Quotes from the Innovation Roundtable

Quotes from the Innovation Roundtable
They said it couldn’t be done, but we held the latest installment in Celent’s series of innovation roundtables in Tokyo recently. Our innovation roundtables put the focus squarely on interactive discussion among the participants. This is a relatively untried model in Japan, where events typically take the form of conventional conferences with presentations. We’re glad we tried it though, because we got a very interesting line-up of firms. Participants included the whole spectrum: banks, capital markets firms, and insurers; Japanese and foreign firms; traditional mega-institutions and alternative new entrants. The discussion was lively; below are some quick notes I took of some of the more interesting comments made, to capture a bit of the flavor of the day. Why Innovate? “Innovation is not the goal, it is a method and a tactic.” “We need to innovate because it has become difficult to differentiate us from our competitors.” “In today’s environment, innovation is necessary if you want to stay profitable.” Paths to Innovation “Incremental innovation is an axymoron. You can’t innovate by increments; innovation requires a big bang change.” “It might be possible to rearrange existing elements to create something new.” “When to innovate? If our clients think a new service is interesting, we try and create it for them and see if it succeeds.” “Innovation needs to be business driven.” “Financial institutions need to have an innovation division; an incubation unit that accumulates ideas from throughout the company.” IT and Innovation “IT is not the impetus for innovation, but because IT inevitably evolves, that creates need for innovation.” “Legacy is a barrier: it is hard to throw things away.” Cultural Challenges “We need to justify ROI on any investment each fiscal year. It is hard to show this on an innovation project.” “If you think about it, financial institutions don’t even have R&D departments.” Quote of the Day “Changing company culture is really about changing oneself. I personally enjoy innovation and change. Innovative culture is about getting a bunch of people together who enjoy change.”

2013 Celent Banking Insight and Innovation Day Roundup

2013 Celent Banking Insight and Innovation Day Roundup
Last Wednesday, Celent hosted its sixth annual Banking Innovation & Insight Day. We had a full house of energetic attendees, and a solid crew of dynamic panelists and presenters. For the first time, Celent combined the Banking and Insurance events with a welcome by Celent CEO, Craig Weber introducing creative disruption and recognizing winners of the “Innovation is…” competition. The competition was inspired by the Earnest Hemmingway six word-long story. To capture the essence of innovation with utmost brevity, here are the six finalists: 1. Human generated evolution 2. Creating tomorrow’s today. 3. Nowhere. Now here. 4. Bringing dreams into reality before others. 5. Transforming lateral thinking into practical reality. 6. Repeat. “Try. Fail. Modify.” Until success. Next, Keynote speaker, Jeanne Ross, Director and Principal Research Scientist, MIT Sloan Center for Information Systems Research (CISR) electrified the audience with wisdom and enthusiasm. Jeanne presented a compelling case for developing a culture of innovation using case studies from Amazon, Apple, Credit Suisse, Foxtel, Guess and USAA. The audience was a blaze with tweets as Jeanne presented CISR research on the topic. Culture of Innovation After a networking break, the audience was treated to a panel discussion, Multichannel Delivery: Raising the Bar, featuring Dan Dickinson (BMO), Tom Poole (Capital One) Kim Summerrow (Bank of America) and Mike Young (Everbank). The panel advanced many themes including: how to sell in self-service channels, the longevity of the branch channel influence, channel self-sufficiency and the need to banish “single channel” initiatives forever. Following lunch we were extremely honoured to present Celent Model Bank awards to 20 financial institutions. Each of the 21 initiatives are presented as case studies in the report: Celent Model Bank 2013: Case Studies of Effective use of Technology in Banking. Celent clients may download the report here. The audience then enjoyed the privilege of hearing from Sergio Fidalgo, CIO, BBVA Compass, Celent’s Model Bank of the Year, as he presented the largest, successful, U.S. core banking transformation project in the past ten years. MB2013 Following Sergio’s presentation, Celent Senior Analyst Zil Bareisis presented a thorough discussion Debunking Mobile Payment Myths: 1. Mobile Payments = NFC 2. One wallet will rule them all 3. Banks don’t have to/can’t do much about mobile payments All presentations from the event are available for Celent clients to download on our web site. We look forward to seeing you at our next event!

Branch of the Future: Getting there from Here

Branch of the Future: Getting there from Here
Multichannel is more than a buzzword, it’s a way of life in retail financial services. With consumers increasingly using a growing array of self-service channels to interact with their financial institutions, many banks are struggling with creating and implementing a vision for their most expensive channel – the branch network. For the majority of FIs, the branch channel is plagued by at least three challenges: 1. Cost control 2. Declining foot traffic 3. Eroding relevance How to address these challenges given today’s capital constraints and multiple other pressing priorities can be vexing. These challenges are going to be discussed in detail on June 16th at the Celent Innovation and Insight Day. I’ll be moderating a panel discussion with the following retail banking executives: • Sandy Dixon | EVP/Group Executive, Operations | Extraco Banks Andrew Lederer | VP, Business Process Manger | Kennebunk Savings Bank • Deanna Savage | SVP, Branch Operations & Administration | UMB Bank I look forward to seeing you all at Celent Innovation & Insight Day in Atlanta. Readers of this blog are eligible for a discount on their registration fees by using the discount code web_celent.

Reporting from the Celent’s Banking event in London

Reporting from the Celent’s Banking event in London
Celent Banking team has kicked off 2011 with a bang. In addition to the flury of new reports, we hosted an industry event in London. Management of multiple channels continues to be high on many of our clients’ agendas, and so we decided to focus on the multi-channel theme and called our event “Branch is Dead; Long Live the Branch.” Bart Narter, Celent’s Senior Vice President for Banking opened the event and introduced two distinguished guest speakers representing two sides of the argument. Batting for the “Branch is Dead” corner was Mr. Steve Townend, CEO and co-founder of MoBank, an independent mobile money management app in the UK. He asserted that “customers increasingly want and need to control their finances in ways that allows them to get on with their lives” and claimed that mobile is becoming an important financial management tool for many consumers. At the other side of the argument was Mr. Anthony Thomson, co-founder and chairman of Metro bank, the first UK high street bank to be launched since Queen Victoria ascended to the throne. Given the Metro bank’s core values of convenience, service, transparency and engagement, branches are very much a cornerstone of the bank’s value proposition. It was a hard act to follow for the two Celent’s Senior Analysts, but Bob Meara and I accepted the challenge. Bob painted the vision of the branch of the future, describing it as a “journey, not a destination”. While bank branch renewal programmes can take different shapes and forms, Bob is yet to find a bank that is happy to say “we are done”. And I began with the assertion that the UK banks can do more with their investment into the online channel and use the channel for more than basic customer self-service. I shared with the audience some of the lessons from the other markets, such as how banks are re-claiming the P2P payments. However, eWise payo, UK-focused Online Banking ePayments solution represents perhaps the biggest opportunity for the UK banks to leverage their investment into online banking and Faster Payments infrastructure. Now is the right time for the UK banks to make a decision whether they should adopt such a solution. Finally, the event concluded with a mobile banking and payments panel, featuring Celent analysts from around the world, including France, Japan, China, Korea and the US, which not only affirmed the rising importance of a mobile device in financial services, but also demonstrated the diversity of development patterns around the world. And that is the value that Celent brings to its clients – a global insight based on deep local expertise in multiple markets. If you attended the event, we hope you enjoyed the presentations and networking opportunities. If not, we missed you and hope to see you at our next event – don’t forget to check our website www.celent.com for the latest schedule.