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Great CIOs Know Innovation Is About Making Banking Better
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KBurger
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KBurger,
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12/3/2014 | 12:43:11 PM
Re: Natural Innovation
To be fair, some of the assessment also has to do with how you define innovation. If it includes finding ways to do things better, faster, more accurately & securely, then I think many banks of all sizes have significant accomplishments in these areas. If it is strictly about redefining and disrupting the industry, then it's a different kind of picture. And it also should be noted that competitive advantage no longer lasts for very long -- new products and services become commoditized much more quickly than even 10 years ago, employees are more mobile. regulation is more complex. That's not an excuse for not aiming for innovation, but it just further illustrates that you can't just turn a switch or issue a pronouncement, "Let's innovate!"
Jonathan_Camhi
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Jonathan_Camhi,
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12/3/2014 | 11:49:09 AM
Re: Natural Innovation
That's a good point about all fo the mergers in the industry. It's funny that you mentioned USAA. I've heard a former head of innovation at USAA say that he can't think of any company in financial services that has that kind of innovative culture. So if USAA, which is a very innovative company in the financial services sector, isn't that innovative, then the rest of the industry is definitely far from it.
KBurger
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KBurger,
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12/3/2014 | 11:13:07 AM
Re: Natural Innovation
USAA is one of the organizations that frequently is cited for its success in innovation, customer service, tech prowess, etc. And they do have a very strong culture -- a lot of which comes out of the company's military tradition. There is never any question about who their customer is and what that customer needs, although the platforms and technologies to deliver the products and services to meet those needs have evolved. However, most FS have changed so much over the years (thru mergers, regulatory changes, market shifts, management trends etc.) that even if there was a strong, consistent culture at one point it probably has fallen by the wayside.
Jonathan_Camhi
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Jonathan_Camhi,
User Rank: Author
12/3/2014 | 10:07:20 AM
Natural Innovation
It always strikes me how difficult it is for banks  -- paritcularly large ones -- to create that natural environment for innovation that you talk about Kathy. Banks put in place all of these processes and tools to encourage innovation, but that doesn't create an environment that fosters innovation. It turns innovation into a series of steps in a process. Are there any companies in financial services that have acheived an environment for innovation to naturally occur?


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