There’s nothing like a week in another city to get the innovation juices flowing, and London Fintech Week was exactly that (thank you Luis and team for another week of great debate, networking and insights).
So, what is new in the world of Fintech? Well, if the speakers and panelists are to believed, and the messages were far too similar and consistent for them not to be…
…AI is playing an increasingly important role in the world and indeed in the world of banks – … . It is clear that to win in the investment banking game will still require smart people – but we must couple smart banker types with AIs and we must change our definition of “banker types” to include engineers and mathematical PHDs.
…Blockchain is here, and it’s all grown up. No longer a concept for alternative funding and the underworld, the cryptocurrency conversation is upping the volume at the highest levels with countries like Canada, the UK and Singapore all running projects, and banks of all sizes experimenting and building applications both in crypto-coins and blockchain technologies. Even the highly volatile crypto-currency prices over the week did nothing to dampen the enthusiasm. With the rise of open source, I expect we will see increasing opportunities to move from our existing centralized models to new blockchain enabled ones in many economies and industries.
…Trust is no longer about relationships, nor the strength of your brand. It’s about ease of use and, increasingly, peer review. Customers are no longer seeking a similar experience to the one they get from other banking brands, they’re looking for an experience like they get from the mega brands like Apple and Amazon. Banks are going to need to up their game – and quickly!
Clients know that if they are not paying, they are the product. Both banks and clients know the power of their data – what will this mean in the future? How will this change their expectations of service? Security now becomes as important as service; will clients demand due diligence of their service providers to ensure that their data is secure?
…Innovation is a choice – it doesn’t just happen. This is potentially the most important message of all. Entities that are leading in the start-up and innovation space are choosing to – they are seeing the possibilities that innovators bring and are finding creative ways to enable them. The innovation choice is being made at the highest level – countries like India, Canada, the UK, Germany, the Netherlands, and China are all facilitating innovation communities and the start-ups and banks coming out of those countries are moving faster than others because of it. It is a choice because there are millions of reasons and costs involved with creating change, but forward-thinking leaders recognize the importance and their choice to enable, means they are leaping ahead.
…It’s organizational cultures that will make the space for innovation and those cultures look to leaders for the messages they need. Coincidentally, I just finished reading “Under the Hood” by Stan Slap where he describes how to maximise business performance. Culture understands leadership motivators beyond words and culture works exceptionally hard to protect its own existence – so innovation will simply not happen without leaders giving the right messages. Innovation is a choice leaders have to make and their actions will send the clear message.
Everything we know, the way we work and the way we behave was all once created as a leadership or cultural choice. In this exponential era, we will need to change the stories we tell, the way in which we work, the technologies we believe in. It’s ridiculously exciting – and it’s moving…well, exponentially! At last years’ event, there was talk of what blockchain is and what AI could conceivably do, this year it was all about what businesses are being built on these technologies. I can’t wait to see what the next year brings!
by Liesl Bebb-McKay