THINK Week in Review – The ‘Trust’ Edition

If you ask anyone to name the most important elements of any long-term, satisfying relationship, trust is usually near the top of any list. This is certainly true for personal relationships, but it is also true for business relationships. The ability to quickly establish and build trust is becoming even more important in today’s business environment, where partnerships and strategic alliances are common practice. Companies and organizations are strategically focusing more and more on their core competencies and high-value activities. That's why it's important to closely follow the state of trust in the world:

The 2018 Edelman Trust Barometer is out. “Trust in the US suffered its largest drop in the survey’s 18-year history. Trust among the general population fell nine points, while trust among the informed public plunged 23 points to make the US the lowest of the 28 countries surveyed, below Russia and South Africa. This collapse of trust is driven by a staggering lack of faith in government, which fell 14 points to 33% among the general population, and 30 points to 33% among the informed public.” More detailed data about FIs to follow.

EY: How banks can transform from digital laggards to digital leaders. "Digital maturity is a moving target. The most successful banks understand where emerging technologies support strategic objectives and don’t get caught up in the hype about new, unproven technology. The marks of a true digital leader are organizational flexibility and agility.

Banks need to demonstrate to supervisors (and other stakeholders) that they understand the risks associated with new technologies and pursue innovation in a way that enhances – or at least maintains – operational and financial resiliency."

Generation Z: The future of banking. “So it may seem difficult to believe since Gen Z can’t have amassed much in the way of “wealth”, but they have indeed already started saving. Many of them already have an account at a bank or credit union, either in their own name or as a joint account with their parents. They also tend to use only one primary financial institution (PFI), and roughly half have chosen one of the six largest banks as their PFI.”

How will AI change work? Here are 5 schools of thought. “The debate over technology and jobs will rage on. Business leaders must follow this debate — and participate in it, too. And much more research is needed to fully understand the implications of intelligent technologies on work. In the meantime, companies that actively seize control of what can be done to prepare will position themselves to thrive in this exciting new era.”

Back to trust: Interesting Discussion at the World Economic Forum in Davos with Martin Sorrell, Marc Benioff, Rachel Botsman and the new CEO of Uber: In Technology we trust? “What is the most important to you. Is it trust or is it growth? Because if anything trumps trust, then you are in trouble," Benioff said.

Co-Parenting with Alexa. “Today, we’re no longer trusting machines just to do something, but to decide what to do and when to do it. The next generation will grow up in an age where it’s normal to be surrounded by autonomous agents, with or without cute names. The Alexas of the world will make a raft of decisions for my kids and others like them as they proceed through life — everything from whether to have mac and cheese or a green bowl for dinner to the perfect gift for a friend’s birthday to what to do to improve their mood or energy and even advice on whom they should date. In time, the question for them won’t be, “Should we trust robots?” but “Do we trust them too much?”