Changing face of digital in Financial Services

The changing face of digital financial servicesFriday, August 10, 12

Part 1 “What do I think are the challenges facing banks and other financial service businesses in the current market climate?”Friday, August 10, 12

"Apathy"... The general population has a resentment of financial services born out of the screw ups of a minority of investment bankers but publicized by the media as the failing of an entire industry. It sounds obvious, but its the single biggest hurdle.Friday, August 10, 12

In the queens speech this year it was announced that Banks have to make it easier for customers to switch their account from one bank to another by September 2013. Its damn hard to move banks at the moment. Once that changes its frontier time. Itll have to start with Digital, the banks linking their systems together to create pathways to move.Friday, August 10, 12

RDR (retail distribution review) will also give the consumer enough education & transparency to make informed and rapid (knee-jerk) decisions. Prosumers (the wise rate tart savvy punters) will start flipping banks at the drop of hat. Same way they follow the rates round on credit cards. Brand loyalty goes away. Then at the back of the pack is the Twinsumer wholl basically do whatever the Prosumer tells or shows them. They follow the leader.Friday, August 10, 12

The bank basically becomes a place to temporarily store your wages rather than somewhere you have a long term relationship.Friday, August 10, 12

But thats ok, because the banks can do whizzy services that attract back the loyalty...Friday, August 10, 12

Wrrrong!Friday, August 10, 12

Riding sweetly on the back of this wave of negative media and gen-pop apathy is going to be a bunch of micro financial services totally detached (in the mind of the consumer) from any of the big banks. The function in third party form.Friday, August 10, 12

www.bbc.co.uk/news/technology-19178169Friday, August 10, 12

www.simple.com Get ready to leave your bank and find clarity in your finances.Friday, August 10, 12

www.facebook.com Someday soon, Facebook users may pay their utility bills, balance their checkbooks, and transfer money at the same time they upload vacation photos to the site for friends to see.Friday, August 10, 12

www.google.com/wallet/ Your wallet in the cloud. Make your phone your wallet. Carry your wallet on the web. A wallet you can lock.Friday, August 10, 12

Essentially services that augment a punters world. In the old days the consumer trusted the ‘name’ and the ‘heritage’ of a retail bank. But in modern times that trust and heritage is gone, so new services from non-financial-service institutions have the right to play and the ability to win heart (until they fuck up obviously and then Johnny Public will go back to the devil they know rather than the angel they dont).Friday, August 10, 12

Im going to call it the ‘distributed experience’ to be gimmicky. Lots of disparate services that facilitate a little part of the consumers financial needs. Therell likely be a third party aggregator service sitting on top (like Mint or Yodlee) so Johnny Public can always have a top-down view of their finances and services.Friday, August 10, 12

Friday, August 10, 12

The banks & co become a transient piggy-bank in the new world. Rate wont win this war either. At least not in the long term.Friday, August 10, 12

Its not all doom and gloom though... Because...Friday, August 10, 12

Part 2 “What do you think are the opportunities the banks can tap into in terms of new technology, ideas and innovation?”Friday, August 10, 12

If you cant beat them (and you wont - Johnny Public holds all the chips, this time round, right!?) then join them. The financial services institution of the future should be looking at all the new ideas and innovators (remember what I said earlier?!) and partnering, supporting, helping the user navigate them.Friday, August 10, 12

They still have the right to coach (not advise... RDR says "no") and support. Thatll also help win back some loyalty. The one tainted get-out-of-jail free card the bank still has to a certain extent is that heritage, experience (good, bad & other) and knowledge.Friday, August 10, 12

Mobile is the obvious thing to talk about. Money on the move. Touch. Wallet. All that good stuff. But its a hygiene factor come 2013/14. Its not a technological differentiator. Mobile is also where alot of the new players (PayPal, Google Wallet, Square etc) are focusing and will win. So mobile is an augmenter and a necessity more than a hearts and minds overall winner. It’s a verb not a noun. Banks dont win love with ATMs... They just are.Friday, August 10, 12

From a UX point of view weve had 3 big evolutions in interface and one more to come: CLI GUI NUI OUI Command Line Interface Graphical User Interface Natural User Interface Organic User Interface Static Responsive Evocative Fluid Disconnected (Abstract) Indirect Unmediated (Direct) Extensive High-low Double Medium Fast Few Constant Zero Directed Exploratory Contextual Anticipatory Recall Recognition Intuitive SynthesisFriday, August 10, 12

So this OUI (Organic User Interface) thing. Technology that facilitates. Tangible and Ubiquitous... embedding computers in the Natural World! Google Glass (rubbish but eye-opening, literally), Nike Fuel, TiVo (theres another screen in your life remember)... Things that a user wears or watches, learns from, uses automatically.Friday, August 10, 12

