CBA looks beyond applications for its future digital direction – Finance – Strategy – Cloud – Software
CBA has defined a vision for the future of personalized banking where it knows its clients so well that it only offers them financial products that it knows they will opt for.
In this week ITnews Podcast, Chief Digital Officer Fredrik Lindström and Chief Technology Officer for the Bank’s Retail Division and distinguished engineer Brendan Hopper speak at length about CBA’s broader digital goal to go beyond applications and services online that reproduce existing processes or experiences, and towards “digital first”, highly personalized services that have no prior equivalent.
Lindström, who joined the bank in August last year, believes in the need to go beyond the narrow definition of digital – that of apps or websites – and look to new digital services. which have no specific precedent.
“Long-term digital doesn’t equate to app, website or NetBank or all of that when you take it from a bigger perspective,” he said.
“Right now, that’s what people are talking about.
“Apps are still what people associate with digital banking. Apps first appeared with the iPhone in 2007 and have been predominant in the digital context ever since, but there is an expiration date for that.
It’s something Lindström and those working alongside him hope to help define.
He recognizes that this will require breaking out of current digital boundaries and having the freedom to rethink financial service delivery from scratch.
“The way banks work is that we still have the same underlying processes and products in a lot of cases that we then translated into something digital,” he said.
“It usually has a very negative effect on UX, because if we had the courage to forget what we have and just design something, given the digital capabilities we now have at our fingertips, what would decide- we ?
“It would look and feel a lot different.”
Lindström said ABC and the industry in general are embracing this challenge and “trying to design with a digital mindset”.
“In some areas, we’re also starting to see new products, new things, new services coming in that never had a predecessor in the physical world,” he said.
“I think what will happen is that banking as we know it will become to some extent invisible and commoditized, and then banks like CBA will have to figure out what the value proposition is for our customers in such an environment. .
“It’s going to accelerate with 5G and interconnected services, and as we go deeper into open banking and so on.
“Somewhere in the future there will be a world where the bank is part of an interconnected ecosystem. Now we have to figure out exactly what role are we playing there and how are we doing there? So that’s something we’re working on.
Future digital banking services are also likely to be much more personalized than they are today.
“We’re investing a lot in personalization, driven by the fact that I think people expect and enjoy the same things digitally as they do in the physical world,” Lindström said.
Lindström – who’s Swedish – uses an IKEA analogy for the kind of customization CBA ultimately wants.
“I wonder if [CBA] doesn’t have more products than IKEA sometimes, ”he said.
“My argument is that personalization is going to be used to select the ‘ingredients’ [products] we would show [a customer], so that you log in and see only the things that matter to you.
“There will be a lot of things that we still have on the shelves or in the magazine that we don’t need to show you, so we won’t.”
Conceptually, the model bears some similarities to the “segment of one” which has been popularized in online marketing circles.
“As tempting as it may be for a bank to throw all your good stuff out there [in front of each customer], it will not be relevant to the customer and sometimes you will even confuse him with it, ”said Lindström.
While personalization already existed to some extent, it was mostly based on “personas” – groups of customers who shared similar desires or characteristics.
“The industry has done a good job so far in trying to derive personas so that you have maybe five or six different versions of an app or channel, depending on who you are and what your needs are, but I think we have to take so many steps further and make it really really dynamic, depending on who you are.
Hopper said the bank is also looking to other digitally-focused experiments for inspiration on how it might be able to deliver banking services in the future.
In particular, Hopper cited the Domino’s Pizza app as a model where certain aspects can be cross-cutting in a banking context.
“I love that you can order pizza and watch it cook. As soon as it comes out of the oven, you can look at it, see on the map where it is, and you see it on your screen before you hear the [delivery] bike comes down the street, ”Hopper said.
“I think in the next couple of years we’ll start going there for banking.
“I wish I could have a home loan that you see ‘cooking’ and the minimum of manual processes [displayed to the customer].
“Being able to give our customers the ability to see where they are in a process and to have that absolute transparency… the same way they would order pizza, I think that’s going to be fundamental.”
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