Banking on Digital Growth
Banking on Digital Growth

Episode · 1 year ago

14) #ExponentialInsights: The 3 Steps You Must Take to Prepare for the Future of Work w/ Jon Ogden

ABOUT THIS EPISODE

Not too long ago ATMs were poised to end bank teller jobs…

But they ended up creating more. 

With a history of failed predictions like this, how do you prepare for the ever-changing future of work? 

In this episode, I catch up with Jon Ogden, Head of Strategic Content at MX, and he shares 3 steps every financial brand can take to future-proof their business… 

No crystal ball required.  

Jon explained:

-The history of failed predictions concerning the future of work

-The 3 steps you need to take to prepare for the future of work

-Specific areas financial brands should focus their attention on

You can find this interview, and many more, by subscribing to Banking on Digital Growth on Apple Podcasts, on Spotify, or here.

The three staps would be to commit tolive your mission to Avob your culture beyond a legacy mightsat and to investin technology that will position your institution for the future. You were listening to banking, ondigital growth, with James Robert Lay, a PODCASTA impowers financial brandmarketing sales and leadership teams to maximize their digital growth potentialby generating ten times more loans and deposits. Today's episode is part ofthe exponential inside series, where James Robert Interviews, the industry'stop marketing sales and FINTECH leaders sharing practical wisdom toexponentially elevate you and your team. Let's get into the shel greetings in hello. I am James RobertLay and welcome to another episode of the banking on digital growth podcast.Today's episode is part of the expinintial insight series, and I'mexcited to welcome John Ogden, to the show John is the head of strategiccontent ATM X, Hello, John Hi. So thanks for joining me for today'sconversation, one of the things that I'm curious to know is as we getstarted. What is one thing that you and the team at M X is working on right nowduring these dynamic and ever changing times? One thing that we're working on is aproduct called pulte and pulsis, especially like a financial feed forthe end user. So a bank or a credit union or Orphn company might offer itto their customers, and then the enuser would be able to see in real time whatis happening with their finances, get nudges to help them see how to managetheir money better and they might also be able to. They would also be able tosee financial advice that is personalizedto them, and so it really is like an automatedfinancial guidance tool that that banks on creditins andfantic companies canuse to empower their customers to befinancially strong, which, in today's environment, I ismore important now than ever before, for a financial institution to positionaround that perspective of strength of courage, of confidence for context,you're working with pulse, to provide nudges behavior changes, modificationsto empower someone for context. Can you take a step back and just pait thelarger picture of what M X is doing in the industry? Sure so im mx focused ondata, and we help our clients ring in an aggregatedview of their end users. So they can...

...see a three hundred and sixty degreeview of their finances all one place, and then we help our clents use thatdata to again ampower, Tha and ou would be financially strong, but to also helpour clients use that data to understand theirclienttheir customer base and to create hyperpersonalized offers fortheir end users to do a variety of things. Really you kno so so theaiatedhey, can do a lot with it yeah. So if I was to take that, it's essentiallyyou're simplifying the complexity of data to provide both actual insightsfor a financial brand, but really, more importantly, actual insights for theconsumer to make their life even that much better, because money is a verystressful situation. It's very complex INA of itself Kindof, like data, is tofinancial institutions. Money is to people, and people are looking forclarity. So with Pules with M X. YOU'RE, providing clarity into complexity isthat a fair summary Yeah it is ourmision is to empower the world to befinancially strong and we help to simpilify finances for the Enuser, andthen those benefits are really minumental for our clients as well. Ilike that empower the world to be financially strong, because there issuch a strong correlation between a person's financial wellbeing, theirphysical, well being and their mental well being and in this environment Um. It is confusing it as complex, it isoverwhelming, and so, let's transistion the conversation to talk about thisenvironment really from two fronts. Number One will will take the approachof the future of work, which is a really an indepth guide that you'vewritten four financial brands and the number two. How does the future o workimpact the future of banking? So, let's start with the future of work, because,with within the last few weeks since we've all been exposed to this covet,nineteen crisis work will never be the same again, willnever go back to what the world was before, we'll never go back to what wasconsidered once normal nd we're only going to create a new normal going Ford.In your viewpoint, what does that new, normal look like based upon what you'vewritten about and then also what you're seeing in the in the environment todaywith the future of work? This great question I'll start big pictur and enget into practical tips as I go on. I also share some of the originalconsumer research that we've done for these ultimate guides, so big picher...

