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Kodak moment for banks?

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People and businesses will always need banking, but, asks PETER ALKEMA, FNB Business CIO, will they always need banks?

People and businesses will always need banking, but will they always need banks? This question is driving a wave of disruption and new thinking in the industry. Discovery has recently announced plans to enter the local retail banking market; telco and tech companies are making similar moves. Fintech is offering completely new ways of doing business and customers are embracing exponential start-ups who offer frictionless, mobile services. Banks are responding with increased digitisation, new lines of business and highly innovative channels. What’s really happening, how will the banking landscape change and when will it take place?

The reason that non-traditional players are getting into main account banking is because of the customer intimacy and insight that comes with a transactional bank account. It’s the one place that all the money goes into and comes out of; businesses put their main account on all their invoices and many married couples don’t even share one! A home loan or insurance policy is important but still just a monthly debit order that doesn’t generate any behavioural insight about a customer. The relationship is also typically low key; you will only hear from your insurance broker on your birthday and only home loans collections department if you miss a payment.

Some banks have taken advantage of this and created additional stickiness through rewards programmes, improved channels and ecosystems of value-adds. Core transactional platforms are at the heart of a bank’s operations. Regulation and banking license approval ensures that banking platforms are robust and well managed. In addition, financial aspects such as capital adequacy and risk controls such as anti money-laundering mean the requirements for running a bank are significant barriers to entry.

The local banking industry is consistently rated very highly and its world class resilience and regulatory oversight provided a shock absorber for South Africa during the global financial crisis of 2008. Internationally, large banks have relied on these barriers to entry to block new entrants but the rise of fintech and trust-disintermediating technologies such as Blockchain is changing this mindset. Looser regulation in the UK is seeing a wave of banking license applications from start-ups and in the US, firms such as Google, Facebook and Amazon are actively launching financial services products.

Arguably much of this activity is still peripheral and the core business of running a large scale bank relies on well established processes. This was true for Kodak in the mid nineties when it employed 140,000 people, sold 85% of the world’s photo paper and was the fourth most valuable brand in the United States. In 2012 it filed for bankruptcy; it got left behind in an industry that was turned upside down by technology and its impact on their customers’ lives and the market. Kodak invented digital photography but they failed to embrace the disruption to their own business model that it caused to the industry. Similarly, the Walkman was the first portable device for listening to recorded music; Sony could have digitised it but Apple’s iPod eventually obliterated it.

In 2000, Blockbuster was the biggest video rental chain in America, and at the time internet startup Netflix offered to run its fledgling online business. Blockbuster turned this down and went bankrupt 10 years later, having failed to move its business from bricks to clicks while Netflix has become a global leader in streaming movies.

South African banks have been very successful at moving processes off of paper, out of physical locations and onto digital channels. FirstRand’s 2016 results indicate that overall electronic volumes increased 13%, while manual volumes grew only 2%. New ways of working are also extending beyond channels to back office operations.

The next decade is likely to be pivotal for the banking industry and it will be driven by the race for the customer and not by the fintech on its own. Digital is just the enabler of new business models built around improved customer centricity that according to Dimension Data’s Digital Advisory is something that banks should avoid just doing, they have to become digital in their thinking, operating models and execution.

Customers expect frictionless processes that are available where they are and not only where the bank is, the transport and accommodation industries have already delivered this with Uber and Airbnb. According to Google, the tipping point to mobile in South Africa happened in 2014 when internet searches from mobile devices exceeded desktops. Millennials don’t stand in queues or fill in forms, they build trust through convenience and they reward customer delight with loyalty and peer group recognition. By 2020 there will be 500 million people in Sub Saharan Africa with connected smartphones; these people will still need banking but it will probably look very different from today.

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As selfie cameras rise, so must selfie etiquette

Selfies were once a sign of narcissism or self-obsession. Now they are the new normal, writes ARTHUR GOLDSTUCK.

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You can blame Oxford Dictionaries for making the “selfie” respectable. After all, being named Word of the Year, as it was in 2013, does tend to soften some of the self-consciousness in this most self-conscious of actions.

Once seen as a symbol of narcissism and self-obsession, it is now the new normal, to the extent that most smartphones are sold on the basis of the front camera. Or, as that feature is now almost universally named by manufacturers, the “selfie camera”.

I was one of the hold-outs, having a near-allergy to the selfie. I still resist, but succumb more often than I would like. The reason for continued resistance is that it remains a big leap from the word becoming respectable to the action itself shedding its narcissistic image. 

