e-Business Innovation Report Research Conducted by: Brant R. Carson (20), Vincent Nazih(20), Chirag Pathak (18), Eric Quon-Lee (18) Innovation Model: Tom Vassos [email_address]

Contents The Innovation Story The Innovation Roadmap Innovation Strategy Execution Strategy E-Business Strategy Innovation Enablers Technology Enablers Conclusions / Recommendations

The Innovation Story

The Innovation Roadmap

Innovation Strategy

Execution Strategy

E-Business Strategy

Innovation Enablers

Technology Enablers

Conclusions / Recommendations

The Innovation Story

“ We will fight our battles not on the low road to commoditization, but on the high road of innovation.” Howard Stringer, Chairman & CEO, Sony Corporation Oct. 4, 2005 “ Government support for scientific research is not enough. We also need to make sure that scientific innovation gets translated into applied uses in business.” U.K. Prime Minister Tony Blair "Constant reinvention is the central necessity at GE... We're all just a moment away from commodity hell.“ Jeffrey Immelt Chairman and CEO, GE “ More and more CEOs are adopting an innovation agenda.” Sam Palmisano, IBM CEO “ Electronics Industry Lacks Innovation, Philips CEO Charges” EE Times , Sept. 27, 2005 “ Continuous innovation and the full, unfettered expression of human capacity are indispensable to Japan's economic rebirth and revitalization.” Japanese Prime Minister Junichiro Koizumi “ Innovation is an essential component of corporate survival.” Anne Golden President and CEO Conference Board of Cda Source: IBM Innovation has become an important part of the agenda for senior public and private sector leaders

Innovation is important for the success of Canadian companies According to Vito Mabrucco, Managing Director, IDC Canada, innovation will be a top priority for Canadian organizations in 2006. “Buying more technology without having an innovative plan on how it will create business advantage is not the answer.” “ Companies think that business as usual is going to help them succeed. Faced with rising labour, energy and transportation costs, our study is showing that companies are not connecting their vision to reality. They need to focus on innovation and enhance their productivity to compete effectively, both here in Canada and globally.” Eric Andrew, PricewaterhouseCoopers

According to Vito Mabrucco, Managing Director, IDC Canada, innovation will be a top priority for Canadian organizations in 2006. “Buying more technology without having an innovative plan on how it will create business advantage is not the answer.”

“ Companies think that business as usual is going to help them succeed. Faced with rising labour, energy and transportation costs, our study is showing that companies are not connecting their vision to reality. They need to focus on innovation and enhance their productivity to compete effectively, both here in Canada and globally.”

Eric Andrew, PricewaterhouseCoopers

Innovation need not be a big or a new thought, but it should lead to the creation of social and economic value Definition of Innovation Innovation resides at the intersection of invention and insight, leading to the creation of social and economic value (U.S. National Innovation Initiative)

Definition of Innovation

Innovation resides at the intersection of invention and insight, leading to the creation of social and economic value (U.S. National Innovation Initiative)

There a number of myths about the nature, origin and need for innovation Innovation is all about creativity Innovation is alchemy and can’t be managed Innovation can only come from small groups of people Innovation is about cool new technology Innovation is something every company needs in large quantities Source: Making Innovation Work, Davila, Epstein, Shelton: Wharton School Publishing 2005.

Innovation is all about creativity

Innovation is alchemy and can’t be managed

Innovation can only come from small groups of people

Innovation is about cool new technology

Innovation is something every company needs in large quantities

CXOs recognize innovation as the most important capability for competitive differentiation and growth Source: March 2005 McKinsey Quarterly survey of 9,345 global executives Ability to manage increasing Regulation costs Ability to allocate capital Ability to manage a global organization Ability to allocate the best talent Ability to innovate Percentage of executives that consider each capability important for growth

Collaboration is indispensable for driving innovation. IBM’s CEO study revealed that companies that used external sources for innovation reported higher revenue growth What CEOs said… Over 75% ranked collaboration and partnering as very important to innovation Research Results… Extensive collaborators out-performed their peers in revenue growth & average operating margin Companies that used external sources reported higher revenue growth Source: IBM

What CEOs said…

Over 75% ranked collaboration and partnering as very important to innovation

Research Results…

Extensive collaborators out-performed their peers in revenue growth & average operating margin

Companies that used external sources reported higher revenue growth

Several sources of innovative ideas are actually external to the organization Source: IBM Employees Business Partners Customers Consultants Competitors Associations/Trade Groups Internet Sales/Service Units Internal R&D Academia * Respondents could select up to three choices External Sources of Innovation Percentage of Respondents Companies that relied more on external sources for innovative ideas outperformed other companies.

The Innovation Roadmap

Technology Enablers Innovation Enablers e-Business Strategy Execution Strategy The Innovation Roadmap is a comprehensive framework for building a strategic innovation plan that will drive value to any organization. It includes the creation of an innovation strategy, an execution strategy and an e-Business strategy – enabled by innovation enablers and technology enablers. Innovation Roadmap Innovation Strategy

Technology Enablers Innovation Enablers e-Business Strategy Execution Strategy The Innovation Roadmap should be driven jointly by the IT department as well as various “Lines of Business”. The Lines of Business tend to have more input into the Innovation Strategy and the Execution Strategy, while the IT department tends to have more input into the Innovation and Technology Enablers. Innovation Roadmap Innovation Strategy LOB* IT LOB & IT * LOB = Line of Business

Business Model Innovation Product Innovation Operations Innovation Business Function Innovation Services Innovation Technology Enablers Innovation Enablers e-Business Strategy Execution Strategy Innovation Roadmap – Innovation Strategy Innovation Strategy The Innovation Strategy involves an exploration of various forms of innovation, from Business Model Innovation to Operations Innovation.

Leadership Governance Collaboration Change Management Communications Organization Culture & Rewards Technology Enablers Innovation Enablers e-Business Strategy Execution Strategy Innovation Roadmap – Execution Strategy The Execution Strategy involves a comprehensive approach to executing an innovation plan – from leadership and governance considerations, to change management and communications plans.

Foundation Phase Exploitation Phase Strategic Transformation Phase Innovation Phase Business Extension Phase Technology Enablers Innovation Enablers e-Business Strategy Innovation Roadmap – e-Business Strategy The e-Business Strategy involves an exploration of various forms of innovation that are tied to various e-Business functional areas such as e-Learning, e-Purchasing, e-Mail Marketing, Viral Marketing, e-Marketplaces, Online Communities, One-on-One Personalization Strategies, etc.

Conferences & workshops Flexible IP rights Military commercialization Education gone public The New Value Chain Technology Enablers Partner collaboration Influence 2.0 Innovation Enablers Innovation Roadmap – Innovation Enablers Innovation Enablers are tactics that can be deployed to cultivate the ongoing formation of hundreds of innovative ideas throughout an organization. Many enablers used in other industries have been applied in the global financial services industry or should be considered in the near future.

Innovation Roadmap – Technology Enablers Technology Enablers are technologies that can be deployed to drive specific innovative applications for competitive advantage and/or generating a Return on Investment. Many enablers for other industries have been applied, are in the process of being applied or should be applied in the global financial services industry. Social networking Video Net neutrality Blogs 3G & IMS Wikis Technology Enablers

Innovation Strategy

Business Model Innovation Product Innovation Operations Innovation Business Function Innovation Services Innovation Technology Enablers Innovation Enablers e-Business Strategy Execution Strategy Innovation Roadmap – Innovation Strategy Innovation Strategy The Innovation Strategy involves an exploration of various forms of innovation, from Business Model Innovation to Operations Innovation.

Product Innovation Business Model Innovation Services Innovation Operations Innovation In the global Financial Services industry, there are many innovative companies. Business Function Innovation

Business Model Innovation Prosper charges borrowers and lenders a 2% to 3% fee per transaction as well as a 1% fee per annum for connecting them through an online auction. Prosper began in 2006 and is America’s largest people to people lending marketplace with 810,000 members and $174M in loans funded. Lenders set the minimum interest rate they are willing to earn and bid on loan listings in increments of $50 up to $25,000. Borrowers create listings and set the maximum interest rate they wish to pay. Lenders try to bid down the interest rate and when the auction ends, Prosper takes the bids with the lowest rates and combines them into one loan for the borrower. Prosper takes on all ongoing loan administration for the borrower and lender including loan repayment and collections on behalf of the matched borrower and lender. Source: http://www.prosper.com

Prosper began in 2006 and is America’s largest people to people lending marketplace with 810,000 members and $174M in loans funded.

Lenders set the minimum interest rate they are willing to earn and bid on loan listings in increments of $50 up to $25,000. Borrowers create listings and set the maximum interest rate they wish to pay. Lenders try to bid down the interest rate and when the auction ends, Prosper takes the bids with the lowest rates and combines them into one loan for the borrower.

Prosper takes on all ongoing loan administration for the borrower and lender including loan repayment and collections on behalf of the matched borrower and lender.

Business Model Innovation Zopa (US) matches lenders with borrowers online. They guarantee lenders a ~3.75% return on their money and charge borrowers ~8.5%. They guarantee the funds by leveraging 6 US Credit Unions and make the difference. Zopa was the first online social lending company, starting operations in the United Kingdom (UK) in 2005. They have since grown to Japan, Italy and the United States (US). In the US, the lending is referred to as social finance but carries low risk for the lender since their money is placed into a high interest rate deposit account with one of 6 American Credit Unions who are insured by the National Credit Union Administration for up to $100,000 per member. Before the deposit is accepted the lender must find a borrower for their money on Zopa’s website. This ensures that the money will be lent. In the UK, Zopa’s model is similar to Prosper as it charges borrowers £94.25 per transaction and lenders 1% per annum. Source: http://www.zopa.com

Zopa was the first online social lending company, starting operations in the United Kingdom (UK) in 2005. They have since grown to Japan, Italy and the United States (US).

