Human Centric Innovation in a Digital Age of Banking

Innovation

We live in a rapidly changing and increasingly digital world. It has become apparent to most big corporations that tailoring their products and services to the changing needs of their customers is crucial to remain relevant and competitive.

At ABN AMRO bank we have embraced the idea of being a personal bank in a digital age. That is why we are continuously creating digital solutions aiming to make banking more accessible and personalised for all our customers. By prioritising customer needs and behaviours, the bank can create solutions that are more effective, efficient, and personalised. At ABN AMRO bank we don’t just innovate, we actively practice human centric innovation.

It sounds cool right? Almost futuristic. But what is human centric innovation really? And why does it matter to us as a bank? Read more about it below.

What is human centric innovation?

A good practical example of human centric innovation is the invention of the QWERTY keyboard. Early typewriters were laid out in alphabetical order. However, when people started typing faster, it increased errors, so it forced typists to slow down.

In the late 1860s, Christopher Latham Sholes started analysing how typists worked. He analysed the frequency letters are used, what errors occur most, and how close those letters were on the typewriter. Through continuous user feedback, testing, and reiteration he eventually came up with the QWERTY layout, as we know it.

Human centric innovation involves putting people at the center of the innovation process and designing solutions that address their needs, behaviours, and preferences. This approach is particularly important in the banking industry because customer experience and trust are critical. Using an human centric innovation approach ensures that new products and services are designed with customer needs and preferences in mind and are more likely to be successful in the market.

Human centric innovation at ABN AMRO

At ABN AMRO, we follow a stage-gated process for innovation. This is a structured approach to managing the innovation process, in which ideas are evaluated and developed through a series of stages. We incorporate a human centric approach to this innovation process through the following steps:

• Explore
  In this stage, we engage with customers to identify their needs, preferences, and behaviours. This can be done by surveys, focus groups, or user research. The goal is to gain a deep understanding of the customers’ pain points and challenges.
• Prove Problem
  In this stage, we analyse the data collected in the discovery stage to identify opportunities for innovation. The goal is to develop a clear problem statement that defines the problem ABN AMRO is trying to solve.
• Prove Solution
  In this stage, we ideate and develop solutions to the problem identified in the define stage. We involve customers in the ideation process to ensure that the solutions developed are relevant to their needs and preferences.
• Prove it Pays
  In this stage, we test the solutions developed in the previous stage with actual paying customers to validate their effectiveness. We collect feedback from customers and use it to refine the solutions.
• Prove it Scales
  In this stage, we launch the solution developed in the previous stage. We continue to collect feedback from customers and iterate on the solution to ensure that it continues to meet their needs and preferences.

The future of human centric innovation in banking

Looking to the future, human centric innovation in banking will play an even more critical role in creating new, disruptive solutions that meet the evolving needs of customers. ABN AMRO recently launched Payday, to accommodate faster and more flexible payment terms for freelancers and gig workers.

There are many examples of ways financial institutions around the world are innovating their customer experience. For instance, using the advances of artificial intelligence and machine learning, banks can use a data driven approach to anticipate their needs and provide tailored financial solutions in real time.

However, innovation in banking is not just about creating new technologies or products, it’s about creating solutions that improve people’s life. As banks continue to innovate and evolve, they must keep the human factor at the centre of their efforts to create lasting impact and sustainable success.

Another relevant use case for human centric innovation is the development of more sustainable banking solutions. With a growing focus on sustainability and environmental responsibility, banks can use human centric design to create products and services that help customers make more environmentally friendly choices.

ABN AMRO has demonstrated a commitment to sustainability and social responsibility. The bank has set ambitious targets for reducing its environmental impact, and has launched several sustainable banking initiatives, such as ABN AMRO Groenbank and Bedrijfspand verduurzamen. ABN AMRO Ventures also recently invested in Doconomy, a company that has built a technology to track the environmental impact of what customers buy, promoting more sustainable choices.

In addition, human centric innovation can be used to address the growing issue of financial inclusion. With millions of people around the world lacking access to basic financial services, banks can use human centric design to create solutions that are accessible and affordable for everyone. ABN AMRO bank’s Inclusive banking department actively researches ways to make banking more inclusive, for instance by tackling financial literacy.

By exploring unconventional ideas and use cases as a bank, we can create disruptive solutions that not only meet the needs of customers today but also anticipate their needs in the future. From tailored financial solutions built on data and machine learning to sustainable banking solutions, the possibilities for human centric innovation in banking are endless.

About the author

Kimberly Ofori is a previous start-up founder with a curious drive to find innovative solutions to real world problems leveraging technology. She now dedicates her time to support the development of new innovative ventures across Europe and within ABN AMRO Bank as an Innovation Consultant. Kimberly is working passionately on solutions that will create a better tomorrow.