For most, it’s already happened, and for that you can blame Ellen DeGeneres. She  choreographed the most famous group selfie yet at the 2014 Oscars, when she roped a bunch of actors into a group selfie, using the then-new Samsung Galaxy S5 smartphone. Her tweet of the photo became what was then the most retweeted posting ever on Twitter, and was estimated to have been worth a million dollars in marketing value to Samsung.

Ironically, it was Samsung’s up-and-coming challenger, Huawei, that came up with a new word for this type of selfie: the “groufie”. Thanks to an 8 Megapixel front camera on the new Huawei Ascend P7 camera that year which took the highest quality selfies – and groufies – possible on a smartphone at the time.

It didn’t end there, and selfies and groufies have morphed into variations like selfscapes (selfie in a landscape), skyfies (selfies from the air, using remote controlled devices) and jerkies (selfies to make an idiot out of yourself). I invented all of those on the fly, so it’s easy to imagine a new word emerging for every type of selfie.

Continue reading about selfie improvements through the years.

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Mickey’s 90th for SA

Disney Africa announced the local launch of the Mickey the True Original campaign, joining the global festivities honouring 9 decades of Mickey Mouse, his heritage, personality and status as a pop-culture icon.

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As 18 November 2018 marks 90 years since his first appearance in Steamboat Willie in November 1928, a series of world-wide celebrations will be taking place this year and South Africa is no different.

The campaign will come to life with engaging content and events that embrace Mickey’s impact on the past, present and future. The local festivities kick off in earnest this month, leading up to Mickey’s 90th anniversary on 18 November 2018 and beyond:

  • An exclusive local design project where ten highly talented South African artists will apply their own inspiration and artistic interpretation on 6-foot Mickey Mouse statues.
  • Once revealed to the public, the statues will form part of the Mickey the True Original South African Exhibition, inspired by Mickey’s status as a ‘true original’ and his global impact on popular culture. The exhibition will travel to 3 cities and delight fans and families alike as they journey with Mickey over the years. Featuring 4 sections highlighting Mickey’s innovation, his evolution, influence on fashion and also pop culture, the exhibition is in collaboration with Samsung and Edgars, and will visit:

o   Sandton City, Centre Court: 28 September – 14 October

o   Gateway Theatre of Shopping, Expo Explore Court: 19 October – 11 November

o   Canal Walk Shopping Centre. Centre Court: 16 November – 26 November

  • Samsung continues their collaboration with Disney as they honour Mickey’s 90th anniversary nationally at all Samsung and Edgars Stores. Entitled Unlocking the Imagination, fans are encouraged to visit these stores, take a selfie with a giant Mickey plush toy using their Samsung Galaxy Note9 and stand a chance to win not only a giant Mickey plush, but also an international family trip. Visit www.Samsung.com for more information
  • Mickey’s 90th Spectacular, a two-hour prime-time special, will be screened on M-Net 101 later this year. The elegant affair will feature star-studded musical performances, moving tributes and never-before-seen short films. Superstars from music, film and television will join the birthday fun for the internationally beloved character.
  • In addition, look out for special programming on Mickey’s birthday (18 November) across Disney Channel (DStv, Channel 303), Disney XD (DStv, Channel 304) and Disney Junior (DStv, Channel 309).
  • In retailers, Edgars will be stocking a complete collection of trendy fashion, accessories and footwear for the whole family, inspired entirely by Mickey Mouse.
  • Mickey will be the central theme of an in-store campaign nationwide this November and December, with brand new products, apparel, toys, as well as titles from Disney Publishing Worldwide, including books, arts & crafts and comics
  • Discovery Vitality and Disney are celebrating healthy, happy families this festive season by offering helpful and exciting tips and tricks on how to eat nutritious, yet delicious, foods, all inspired by Mickey. There’s also a trip to Disneyland Paris up for grabs. Log on to www.discovery.co.za/vitality for information.
  • And much more – check the press for updates

“Binding generations together more than any other animated character, Mickey Mouse is the “True Original” who reminds people of all ages of the benefits of laughter, optimism and hope,” says Christine Service, Senior Vice President and Country Manager of The Walt Disney Company Africa. “With his universal appeal and ability to emotionally connect with generations all over the world, no other character quite occupies a similar space in the hearts and minds of a global fan base and we are thrilled to be sharing these local festivities.”

Mickey’s birthday is celebrated in honour of the release of his first theatrical film, Steamboat Willie, on 18th November 1928, at the Colony Theatre in New York City. Since then, he has starred in more than 100 cartoons and can currently be seen on Disney Channel (DStv, Channel 303) in the Mickey Mouse cartoon series and on Disney Junior (DStv, Channel 309) in Mickey and the Roadster Racers.

South African fans are encouraged to share their Mickey Mouse moments on social media using the hashtag#Mickey90Africa.

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