Trust is too fragile, and today’s financial services climate is too unpredictable for companies to rest on their laurels. The industry needs to continue to be dynamic and double-down on trust building solutions. Trust is the single most important currency in the business world. Mark Carney, the Governor of the Bank of England, once said “Trust arrives by foot and leaves by Ferrari.”
Just ask Equifax:
Experts weigh in: Regaining consumer trust in a post-Equifax world. “The executives we surveyed offered a range of ideas on how businesses should move away from what may have been a “one-size-fits-all” approach. London-based financial institution Currencycloud’s CTO, Ed Addario, argued that regulation may in the offing, but emphasized firms must also strive for speed and transparency in dealing with breaches. ICBA Bancard president and CEO Tina Giorgio offered some insight into what firms did after news of the Equifax breach hit. In almost all cases, the need for eternal vigilance was stressed.” (CO-OP also developed an extensive FAQ for your members: Addressing member fears about Equifax.)
Insight: Trust is essential for any company transforming from transactional to relationship experiences.
Americans feel positive about Fintechs, but still won’t leave their banks. “The most likely draw of a Fintech over a bank is lower fees, according to the survey results, with 46% of those surveyed agreeing that would influence them to leave a bank. Before banks get too comfortable, it should be noted that only 30% of respondents said “nothing, I am completely satisfied” in response to what could get them to leave a bank.
Furthermore, as Fintechs move to make financial services more open, more transparent, and less expensive, they are definitely presenting themselves as an option for more and more banking customers. 76% of consumers agree that “financial technology helps people gain more power over their finances and helps democratize financial services,” said the survey.”
Insight: Nobody should be comfortable; consumers are not on the move in droves yet. But they are ready to move.
If you’re serious about digital transformation, start with employee experience. “Maybe organizations struggle with digital talent because they aren’t looking at the challenge holistically. They think they need to hire new people to get the digital talent, but can’t because existing talent has seniority and the needed business understanding. Getting the two to play well together is the biggest opportunity and should be the focus. Culture needs to evolve first, training needs to follow closely and employee relationship building must be an on-going effort.”
Insight: Basic truth for any digital transformation effort: Employees first.
Rishad Tobaccowala, Chief Growth Officer for Public and serial reniventer, writes about Transforming yourself and your organization for an age of reinvented marketing:
“Recognize that while you are living in a digitally dominated, silicon based, constantly computing world you are a carbon based, analog created, confused feeling person, as are the people who work for you and you sell to: Blaise Pascal said “we choose with our hearts and we use numbers to justify what we just did”. People follow emotions and stories and not just facts. In an age of machines, let this advanced math major assure you that we are no match for the computing and display and algorithm capabilities of machines. So, stop fetishizing just numbers and digital and technology. Joan Didion said we tell ourselves stories in order to live. Lead with your humanity and combine the math with meaning. The spreadsheets with stories. The data with insight.”
In Digital Transformation, The Art-of-the-Possible and average practice are diverging. “Over time, this has led me to ask what the digital leaders are actually doing that has gotten them much farther out ahead. In short, my ultimate analysis is that they appear to be learning better and faster about digital in key ways — and from a larger variety of sources — than most other organizations. They also then apply these lessons effectively to their business. Digital leaders tend to eagerly gather lessons and evidence broadly and early, especially outside their organizations. Without this, they are limited to what they’re able to learn linearly on their own, through solely their own efforts.”
Insight: If you think the world is changing fast now, buckle up your seatbelt. The speed will increase exponentially and we have to learn/adjust even quicker.