...eyes about how work it balls and weshould expect work to to continue to evolve so for hundreds of thousands ofyears, humans were hunder gatherers. You know about ten thousand years agowe started theagricultural revolution and then that continued through to pretty recently known o the past twohundred years, a minority people were doing farming, and now it's around twoto five percent and yeah. I know you wrote in the guide. Fifty five toseventy. Five percent of Europeans still worked in agricultural R farmingas recently as six hundred years ago, so we'rewe're moving through continueto paint this picture. For me, please, because we're moving through thesedifferent stages of of work as a whole yeah and then, sincethe nineteen eighties. Now the percentage of knowledge worker haysgrown tremendously. It's grown two hundred and thirty percent sinceNineeen, since the early nineteen eighties and so work is becoming acompletely different thing than it has been in our historip, and there are a lot of predictions andassumptions that people have made based on this trajectory. A lot of them havebeen wrong. A few that I'll mention John Maynard Kanes oe in nineteenthirty, that he thought that modern inonovations would a result in afifteen hour work within TWOCO, so ifteen our work. Weddidn't quieteend up with that, though, worwueeks have a a number of hours in each work. Weekhas decreased UST, not a fifteen hours, onme te craps WHO's, an economist andECOMERC ectary under Jimmy Carter, prejected in nineteen. Seventy, thatthe rise of computers would enable people to retire at the age of thirty.Eight. So also finish: The ACK Tril, I'm stil,I'm still looking for that. Myself Yes same and then when it comes to banking. In the early nineteen seventies, a lotof exepats thought that ATMs have replaced tellers and even in the NewYork Times they said it would be up to. Seventy five percent of tellers wouldbe replaced. Now. This hasn't happened: Zenymone works in baking, nose to somedegree. Instead, teller drops have grown slightly faster than the generallabor force, so we now of nearly half a million ATMs,but nearly the same number of towlers atiums have a replacingments, and thereason for this is pretty interesting, so ATMs reduced, the number of tellersneeded per branch so went from O twousentand one n thirteen, an averageurban branch, but that reduction made it cheaper to build branches so because of is cheaper to billbranches. Therefore, then Baxin Cretins built more branches and then hiherwar tellers overall and Thi samething happened in...

...textiles, automation, the same thingexact same thing: automation made getting, are makingclothes cheaper, but that cause more people more demand for clothes whichcause more people need to be needed to make those clothes. So there's aninteresting play there between automation and the number of peopleemployed, and it thing has pretty big implications and banking itself. Ifpeople are wondering, am I going to lose my job or not? So it's it's. It'salmost like a chicken or the egg. What came first, what's driving all of this,and to summarize N we've gone through these different economic work cycles:Agricultural Industrial, technological, we're moving into the age of AI. We'vereally moved beyond from a service economy, to what some migh argued to bein experience economy, but I'm pushing that conversation Ford further. Youmentioned the knowledge work or the knowledgey economy, or something thatI'm calling the expertise. Economy wwork is not necessarily about what youdo, but it's about what you think or the value that you create through yourthinking or the insight jit you're able to distil almost kindo. Bringing thisconversation full circle, simplifying the complex sure, yeah. Absolutelythere's a lot of value in being able to do that. No! So so that's that's justthe stage. Let's talk about where, where we can go with the future of work,because you've detailed and laid out three almost a three step road map ofactions that a financial brand can take when it comes to the future of work,sure that banks can take specifically. So this is in the ultimate guide to thefuture of banking and it the three staps would be tocommit to live your mission to Avob your culture beyond a legacy mightsatand to invest in technology that will position your institution for thefuture. So, let's talk about committing to live your mission. This is an area Ifind many times. There are gaps through the diagnostic work that we do an executive team. A board of directorsmight feel that you know we're on this mission, but the mission might be selfserving and might be clinical. It might be legacy so there's an opportunity tostop pause, think N, and what are those opportunities from your perspectivewhen it comes to the mission of a financial brand or the purpose of afinancial brand? One idea that I think is pretty convn compelling, is to hire or just make a position of an internalanthrocopologist, so somebody who, whether its ploys you already have orhe place that you hire you want to get it very clear asobjective as possible sense for what how your institution is actuallymeasuring up to your mission. 'cause.

