The Future of Banking
Whenever a group starts out with the ambition of transforming any aspect of the economic and social eco-system, (e.g. banking), they are met with skepticism. This has been true from trans-Atlantic shipping in the days of Columbus, to the first personal computer in the 70’s and the more recent Tata Nano car concept.
The rationale for the doubting reception is not hard to understand - after all, a treasured set of assumptions is under attack. What separates the winners who achieve transformation from the also-rans is the ability to deliver on the promise of the pitch.
At the Center for Future Banking, we believe that the ability to build momentum, collaborate across disciplines and leverage best-in-the-world talent will enable us to drive transformation and influence the blueprint for a 21st century financial services model.
Here’s a peek at the method behind our thinking. We have designed and managed the Center around 4 core levers:
1. Mega-trends
The macro forces that we believe will drive the future of individuals, societies, nation states and economies. And by their very definition will be an integral force in (re)shaping societies and economies (including corporations).
2. Adjacencies
You will rarely see the mention of the word ‘banking’ in our research efforts and activities. Successful social and economic transformations do not respect traditional definitions, but redraw boundaries. Collaboration across industries will become essential. Simplicity will be its core tenet. Adjacencies will be where value and growth are found or created.
3. The Customer IS THE BOSS
This is our ‘shouting-from-the-rooftops’ moment. We will provide for the ‘economic & social’ needs of our customers in ways they are able to use as an integral part of their life routines. The less complexity in the social and economic system, the better the performance. Customers will tell us what they want (within the realm of the possible and real), and we will work our butts off to give it to them.
4. Long-term AND Short-term Impact
Short-term wins (or ‘milestone wins’) are necessary building blocks to ensure that long-term visions are achieved. The Center for Future Banking efforts seek to:
a. Educate and influence for future opportunities and challenges - whether it is the emergence of alternative payments value chains, the creation of information eco-systems, or new constructs of privacy, security and identity, the Center will be the ‘brain-trust’ that informs and guides our perspectives on the future.
b. Find creative ways to address existing business problems - Our country and the world is facing severe liquidity challenges and a wide variety of business problems (ranging from the simplification of supply chains, rise of rapid information networks or new frameworks for risk management). And we can benefit from a perspective that’s not wedded to experiential biases. I don’t necessarily think that there is anything wrong with experience, but I believe that turning a problem on its head and questioning the status quo can cause good things to happen.
c. Shape long-term strategy - with what we’re learning, we have already been able to shape and influence our strategy planning process. We believe that this will be a key ‘off-ramp’ to bring things back into our fold and help us ‘deliver on the pitch’ by aligning resources and organization focus.
I am excited to share with you my thoughts and ‘future-present’ observations. Most of all, I want to hear from you. See what you are seeing that is different, real and intelligent.
The future of banking…
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February 11th, 2009 at 3:16 am
If someone attached to a bank, as in your case tries to see and design the future of banking it will be from bank’s perspective.
If someone attched to a telecom or website they will like to see and design the future of banking from their own perspective.
But the regulatory authorities and the governments fearing the loss of control will always try to control the future of banking to suit their presence; in some cases (control anti money laundering, nations economy, where the actually money is going, whether actual currency is getting sidelined) correctly and in some cases ( to have their importance, to control the geo-political environments etc) incorrectly.
So I really have question whether genuine efforts/tries in this direction will get encouraged and nurtured or they will be killed at the smell of a danger by surrounding industries or the regulators.
February 11th, 2009 at 8:31 am
Convergence is the key, the key to simplicity, the key to clarity, the key to transparency, the key to building long term trust. In the turbulent times you want to keep it close, keep it simple, both for a bank and customer. A platform that can feed all the delicacies effortlessly into a single plate would be pleasure for a customer than a buffet party. The same is the case for the bank, the manager who can see what the customer has taken by looking at a single plate than tracking the customer pulling out multiple plates and sitting in multiple locations in a buffet party.
February 11th, 2009 at 11:45 am
The vision is bold — the execution will demand risks that I hope are palatable to leadership that has been through — and has yet to emerge from — a tremendous battle. In adversity, opportunity is presented. What better time to rethink banking altogether; to listen to customers; to lead with paradigm-busting concepts? As you say, we have to look no further than the computers we are fully dependent on for an example of the unthinkable becoming so ingrained in our lives and our work that we can’t remember how we functioned before. Change is possible; necessary and oxygen-producing. This project has the potential to reinvent banking at a time when banking needs to be reinvented. The tools are in place, the energy is there. A disillusioned public eagerly awaits the outcomes!
February 19th, 2009 at 8:23 am
If someone attched to a telecom or website they will like to see and design the future of banking from their own perspective.The vision is bold — the execution will demand risks that I hope are palatable to leadership that has been through — and has yet to emerge from — a tremendous battle. In adversity, opportunity is presented. What better time to rethink banking altogether; to listen to customers; to lead with paradigm-busting concepts? As you say, we have to look no further than the computers we are fully dependent on for an example of the unthinkable becoming so ingrained in our lives and our work that we can’t remember how we functioned before. Change is possible; necessary and oxygen-producing.
February 19th, 2009 at 9:24 am
Thanks for your informative article, I am much interested to read about the technical side of the future banks.
September 21st, 2009 at 6:26 am
The study forecasts trends in banking for a unique insight into the competitive forces that bankers will face in the next 10 years. It highlights the emerging business and technology innovations and societal trends that will propel and shape the industry’s transformation.
September 22nd, 2009 at 5:49 am
“Banking, especially cartelized banking, has become a super sized menace as we all know.”
Whatever evil intent the bank sters may have had seems to have become a moot point. The system has spiraled out of their control; out of anyone’s control.
I imagine the bankster’s are now in the same boat as their previous prey and pondering the exact same questions. What’s the future system and how do I act to survive/thrive in it? Given their past errors I wouldn’t hold any more faith in their forecasting than I do in mine.
Sustainable industry investing looks good so long as people behave lawfully. Little can be built without that foundation.