AI, UX, Innovation and Uncertainty in Banking

Banking services have been commoditised since moving from one-to-one to one-to-all relationship infused by digital revolution but it can’t stay that way anymore. Banks face extreme regulatory pressures and thinning margins are making it difficult to stand out from the crowd. But what’s more worrying is that banks also don’t seem to be in any hurry to offer additional service to the everyday customers. You can open a bank account, get a debit card, possibly an overdraft and a credit card too, if you were a ‘good’ financial citizen. The difference will be very small (if any) whether you go to HSBC, Barclays or Lloyds. Everyday banking is starting to feel like using a gas station — you need to use it but you really don’t care which one you’re going to use — it is a commodity.

You can read my full article here — Boring, beraucratic, commoditised: why banks need to shift towards experience

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How AI Will Become the Most Defining Technology for the Banking Industry
 By Elena Mesropyan

Artificial intelligence is here to stay, and 2017 will be about the adoption of ML/AI by the FinTech community and beyond. Experts agree that FinTech companies will harness this technology to make better decisions and offer improved solutions — they will make use of predictive analytics to break down big data and analyse large volumes of consumer information. AI will be the most defining technology for banking industry. The two-three most promising areas where digital advances could revolutionise the customer experience are artificial intelligence, chatbots and personalisation. Financial institutions have found a variety of use cases that bring undebatable benefits for organisations and customers.

Unrealistic Expectations About Innovation — There’s No Silver Bullet
 By JP Nichols

Managers have this bad habit of looking for a silver bullet — that magical holy grail that will make all of their problems go away quickly, and preferably painlessly. Those expensive consultants. That fancy new CRM system. This flashy acquisition. That confusing and demoralising internal reorganisation. Many have this same unrealistic expectation about innovation. Your competitors that are sticking to their programme are starting to create their own competitive advantages. Partly through the accumulation of a lot of small wins, and partly by getting better at successive experiments because they’re learning more quickly what works and what doesn’t. Tighter iteration loops.

Embrace Uncertainty To Give Your FinTech Start-up The Edge
 By Bernard Lunn

If there is one thing I’ve learned during my time working for a growth company, it’s that you have to get comfortable with uncertainty. In start-up and growth-stage land, uncertainty is a place you should actively want to inhabit. And while there is some truth to the ripple effect of the downside of uncertainty in particular domains, the negative press the word has received has possibly blinded many in business to its hidden, positive traits. Especially when it comes to creatively outwitting your competition.

Building a Better Experience in Banking
 By Brian Solis

Design and tech can only go so far as the products, services, processes, systems, operations, et al. are designed to support. This is why customer experience, design, innovation and leadership must work in lock-step to fuse the connection between usefulness, user experience, value and enchantment. Customer-centricity or obsession or whatever you want to call it, is just one step. Change gains momentum with a new mindset that sees customers, markets and opportunities through a lens of possibility and invention not legacy perspectives. As a regulated risk-averse industry, financial institutions can find every reason to make safe bets. But at best, that leads to what I refer to as iteration, doing the same things better. That might work for your traditional customers, but Generation-C demands innovation, products and services that unlock new value. Disruption either happens to you or because of you, and that’s measured by how many innovative and iterative experiences make the old ones obsolete.

Originally published at FinTech Summary.