It's one thing to have pebmissionstayment or to talk about high values and a completely different thing toactually live that mission, and so one way to do thatis to have peop who are observing whether you're accomplishing that inyour organization as an anthropologist would sitting back and seeing OK, wesay that we are about. We put our customers first welit's,just look awhether, that's true! Is it true andthe branches at true on Mobil? Is it true on our digital banking portal? Isit true in our customer service, you know these. These employees would beable to listen in and just observe, what's happening, wrote in a very clearsense for what is because you don't want to be diluded into thinking thatyou're accomplishing your mission, if you're not alove, that digitalanthropology, the study of people and the connection between people andtechnology and O'Brien Solac he's written a lot around that perspectiveof digital anthropology. It's almost like what we say and whatwe do or what we believe does that translate into what we say orcommunicate and th n does that held up by what we do or how we act. How wedeliver on the promise so purpose informs the process. The wy informs thehow I like that very, very practical when it comes to committing to live themission digital anthropology. The second point you recommended isevolving beyond a legacy mindset. I truly believe mindset is exponentially more valuable thantechnology, because you can have all of the technology. You can have all thetools, but if you don't have the mindset to capture the opportunity to takeadvantage of the capabilities full advantage of the capabilities, then youjust have a tool at the end of the day, w what are the opportunities for afinancial brand and their teams to evolve beyond a legacy mindset andwhat's holding them back hewats holding the back? Is there there is some wisdom in those whoare holding the institution back and that wisdom is here. We should becautious, there's wisdom in that. That said, too much caution can beparalyzing, and so one of the things that ien find realy valuable about what weoffer is that we not only provide the technology,but we also help them evolve from a lagacy migndset in a waythat is still secure, because we acknowledge that that thatthat position of winding security and safety is valid and we're not writing that offcompletely Zaye. That's a bunch of...

...nonsense just get with the Times. Youknow, n. We have empathy for that position. Vmywere saying you really dohave to af all a lot of these institutions. Don't know exactly howhow to do that, and so, in addition to providin technology, we als Priaguidance to gibles to do that. One of the reasons that people really have toevolve- and this is one of our survey findings- is that we do these surveys of a thousandrandom US consumers and BUSTEROLP to make ihads, and one of our findings wasthat eighty six percent of you as consumers say they interact with theirfinancial institution by digital channels more frequently than physicalchannels and the rate at which people do it is far higher. Then they comeinto the branch. Let me look at the exact percentage here. It was more thaneighty percent say the use MOEF banking, at least weekly and more than half saythey use it every one to two days, so, eighty percent, so that with mobilebanking. But when we asked about ranch visits, only eighteen percent said theywould visit it visit a branch in a week, and so this s the reason y, the legacyMindsa, is really so urgent because people are moving quikly to mobilewe've even seen this w. We asked this question in two thousand and fifteen totwo thousand and twenty now and the the rate of people adopting Mobil hasreally grown vast, and so there is a sense of urgency aroundadopting this licacy mindset that I think a lot of instututions are cluedinto, but they might not know exactly how to go about evolving. That linso technology has transformed our world,and digital has changed the way consumers shot for and buy financialservices forever. Now consumers make purchase decisions long before theywalk into a branch if they walk into a branch at all, but your financial brandstill wants to grow loans and deposits. We get it. Digital growth can feelconfusing, frustrating and overwhelming for any financial brand marketing andsales leader, but it doesn't have to because James Robert wrote the bookthat guides you every step of the way along your digital growth journey visit,www, dot, digital growth, dotcom to get a preview of his best selling bookbanking on digital growth, or order a copy right now for you, and your teamfrom Amazon inside you'll find a strategic marketing manifesto that waswritten to transform financial brands and it is packed full of practicalanprovent insight. You can start using today to confidently generate ten timesmore loans and deposits. Now back to the show, so there's a lot of parallels here withthe way that we're thinking, because what I view is what I call the circleof chaos, and that is where the environment, the competition, consumer,behavior changes at an expinential rate...