In the US, the lending is referred to as social finance but carries low risk for the lender since their money is placed into a high interest rate deposit account with one of 6 American Credit Unions who are insured by the National Credit Union Administration for up to $100,000 per member.

Before the deposit is accepted the lender must find a borrower for their money on Zopa’s website. This ensures that the money will be lent.

In the UK, Zopa’s model is similar to Prosper as it charges borrowers £94.25 per transaction and lenders 1% per annum.

Business Model Innovation Grameen Bank has enabled 4.9 million borrowers to emerge from extreme poverty by offering microcredit loans to poor people. Grameen Bank was established in Bangladesh in 1976 with the objective of bringing financial services to the poor. Its services are based on mutual trust, accountability, participation and creativity - not collateral. There is no requirement for group collateral or group repayment upon individual default, however, you must join a borrowing group of five or larger. The bank has over 2,500 branches in rural areas, almost 25,000 staff and serves 7.5 million borrowers in approximately 83,000 villages in Bangladesh. Grameen charges 20% interest for income generating loans, 8% for housing loans, 5% for student loans and 0% for beggers. They teach beggers to sell trinkets rather than just beg. The bank has been profitable each year since 1976 except for 3 years (1983, 1991, 1992) and in 2006, Muhammad Yunus, founder of Grameen Bank, received the Nobel Peace Prize. Source: http://www.grameen-info.org/

Grameen Bank was established in Bangladesh in 1976 with the objective of bringing financial services to the poor. Its services are based on mutual trust, accountability, participation and creativity - not collateral. There is no requirement for group collateral or group repayment upon individual default, however, you must join a borrowing group of five or larger.

The bank has over 2,500 branches in rural areas, almost 25,000 staff and serves 7.5 million borrowers in approximately 83,000 villages in Bangladesh.

Grameen charges 20% interest for income generating loans, 8% for housing loans, 5% for student loans and 0% for beggers. They teach beggers to sell trinkets rather than just beg.

The bank has been profitable each year since 1976 except for 3 years (1983, 1991, 1992) and in 2006, Muhammad Yunus, founder of Grameen Bank, received the Nobel Peace Prize.

Business Model Innovation ING Direct has attracted 17 million clients and over $330 billion in savings assets by revolutionizing retail banking through internet banking services. By not having retail branches and offering a limited number of services, ING Direct saves significant costs and compensates clients by paying higher savings interest rates and offering lower mortgage rates. Source: http://www.ingdirect.ca ING now offers online mortgages to clients Multiple types of accounts are offered including RSP accounts ING has never had fees on its accounts. Interest rates always exceed those of typical banks

By not having retail branches and offering a limited number of services, ING Direct saves significant costs and compensates clients by paying higher savings interest rates and offering lower mortgage rates.

Product Innovation Manulife enables customers to save up to $30,000 by consolidating their debts and mortgage payments into one account linked to their chequing account. Manulife One allows a person to consolidate all of their debts, including their mortgage, up to 90% of the value of their house. A customer consolidates their chequing and savings accounts with Manulife and as soon as money goes into those accounts, it is used to pay down the outstanding debt. Interest in the account is calculated on a daily basis so the faster a payment is applied, the lower the amount to be paid off. Manulife benefits by having new banking customers. Source: http://www2.manulifeone.ca/en/aboutmanulifeone/ http://www1.manulife.com/corporate/corporate2.nsf/public/canada101802.html Manulife One simplifies the administration of payments by having consolidated debts

Manulife One allows a person to consolidate all of their debts, including their mortgage, up to 90% of the value of their house. A customer consolidates their chequing and savings accounts with Manulife and as soon as money goes into those accounts, it is used to pay down the outstanding debt. Interest in the account is calculated on a daily basis so the faster a payment is applied, the lower the amount to be paid off.

Manulife benefits by having new banking customers.

Product Innovation Capital One UK now offers an Identity Theft Service. If a customer’s identity is stolen, Capital One will assign an employee to recover the customer’s identity. This product was a finalist at the 2008 financial innovation awards and is differentiating Capital One from other credit cards in the UK. In 2003, it was determined that over 2.7 million Canadians had fallen prey to identity theft. By 2006 the costs were over $300 million per year. In the US, identity theft is estimated to cost $50 billion per year and affect approximately 10 million Americans per year. Source: http://www.capitalone.co.uk/creditcards/capital-one-bt-platinum-card.jsf http://www.privcom.gc.ca/id/primer_e.asp Identity theft service is being offered for free with all Capital One cards in the UK.

This product was a finalist at the 2008 financial innovation awards and is differentiating Capital One from other credit cards in the UK.

In 2003, it was determined that over 2.7 million Canadians had fallen prey to identity theft. By 2006 the costs were over $300 million per year.

In the US, identity theft is estimated to cost $50 billion per year and affect approximately 10 million Americans per year.

Product Innovation Revolution card reduces credit card fraud potential by requiring a PIN in addition to a swipe of the card. To protect against identity theft, it also doesn’t emboss any personal information on the card. The Revolution card: Can be used in the US at over 50 merchants. Has no annual fee. Provides different interest rates depending on your credit history. Has affiliations with Washington and Philidelphia sports teams which means customers can get a team-specific card. Source: https://www.revolutionmoney.com/revcard.aspx Hockey team specific promotion. Online application.

The Revolution card:

Can be used in the US at over 50 merchants.

Has no annual fee.

Provides different interest rates depending on your credit history.

Has affiliations with Washington and Philidelphia sports teams which means customers can get a team-specific card.

Product Innovation HSBC UK’s Asset Master Plan allows businesses to get up to 90% of the value of equipment that has already been paid for in cash, allowing them to purchase other equipment while providing security for the bank’s loan. This product is available in the UK Allows the business to acquire a new asset with minimum cash outlay. Both fixed and variable interest rates are available. Repayment terms are flexible and are set at the outset of the agreement. Source: http://www.hsbc.co.uk/1/2/business/finance-borrowing/asset-finance/asset-loan Ability to request a quote online. Loan plan is similar to a reverse mortgage being offered by many institutions to retail customers.

This product is available in the UK

Allows the business to acquire a new asset with minimum cash outlay.

Both fixed and variable interest rates are available.

Repayment terms are flexible and are set at the outset of the agreement.

Product Innovation US Federal Credit Union offers a no fee account product through the Eastside Financial Center to attract underserved consumers in low income neighbourhoods. They offer: Free chequing accounts Free ATM access Guaranteed savings Low rate consumer loans HLPR mortgages Source: http://www.thrivent.com/aboutus/ http://www.eastsidefinancialcenter.org/ Eastside Financial Center was created by the non-profit financial institution Thrivent Financial for Lutherans The Lutheran Social Service points potential new customers to the Eastside Financial Center for financial assistance. This generates business for the US Federal Credit Union.

They offer:

Free chequing accounts

Free ATM access

Guaranteed savings

Low rate consumer loans

HLPR mortgages

Services Innovation Citibank in the Philippines has launched mobile banking which enables users to pay bills, transfer funds and reload their prepaid mobile phone attracting new customers and reducing branch overhead. Functionality offered: Change MPIN List accounts Balance inquiry Prepaid reloading Bill payment Funds transfer Checkbook request Statement request List transactions Activate/Suspend service Watch a flash demo at: http://www.citibank.com/philippines/gcb/english/citimb/smbmain.htm Source: http://www.citibank.com/philippines/gcb/english/citimb/smbmain.htm Transactions can be completed by text message or through an application downloaded to a customer’s mobile phone.

Functionality offered:

Change MPIN

List accounts

Balance inquiry

Prepaid reloading

Bill payment

Funds transfer

Checkbook request

Statement request

List transactions

Activate/Suspend service

Watch a flash demo at: http://www.citibank.com/philippines/gcb/english/citimb/smbmain.htm

Services Innovation Citibank and SK Telecom are currently trialing real-time stock quotes and mobile stock trading in Hong Kong. The joint venture is called Mobile Money Ventures (MMV). Users will have access to other key functionality such as: Global fund transfers. Account histories for credit cards and banking. Opening and renewal of time deposits. Market and investment news. Plans are in place to have this application work on Apple’s iPhone 3G. Source: http://www.sktelecom.com/ http://www.apple.com http://www.mobilemoneyventures.net/ http://www.americanbanker.com/article.html?id=20080723WEQI5G1D MMV’s platform was designed to be scalable to a wider variety of mobile services.

The joint venture is called Mobile Money Ventures (MMV).

Users will have access to other key functionality such as:

Global fund transfers.

Account histories for credit cards and banking.

Opening and renewal of time deposits.

Market and investment news.

Plans are in place to have this application work on Apple’s iPhone 3G.

Services Innovation Banco do Brasil and VISA are enabling customers to pay for goods and services with their mobile devices by initiating and confirming the transaction by text message. The service is accessible through any mobile carrier in Brazil and is one of 14 different near-field payment services that VISA is trialing around the world. "As the payments ecosystem has expanded, so has Visa's opportunity to deliver innovative products and services to a diverse set of stakeholders.“ (Elizabeth Buse, Global Head of Product at Visa Inc.)* Source: Bills, Steve. Mobile Payments Rollout Begins to Go Commercial . American Banker, 9/4/2008, Vol. 173 Issue 171, p16. * http://www.reuters.com/article/pressRelease/idUS111424+03-Sep-2008+BW20080903

The service is accessible through any mobile carrier in Brazil and is one of 14 different near-field payment services that VISA is trialing around the world.

