The financial services industry in the UK has a long and illustrious history, its practices and business imperatives developed over hundreds of years. It’s little surprise, then, that at our recent roundtable we heard from decision-makers from across the industry that the sector is stuck in a quagmire of legacy systems that hinder change. Then there’s the volume of demands on the sector to meet expanding regulatory requirements. Some banks live simply to stay out of jail, we heard. And that effort is exhausting them. So banks are focusing on keeping the ship afloat rather than creating amazing new touch points for customers. Just think what could be done to improve the customer experience with just a fraction of the budget spent on stopping out-of-date systems falling over, pondered one delegate. And it’s an interesting question when you look at the amount of innovation going on in fintech start ups. The opportunities are there for the picking, but not the cash or focus it seems.

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#NMroundtable
A
Roundtable
May 2014

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Background
We believe that great companies are communities of
purpose.
We make this a reality for our clients. We use conversation
and participation to change mindsets, embed new
behaviours and create companies that people love.
Our roundtable events give us an opportunity to convene
groups of decision-makers from different organisations to
discuss shared challenges.
This deck outlines some of the key themes from the last
roundtable, ‘the impact of digital transformation on
customer expectations for financial services’.

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Who attended?
Thank you to all the attendees, listed below, for participating on the
day. This deck is made up of your valuable insight.
• Philippa Kelly (Technical Manager at ICAEW)
• Conor Ogle (Strategic consultant and financial services COO/CMO)
• Nick Jones (Head of digital at Visa)
• John Sills (Customer Experience and innovation at HSBC)
• Sandra Carosi (Marketing Manager at Experian)
• Peter Allen (Social Media Manager at Bank of England)
• Lisa Hamilton (Strategic Business design & delivery at Lloyds)
• Kim Dibra (Business Manager at Santander)
The event was hosted by Belinda Gannaway and Danielle Sheering
(Senior consultants at NixonMcInnes).
With special thanks to graphic facilitator, Lance Bell, for the images
produced on the day which have been used in this deck.

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Why are banks
behind the curve
with digital?

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“There’s so much going on for
financial services firms at the minute,
that they are running to stand still.”
- Philippa Kelly, ICAEW

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“There’s still a huge group of
people who have no access to,
or no appetite for, digital
services. But continuing to serve
them equally is hugely
expensive.”
- Conor Ogle

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“Some banks are
currently paralysed by
their efforts to stay out
of jail. This imperative
overshadows all internal
decision-making,
affecting everyone -
their moods and
perspectives.”
- Conor Ogle

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What's the deal
with customers
now and how are
they changing?

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“There’s a distinction between hard and soft
trust. Over the last few years, the soft trust has
eroded because of the financial crisis and there
have been serious outages in their legacy
systems. If that hard trust becomes eroded,
what do the banks have left in the way of trust?”
- Danielle Sheerin, NM

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What does this
all mean?

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“When you look at credit and risk, the old
segmentation models aren’t going to apply
anymore because people are going to be
able to live in whatever segment they want
to live, at whatever stage of their life. That’s
why banks need to know each particular
segment really well.”
- John Sills, HSBC

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“The best innovation
is when you really understand
people and you do things that make
a difference to people. Digital is
really just the delivery layer on the
top of that.”
- John Sills, HSBC

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“The big challenge is how you keep that
human element in a digital world, rather
than spending money on stuff that
customers don’t want or need. How you
keep that human element is going to be the
thing that drives success
and customer experience.”
- John Sills, HSBC

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How is the sector
responding,
and how will it
respond?

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“Who is the CEO of tomorrow?
She may be running her third
company when she finishes
tertiary education. She’s unlikely
to expect a single financial
services brand to help her achieve
her goals. She'll select and
substitute, just like she organises
icons on her home-screen. If you
don’t enable her business, she’ll
replace you with someone who
does.” - Conor Ogle

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“Digital is democratising finance because it
allows people to switch. It is atomising
finance down to the the core transaction,
which is merely a means-to-an-end to
something you’re trying to do. The brands
that will be successful are the ones that
understand the context of their customer.
Customers are trying to achieve a goal. So
what can you do to help them do that?”
- John Sills, HSBC

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“There is £30 billion in
venture capital going into
financial technology. It’s
either going to disrupt us
or make our future. So
actually, you are getting the
components for a rebuild -
the transformation - if we
can get the culture piece
right.”
- Nick Jones, Visa

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“New entrants - smaller,
agile startups and
challengers - appear to
make quick progress
because they have a
clarity of purpose. Many
complex incumbents
appear exhausted by the
struggle to keep up.”
- Conor Ogle

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“There is a perception that smaller start-ups
have an easy path, free from legacy systems, a
lower regulatory burden and no responsibility
to service every demographic. But as an
incumbent, you too have choice. You too can
choose your customers. You can choose to
start afresh alongside, rather than atop, your
legacy infrastructure. You can choose to
proactively propose a regulatory framework
rather than being purely reactive. Too few of
the existing players are thinking like this yet."
- Conor Ogle

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Great companies
are communities
of purpose
At NixonMcInnes, we believe

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Our purpose is to create
meaning in business

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