...and that's been sped up. Probably moreso, since the cove nineteen crisis, it's almost forceus into a take aproactive, standce 'cause if we're still reactive, we're going to get runover. But but to your point that we've got to have empathy. We need to haverespect, but what got us to the point to where we are today will not get usto where we need to go tomorrow and Digital Darwinism is a very real thing.The retail apocalypse is a very real thing. Coming back to your point aboutwhat drove branch growth was it people? Was it people consiber, behavior or wasan automation in cheapen or reduce the cost, to build these physical locations?So, being very congresses of these facts, I think what what you'e talkingabout is key. Not only can we provide the technology and the tools, but we'llprovide number one. The guidance we're going to take your hand, we're going towalk you through this number. Two we're going to hold you accountable becausejust like money is confused in complexis idea about technology anddata is complex. Having someone to hold your hand makes it a little bit lessscary, it reduces the fear of the unknown. It reduces the fear of changeso Um. That brings me to to the next point, because we are talking abouttechnologies tools and you mention investing in technology that willposition your financial brand for the future. I mean there are literallythousands H, there's been a c Mo report. There's now over, I think seventhousand marketing Technologi is alone available to a brand, does not ttalkabout data technologies. Let's simplify this. Let's, let's Distil this downfrom your perspective, what are the key technology? The financial brands shouldhone in on and limit the noise or the confusion. So when we asked consumers what theywanted, most from their financial institution, the first the mostresponden thirty nine percent- I respondent said what they wanted. Mostwas the best rates. The second, however, was twenty five percent, the bestdigital experience, dest op a Mobel, so some financial stitutions might not beable to do much about rates they can. They can try their invest, but theymight be kind of stuck there. So if they can't, if you cat one all rites or if you'redoing the best you can o rates, then the next thing to do is to focuson the best digital experience, destup Amobel, immediately ater, that was thebest customer service and that really is becoming more and more intertwinedwith the best mobile and Desth of experience where people wand theability to if they are in a digital experience, to quickly get to a humanby a that digital experience and Vice Versaa to be talking with somebody onsupport and get help in the digital on...

...their digital view as well. So this isreally where it's critical to focus, especially because, as as I said,eighty percent of customers are are getting on the mobaldevice, the morble banking device at least weekly, there's no other channel.That is close to that. So they're really tuned into Mobil, and so, if, ifI were to suggest one area to really focus inon it would be mobile banking mirnel with an eye to future technologies. Youdon't want to get locked in in a digital experience that isn't able toevolve with you. This is that we find that we e veryadimate about Tmx r cross platform framework is built in such a way thatwe're able to evolve as new technology comes about. We don'tget our client stuck in contracts where win a new operating system comes out ora new device comes out. They can't move forward. So it's not yeah. So it's abit more of an agile approach, Um being able to look at new environmentalconditions, new consumer conditions, new competitor threats and being ableto adapt and ovolve, because you talked about those three things: rates,experience and service, but focusing primarily on experience and service issomething more than a financial brand. Can Control once again bring this fullcircle back to the purpose of the mission of the financial brand? Whatyou believe or what you think, how you communicate that and then how youdeliver that, through these experiences and experiences being nothing more thanwell defined systems and processes that have been defined, applied and optemizzover a set period of time, resulting in one of two things: a positive emotionor a negative emotion. It's the ultimate question. Coming back todigital anthropology, taking the mobile banking experience talking to consumers,how does this make you feel? Do you feel like you can trust this? Do youfeel like you're, getting value from this experience? If we're going to lookat that lins of experience and coming Tis, bringing this back to the futureof work, one of the things that you wrote about in the future of work thatI thought was really critical was around the need to upskill orreskillworkers. Talk to me about that, because I knowthere's so many people. I hear this s en working with financial brands wel.What about my job? We, but only three percent of CEOS from your research. Younoted, or I think it was actually it was a censure. Only three percent ofbank executives were planning to significantly increase their investmentin reskilling, their teams in the next three years. That's a problem!Absolutely it's tha problem. So the conversation around this topic is...