"As the payments ecosystem has expanded, so has Visa's opportunity to deliver innovative products and services to a diverse set of stakeholders.“ (Elizabeth Buse, Global Head of Product at Visa Inc.)*

Services Innovation VISA is enabling automatic mobile top up of Korean public transit smart cards (T-Money). This saves commuters time as well as the aggravation of waiting in a line to recharge their T-Money card. This solution automatically recharges a users T-Money card after its balance drops below a specified threshold. It leverages a partnership between T-Money provider KSCC (Korea Smart Card Company), the card issuer Shinhan Bank and mobile carrier Korea Telecom Freetel (KTF). Source: http://en.wikipedia.org/wiki/T-money http://www.reuters.com/article/pressRelease/idUS111424+03-Sep-2008+BW20080903

This solution automatically recharges a users T-Money card after its balance drops below a specified threshold.

It leverages a partnership between T-Money provider KSCC (Korea Smart Card Company), the card issuer Shinhan Bank and mobile carrier Korea Telecom Freetel (KTF).

Services Innovation Cidway’s online and ATM banking security solution prevents many types of fraud by sending a one-time password (OTP) to a user’s mobile device before they use online banking or an ATM. To prevent many types of password theft, Cidway’s solution performs one further verification step by requiring a customer to input a password that is sent to their mobile phone in addition to their regular banking password or ATM card password. The user can either enter the password or have the phone play a set of tones that are an encrypted version of the password. View the flash video under “Demo” : http://cidway.com/default.asp?PageID=217# Source: http://cidway.com/default.asp?PageID=217#

To prevent many types of password theft, Cidway’s solution performs one further verification step by requiring a customer to input a password that is sent to their mobile phone in addition to their regular banking password or ATM card password.

The user can either enter the password or have the phone play a set of tones that are an encrypted version of the password.

View the flash video under “Demo” : http://cidway.com/default.asp?PageID=217#

Operations Innovation Washington Trust Company reduced their number of tellers by 50% by introducing self-serve kiosks in the waiting area. Washington Trust purchased the identiCenter self-serve kiosk solution from aDiebold Inc, which acts like a Wall Mart greeter and tells a customer how long they will have to wait to be seen by a teller as well as offers suggestions as to how the customers banking could be completed more quickly. In addition to this solution, Washington Trust also added a kiosk that accepts bulk cash deposits, check deposits and completes other online banking functionality. After implementing these kiosks, Washington Trust reduced their required tellers from 8 to 4. Source: H. Lowe, Frederick. R.I. Bank's Newest Branch Will Have High-Tech Touch. American Banker, 7/1/2008, Vol. 173 Issue 126, p7.

Washington Trust purchased the identiCenter self-serve kiosk solution from aDiebold Inc, which acts like a Wall Mart greeter and tells a customer how long they will have to wait to be seen by a teller as well as offers suggestions as to how the customers banking could be completed more quickly.

In addition to this solution, Washington Trust also added a kiosk that accepts bulk cash deposits, check deposits and completes other online banking functionality.

After implementing these kiosks, Washington Trust reduced their required tellers from 8 to 4.

Operations Innovation First Command Bank’s (US) remote cheque deposit saves trips to the bank and is significantly more convenient for rural customers. First Command Bank ($539 million in assets) is offering Fidelity National Information Services (FIS) Xpress Deposit solution. Xpress Deposit gives customers the ability to scan cheques they receive and submit them to the bank online rather than bringing them to an ATM. The solution is integrated with First Command Bank’s website. The solution is being offered to a restricted client base as an initial trial. FIS has developed a DepositShield technology which will be used down the road to prevent fraudulent cheques . Source: Maria Bruno-Britz (2008, August). Home, Sweet Home -- FIS' consumer-based remote deposit capture offering could create a niche for banks . Bank Systems & Technology, 45(8), 14. Retrieved September 29, 2008, from ABI/INFORM Global database. (Document ID: 1523673321). http://www.firstcommandbank.com/commercial-banking/first-command-commercial-remote-deposit.htm

First Command Bank ($539 million in assets) is offering Fidelity National Information Services (FIS) Xpress Deposit solution.

Xpress Deposit gives customers the ability to scan cheques they receive and submit them to the bank online rather than bringing them to an ATM. The solution is integrated with First Command Bank’s website.

The solution is being offered to a restricted client base as an initial trial.

FIS has developed a DepositShield technology which will be used down the road to prevent fraudulent cheques .

GO-Tag allows customers to purchase goods with a RFID card that can take many forms (fob, card, sticker, bracelet). This increases transaction throughput for high volume, low purchase value merchants. The GO-Tag can be branded by a store (e.g. Starbucks) or can be embedded in a credit card (e.g. Mastercard Pay Pass) for rapid transaction completion. Using the tag can increase the volume of customers served in high volume environment such as a Starbucks and is more convenient than paying with cash. The GO-Tag is based on a real-time transaction-based infrastructure which enables it to support online reload as well as real-time fraud protection. At the Democratic National Convention in August 2008, all attendees were given a GO- Tag and were able to use it for concession purchases in the Pepsi Center, Denver. Source: http://www.firstdata.com/product_solutions/mobile_commerce_solutions/pdf/FD_Go_Tag_Prepaid_Solutions.pdf The GO-Tag technology is already being used in American Express (Express Pay) and Mastercard (Pay Pass) locations. Operations Innovation

The GO-Tag can be branded by a store (e.g. Starbucks) or can be embedded in a credit card (e.g. Mastercard Pay Pass) for rapid transaction completion.

Using the tag can increase the volume of customers served in high volume environment such as a Starbucks and is more convenient than paying with cash.

The GO-Tag is based on a real-time transaction-based infrastructure which enables it to support online reload as well as real-time fraud protection.

At the Democratic National Convention in August 2008, all attendees were given a GO- Tag and were able to use it for concession purchases in the Pepsi Center, Denver.

Innovation can occur across a broad range of business functional areas Strategy Innovation Marketing Innovation Sales Innovation HR Innovation R&D Innovation Purchasing Innovation Finance Innovation Organizational Design Innovation Production Innovation Engineering/Design Innovation Logistics Innovation Information Technology Innovation Public Relations Innovation Investor Relations Innovation Employee Satisfaction Innovation Business Function Innovation

Strategy Innovation

Marketing Innovation

Sales Innovation

HR Innovation

R&D Innovation

Purchasing Innovation

Finance Innovation

Organizational Design Innovation

Production Innovation

Engineering/Design Innovation

Logistics Innovation

Information Technology Innovation

Public Relations Innovation

Investor Relations Innovation

Employee Satisfaction Innovation

Marketing Innovation Strategy Innovation Sales Innovation HR Innovation R&D Innovation Purchasing Innovation Finance Innovation Organization Design Innovation There are many innovation pioneers across many functional areas as evidenced by these examples. Business Function Innovation

Engineering Innovation Logistics Innovation IT Innovation PR Innovation Investor Relations Innovation There are many innovation pioneers across many functional areas as evidenced by these examples. Employee Satisfaction Innovation Production Innovation Business Function Innovation

Zecco.com provides 10 free trades per month with a balance of $2,500 or more while charging customers for options trading and showing targeted advertisements. Strategy Innovation Zecco.com offers free stock trades, powerful tools, great customer service and a groundbreaking financial community. Since the cost to Zecco.com of executing a trade is small, it can charge little for trading but charge incrementally for premium services such as options trading. Zecco.com also earns revenue from online advertisements it displays to members. When you have at least $2,500 in your Zecco.com trading account, you get 10 free stock trades every month. After that it is $4.50 per trade. Notable backers of Zecco.com include Morten Lund of LundKenner (an early investor in Skype) and Deutsche Telecom pioneer Marcel Boekhoorn. Free stock trades are offered with a balance of $2,500 or more each month. Online advertisements are an additional source of revenue for Zecco.com Source: http://www.zecco.com

Zecco.com offers free stock trades, powerful tools, great customer service and a groundbreaking financial community.

Since the cost to Zecco.com of executing a trade is small, it can charge little for trading but charge incrementally for premium services such as options trading.

Zecco.com also earns revenue from online advertisements it displays to members.

When you have at least $2,500 in your Zecco.com trading account, you get 10 free stock trades every month. After that it is $4.50 per trade.

Notable backers of Zecco.com include Morten Lund of LundKenner (an early investor in Skype) and Deutsche Telecom pioneer Marcel Boekhoorn.

Fidelity Investments is offering high-yield checking accounts in an effort to attract deposits from customers and position itself as a full service online financial services provider. Strategy Innovation Source: Competing in the Retirement-Dominated Future: Developing Relationships First, Promoting Products Second. ( http://www.bai.org/ ), Fidelity Investments ( http://www.fidelity.com ) Fidelity Investments launched a high level initiative to offer high-yield checking accounts with a full range of ATM and online bill payment capabilities. Fidelity Investments is targeting the core deposit and lending services traditionally offered by banks, with the goal of establishing themselves as a primary financial services provider. Fidelity is trying to branch from being a financial services provider to receiving deposits from customers.

Fidelity Investments launched a high level initiative to offer high-yield checking accounts with a full range of ATM and online bill payment capabilities.

Fidelity Investments is targeting the core deposit and lending services traditionally offered by banks, with the goal of establishing themselves as a primary financial services provider.

