Episode 29: How FI's can Lead Digital Disruption with Jim Perry

Digital Disruption. It's a phrase we hear a lot, and for good reason. And it's precisely the kind of disruption financial institutions can lead right now. This week on Banking On Experience, CRMNEXT's James Gilbert is joined by Jim Perry, Senior Strategist at Market Insights, Inc. to discuss this very topic. What's covered? · Why Jim believes this topic is so important right now. It's not a new topic, but- as he says, "COVID has already liberated a lot of consumers from that transactional dependency on the branch. So that means we have to be talking about this topic." · What this buzz phrase, digital disruption really means. Hint: Look at Capital One (disrupted our concept of branch), Robinhood (disrupted investing), Prosper (disrupted lending), and Chime (currently out there disrupting mobile banking as we know it.) · What digital transformation- another popular buzz phrase- means. As he says, "It's not just about technology. It's about culture. It's about business model. It's about process…It's even about your mindset. It really requires dramatic change." · What FIs should avoid in this endeavor. Jim's word of caution? Trying to integrate digital technologies just into the customer facing part of the bank- and not tending to the backend, the employees, and the processes- just slows everything down. · The How: a framework for where to start. For one thing, look at your branch network, your call center, your back office, your c-suite, your employees. Does everybody understands why you're trying to do these things? · What functions of a business- especially at an FI- need to be involved up front, in the strategy. Keep in mind: regardless of the title or function in the organization, you have to have people driving this initiative that are really going to champion the customer. It always comes back to people, people. · How brand and culture play a role in this digital transformation and disruption. Jim suggests some Qs to ask yourself, and you'll want to take notes. · For true digital transformation, the importance of having the right people in the right jobs. · Some of the biggest challenges financial institutions are facing right now. For one thing, the core system many have had for so long really doesn't play well with new technology. And, if you don't tie systems together and keep up as a FI, a FinTech company will swoop in and do it for you. · What Jim thinks relevant data is. Fundamentally- he says- it's data about the customer or member and their specific journey with your FI.