The Bankwatch

Tracking the consumer evolution of financial services

SAP Banking Innovation Day Toronto – Chris Skinner

@Carole_Beatty #sapbankingday

Live blogging from the day.  Introduction by Randy Lenaghan highlighted the de rigeur standard industry drivers in financial services today.

  • Customer centricity as a principle
  • Core systems upgrading
  • Customer insight driven by data

He also pointed out a more subtle point that like IBM, SAP is having to quickly adapt to a world that many of us saw coming but was hard for multinationals to see. To quote Randy “SAP cannot be a legacy erp vendor any more" which was refreshing I though.  Sap is transforming because of changes brought on by Cloud and SaaS (Software as a Service)

Today was framed as a broad agenda introduction with more sessions coming.

That set the tone for the perfect introductory speaker, my old online ‘colleague’ Chris Skinner.



He started of with a new acronym. 

PEST, which I think i have it right as “Political European social technology”.  Anyhow a great way to introduce banking.

But then he got serious. After the obligatory mention of his new book "digital bank" he kicked off with several themes from the book.




Here are my notes from his highly entertaining talk:

  • Branches:
  • He spoke of branches and referenced ABN Ambro where he average branch has two tellers, and 20 visits per day. In the UK there were 20k branches and now down to 7k.
  • Branches are fast becoming for Account openings only with forecast for representing in 2017 only 5% of customer interaction.
  • He pointed out that Canada has 10k branches vs UK 7k re population.  Interesting when we think that UK has double the population of Canada.  Sobering thought for Banks here.
  • Some banks need branches because customers trust employees – a reference to lack of institutional trust.
  • Mobile
    • He referenced Africa and MPESA and quoted stats on the growth.  In Kenya, mobile reflects 40% of GDP.
    • Barclays had 2m customers on mobile after 2 months – it took 13years to get that with normal online banking.
    • Mobile means that everyone is a merchant – example square.
    • Bbva bought Simple to be in that space.  Whether the price was too high or too low, that was the fundamental reason.
    • Amazon hired 650 people in payments division last year
  • Revolutions
    • Agricultural, industrial, service,  information
    • brought money types:
    • Coins, notes and cheques, cards, and now chips
  • Wearables and Internet of Thinks
    • “Connecting people to the web – the new business war” – Skinner quote
    • The new three P’s of marketing – Proactive, predictive proximity
    • Hailo – friction of money goes away focus is on the experience. Its not about paying for a cab.  Its about going from point A to B.  You get out of the cab and payment takes place seamlessly, frictionless in the background.  It is no longer about making the payment – it is about the experience.
    • Everything is a human thing
    • [Ed] it struck me as he was speaking here that experience 10 years ago to a bank meant web site redesign.  Experience now is much more subtle and all to do with removing the friction of money and payments. [/end Ed]
  • Community and sharing
    • Community and commerce – personal work are connected
    • Zopa 3% of personal credit market
    • ICICI bank made social media a priority, and transformed their brand reputation from somewhat negative to overwhelmingly positive
  • Security
    • 1.3 million bank attacks last year 82 were critical.
  • Wrap up
    • Digital is a journey not destination.
    • Humanize the experience

    Evernote Snapshot 20140325 093142

    Written by Colin Henderson

    March 25, 2014 at 09:42

    Posted in Uncategorized

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