Banks are experiencing a midlife crisis. They desperately want to transform and become digitally enabled but they are being hamstrung by legacy systems, data silos and disjointed marketing, says CARLA PETERSEN, Senior Business Director at Acceleration, London.
Digitally maturing organisations who are leveraging technology to redefine their businesses understand that this journey starts with transforming their customers’ experience of their brand through the transformation of their operational models, which ultimately leads to the transformation of their business models.
They, therefore, treat their customer data as an asset and foster a culture that supports rapid iteration, rapid prototyping and risk-taking, enabled through well-integrated marketing technology. If something doesn’t work, they chalk it up to learning and try something else.
Yet, banks are inherently risk-averse. This is not unexpected given that the financial industry is one of the most heavily regulated, especially when it comes to the responsible use of their customer’s personal data. Most have the challenge of integrating expensive legacy systems that are still being used and navigating the slippery slope of digital analytics, mobile, social and cloud solutions that should enable the modern marketing capabilities of their organisations. A common theme, too, is the lack of executive-level buy-in and commitment to drive the type of cultural change that puts the customer at the centre of the business strategy. So where do some of the opportunities lie that will empower banks to be more future ready?
A recent study conducted by Wunderman and research partners, Penn Schoen Berland, (in which 250 senior executives from global brands were interviewed) indicate that whilst 99% of all executives surveyed believe that data is critical to achieve success, 62% feel that they are unable to convert this data into insights or action and an even further 68% say they can’t use the data to create relevant messages.
Banks have a wealth of information about their customers’ income, lifestyles and purchasing behaviour. The problem is that this data resides in silos within the organisation, making it impossible to understand what a customer needs when they need it – much less accurately predicting their needs over time so that the customer benefits from every interaction they have with the brand. The credit card division works off a different dataset to the home loan division, for instance. The result could be that the bank ends up offering a credit card to a customer who already has two or three, rather than offering him preferential rates on a home loan because the bank knows he’s looking to buy a house.
When data is integrated and centralised, all departments work towards a common KPI: to drive business growth by meeting the needs of a particular customer at a particular point in their lifecycle.
Yet, performance in banks is still measured by business-unit KPIs. This has resulted in disjointed organisational cultures and decentralised decision-making.
There is some awareness of this problem though, as seen by the trend towards creating cross-functional teams when launching a new product or brand experience. In these set-ups, brand and product teams, marketing teams and the IT department come together to focus on what a good customer experience looks like and how technology and data can support it.
Once the cross-functional brainstorm is finished, however, the different teams go their separate ways to focus on their individual objectives that usually have nothing to do with the KPIs that result in digital transformation. Digital transformation requires strong leadership and vision to drive the change and reap the rewards.
All marketing and digital transformation strategies need to put the customer experience first – and that requires a new approach to data management, a new approach to technology enablement and, most importantly, a new approach to organisational culture.
This cultural change can only be driven from the top and it is imperative that senior executives integrate digital transformation across all their products and services and create a team of digital experts who are experienced in modern marketing practices and understand the customer journey and how data and technology can enable that experience. Until this happens, the agility crisis facing banks will continue, putting their business models at risk.
Huawei Mate 20 unveils ‘higher intelligence’
The new Mate 20 series, launching in South Africa today, includes a 7.2″ handset, and promises improved AI.
Huawei Consumer Business Group today launches the Huawei Mate 20 Series in South Africa.
The phones are powered by Huawei’s densest and highest performing system on chip (SoC) to date, the Kirin 980. Manufactured with the 7nm process, incorporating the Cortex-A76-based CPU and Mali-G76 GPU, the SoC offers improved performance and, according to Huawei, “an unprecedented smooth user experience”.
The new 40W Huawei SuperCharge, 15W Huawei Wireless Quick Charge, and large batteries work in tandem to provide users with improved battery life. A Matrix Camera System includes a Leica Ultra Wide Angle Lens that lets users see both wider and closer, with a new macro distance capability. The camera system adopts a Four-Point Design that gives the device a distinct visual identity.
The Mate 20 Series is available in 6.53-inch, 6.39-inch and 7.2-inch sizes, across four devices: Huawei Mate 20, Mate 20 Pro, Mate 20 X and Porsche Design Huawei Mate 20 RS. They ship with the customisable Android P-based EMUI 9 operating system.
“Smartphones are an important entrance to the digital world,” said Richard Yu, CEO of Huawei Consumer BG, at the global launch in London last week. “The Huawei Mate 20 Series is designed to be the best ‘mate’ of consumers, accompanying and empowering them to enjoy a richer, more fulfilled life with their higher intelligence, unparalleled battery lives and powerful camera performance.”
The SoC fits 6.9 billion transistors within a die the size of a fingernail. Compared to Kirin 970, the latest chipset is equipped with a CPU that is claimed to be 75 percent more powerful, a GPU that is 46 percent more powerful and an NPU (neural processing unit) that is 226 percent more powerful. The efficiency of the components has also been elevated: the CPU is claimed to be 58 percent more efficient, the GPU 178 percent more efficient, and the NPU 182 percent more efficient. The Kirin 980 is the world’s first commercial SoC to use the Cortex-A76-based cores.
Huawei has designed a three-tier architecture that consists of two ultra-large cores, two large cores and four small cores. This allows the CPU to allocate the optimal amount of resources to heavy, medium and light tasks for greater efficiency, improving the performance of the SoC while enhancing battery life. The Kirin 980 is also the industry’s first SoC to be equipped with Dual-NPU, giving it higher On-Device AI processing capability to support AI applications.
Read more about the Mate 20 Pro’s connectivity, battery and camera on the next page.
How Quantum computing will change … everything?
Research labs, government agencies (NASA) and tech giants like Microsoft, IBM and Google are all focused on developing quantum theories first put forward in the 1970s. What’s more, a growing start-up quantum computing ecosystem is attracting hundreds of millions of investor dollars. Given this scenario, Forrester believes it is time for IT leaders to pay attention.
“We expect CIOs in life sciences, energy, defence, and manufacturing to see a deluge of hype from vendors and the media in the coming months,” says Forrester’s Brian Hopkins, VP, principal analyst serving CIOs and lead author of a report: A First Look at Quantum Computing. “Financial services, supply-chain, and healthcare firms will feel some of this as well. We see a market emerging, media interest on the rise, and client interest trickling in. It’s time for CIOs to take notice.”
The Forrester report gives some practical applications for quantum computing which helps contextualise its potential:
- Security could massively benefit from quantum computing. Factoring very large integers could break RSA-encrypted data, but could also be used to protect systems against malicious attempts.
- Supply chain managers could use quantum computing to gather and act on price information using minute-by-minute fluctuations in supply and demand
- Robotics engineers could determine the best parameters to use in deep-learning models that recognise and react to objects in computer vision
- Quantum computing could be used to discover revolutionary new molecules making use of the petabytes of data that studies are now producing. This would significantly benefit many organisations in the material and life sciences verticals – particularly those trying to create more cost-effective electric car batteries which still depend on expensive and rare materials.
Continue reading to find out how Quantum computing differs.