Washington Mutual (WaMu) enhances brand and improves product sales by introducing a “WaMu Kids” area and giving parents terminals with access to wamu.com. Marketing Innovation Source: Washington Mutual ( http://newsroom.wamu.com/phoenix.zhtml?c=189529&p=irol-newsArticle&ID=695643&highlight =) http://www.bellflowerchamber.com/bellflower02.htm Washington Mutual breaks the traditional model of branch design by dedicating significant amounts of space to internet and children-oriented areas. Internet access is available to wamu.com in order to allow customers to explore product options at their own discretion. There is a “WaMu Kids” section which features a play area with an activity table, books, Gameboys, etc. This branch concept not only improved the family-friendly branding of Washington Mutual but it has been a great marketing tool to attract parents into the WaMu branch with their children. While the children play, parents are much more likely to purchase another financial product. Above is an example of a Washington Mutual open concept branch in Bellflower, California.

Washington Mutual breaks the traditional model of branch design by dedicating significant amounts of space to internet and children-oriented areas.

Internet access is available to wamu.com in order to allow customers to explore product options at their own discretion.

There is a “WaMu Kids” section which features a play area with an activity table, books, Gameboys, etc.

This branch concept not only improved the family-friendly branding of Washington Mutual but it has been a great marketing tool to attract parents into the WaMu branch with their children. While the children play, parents are much more likely to purchase another financial product.

Credit Suisse develops a profitable niche segment in London by targeting gay and lesbians with their private banking arm. Marketing Innovation Source: http://trendwatching.com/trends/pinkprofits.htm http://www.springwise.com/financial_services/ In London, 1 out of every 9 people is gay. Gays typically enjoy significantly higher salaries than their heterosexual counterparts. Credit Suisse’s now provides gay financial advisors to clients who are themselves openly gay. The services provided by the private bankers includes not just traditional banking offerings but also information tailored to services such as adoption and civil partnership. Credit Suisse has a very personalized approach to private banking in the UK.

In London, 1 out of every 9 people is gay.

Gays typically enjoy significantly higher salaries than their heterosexual counterparts.

Credit Suisse’s now provides gay financial advisors to clients who are themselves openly gay.

The services provided by the private bankers includes not just traditional banking offerings but also information tailored to services such as adoption and civil partnership.

Wells Fargo adapts traditional cultural values and norms into a new powerful advertising strategy. Marketing Innovation Source: BusinessWeek ( http://www.businessweek.com/magazine/content/04_11/b3874011_mz001.htm ) Since Hispanics comprise 13.3% of the population in the United States and are expected to have a buying power that will top $1 trillion by the year 2015 many financial institutions are trying to market themselves to the Hispanic community. Wells Fargo has adapted its traditional banking model for the Hispanic market by allowing Hispanics to open accounts with the “matricula” card which is a form of identification issued to Mexican nationals by their consulates. Branches serving Hispanic neighbourhoods have a Latin-style décor and play Spanish-language radio in the background. Wells Fargo has also introduced in-home seminars to explain the products and services Wells Fargo offers the Hispanic community. This is effective due the population’s reliance on informal networks for information.

Since Hispanics comprise 13.3% of the population in the United States and are expected to have a buying power that will top $1 trillion by the year 2015 many financial institutions are trying to market themselves to the Hispanic community.

Wells Fargo has adapted its traditional banking model for the Hispanic market by allowing Hispanics to open accounts with the “matricula” card which is a form of identification issued to Mexican nationals by their consulates.

Branches serving Hispanic neighbourhoods have a Latin-style décor and play Spanish-language radio in the background.

Wells Fargo has also introduced in-home seminars to explain the products and services Wells Fargo offers the Hispanic community. This is effective due the population’s reliance on informal networks for information.

North Carolina’s Branch Banking and Trust (BB&T) distributes a soap opera DVD designed to educate Mexican immigrants about banking products and services to increase their penetration of Hispanics in the US. Marketing Innovation Source: Tescher, Jennifer and Sarah Gordon. Nonprofits Valuable Allies in Serving Unbanked . American Banker; 8/29/2008, Vol. 173 Issue 168, p11. BB&T (http://www.bbt.com/about/cra/hispanicoutreach.html) BB&T was the first company to develop and distribute a mock soap opera to educate Spanish immigrants about banking. BB&T collected these episodes and was the first to release the shows in their branches on DVD free of charge. The shows mimic the telenovela storytelling approach which is popular on Spanish TV. In the BB&T episodes, a character named “BiBi” walks recent immigrants from Mexico through information concerning emergency preparedness, immigration support resources and basic banking. Hispanics are now the largest minority group in the United States at 13.3% of the population and are expected to have a buying power that will top $1 trillion by the year 2015. A segment of BB&T’s website is dedicated to this outreach program.

BB&T was the first company to develop and distribute a mock soap opera to educate Spanish immigrants about banking. BB&T collected these episodes and was the first to release the shows in their branches on DVD free of charge.

The shows mimic the telenovela storytelling approach which is popular on Spanish TV. In the BB&T episodes, a character named “BiBi” walks recent immigrants from Mexico through information concerning emergency preparedness, immigration support resources and basic banking.

Hispanics are now the largest minority group in the United States at 13.3% of the population and are expected to have a buying power that will top $1 trillion by the year 2015.

Virgin One positions itself as a caring employer, offers reliable hours and less stressful work. Employees are typically hired out of university and are molded into top talent. HR Innovation Source: Competition, Innovation, and Strategy in the Financial Services Industry, December 2001. ( http://www.bai.org/competition ) Virgin One ( http://www.virginone.com ) Virgin One CEO, Jayne Anne Ghadia, took pains not to staff Virgin One with traditional branch banking or call center personnel. Virgin One positioned themselves as the ‘caring employer’ by offering more reasonable and reliable hours and generally less stressful work to members of various caring professions. Virgin One’s slogan was ‘Not a greenfield opportunity but greenfield minds’ as they hired university graduates who were relatively young. Recruits were intensely oriented to customers, customer problems and finding solutions.

Virgin One CEO, Jayne Anne Ghadia, took pains not to staff Virgin One with traditional branch banking or call center personnel.

Virgin One positioned themselves as the ‘caring employer’ by offering more reasonable and reliable hours and generally less stressful work to members of various caring professions.

Virgin One’s slogan was ‘Not a greenfield opportunity but greenfield minds’ as they hired university graduates who were relatively young.

Recruits were intensely oriented to customers, customer problems and finding solutions.

Wells Fargo developed a platform for secure online electronic information storage for its customers. R&D Innovation Source: https://www.wellsfargo.com/wfonline/wellsfargovsafe/tour/swf/ Wells Fargo’s vSafe is a secure online location where customers can upload and store electronic copies of important electronic materials such as photographs and key documents. This provides customers with a central storage location that is accessible via secure website accessible only after passing through multiple layers of security. Wells Fargo is the first large financial services company to offer virtual storage of vital documents. Each customer is can purchase 1GB for $4.95 per month or 3 GB for $9.95 per month.

Wells Fargo’s vSafe is a secure online location where customers can upload and store electronic copies of important electronic materials such as photographs and key documents.

This provides customers with a central storage location that is accessible via secure website accessible only after passing through multiple layers of security.

Wells Fargo is the first large financial services company to offer virtual storage of vital documents.

SAS Fraud Management saves companies millions of dollars by preventing fraudulent debit and credit card transactions in real time. R&D Innovation Source: SAS ( http://www.sas.com/industry/fsi/fraud /) Worldwide losses from payment card fraud reached US$4.84 billion in 2006. SAS Fraud Management offers powerful, end-to-end fraud detection and prevention for debit and credit card fraud. Their solution leverages a real-time scoring algorithm called Self-Organizing Neural Network Arboretum (SONNA), which identifies data irregularities. SAS uses a unique “signature” approach that captures cardholder behaviour from all available sources of data and evaluates patterns every time a transaction is scored. Fraud Management was the winner of the Frost & Sullivan 2008 North American Enterprise Fraud Detection and Prevention Technology Innovation of the Year award.

Worldwide losses from payment card fraud reached US$4.84 billion in 2006.

SAS Fraud Management offers powerful, end-to-end fraud detection and prevention for debit and credit card fraud. Their solution leverages a real-time scoring algorithm called Self-Organizing Neural Network Arboretum (SONNA), which identifies data irregularities.

SAS uses a unique “signature” approach that captures cardholder behaviour from all available sources of data and evaluates patterns every time a transaction is scored.

Fraud Management was the winner of the Frost & Sullivan 2008 North American Enterprise Fraud Detection and Prevention Technology Innovation of the Year award.

AIG created a new insurance product that enabled corporations to electronically offload the risk of their investments and provide them additional liquidity. Finance Innovation Source: Wikipedia ( http://en.wikipedia.org/wiki/Collateralized_debt_obligation ), MarketWatch ( http://www.marketwatch.com/news/story/aig-drops-12-auditor-spat/story.aspx?guid=%7B2E48413F-2819-40D8-BC5D-2009CB7F385A%7D ) AIG made extensive use of collateralized debt obligations (CDO)’s in order to increase their leverage as well as their profits. CDOs are structured from a portfolio of fixed-income assets. AIG created an innovative new product which offering guarantees using credit default swaps which is a type of derivative-based insurance that pays out in the event of a default.

AIG made extensive use of collateralized debt obligations (CDO)’s in order to increase their leverage as well as their profits.

CDOs are structured from a portfolio of fixed-income assets.

AIG created an innovative new product which offering guarantees using credit default swaps which is a type of derivative-based insurance that pays out in the event of a default.

