Banking Transformed with Jim Marous

In a digital world, consumers want experiences that are highly personalized and contextual. From the way they search to the way they shop, view content or do banking, consumers expect organizations to know them, look out for them and reward them. Unfortunately, the majority organizations are only delivering basic personalization and are focused more on product sales than on helping the consumer manage their finances or their daily life. In other words, there is a massive personalization gap.   On today’s podcast, we will discuss the importance and process of delivering hyper-personalized experiences, across all channels, as part of digital transformation. We will also discuss the importance of creating personalized engagement that requires a minimal of effort from the consumer to ‘make it happen’.   I am joined today by Jody Bhagat, president of the Americas for award-winning financial services personalization agency, Personetics. Jody is an industry veteran, having previously been a partner at McKinsey & Company, and also working at U.S. Bank, Wells Fargo, and Providian. Personetics works with some of the largest financial institutions worldwide, using AI, predictive analytics, machine learning and other technologies to engage and serve consumers.

Traditional organizations find rebels to be disruptive troublemakers who make processes and decisions more difficult. Legacy organizations that are embracing digital transformation find these same 'misfits' to be a positive influence on innovation, creativity, growth and cultural change.   We are joined today by Matteo Rizzi, who has authored a great book entitled, 'Talents and Rebels'. In this episode, he discusses interviews and personal observations that make a case for organizations to embrace those people who may appear disruptive to the norm. In fact, he suggests that we should seek out more of this type of talent.

Digital transformations have an exceeding high failure rate despite being one of the most important components of a firm's long-term survival. Digital transformation requires must more than just a flashy mobile app or new technology.   To understand the dynamics of how to succeed with digital transformation, we are joined by Tony Saldanha, previous head of operations and digital transformation at Proctor and Gamble and currently the president of Transformant, a Cincinnati-based consulting firm focused on digital transformation.   As the author of the book, 'Why Digital Transformations Fail', Tony shares his 5-stage framework that any company can follow to successfully navigate its own digital transformation. Tony discusses why the ultimate proof of an organization’s success at digital transformation is its cultural, not technical rewiring.

We have often discussed the correlation between innovation and digital transformation, and the positive impact on consumer satisfaction, investment in advanced technology, the presence of top management support and the positive impact on revenues. But, while technology may enable the disruption required, it is often the application of existing technology in new ways that disrupts an industry. Finally, while disruption is not always fast, it is the lack of reaction to disruption that catches incumbents flat footed.   We are very fortunate to have Charlene Li on the show today. Charlene is the founder and senior fellow at Altimeter, a Prophet company. She is the author of six books, including the New York Times bestseller 'Open Leadership', and co-author of the book 'Goundswell'. Her latest book, 'The Disruption Mindset' is the culmination of years of research and experiences in the field helping leaders and organizations transform.   On this episode, you will learn the secret of successful disruption, the importance of deep-dive research, the qualities of a disruptive leader, how to change existing cultures and where to start.

The debate about what city is the fintech capital of the world continues, as more players enter the market and more money is invested into the very active fintech ecosystem. Is the fintech capital London, New York, the Silicon Valley or elsewhere? Should the title go to the city with the most players, the greatest fintech investment or the largest number of users of challenger bank or bank challenger services?   My perspective on a possible candidate for the fintech capital definitely changed when I visited Shenzhen, China recently. From the advancement of smart city technologies, to the deployment and use of digital technologies for payments, energy management, operational efficiency and even daily tasks like shopping and eating out, I have never experienced so many modern advancements than during my short week in China.   As part two of my review of my tour of Shenzhen, I am joined today by Brett King, author of many best selling books on the future of banking and the host of the number one fintech podcast, Breaking Banks. Brett and the president of Provoke Management, Jay Kemp, joined me for a VIP tour of Huawei Technologies. With a history steeped in manufacturing, Huawei now is the hub of new technologies that impact every Chinese citizen, from the phones they use to the services they use. They also are an example of how the combination of data, advanced analytics, digital technologies and a culture of innovation and R&D can propel a company into the future.

China is quickly becoming home to the largest fintech ecosystem in the world, benefiting from historically low use of traditional banking, high smartphone penetration, a changing demographic and a consumer acceptance of banking without traditional infrastructure. Dominated by giants like Baidu, Ant, PingAn and Tencent, combined with many highly successful start-ups like WeLab, the success in delivering both personalized financial services and an impressive level of financial inclusion is a model for the rest of the world.   This is not a story of disruption of legacy banking as much as a story of filling a previously unmet need for advanced financial services supported by smartphones.   To discuss how fintech firms have benefited from open access to data, and how the Chinese consumer benefits from value added services not available to most in the world, I am joined by my friend, Matt Dooley, founding board member of the Fintech Association of Hong Kong and founder of Connected Thinking Ltd. who guided a tour of Shenzhen for myself and the former global CEO of HeathWallace, Dave Wallace.

Digital Banking Report has just released a study on the current state of digital transformation in the banking industry. This research not only looks at the digital transformation maturity of banking today, but also the components of digital transformation leader organizations.   The research found that there is still more hype than reality when we look at the progress of digital transformation in banking. While the focus in on improving the customer experience, few organizations have leveraged intelligent technologies to deliver on this mission.   To discuss this research report and the implications of the findings, I am joined by Alan Trefler, Founder and CEO of Pega – the sponsor of the Digital Banking Report research. Alan not only provides his perspective on where the industry is from a technology perspective, but also discusses the challenges of embracing new business models, finding the right talent, changing internal cultures and creating customer engagement.

A great deal of recent research finds that simply buying the best or newest technology will not create digital transformation success. Beyond technology, it is imperative to have the right people, processes and organizational dynamics that will allow companies to be more agile, risk tolerant and experimental. In other words, legacy cultures must be disrupted.   Today's podcast features Gerald (Jerry) Kane from Boston College. Jerry is one of the 4 authors of the exceptional book, ‘The Technology Fallacy’. This book draws on 4 years of research between MIT Sloan Management Review and Deloitte that surveyed 16,000 people and included interviews with companies like Walmart, Google, Salesforce and several other top brands. The findings reinforce the proposition that there is a need to rethink leadership and talent in the digital age and that business models need to change.

The ability to compete in the future will require new systems, new processes and a new culture. One option is to build a successor bank that would be a network of only a few branches or a completely branchless offering separate from the legacy organization. The future will require differentiation defined by customer experience and innovative offerings similar to what is being offered by fintech and big tech organizations. To get a perspective on the need to disrupt current banking paradigms, I interviewed Kevin Travis, executive vice president of Novantas. Travis shares the options available and the cost of inaction by current banks and credit unions.

Consumers insist on experiences that are personalized, friction-free and that make their lives easier. It’s no longer enough for organizations to state they are making improved customer experiences a priority. The consumer needs to feel that the companies they buy from know them, look out for them and are willing to reward them.   To get a perspective on how advanced technologies are impacting customer experience strategies, I am fortunate to be joined by Blake Morgan, author of the book, “The Customer of the Future”. Blake is considered one of the leading authorities on the changes occurring in the world of customer experience. She has worked with some of the most prominent global brands and is a contributor to Forbes and the Harvard Business Review. She is also the host of the podcast, The Modern Customer.