Innovation in Retailbanking

Innovation in Retailbanking? The Little Light on the Left Wichert van Engelen European Retail Banking Forum Vienna, march 15th 2008

Internal hurdles

Not invented here

IT-investments are scattered

We first need a strategic vision

We lack knowledge and experience

We first need to re-organize

Fatalism (ok, but we are not like Google)

Short termism (the shareholder-value!!!)

Our bright ideas will be stolen by others

It’s not our core-business

Too complex data-handling

Our services are too complex, they only can be dealt with by personal advisors

Our normal IT is not even on track

External hurdles

No market

Not known by clients

Cannibalism

Use of internet by elderly

Regulations, Laws and more regulations

Ideeen Genoeg Slagvaardig innoveren in de dienstverlening

Nine Thoughts

Look for Fresh Money

There are more than enough ideas

Develop your eighth sense for the future

Implementation is far more important than ideas

To innovate you have to work structuraly non-structured

Use the power of Now

The organisations: a hybrid model

Be aware of the game, the actors and their roles

Just do it!

More of the same money Incremental Radical New Business creation Radical innovation in current business Continious improvements Fresh money

1% Innovation 99% Execution Grow by managing mature business efficiently and incremental improvements Invest in creating future growth engines Run and win the game Change the game

No company ever grew to greatness by cutting costs. (Jack Welch)

Target-setting Regular target-setting Targets to provoke innovation

Specific

predictable, plannable developments

Less specific

Flexible, freedom to experiment, incremental insights, search for knowledge

Quantitative

Measurable sharp focus

Qualitative

Possibilities

Realistic

conceivable realizable

Provoking

Inspiring, madness, over-the-top, discussion

Loss & risc averse

within frames: time, quality, budget

Focus on succes

Definition of succes

Yet….. Top always wants innovation, but choses: the well-known the short term

Ideas are like rabbits.

You get a couple and learn how to handle them, and pretty soon you have a dozen.

(John Steinbeck, novelist)

It’s not the idea, it’s the implementation

Innovate structuraly non-structured

Funnel 50 ideas 10 pilots 5 in production

Innovation: It’s not a funnel. It’s a dangerous journey, from idea to money along a lot of obstacles (Eddie Obeng)

Businesscase Businessmodel

Innovation-dial Radicality Low High Low High Passion Graveyard Line organisation Sandpit Golden mountains

6948

Ships in harbour are safe. But that’s not what ships are built for. (Alan Ada)

Case-study: Our Virtual Holland

No central bank?

Monopoly-money?

Inflation?

4 levels of participation Collaborative working Imago / brand awareness Lead generation (Virtual) financial services

Fundamentals Known and familiar Easy to understand structure Friendly environment Positive alternative to ‘Amsterdam’ With partners: traffic Entrepreneurial / activities International as well as Dutch

Targets Get involved / experienced Platform for other ING activities Learn New customers Brand awareness / publicity Cooperation partners Earn money