieved via cooperation, smart IT architectures and basic investments.

The real threat to the position of banks are banks themselves. I have been talking and meeting with bankers a lot recently and what worries me most is the lack of passion and focus to develop customer centric solutions for either consumers or merchants. They really mean well but are so focussed on the impossibilities, restrictions in IT, governance, the current business model or costreductions that market driven innovation is hard to find.

This should change in order to reposition the bank as highly valued trusted service provider that is willing to invest in customer driven development and cooperation. Recent history shows that others are willing to disrupt in valuechains that underperform in terms of customer value.






Comments: (2)

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune | 20 June, 2011, 11:47

Although I don't see Apple, Google, PayPal and the other tech prima donnas as being either capable or interested in disintermediating banks, the situation with retailers is quite different. By diversifying into financial services, retailers stand to boost their profits and valuations. Only time will tell how successful they will be but, hopefully, the renewed push by Walmart and Tesco into financial services will drive banks to demonstrate greater focus and passion in developing customer- and merchant-centric solutions.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Ward Hagenaar
Ward Hagenaar - Connective Payments - Hilversum | 10 October, 2011, 12:31

Wouter Hasekamp, founder of Qhuba, wrote an illustrating blog on this subject. How to finance a small growing consulting company. As always we are very open on our efforts. http://wouterhasekampqhuba.wordpress.com/2011/08/30/how-to-build-a-business-financing-and-credit/

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Latest posts from Ward

The True Value of Mobile Transactions

05 November 2012  |  5169 views  |  0 comments | recomends Recommends 0 TagsCardsPaymentsGroupInnovation in Financial Services

Instore remote mobile payments reduce cash effectively!

10 January 2012  |  6423 views  |  0 comments | recomends Recommends 0 TagsCardsMobile & onlineGroupInnovation in Financial Services

Be my wallet

09 November 2011  |  6725 views  |  0 comments | recomends Recommends 0 TagsCardsMobile & onlineGroupInnovation in Financial Services

Who will be the payments processor of the future?

09 September 2011  |  8949 views  |  0 comments | recomends Recommends 0 TagsCardsPost-trade & opsGroupInnovation in Financial Services

Ward's profile

job title Business consultant and partner
location Hilversum
member since 2011
Summary profile See full profile »
Payments and cards expert with experience on all perspectives (financial institution, processing, vendor). Big network in the Benelux, available to support startups in the payments and loyalty scene....

Ward's expertise

Member since 2006
8 posts11 comments
What Ward reads
Connective Payments
Ward's blog archive
2015 (1)2012 (2)2011 (5)

Who's commenting on Ward's posts