February 8, 2017
Have you ever wondered why legions of taxi companies never tried to steal Uber’s thunder by building their own cab-hailing app? Taxi Magic tried it. Who? Right. It didn’t go well.
I’ll leave the case study to Harvard Business School, but here’s the takeaway: Innovators disrupt themselves or their markets because they can. Followers see a hot trend and try to add it incrementally to their existing line of business. Spectators simply see change as a passing fad.
Now consider the banking industry. Everything is in flux – unprecedented regulation, relentless cyberthreats, new technologies like blockchain and AI, ever-increasing customer expectations, and the emerging disruption of FinTech. At the epicenter of change are the financial institutions. Some predict that financial institutions may lose a third of their workforces over the next 10 years because of ongoing financial industry disruption. The message is clear: harnessing and embracing global digital disruption will distinguish the growers and survivors from the casualties in the years ahead.
The Uber/Taxi Magic lesson should serve as a wake-up call for everyone in financial services. Viewing the phone as an incremental channel and not as an opportunity for digital disruption to the broader model will be a mistake. eMarketer predicts the number of smartphone users will surpass 2.16 billion by the end of 2016. Where will it be by 2020? Or 2025? And how will it change the way you do business?
There is a trend of banks narrowly focusing on the end-customer experience alone. It is the complete banking user experience t ...