Children’s Development Bank (CDB) is managed by street children for street children. It teaches the world’s poorest children financial skills and helps them achieve independence. Organization Design Innovation Source: Children’s Development Bank ( http://www.childrensdevelopmentbank.org /) More than 1,000 street children have joined together to create a bank that helps them manage the small sums they earn each day. The bank is managed by street children for street children. CDB pays interest on the deposits that New Delhi’s street children make. Money from the interest comes from the repayment of micro loans made to children 15 years and older.

More than 1,000 street children have joined together to create a bank that helps them manage the small sums they earn each day.

The bank is managed by street children for street children.

CDB pays interest on the deposits that New Delhi’s street children make.

Money from the interest comes from the repayment of micro loans made to children 15 years and older.

Production Innovation Source: http://www.aqubanc.com International Journal of Electronic Finance , volume 1, Number 2. Aquabanc provides the new Cheque21 service which allows cheques to be scanned by customers and sent electronically to banks. This saves customers transit time to their branches and saves banks paper storage space. Provides benefits for both the customer and the client because customers get ease of payment and the client gets a file that is easy to store. Cheque21 has been passed into law and allows physical cheques to be scanned and submitted online There is a fraud concern as cheques could be repeated or manufactured. Banks are being cautious as they roll out this service first to corporate clients.

Provides benefits for both the customer and the client because

customers get ease of payment and the client gets a file that is easy to store.

Engineering innovation ANZ Bank Australia, reduces internet banking fraud by 40% after implementing the Fraudlink-billpay system. ANZ was recognized for its implementation at the 2007 Financial Insights Innovation Awards in Singapore . Source: http://www.carreker.com/main/media/press_releases/releases2007/03-09-07-ANZ-IB-Award.htm ANZ was having problems with bill payment fraud and decided to implement Fraudlink’s BillPay monitoring solution. “ Fraudlink BillPay monitors online banking transactions for unusual transactions that may indicate if a customer has fallen foul of a phishing scam.” ANZ-Group After implementation there was a 40% reduction in internet bank fraud incidents. Implementing this solution has become a competitive advantage for ANZ because customers want a strong level of security. In 2007 the company was recognized for this innovation and awarded a 2007 Financial Insights Innovation Award in Singapore.

ANZ was having problems with bill payment fraud and decided to implement Fraudlink’s BillPay monitoring solution.

“ Fraudlink BillPay monitors online banking transactions for unusual transactions that may indicate if a customer has fallen foul of a phishing scam.” ANZ-Group

After implementation there was a 40% reduction in internet bank fraud incidents.

Implementing this solution has become a competitive advantage for ANZ because customers want a strong level of security.

In 2007 the company was recognized for this innovation and awarded a 2007 Financial Insights Innovation Award in Singapore.

Engineering innovation France Telecom Mobile has developed a system that turns your mobile phone into a payment machine by allowing you to insert your bank card into your mobile phone and confirming any payment. Source: http://www.smartcardalliance.org/articles/2000/05/17/france-telecom-wins-top-honor-for-mobile-commerce-system France Telecom developed the Iti Achat system as a way for customers to confirm their payment transactions simply by inserting their bank card into their mobile phone. There is a very high ease of use and practicality of the solution since mobile penetration is so significant. This solution provides ease of use and secure transactions for users.

France Telecom developed the Iti Achat system as a way for customers to confirm their payment transactions simply by inserting their bank card into their mobile phone.

There is a very high ease of use and practicality of the solution since mobile penetration is so significant.

This solution provides ease of use and secure transactions for users.

Logistics Innovation Presidents Choice (PC) charges no fees to customers. It locates PC branded ATM’s in retail locations but does not have branches, which reduces overhead costs and logistics such as branch staffing. Source: http://www.marketwatch.com/news/story/-egg-offers-internet-only-uk/story.aspx?guid={358BCB69-3EA3-4B5D-A871-F00276A293F0} } Bank is able to focus in quality of few services rather than all of the financial services offered by branches. Logistics problems associated with different branches are eliminated. The bank offers lower fees than competitors and but you can still access your money through ATM’s. PC financial provides better online service because the bank is focused on online tools as the key method of connecting with customers.

Bank is able to focus in quality of few services rather than all of the financial services offered by branches.

Logistics problems associated with different branches are eliminated.

The bank offers lower fees than competitors and but you can still access your money through ATM’s.

PC financial provides better online service because the bank is focused on online tools as the key method of connecting with customers.

Logistics Innovation Banco Popular from Brazil uses mobile agents to provide banking services, the agents replace traditional bank branches thus freeing up resources and cutting costs for the bank. Source: Lyman, T., Pickens, M. and David Porteous. Regulating Transformational Branchless Banking . CGAP Focus Note No. 43. Washington D.C.: January 2008: http://www.bancopopulardobrasil.com.br/ Banco Popular uses mobile banking agents as replacement for bank branches. These agents are trained and hired for Banco Popular by private companies such as Net Cash . Agents provide flexibility and are able to go to unserved locations where it is not possible to open a bank branch. This type of mobile banking using agents was possible in Brazil due to regulatory changes in the country it is not a model that can be easily emulated everywhere.

Banco Popular uses mobile banking agents as replacement for bank branches.

These agents are trained and hired for Banco Popular by private companies such as Net Cash .

Agents provide flexibility and are able to go to unserved locations where it is not possible to open a bank branch.

This type of mobile banking using agents was possible in Brazil due to regulatory changes in the country it is not a model that can be easily emulated everywhere.

Logistics Innovation Egg Bank, the UK’s first branchless bank, solves a logistics challenge by eliminating bank branches and providing an internet only account thus reducing operating and coordination costs. Source: http: // www.egg.com http://www.marketwatch.com/news/story/-egg-offers-internet-only-uk/story.aspx?guid={358BCB69-3EA3-4B5D-A871-F00276A293F0} } Branchless banking by Egg Bank offers customers benefits due to lower fees and higher interest on savings. A significant number of logistics problems are solved by not having bank branches. Since customers interact via secure internet website all bank transactions are possible via the internet. The bank avoids high real estate costs associated with opening and maintaining branches.

Branchless banking by Egg Bank offers customers benefits due to lower fees and higher interest on savings.

A significant number of logistics problems are solved by not having bank branches.

Since customers interact via secure internet website all bank transactions are possible via the internet.

The bank avoids high real estate costs associated with opening and maintaining branches.

Ferratum offers a seductively simple concept of granting small 15 day loans by sms message, which can be requested by mobile. Ferratum provides the capital and charges a fee of 25% of the loan value for this service. IT Innovation Source: http://www.psfk.com/2007/08/ferratum-offers-loans-by-sms.html Customer sends a request for money over sms and provides an account number, date of birth and address. Ferratum charges a 25% service fee for providing the loan which must be returned in 15 days. Customer can collect the money within 10 minutes.

CIBC achieves the most effective back office initiative by undertaking a comprehensive reengineering program which aligned nineteen separate projects to their global operations. IT Innovation Source: http://www.bobsguide.com/guide/news/2006/Dec/22/CIBC_wins_Financial_Innovation_Award.html http://www.pcubed.com/pdf&doc/Batch%20One%201_2/CIBC.pdf The Operations and Technology Integrated Strategy (OTIS) created a highly efficient global operations organization and delivery system. Under the OTIS the bank aligned nineteen projects. Each project involved the redesign of existing processes, introduction of new technology and realignment of people to functions. With its implementation the bank was able to improve service quality for each business line, ensure quality and controls and deliver service in the most cost effective way. The bank won the 2006 ifs/Capgemini Financial Innovation Award for the successful implementation of OTIS.

The Operations and Technology Integrated Strategy (OTIS) created a highly efficient global operations organization and delivery system. Under the OTIS the bank aligned nineteen projects. Each project involved the redesign of existing processes, introduction of new technology and realignment of people to functions.

With its implementation the bank was able to improve service quality for each business line, ensure quality and controls and deliver service in the most cost effective way.

The bank won the 2006 ifs/Capgemini Financial Innovation Award for the successful implementation of OTIS.

Kotak Mahindra-Bank, introduces Global CASHplus which provides corporate clients access to advanced cash flow planning and working capital optimization applications. IT Innovation Source: http://www.cxotoday.com/India/News/Kotak_Mahindra_Centralises_Payment_Process/551-93636-908.html http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=BW&date=200 80916&id=9147107 http://www.kotak.com/Kotak_GroupSite/ CASHplus provides corporate clients with access to a portal that integrates all their collections and payments services into a single window. This is a significant benefit for corporate clients. Global CASHplus modules centralize the payment and collections processings for all the corporate clients. This is a significant benefit for the bank.

CASHplus provides corporate clients with access to a portal that integrates all their collections and payments services into a single window. This is a significant benefit for corporate clients.

Global CASHplus modules centralize the payment and collections processings for all the corporate clients. This is a significant benefit for the bank.

PR Innovation Credit Suisse adopts the carbon principle to become the first bank to go completely carbon neutral by 2009. This PR innovation is targeted at the bank’s global audience and is an effort to differentiate itself from the competition by establishing itself as a leader in the reduction of greenhouse gas. Clients also have an opportunity to participate in this initiative with Credit Suisse, which provides further favourable interactions between the company and its clients. Source: http:// www.credit-suisse.com/news/en/media_release.jsp?ns=40826 Credit Suisse is providing opportunities for its clients to participate in environmental initiatives. Many positive articles were written about Credit Suisse’s decision to ‘go green.’

