Members share their views
This month we’re discussing technology and innovation. Can it deliver tangible benefits for customers, or are many technology developments simply vanity projects? How can the financial services industry harness the technology opportunity? To add your view, visit the Knowledge Centre and leave your comment at the bottom of the page.
Automation has its place, but people create magical moments Use technology to deliver a fast and consistent process where a human adds nothing to the equation, thus leaving colleagues to focus on the tasks where human involvement are required and/or add value.
No technology can be authentically empathetic (actually or morally). I used to say that ‘people where the opportunity to delight consumers and create magical moments’. That is still true, BUT if all people are doing is undertaking a standardised process which can be fulfilled by technology, then ‘in that case people become an opportunity for service breakdown/failure’.
Automate where possible/appropriate, and have skilled and intelligent people the pick up the situations that don’t fit the standard process. Alun Williams, NS&I
A big challenge for providers The opportunity for customers, whilst perhaps still undefined in precise terms, in general terms is massive. To simplify, de-mystify, ease access and personalise. Whilst there may be opportunities for providers too, they face more fundamental challenges. Taking insurance as an example; the potential use of big data, algorithms for marketing and individualised risk, combined with platforms linked straight to risk capital, raises questions of purpose for existing insurance companies. For providers, harnessing some of the benefits of tech may be more a dream; with the immediate reality fundamentally more defensive. Guy Vanner, AKG Financial Analytics
The power of ideas and insights In the Retail Banking Study conducted by MESH Experience, we’ve seen that the most important touchpoint for driving brand consideration amongst banking customers is the online banking facility and app. Technological innovation designed to enhance the customer experience by providing: control, convenience, transparency, immediacy, ease of use and frictionless process really drives competitive advantage.
Technology also has crucial role to play in personalising the customer experience. An organisation that recognises a customer, accesses the relevant customer data within the context of the interaction and delivers a differentiated and excellent customer experience as a result, does and will continue to win.
The opportunity lies in finding the sweet spot, where technology, reduces ‘cost to serve’ and at the same time enhances the customer experience. Bharat Parmar, MESH Experience
Think about the fundamental need Don’t think of innovation in terms of technology or digital. Real growth will come from thinking broadly and re-framing the definition of the market you operate in beyond what is immediately obvious. Rather than think of your business as providing loans or mortgages, consider you’re in the business of helping people secure their futures or manage their lives. This changes your approach to where and how you can innovate. Think about the problems and the fundamental needs you could solve with innovation. Monzo succeeded because it addressed fundamental needs for convenience, transparency and simplicity with a solution that just happens to be digital. Phil Sutcliffe, Kantar
It needs to add demonstrable value Technology can revolutionise the way customers engage and understand their investments. This provides greater peace of mind and enables customers to look forward with confidence.
It also means they are more alert to the need for
financial advice, which is not only good for their long-term financial health, its good for their financial services provider too.
But delivering technology that works, is intuitive and enjoyable to use is a huge challenge which is why so many well meaning technology projects don’t deliver the benefits people expect. Rather than trying to change the world, financial services firms need to understand where technology can add real and demonstrable value to their clients and develop their systems, process and interface with these priorities in mind. Christopher Dean, Sanlam UK
Banking wherever you go The greatest benefit is being able to bank daily 24-7 from your phone, your bank goes wherever you go. These apps have some great features such as the splitting of bills amongst friends and keeping an instant track on your spending.
It does however mean you have created a tin of baked beans which can be replicated by other banking apps. Banking can theoretically be carried out anywhere in he world. Simon Hinks, Parallel Marketing Associates
The desired function of tech can get murky What brutal glamour it all is. It’s so easy to make amazing assumptions, because the victories seem so effortlessly simple, convenient and popular. By the side of the road travelled is a veritable collection of complex broken toys, splintered codes and forgotten trails of corporate projects aborted. In asset management, the desired function of tech and innovation, or rather it’s P&L. can get murky; is it for back, middle or front office? Asset gathering nirvana is to cross the Rubicon into life savings market at hyper low cost? Arguably, the language of “innovation” demands more modesty; it’s so promissory, often vague. Boring blunter words like tool or device might help reduce its hype. Piers Curry, Warhorse Partners Enables better access for customers Being able to deliver the right service and product to the the end consumer specific to their needs. Technology enables everyone to have access to financial services. Sheridan Omar, Pebbles Financial Services