We have great affinity with Chris Skinner and his blogs regularly hit home. In this – a list of predictions for 2017 – he discusses, amongst other things, that the investment in innovation is changing. From our own experience, we would concur that Innovation is indeed slowly moving out of the labs and into real-time time testing and that the way to collaborate with FinTechs has to be in the cloud (APIs) but outside of the core banking systems, only utilising them where necessary, thus reducing risk and integration blockbusters.
However, FinTechs must now start to see real value from innovation testing with banks as previous efforts have stopped after the tests wound up. This has led to disillusionment amongst FinTechs and has even led to FinTech Investors and PE’s scrutinising and rejecting what would previously have looked like Golden deals with big name banks. So let’s not just move where the testing of new services occurs, but try instead to get these services out there to larger numbers of retail banking clients, delivering innovation into customers hands or failing fast if it doesn’t work. Failing is not a word that is liked very much in banking, but by failing fast in the right delivery environment, you can also change and reiterate fast, thereby ultimately pleasing customers quicker than ever before, even if they didn’t love your first attempt. This can be seen in many iterations of popular apps from Facebook to eBay, LinkedIn to Amazon – where moving things around or the introduction new features haven’t quite worked and have quickly been iterated upon into something better. The brave new world embraces failures as learnings, as long as you demonstrate that you have learnt and grown as a result.
You can read Chris’ 2017 Predictions for yourself here: