WolfmanOctober 16, 2015"Walmart's focus on innovation in retail helped it to create the world's largest retailer. That said, the stock tanked this week because it is taking some very big steps in increasing the minimum wage they pay their employees and making significant investments in ecommerce. Even when an organization is able to remove the single-silos that may inhibit innovation, there are still numerous challenges for any organization to innovate. I think we are going to see a transfor…"
Paul ReynoldsOctober 16, 2015"It's not just a problem in capital markets. Look at any innovation in the last ten years in finance and you will find it came from a non-bank initiative. Paypal, Transferwise, Apple Pay, Bitcoin, crowfunding etc... Every part of banking is now challenged by innovative, smart start-ups that take one activity and turn it on its head. Banking will be unrecognisable in the next five years.…"
GooseOctober 15, 2015"Innovating across business silos generally presents the unstated question, “Who’s ox is going to get gored?” The innovation benefits the overall firm, but key personnel in the silos needed to cooperate may suffer gains or losses from the outcome. Business managers get yearly compensation by generating profits and serving the needs of their customers TODAY. As a friend said to me, “I don’t get paid for long term visions”. Anything that disrupts the ability to generate…"
CharlieOctober 15, 2015"After years of cutting IT budgets to the bone, directing all expenditure to meeting new regulatory hurdles and shutting out requests from business lines to fund new products and change requests for competitive developments, an Innovation Team is created that ‘will help move the bank forward’. Does anyone else see anything wrong here? Is it surprising that the whizz kids are met with resistance? How is the Innovation Team partnering with the businesses to address the r…"
I love this article as it really highlights something those of us that have spent many years both in capital markets businesses as well as at innovative technology start-ups have lived and experienced first hand in a myriad of ways. The bottom line is, each business head is paid to generate revenue/profits and meet/exceed budget, period. Maybe recently there have been some changes but I am not aware of any business heads told they were going to be evaluated and compensated on working with their internal technologists or innovation teams. Given this, it is only natural that they focus on… Read more »
After years of cutting IT budgets to the bone, directing all expenditure to meeting new regulatory hurdles and shutting out requests from business lines to fund new products and change requests for competitive developments, an Innovation Team is created that ‘will help move the bank forward’. Does anyone else see anything wrong here? Is it surprising that the whizz kids are met with resistance? How is the Innovation Team partnering with the businesses to address the right problems and opportunities? Does the Innovation Team understand the nuances and the revenue streams? Change is closely connected to human relations. Change succeeds… Read more »
Innovating across business silos generally presents the unstated question, “Who’s ox is going to get gored?” The innovation benefits the overall firm, but key personnel in the silos needed to cooperate may suffer gains or losses from the outcome. Business managers get yearly compensation by generating profits and serving the needs of their customers TODAY. As a friend said to me, “I don’t get paid for long term visions”. Anything that disrupts the ability to generate short term revenue, and effects an individual’s value proposition has negative consequences for the innovator. Upper management needs to empower those who create and… Read more »
Paul Reynolds
9 years ago
It’s not just a problem in capital markets. Look at any innovation in the last ten years in finance and you will find it came from a non-bank initiative. Paypal, Transferwise, Apple Pay, Bitcoin, crowfunding etc…
Every part of banking is now challenged by innovative, smart start-ups that take one activity and turn it on its head.
Banking will be unrecognisable in the next five years.
Walmart’s focus on innovation in retail helped it to create the world’s largest retailer. That said, the stock tanked this week because it is taking some very big steps in increasing the minimum wage they pay their employees and making significant investments in ecommerce. Even when an organization is able to remove the single-silos that may inhibit innovation, there are still numerous challenges for any organization to innovate. I think we are going to see a transformation in the banking industry, but I don’t buy into the notion that the banks are going away replaced by some democratized banking android.… Read more »
Comments
I love this article as it really highlights something those of us that have spent many years both in capital markets businesses as well as at innovative technology start-ups have lived and experienced first hand in a myriad of ways. The bottom line is, each business head is paid to generate revenue/profits and meet/exceed budget, period. Maybe recently there have been some changes but I am not aware of any business heads told they were going to be evaluated and compensated on working with their internal technologists or innovation teams. Given this, it is only natural that they focus on… Read more »
After years of cutting IT budgets to the bone, directing all expenditure to meeting new regulatory hurdles and shutting out requests from business lines to fund new products and change requests for competitive developments, an Innovation Team is created that ‘will help move the bank forward’. Does anyone else see anything wrong here? Is it surprising that the whizz kids are met with resistance? How is the Innovation Team partnering with the businesses to address the right problems and opportunities? Does the Innovation Team understand the nuances and the revenue streams? Change is closely connected to human relations. Change succeeds… Read more »
Innovating across business silos generally presents the unstated question, “Who’s ox is going to get gored?” The innovation benefits the overall firm, but key personnel in the silos needed to cooperate may suffer gains or losses from the outcome. Business managers get yearly compensation by generating profits and serving the needs of their customers TODAY. As a friend said to me, “I don’t get paid for long term visions”. Anything that disrupts the ability to generate short term revenue, and effects an individual’s value proposition has negative consequences for the innovator. Upper management needs to empower those who create and… Read more »
It’s not just a problem in capital markets. Look at any innovation in the last ten years in finance and you will find it came from a non-bank initiative. Paypal, Transferwise, Apple Pay, Bitcoin, crowfunding etc…
Every part of banking is now challenged by innovative, smart start-ups that take one activity and turn it on its head.
Banking will be unrecognisable in the next five years.
Walmart’s focus on innovation in retail helped it to create the world’s largest retailer. That said, the stock tanked this week because it is taking some very big steps in increasing the minimum wage they pay their employees and making significant investments in ecommerce. Even when an organization is able to remove the single-silos that may inhibit innovation, there are still numerous challenges for any organization to innovate. I think we are going to see a transformation in the banking industry, but I don’t buy into the notion that the banks are going away replaced by some democratized banking android.… Read more »
Related Posts
S&P: All That Bond Market Illiquidity is Bad for Bond Funds, But Not Banks – Bloomberg
July 1, 2015Bankers and Regulators Voice Fears on Bond Market Volatility
May 6, 2015BCG Report – Adapting to Digital Advances: Global Capital Markets 2015
May 14, 2015