Keep Calm and Innovate

Keep Calm and Innovate

Chris Skinner

Chairman at The Financial Services Club

Views 613

Keep Calm and Innovate

06.06.2016 10:15 am

Friday’s blog was all about bank innovation labs and structures. A serious and committed undertaking this time around, with many experimentations and proofs of concept taking place, especially around blockchain. Great.

The thing is that as I walk into these hallowed places of bank sponsored creation, it feels like a very formal version of a FinTech start-up. The Innovation Team are allowed to dress down every day, and wear jeans and sneakers. The Innovation Team are allowed to tweet and facebook whilst their colleagues are all firewalled out. The Innovation Team get to hang with the hipsters to soak up their vibes and then bring those creative juices into the bank and share.

I’m not criticising this – it’s pretty cool to be honest – but I do get a feeling a little like the Labs in MI5 in the Bond film. Bond deals with serious stuff like killing people but whenever he goes and sees Q, he finds this quirky space full of mad professors doing fun things that help you kill more effectively.

This is the challenge for any bank as articulated well by our friend Kosta Peric who wrote the Castle and the Sandbox whilst running Innotribe at SWIFT. Banks love the idea of innovation but struggle with the link between the innovations and the operations. To get over the Castle wall is hard, and this is where I see a shift that has to take place and that I’ve blogged about many times.

The Innovation Wall is the block between the business and the future. The Innovation Wall is the bank’s antibodies desperately trying to obliterate the innovation virus. The innovation virus creates risk and banks do not want risk. Hence why they follow rather than lead.

There’s nothing wrong with following except that the open sourcing of finance demands more change than a project. Banks that are delegating their FinTech innovation to the Digital Team are going to fail. This is because the Innovation Team with their sneakers and beards are going to get pissed off fast. If all you ever do is come up with great ideas that never get implemented, it becomes disappointing. If all you ever do is show your boss the next generation bank to receive an Oh yes, very good, keep calm and innovated it becomes disillusioning. If all you ever do is generate discussion, it becomes desperate.

Innovation and transformation are at the heart of banking today. Banks have to reimagine themselves from proprietary controllers of the end-to-end structure of manufacturing, processing and delivery to ones that are open sourced and able to integrate anywhere with anyone at anytime. The Open Sourced Bank offers all processing and product through APIs, apps and analytics and can adapt and be agile fast through cloud and blockchain. The Open Sourced Bank is the ValueWeb integrator, taking all pieces of product and processing and integrating and aggregating to give the ultimate user experience.

These banks need leadership to adapt from offices and branches to software and servers. They need leadership to rebuild the bank from oppressing paper to processing data. This is not a project that can be delegated to a function, but a transformation that needs to be led from the top. That is why the Innovation Wall will stop many banks from achieving their digital dreams, because the leaders need to jump over the wall first to prove that there are no barriers to change. Most leaders are quite comfortable sitting behind the wall. Hence, they like the fact that they have their Lab with Q, sitting in the basement experimenting but lo betide the experimentation team messing with the core business operations. Let’s just keep this behind the Wall OK?

Source

Latest blogs

Alex Malyshev SDK.finance

The Biggest Danger to Branchless Banking

With a third of the global population on lockdown and scores of bank branches closed, many are convinced that branch banking is dead, and the future is branchless. Is this really true? Branchless alternatives like Revolut, N26, Monzo, and NuBank Read more »

Dima Feldman and Aviv Castro Altair Semiconductor, a Sony Group Company

Constantly tracking anything, anywhere

The internet of things is changing the shape of many businesses. Not only does the IoT herald in greater visibility of production asset effectiveness, improve operational efficiencies, and facilitate more informed decision making, it is also Read more »

Francesca Campanelli Axyon AI

How Fund Managers Can Use AI to Retain Current Investors and Rebuild Client Confidence

After months of market volatility and challenging conditions, fund managers are starting to see a light at the end of the Covid-19 tunnel. Countries are starting to relax their lockdown measures and restart economies, with stock markets reacting Read more »

N/A ReliaMax

College Dreams? Here’s How to Get Accepted

Higher education in the United States is not just about getting accepted, it is about where you get accepted. Sure, there are options, there are seemingly endless options - from community colleges to Ivy League schools and everything in between. The Read more »

Bobby Gill GCWealth

Bobby Gill: 3 Ways Fintech is Helping Small Businesses During the Pandemic

Image Source: Pixabay. Back in April, the US oil prices sank to a 20-year low. In the UK, road traffic levels hit a 70-year low. Worldwide, due to lockdown, retail, travel, and restaurant bookings have dropped by 85%. More than 430 million Read more »

Related Blogs

Yeming WANG Alibaba Cloud

Innovative cloud developments for the financial services industry

The financial services industry has been energised by the power of digital technologies as it looks for new ways to deliver products and services. Exciting fintech innovations are helping the sector to reinvent itself, transforming its processes and Read more »

Eugene Danilkis Mambu

Launching Speed Boats from Cruise Ships: How incumbents can take on fintech challengers

Digital technology has changed financial services.  It has facilitated innovation, increased competition and made the mobile customer experience the key differentiator. While this is good for customers, established institutions have realise that Read more »

Tomas Kindler SIX Securities Services

Forward Compatibility: ensuring fitness for the future

At Sibos, it’s clear that the buzz is around partnership and blockchain (again!). With our announcement of a potential tie-up with Clearstream and partnership with blockchain powerhouse Digital Asset, SIX Securities Services is at the very heart of Read more »

Chris Skinner The Financial Services Club

America’s Banking Regulations Strangle Innovations

Only three new banks have opened in the United States since 2010.  Before the financial crisis, over 100 banks set up shop each year, on average, according to data from the Federal Deposit Insurance Corporation, the agency that approves new banks. Read more »

David Head FileMaker

The Five Myths of Building and Creating a Custom App

In today’s marketplace, businesses are becoming more dependent on technology to power its operations. With so many companies offering the latest in solutions which promise to improve efficiencies, streamline and automate processes and ultimately Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel