Would you want to let sign like this flash from your property?
The Oxford Dictionary defines malapropism as the mistaken use of a word in place of a similar-sounding one, often with an amusing effect.
There is a lot of debate around digitization, open banking, and everyone seems to have an opinion.
To prevent top banking executives from sounding like, former Texas Governor Rick Perry who described states as “lavatories of innovation and democracy” instead of “laboratories”, I decided to share a few thoughts on what makes things smart and why banking using a smartphone is definitely NOT smart banking.
Smartening already… hey, wait… me too!
Everything is smart nowadays, TVs, phones, watches, clothes, assistants. Adding SMART to almost anything makes for a good catch phrase, after all you would rather have a SMART assistant, wouldn’t you?
Well, you can smart ”name” everything but you will not get away with it without making a real change in the client proposition. How do you make it smarter? It’s very simple and you’ve heard it before – focus on the client’s needs and on the perceived value of your solution in trying to satisfy that specific need (i.e. healing the pain or opening up unexpected gain) . Given all the changes we experience nowadays and all the available tech, not only banking but also every business should ask and regularly challenge itself with questions such as “What type of business am I actually in?”, “Are there any other means thru which I can solve my client’s needs?”, “Is the need actually still there?”
In reality, most of corporations today hide growing need for fundamental internal change behind various incremental innovations efforts, often with very low or no chance to transform and prepare themselves for what is inevitably coming.
I’ll try to use a very simple parallel, TV did not get smart with the addition of a remote control nor by losing bezel; it became smart TV when it stopped being just TV. It went from pre-defined content display to personalized content enabler. Similarly, everyone seems to accept that mobile phone does not equate a smart phone. The phone became smart when it stopped being just a phone and started enabling various personalized services.
Yet, for some reason bankers tend to think that banking with remote controller is smartbanking. Well, It’s not and if you do not accept this very basic principle, you may be leading your bank to a commodity death end, where you and other banks have their perfect “smartbankings” ready, but customers happen to be servicing themselves and initiating good old bank’s “classics ”such as payments through somebody, who actually solves customer pain or brings the gain. Moreover, payments are not target but rather entry ticket on way of overtaking client relationship.
Hold on to you hats, game is about to get a lot more fun and faster with AR, AI, cognitive tech which is finally getting traction. Determinant of success is not technology itself but change or adjustment of business model in reaction to new variables entering into customer “pain and gain” equation. Getting this right will move us closer to real smartbanking (not exclusively operated by a bank) and clearly diferentiate those who are ready for tomorrow…
michal brezna, direaction.com