This PR innovation is targeted at the bank’s global audience and is an effort to differentiate itself from the competition by establishing itself as a leader in the reduction of greenhouse gas.

Clients also have an opportunity to participate in this initiative with Credit Suisse, which provides further favourable interactions between the company and its clients.

Investor Relations Innovation Proxydemocracy provides a set of tools to help investors use their voting power to produce positive changes in the companies they own. Source: http://proxydemocracy.org ; http://sec.gov/ Keeps investors happy by holding corporations Accountable. Easy to use and provides real-time statistics. Reliable and trusted it has been tested in high profile cases, like the Yahoo-Merger talks 2007. Lists all major criteria important to investors relations covered in the statistics. Easy access to detailed statistics on voting.

Keeps investors happy by holding corporations

Accountable.

Easy to use and provides real-time statistics.

Employee Satisfaction Innovation Bank of Montreal (BMO) implementing a new way to encourage employees at work by helping them maintain a work-life balance. BMO wanted to focus on employee retention in order to keep highly trained employees loyal to BMO and satisfied with their work. In order to achieve this they created a new program that allows for a higher level of work-life balance thus preventing high levels of work fatigue. They coupled the program with an even more extensive benefits package, which was tailored to further encourage healthy activity and increase employee satisfaction. Source: http:// www.bmo.com

BMO wanted to focus on employee retention in order to keep highly trained employees loyal to BMO and satisfied with their work.

In order to achieve this they created a new program that allows for a higher level of work-life balance thus preventing high levels of work fatigue.

They coupled the program with an even more extensive benefits package, which was tailored to further encourage healthy activity and increase employee satisfaction.

Innovation Execution Strategy

Leadership Governance Collaboration Change Management Communications Organization Culture & Rewards Technology Enablers Innovation Enablers e-Business Strategy Execution Strategy Innovation Roadmap – Execution Strategy The Execution Strategy involves a comprehensive approach to executing an innovation plan – from leadership and governance considerations, to change management and communications plans.

Change Management Culture & Rewards Collaboration Communications Leadership Governance Organization There are many innovation pioneers across many areas of execution as evidenced by these examples. Execution Strategy Innovation

Collaboration Infoanvit will save loan officers one hour per day after the implementation of a unified communications tool for online communication and collaboration. This time saving will increase the throughput of loans processed per day and also a reduction in loan approval time. Source: http://www.infonavit.gob.mx/ http://whitepapers.techrepublic.com.com/abstract.aspx?docid=346058 Infoanvit provides home loans to Mexican workers. Communication delays between the loan officers have reduced the length of time workers must wait before their loan is approved, resulting in lost business. Microsoft’s Communications Server 2007 was implemented to enable loan officers to communicate more efficiently with each other, which would ensure more rapid loan closure. The solution provides information about which loan officers and approvers are available in real-time and provides multiple mechanisms to access the loan officers. Infoanvit estimates that the implementation will result in workers recovering one hour each day of their own time in addition to a reduction in loan approval time.

Infoanvit provides home loans to Mexican workers.

Communication delays between the loan officers have reduced the length of time workers must wait before their loan is approved, resulting in lost business.

Microsoft’s Communications Server 2007 was implemented to enable loan officers to communicate more efficiently with each other, which would ensure more rapid loan closure.

The solution provides information about which loan officers and approvers are available in real-time and provides multiple mechanisms to access the loan officers.

Infoanvit estimates that the implementation will result in workers recovering one hour each day of their own time in addition to a reduction in loan approval time.

Collaboration The Australian Government Department of Finance and Deregulation introduced “GovDex,” which is a secure internet space for government agencies to manage stakeholders, projects and store documents. Source: www.finance.gov.au https://www.govdex.gov.au/user/index.do GovDex also encourages interoperability between the different layers of organizations (business, information and technology). GovDex was developed by the Australian Government to enable collaboration across portfolios and administrative jurisdictions. It has a wide range of basic features and functionality that groups can leverage to communicate such as a calendar, document repository, todo list etc... In addition to this, GovDex provides additional features such as a Wikki, Forum and Issue Manager. Flash demos are located at: https://www.govdex.gov.au/user/index.do There are currently over 170 collaborative workspaces and over 4,000 users of the solution.

GovDex was developed by the Australian Government to enable collaboration across portfolios and administrative jurisdictions.

It has a wide range of basic features and functionality that groups can leverage to communicate such as a calendar, document repository, todo list etc...

In addition to this, GovDex provides additional features such as a Wikki, Forum and Issue Manager. Flash demos are located at: https://www.govdex.gov.au/user/index.do

There are currently over 170 collaborative workspaces and over 4,000 users of the solution.

Change Management The Industrial Credit and Investment Corporation of India (ICICI) implemented “Five S” which is a change management process. Its implementation resulted in 50% cost savings at one bank branch in Mumbai. Source: http:// ebusiness.icicibank.com/imarkets/products/treasury_banking.asp?prod=tsbk ; Case Study 10 Pages, Change Management @ ICICI : case study, Case Code , 2002.Centre for Management research order number :HROB008 "Five S is a workplace transformation exercise. When we implemented it across the organisation, it …[had] many tangible benefits," says Chanda Kochhar, executive director, ICICI Bank.

Culture and Rewards Source: www.db.com/careers/en/507.html http://www.cambridge-na.com/files/IR_downloads/Information_memorandum.pdf With the “Total Reward Philosophy” the bank is able to retain highly skilled workers by providing them with excellent benefits and compensation based on teamwork and innovation. Deutsche Bank has a “Total Reward Philosophy,” which is geared toward a culture of performance and innovation. Rewards are aligned with the bank’s core values of teamwork and innovation. Employees are compensated significantly for innovative ideas.

Communications Bank of Panshin (BoP) deploys a complete communications solution, which allows employees to videoconference and use collective whiteboards. The implementation resulted in reduced operational costs and fewer misunderstandings between employees. Source: www.bop.com.tw (in Taiwanese) The Bank of Panhsin (BoP) in Taiwan had long relied upon phone calls and email to communicate between branches. BoP eventually realized that a more streamlined communications system, implemented across every bank branch, would reduce operational costs and allow employees to communicate more efficiently than before. The bank implemented a solution that allowed videoconferencing, whiteboarding and other multimedia sharing technologies “ [The] solution has lowered our network management costs while improving customer service by empowering employees to collaborate more efficiently and effectively than ever." T. Lee Senior VP, BoP

The Bank of Panhsin (BoP) in Taiwan had long relied upon phone calls and email to communicate between branches.

BoP eventually realized that a more streamlined communications system, implemented across every bank branch, would reduce operational costs and allow employees to communicate more efficiently than before.

The bank implemented a solution that allowed videoconferencing, whiteboarding and other multimedia sharing technologies

“ [The] solution has lowered our network management costs while improving customer service by empowering employees to collaborate more efficiently and effectively than ever." T. Lee Senior VP, BoP

Leadership The implementation of innovation needs a committed senior leadership to guide through resistance to change introduced by innovative ideas. Source: http://www.privatebankinginnovation.com “ We have all sorts of exemptions in order to get things done and communicate our projects to the executives” Tim Hanlon, RBC Former CEO of HSBC Private Banking (Suisse) SA says maintaining a new product for entrepreneurs was one of the key criteria in his succession selection

Governance Aligning the interests of clients, employees and owners on the long-term are key to govern successful innovation introductions. Source: http://www.privatebankinginnovation.com Innovation cannot be quantified first-hand, a corporate governance structure needs be clear, and articulated around the long-term benefits of the firm. “ Ambiguity of responsibility forces managers […] to pursue short-term strategies” Corporate Governance and Innovation in the Chinese Banking sector, Duo Wang and Marcela Miozzo, Manchester School of Management. “ We care only about the bottom for our clients, employees and for our firms”

Innovation cannot be quantified first-hand, a corporate governance structure needs be clear, and articulated around the long-term benefits of the firm.

“ Ambiguity of responsibility forces managers […] to pursue short-term strategies”

Corporate Governance and Innovation in the Chinese Banking sector, Duo Wang and Marcela Miozzo, Manchester School of Management.

Organization Lloyds Bank (UK) implemented a unique model at the bank for distributed innovation where all innovative ideas were encouraged throughout the organization, filtered to a consultant and then implemented. Source: Bob Garratt, Organizational change, learning and metrics: hard and soft ways to effective organizational change, Development and Learning in Organizations, Volume 19, pp-4-6, 2005. There was no division devoted to thinking about or implementing innovation, no R&D department, rather ideas for innovation came in from all departments and filtered through a consultant. Lloyds is an example of a slow organizational change model where the entire organization in involved, it is not possible to develop this culture in a single day or month.

e-Business Strategy

Foundation Phase Exploitation Phase Strategic Transformation Phase Innovation Phase Business Extension Phase Technology Enablers Innovation Enablers e-Business Strategy Innovation Roadmap – e-Business Strategy The e-Business Strategy involves an exploration of various forms of innovation that are tied to various e-Business functional areas such as e-Learning, e-Purchasing, e-Mail Marketing, Viral Marketing, e-Marketplaces, Online Communities, One-on-One Personalization Strategies, etc.