Let the design be inspired by nature and be sustainable, healthy, conserving, and diverse; unfold, like an organism, from the seed within; exist in the ‘continuous present’ and ‘begin again and again’; follow the flows and be flexible and adaptable; satisfy social, physical, and spiritual needs; ‘grow out of the site’ and be unique; celebrate the spirit of youth, play and surprise; express the rhythm of music and the power of dance. British architect David Pearson, 1989Friday, August 10, 12

Thats an interesting place for financial services when you think about it. What you do is what you get, rather than what you see is what you get. Tell them & they might listen, show them & they might watch, let them experience and they will learn.Friday, August 10, 12

The most profound technologies are those that disappear. They weave themselves into the fabric of everyday life until they are indistinguishable from it. Mark Weiser - Chief scientist at Xerox PARC in the United States.Friday, August 10, 12

Gamification of financial services represents a big opportunity too. Rewarding people for good behaviour and sensible spending with kudos. The kids love that sh*t and the kids are the prosumer generation coming on through remember... Who in turn lead the twinsumer.Friday, August 10, 12

Bluma Zeigarnik was a Russian psychologist who identified what came to be called the “Zeigarnik Effect”… basically, it means that once we start doing something, we’re going to tend to want to finish it. The Zeigarnik Effect states that people remember uncompleted or interrupted tasks better than completed ones. Gamification.Friday, August 10, 12

Making technology more human is another big innovation seam that banks can feed off. Up until now weve been essentially mechanising the banker or advisor. Don’t further automate the advice, advisor or bank... but actually make the technology we use to speak with the client more human… How do we go backwards a bit and bring some humanity back into digital?Friday, August 10, 12

Shape-shifting... That is to say technology and digital that morphs with a user. Time of day. Device access. Same service different need and focus. Same goal. Fluid experience that weaves rather than jars.Friday, August 10, 12

Go to the GEMBA. 現場 The Real Place.Friday, August 10, 12

Branch. Now thats a good opportunity to do some ace digital stuff. Turn them into learning & experiencing facilities. Apple Store nailed it. People go there to muck about and end up spending loads of money. The bank needs to rethink branch strategy. Make them fun places.Friday, August 10, 12

ATMs. Massive network of computers on the high-street. Ace. Use them wisely. Turn mobiles into ATM interfaces and ATMs into vending machines.Friday, August 10, 12

So heres a final thing / opportunity to chew over. This isnt exactly about a feature. Features are the verbs of a web/mobile product. Objects are the nouns.Friday, August 10, 12

I’d like us to think about what the most fundamental object is in banking. Fred Wilson from Union Square Ventures calls it the "atomic unit".Friday, August 10, 12

In Twitter, the atomic unit is the tweet. In SoundCloud, the atomic unit is the sound. In Tumblr, the atomic unit is the post. In Codecademy, the atomic unit is the lesson. In Wattpad, the atomic unit is the story. In Etsy, the atomic unit is the item (although one could argue it is the seller). In Kickstarter, the atomic unit is the project. In Disqus, the atomic unit is the comment. In SlideShare, the atomic unit is the presentation. In Instagram, the atomic unit is the photo. In LinkedIn, the atomic unit is the resume. In Foursquare, the atomic unit is the checkin (although one could argue it is the venue). In Gmail the atomic unit is the email. In Gcal the atomic unit is the appointment. In Dropbox, the atomic unit is the file. In Google Docs, the atomic unit was the document.Friday, August 10, 12

When Banks think about their USP its really important to identify what the atomic unit is these days... Cause it aint money. That stuff has no value. Its soaked in the dirt of crooked bankers. The big 4 need to focus crisply and cleanly on that object. If they think they have three or four atomic units, you end up with a clunky and bloated experience and that is what we want to avoid at all costs.Friday, August 10, 12

Thank YouFriday, August 10, 12

@petetrainor Pete Trainor has worked at the forefront of digital technology, entertainment and marketing since 1996 and his areas of expertise range from digital strategy and design to information architecture and product development across a multitude of digital disciplines and platforms. His passion is UX and interactive planning, and he is a stalwart of innovative methods of persona development and implementation to provide experience touch points for online social networks, consumer-activated branded entertainment, and word-of-mouth marketing. Pete loves creating disruptive approaches to traditional challenges. He doesn’t believe in rules. He does believe in best practice. Today Pete works at SapientNitro in London as Associate Creative Director of UX. It’s a great place for him to be because it’s a company that believes in technology and embraces creativity in equal measures, which is Pete in a nutshell.Friday, August 10, 12

Changing face of digital in Financial Services

by Pete Trainor on Aug 09, 2012

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