December 7, 2018 | Written by: Kathy Tomes
Categorized: AI | Banking | Cloud | FinTech
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At Money 20/20 in Las Vegas last month, IBM’s first Chief Digital Officer Bob Lord sat down with McKinsey’s Dan Stephens for a fireside chat on emerging technologies that can enable differentiated, magical experiences in the financial services industry.
When Stephens asked Lord where he felt financial institutions should start to make momentum with change, Lord responded that call centers and robotics processing provide good ROI and KYC and data mining improve marketing and cross-selling opportunities, but companies need to move quickly to modernize their infrastructure to gain competitive advantage.
While Stephens and Lord discussed a range of topics, three common themes or takeaways were pervasive throughout the discussion.
Three key takeaways
1. Customers are the catalyst and elixir for change and innovation
- Customer expectations will force financial services institutions to change the way they do business or these companies will get left behind.
- Constant customer feedback, net promoter scores and verbatims provide raw feedback for innovation and transform siloed departments like marketing, sales, and offering management to function as a holistic team.
- Companies should start fresh by defining the customer experience they want and then infrastructures and APIs should plug together to enable it.
- Design and innovation thinking should become foundational when choosing and testing partners.
2. The right talent will transform your business
- CEO and CMO leadership must believe in a new way to service the customer and have a conviction that the company must move forward.
- Data scientists pretty much rock. They provide the philosophical thinking that outlines the art of the possible and how the world fits together.
- A new generation of data scientists starts with the customer need and then builds the solution, blending business and tech.
3. Data are your crown jewels and hybrid cloud can protect them
- Financial institutions own 80% of data, and customers trust them with this data. These companies shouldn’t just give away the keys to their kingdoms.
- As the tech world becomes more open and integrated, risk becomes greater and must be managed even more.
- But we need environments to gather intelligence, innovate, and integrate some of our core banking services with others.
- Hybrid cloud allows companies to take the best of the public cloud world and bring it into a private world for testing, mining, and more, and then back out to the public again.
–>Learn about IBM banking and financial markets solutions.
Watch the full exchange to hear Stephens and Lord discuss questions such as:
- What are the best stories where emerging tech is creating an impact?
- Why are financial services companies not innovating fast enough?
- Where should companies start if they want to gain momentum?
- Which cloud model is best suited for the financial services environment and why?
- What differentiates those institutions who have started to innovate faster than others?