The e-Business Roadmap Exploitation Phase Innovation Phase Business Extension Phase Strategic Transformation Phase Foundation Phase The e-Business Roadmap can be used to explore a broad range of potential innovative e-Business ideas Global Niche Marketing e-Channel Strategic Alliance Future Innovation e-Marketplace Mobile Human Interaction Automated Interaction Database Application E-Business Transaction Workflow Process e-Commerce Community Outbound E-mail Viral Marketing Personalization Customer Relationship Knowledge Management Traffic Generation Communications Infrastructure Collaboration Research Competitive Research Market Research e-Learning Assessment Strategy Organization Infrastructure Reach e-Branding Purchasing Publishing

Innovation Enablers

Conferences & workshops Flexible IP rights Military commercialization Education gone public The New Value Chain Technology Enablers Partner collaboration Influence 2.0 Innovation Enablers Innovation Roadmap – Innovation Enablers Innovation Enablers are tactics that can be deployed to cultivate the ongoing formation of hundreds of innovative ideas throughout an organization. Many enablers used in other industries have been applied in the global financial services industry or should be considered in the near future.

Influence 2.0 The ability of customers communities to form and create collective bargaining power has lead companies to internalize their demands, often novel to their existing business model. In 2007, 1.5 million Americans lobbied in favor of Net Neutrality, to allow multiple providers to use the same network infrastructure. The term “Influence 2.0” was coined by Cymphony. Companies like EMI, a record label, took in some of their clients who used to infringe on their copyrights as employees in order to help create new products. Source: http://www.savetheinternet.com Taking the fight to Congress.

In 2007, 1.5 million Americans lobbied in favor of Net Neutrality, to allow multiple providers to use the same network infrastructure.

The term “Influence 2.0” was coined by Cymphony.

Companies like EMI, a record label, took in some of their clients who used to infringe on their copyrights as employees in order to help create new products.

The New Value Chain Pimp My Ride is an example of the “New Value Chain”, which consists of co-creating products with customers and then pushing them back into the regular development cycle. This increases the number of new products and the speed of their time to market. Pimp My Ride - a TV show by MTV where people restore cars in bad conditions into fun cars – was ranked 2 nd in total viewership in the US. Pimp My Ride even created an ecology of gaming, advertising and other industries. Umpqua bank started an “Innovation Lab” branch where customers get to see all the new products releases, comment on them and suggest new one in a real operational branch of the bank. Source: Teller Vision – January 2008

Pimp My Ride - a TV show by MTV where people restore cars in bad conditions into fun cars – was ranked 2 nd in total viewership in the US.

Pimp My Ride even created an ecology of gaming, advertising and other industries.

Umpqua bank started an “Innovation Lab” branch where customers get to see all the new products releases, comment on them and suggest new one in a real operational branch of the bank.

Multi-lateral partnerships Multi-lateral partnerships between the governments, universities and industry are helping companies quickly embrace and marketing innovations. The financial industry is no exception. Out of 4,500 incubators worldwide, 1,500 are connected with universities. Economic results are such that incubators connected with universities are growing at a rate of 30%. Mark Burton and Michael Hicks find a clearly positive correlation between economic growth and cities with university incubators as “knowledge centers.” Source: University incubators as agents for technology transfer and economic growth: case studies in USA, Ukraine and Finland (Abetti, Rancourt), Market Watch: Financial Services & IBS. Regulation is allowing the introduction of Islamic Banking in the UK. Innovative Business Systems (IBS) is coordinating electronic banking innovation. 1 2

Out of 4,500 incubators worldwide, 1,500 are connected with universities.

Economic results are such that incubators connected with universities are growing at a rate of 30%.

Mark Burton and Michael Hicks find a clearly positive correlation between economic growth and cities with university incubators as “knowledge centers.”

Education made public The public availability of universities’ curricula is providing cutting edge content and knowledge to millions of people worldwide . This will improve the overall quantity and quality of knowledge worldwide. The Massachusetts Institute of Technology (MIT) is one of the world’s premiere educational institutions. MIT recently launched a project where it made all of its university course content available online. MIT’s OpenCourseWare Project has received 63 million visits by 48 million unique visitors. 91% of those surveyed expect either an extremely positive impact or positive impact in the future from this project and other projects like it. Source: http://ocw.mit.edu View all 1800 courses offered at http://ocw.mit.edu !

The Massachusetts Institute of Technology (MIT) is one of the world’s premiere educational institutions.

MIT recently launched a project where it made all of its university course content available online.

MIT’s OpenCourseWare Project has received 63 million visits by 48 million unique visitors.

91% of those surveyed expect either an extremely positive impact or positive impact in the future from this project and other projects like it.

Cooperation with the military The National Defense sectors are increasingly licensing technologies for commercial use allowing companies to take advantage of state of the art innovations. The Defense Advanced Research Project Agency has $380 billion in funding. Right now, the following technologies they have produced are available for licensing to the most technologically savvy companies: Laser Diode Spectrometer Using Fiber Gratings. Parallel Integrated Frame Synchronizer (PIFs) chip. Automated Propellant Blending. Source: http://www.nttc.edu/technologies / Think of the economic impact of “Going to the moon”!

The Defense Advanced Research Project Agency has $380 billion in funding.

Right now, the following technologies they have produced are available for licensing to the most technologically savvy companies:

Laser Diode Spectrometer Using Fiber Gratings.

Parallel Integrated Frame Synchronizer (PIFs) chip.

Automated Propellant Blending.

Conferences and workshops Conferences and workshops bring together innovative thought leaders. They help promote innovation cultures within companies across industries, including financial services. Regular conferences on innovation are providing platforms for collaboration and demonstration. Workshops take both internal and external ideas and discuss possible synergies with the existing business and implementation plans. Source: http://www.ted.com North Island CU Implements i3 Process To Drive Creativity Internally, Credit Union Journal, 2005. San Diego’s North Island Credit Union implemented a set of ongoing workshops focused on innovation, ideas and implementation (i3) in an effort to encourage creativity with a variety of stakeholders.

Regular conferences on innovation are providing platforms for collaboration and demonstration.

Workshops take both internal and external ideas and discuss possible synergies with the existing business and implementation plans.

Implosion of IP rights De facto leniency with IP and the inevitability of piracy is paving the way for creators to provide “some rights” to users ranging from simple sharing to remixing of original content and pushing innovation further. Creative Commons is a 501(3)c corporation providing a range of licensing rights to creators to allow users to build value on top of the original content. The evasiveness of the Internet and the ability to replicate and enrich original content is such that it promotes innovation. All rights reserved Some rights reserved No rights reserved Creative Commons Internet Traffic Source: http://www.creativecommons.org

Creative Commons is a 501(3)c corporation providing a range of licensing rights to creators to allow users to build value on top of the original content.

The evasiveness of the Internet and the ability to replicate and enrich original content is such that it promotes innovation.

Multicultural teams The different perspectives provided by members of increasingly multicultural teams are resulting in more creative solutions. The International Extension Curriculum finds that “Heterogeneity in problem-solving groups produces more creative responses.”* “ The problem with computers is that there is not enough Africa in them” Brian Eno.* “ It is possible to raise effective performance by managing multi-cultural teams, and also that performance comes from the vision sharing, interaction and learning processes by connected each other”, Kiyoshi Anzai, Managing cultural diversity through multicultural team, School of Knowledge Science, Japan.* According to Gallop organization, involved in an employee management research, employee appraisal is one of the key factors in ensuring efficiency of future services and better employee-organization relationship. “ [T]he employee inputs on improving efficiency led to reducing waste and increased project investments ” , ABA Banking Journal.** Source: *International Extension Curriculum ** Roll Out The Recognition . Community Banker. Vol. 16 Issue 1, p40-44, Jan 2007.

The International Extension Curriculum finds that “Heterogeneity in problem-solving groups produces more creative responses.”*

“ The problem with computers is that there is not enough Africa in them” Brian Eno.*

“ It is possible to raise effective performance by managing multi-cultural teams, and also that performance comes from the vision sharing, interaction and learning processes by connected each other”, Kiyoshi Anzai, Managing cultural diversity through multicultural team, School of Knowledge Science, Japan.*

According to Gallop organization, involved in an employee management research, employee appraisal is one of the key factors in ensuring efficiency of future services and better employee-organization relationship.

“ [T]he employee inputs on improving efficiency led to reducing waste and increased project investments ” , ABA Banking Journal.**

Children’s creativity The trend towards harnessing the potential creativity of children is adding creative solutions of value MIT’s LifeLongKinderGarden Project has a worldwide network of children involved in creating a whole range of projects, with a mission of sowing the seeds for a creative society. These projects are used as marketing test beds for companies and creating new spin-offs such as PicoCricket. Source: http://llk.media.mit.edu “ With PicoCrickets, you can create musical scultures, interactive jewelry, dancing creatures, and other playful inventions” Life long kinder Garden-MIT.

MIT’s LifeLongKinderGarden Project has a worldwide network of children involved in creating a whole range of projects, with a mission of sowing the seeds for a creative society.

These projects are used as marketing test beds for companies and creating new spin-offs such as PicoCricket.

Early successes The success of early innovative companies reached critical mass in some industries and is pushing competitors and other industries towards the same path. Early success of Ryan Air in re-engineering the business model of the airline industry towards “zero” motivated other businesses to innovate: EasyJet, Germanwings, Hello, Aigle Azur, etc. Similarly, other industries have opted for the “zero” business model: NaturHouse provides free nutrition consulting but makes enough margins to grow to 1,600 stores across Europe. Google itself is an early success story of earning money by providing a free service, a model praised by innovation scholars (Vassos). Ryan Air’s offer. New Innovators. Source: http://www.ryanair.com

Early success of Ryan Air in re-engineering the business model of the airline industry towards “zero” motivated other businesses to innovate:

EasyJet, Germanwings, Hello, Aigle Azur, etc.

Similarly, other industries have opted for the “zero” business model: NaturHouse provides free nutrition consulting but makes enough margins to grow to 1,600 stores across Europe.

Google itself is an early success story of earning money by providing a free service, a model praised by innovation scholars (Vassos).

Decreasing communications costs The increasingly low cost of communications will allow innovators to promote their innovations and collaborate on innovative products around the globe. Source: Daiwa Institute of Research, VON Europe May 2006. Free broadband in Norway being sold next to frozen peas. In Q1 08, 309 million users generated 14.2 billion minutes of voice and video conversations using Skype’s free peer-to-peer voice and video service.

In Q1 08, 309 million users generated 14.2 billion minutes of voice and video conversations using Skype’s free peer-to-peer voice and video service.

Necessity! Necessity remains one of the main external drivers of innovation. However, the increasing recognition of people with necessity has accelerated innovation. Grameen Phone recognized the need of people in rural Bangladesh and provided them with a model that empowers clients as producers as opposed to perceive them as simple consumers who are too poor to pay. Bendigo Bank recognized the necessity of remote communities in Australia for branch banking and quickly modeled an innovative franchise system to grow its presence there. The “Cow Model” of Grameen Phone that empowered the people in need and created economic value. Source: http://www.grameenfoundation.org

Grameen Phone recognized the need of people in rural Bangladesh and provided them with a model that empowers clients as producers as opposed to perceive them as simple consumers who are too poor to pay.

Bendigo Bank recognized the necessity of remote communities in Australia for branch banking and quickly modeled an innovative franchise system to grow its presence there.

More Many other impactful catalysts of innovation are being leveraged within organizations. Collaboration through partnerships. Flatter organizational structures. Cultural shifts towards encouraging entrepreneurship spirit. Multi-functional teams. Empowerment of the employee. Workshops. Innovation jams. Suggestion programs. Top-level commitment to innovation and mobilization of resources and re-arrangement of structure accordingly. Forward Looking Statements … Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, our ability to compete with new or existing competitors, risks related to our ability to innovate and grow, risks related to our international operations, our ability to maintain and enhance our brand, and the fact that we may have exposure to greater than expected tax liabilities… Google Inc. Financial Release’s “Forward Looking Statements”: Ability to innovate is main driver and risk. Source: http://www.google.com

Collaboration through partnerships.

Flatter organizational structures.

Cultural shifts towards encouraging entrepreneurship spirit.

Multi-functional teams.

Empowerment of the employee.

Workshops.

Innovation jams.

Suggestion programs.

Top-level commitment to innovation and mobilization of resources and re-arrangement of structure accordingly.

Innovation Roadmap – Technology Enablers Technology Enablers are technologies that can be deployed to drive specific innovative applications for competitive advantage and/or generating a Return on Investment. Many enablers for other industries have been applied, are in the process of being applied or should be applied in the global financial services industry. Social networking Video Net neutrality Blogs 3G & IMS Wikis Technology Enablers

Blogs Blogs allow individuals sharing common interests to interact, allowing innovative ideas to rise through a grassroots system as well as forming market segments that companies could not recognize before. “ Why do a market research? Just post the idea on your blog and the community will promote it if is good or kill it if it is bad!” Martin Varsavsky, Founder and CEO of FON 4,252,387 blogs, 157,154 new posts, 37,525,099 words today on Wordpress. That is more than 4 million groups promoting ideas within their interests. That is more than 4 million market segments!! Source: http://www.wordpress.com

“ Why do a market research? Just post the idea on your blog and the community will promote it if is good or kill it if it is bad!” Martin Varsavsky, Founder and CEO of FON

Wikis Credit Unions in the United States are leveraging the power of wikis as online collaborative spaces to innovate their products. Wikipedia, the largest encyclopedia ever made, is based on wiki software which has allowed volunteers to co-create over 10 million articles in 253 languages. This same concept is starting to be used in the financial services industry to innovate everything from branch design concepts to new products. American Credit Unions are being innovative and are embracing both internal and customer-facing wikis to help them design products, prioritize issue resolution and offer constructive suggestions. Anyone can participate in collaborative wiki debates. Source: Jepson, Kevin. Six Cu’s Use Wiki Platform as Means of Peer Collaboration. Credit Union Journal, Vol. XI No. 24 June 18, 2007.

Wikipedia, the largest encyclopedia ever made, is based on wiki software which has allowed volunteers to co-create over 10 million articles in 253 languages.

This same concept is starting to be used in the financial services industry to innovate everything from branch design concepts to new products.

Net neutrality Net neutrality will make telecommunications infrastructure available for all network provider, which would boost the number of innovative services that can be offered to end consumers. Transforming the networks into simple bit pipes through which anyone can send her service will boost the pace of innovation in providing services. “ The value of network neutrality can be seen clearly in another context: the nation’s electric system. Because it remains neutral, the electricity network has served as an important platform for innovation. The electronics industry designs new and better electronics, safe in the assumption that American electricity will be provided without preference for certain brands or products. When consumers buy a new toaster made by General Electric they need not worry that it won’t work because the utility company makes a competing product.” Lawrence Lessig and Tim Wu, Professors of Law Source: Re: Ex Parte Submission in CS Docket No. 02-52, Letter to Secretary of FCC.

Transforming the networks into simple bit pipes through which anyone can send her service will boost the pace of innovation in providing services.

“ The value of network neutrality can be seen clearly in another context: the nation’s electric system. Because it remains neutral, the electricity network has served as an important platform for innovation. The electronics industry designs new and better electronics, safe in the assumption that American electricity will be provided without preference for certain brands or products. When consumers buy a new toaster made by General Electric they need not worry that it won’t work because the utility company makes a competing product.”

Lawrence Lessig and Tim Wu, Professors of Law

Social networking Social networking is allowing peers to stay in touch interactively and to find other people who share the same interests, boosting the potential to create and collaborate on innovations of value. There is a large opportunity for financial institutions if they can tap into these networks. Source: Wikipedia and CNNIC Today facebook has more than 100 million users. MySpace has approximately 106 million accounts and are adding 230,000 new users per day. 51.com in China adds 160,000 new users everyday. Currently internet penetration in China is only 16% with approximately 237 million users. There is a large opportunity for growth still available in China.

Today facebook has more than 100 million users.

MySpace has approximately 106 million accounts and are adding 230,000 new users per day.

51.com in China adds 160,000 new users everyday. Currently internet penetration in China is only 16% with approximately 237 million users. There is a large opportunity for growth still available in China.

User videos & mashups User-generated online video and webcasts allow for more sharing of innovations and the promotion of creative ideas. Financial institutions are beginning to leverage video technologies and sharing to promote their own services and products. Source: Wikipedia, Nielsen/NetRatings & Credit Union Journal. In January 2008, nearly 79 million users had viewed 3 billion video views on youtube.com. Tudou.com generates 15 billion minutes of video viewership a day, or 360 million video clips to 7 million users in China. Videos can be “mashed-up” with wikis, blogs and social networks in an open fashion to enhance the online presence of individuals and providing them with more ways to express and collaborate on innovations. Financial institutions such as Andrews Federal Credit Union are offering webcasts which educate viewers about its financial products and services offered. Online financial product and service education is being offered via webcasts.

In January 2008, nearly 79 million users had viewed 3 billion video views on youtube.com.

Tudou.com generates 15 billion minutes of video viewership a day, or 360 million video clips to 7 million users in China.

Videos can be “mashed-up” with wikis, blogs and social networks in an open fashion to enhance the online presence of individuals and providing them with more ways to express and collaborate on innovations.

Financial institutions such as Andrews Federal Credit Union are offering webcasts which educate viewers about its financial products and services offered.

3G adoption and IMS 3G wireless and IMS are increasing data transmission speeds and the variety of applications that can be supported on mobile phones. This increases the opportunity for more complex mobile banking globally. Source: Hakan Eriksson, CTO Ericsson, VON Europe May 2006 & GSMA 190 3G networks in 40 countries and 154 HSDPA networks in 71 countries were in operation as of December 2007. Hundreds of millions of more 3G subscribers are expected as China is restructuring its telecoms sector. They are allowing 3 different 3G standards to be commercialized by 3 operators. 3G and IMS network services enable a wide variety of mobile applications. DSL VDSL GPON WLAN WiMax EDGE HSPA LTE Access -> packet broadband Multi- Vendor Multi- Operator IP VoIP IMS PTT MMTel IPTV IMS

190 3G networks in 40 countries and 154 HSDPA networks in 71 countries were in operation as of December 2007.

Hundreds of millions of more 3G subscribers are expected as China is restructuring its telecoms sector. They are allowing 3 different 3G standards to be commercialized by 3 operators.

Conclusions / Recommendations

Conclusions There is a strong similarity between the business and operating models of the vast majority of global banks. The banking industry is slow to adopt new customer and employee interaction technologies such as wikkis and blogs. Innovation is led from the top. If executive management does not see the value of innovation, it will not happen.

There is a strong similarity between the business and operating models of the vast majority of global banks.

The banking industry is slow to adopt new customer and employee interaction technologies such as wikkis and blogs.

Innovation is led from the top. If executive management does not see the value of innovation, it will not happen.

Recommendations There is an opportunity for new banks to innovate and create more niche business models such as Grameen Bank or Prosper. Trial co-creation and wiki technologies to create more innovative banking products and models. Ensure that executives understand the power, promise and return innovation can provide.

There is an opportunity for new banks to innovate and create more niche business models such as Grameen Bank or Prosper.

Trial co-creation and wiki technologies to create more innovative banking products and models.

Ensure that executives understand the power, promise and return innovation can provide.