...it's not exactly clear to me yetwhether these jobs are going to be lost or not because there are, there arelike just a briefly recap. Some of the studies that had been done, like one oxone Tudy from Oxford, said that they put the likelihood that talers Lonofficers and brokerage clerks. They said the likelihood of those jobs beingautomated as ninety eight percent within the next decade, and then otherssay no, it's more like nine percent or five percent depending on the job, andthen others say no. In fact, like Jamie diamond, he says people are massivelyoveracting to the fear of automation. My guess, as our head account will goup in the next twenty years, not down and then another point that somebodyhas made as they dthey studied the occupations. I have been eliminated by automation since thenineteen since nineteen fifty, and they said that of the two hundred andseventy one occupations listed in the nineteen fifty census.Only one elevator operator had been rendered obsolete by automation by twothousand and ten and so there's a bunch of disagreement. But I think the thingthat we can keep in mind is that whatever happens, whether these jobsare eliminated or not, the one thing that we can hold for certain is thatthey're going to change Yo, the jobs are not gonna, like the jobs are notgoing to look the same ten years from now five years from now twenty yearsnow, and so this reskalling really is essential and it can be difficult again to knowexactly how to go about doing the rescoling one example that'll sharejust to get into specifics is we have a program called Finstrong and it's like financial education mm,and one position that we take is that it's going to be more important goingforward than ever for employees in financial services to have a solidunderstanding of what it means to have financial strength for themselves andfor their customers. Ytarit the employees to get all of the employeesin an institution really clear about how to develop financial, allness andfinancial strength, and then they are reskilled in a way t. They can talk tocustomers Abou, how to becomefinancially strong on the frontlines that right there, that is gold. I can think of one example Suntrust,which is now soon to be truest financial when they launched their onup program back in twenty. I think it was towent an fifteen twoeand andsixteen not only did they go consumer facing they went employe facing withtheir on up program. To me, this presents one of the greatestopportunities for financial brands. As...

...new roles are created, number one, thedigital cells team to filld all of the incoming leaves number two, the digitalmoney coach, the person that can provide guidance, accountability,there's that word again to help someone modify their behaviors and so to JamieDiamond's point we're probably going to be hiring more people just with newskill sets, because this is a like a human to human business, but the waythat we connect is just through these digital technologies. I think comingback to your previous point when you're talking about mobile banking experienceand service. If I have a question, it makes me feel good, sometimes to stillbe able to raise my hand and get in touch with another human being ai'snice.Automation is, is nice, but every now and then I still want to like talk tosomeone flesh and blood is am. I is my thinking sound with that. If I was aCEO and say, I still think we need a human component, yes yeah as long as the technology enablesthem to get to that person quickly, O than Avo sit on haled or through aphone tree for a long amount of time yeah. I think that there are thingsespecially with financial guidance, where an institution can really lean inand develop that long term. Rand Loyalty, Yeahumq Bake- is doing thisvery, very well with their their digital video mobile solution, that'simbedded, into into their mobile APP. So it's a way that they've been able tooptimize that even further um looking ahead into the future. One ofthe things that you noted in the future of banking guide was insights from the Royal Banke ofScotland and how to latch a digital bank within an existing bank, and thisis almost thust a very unique opportunity because it's almost like towhere we can create the future. While we respect the past and pay homage tothe legacy but then also take actions, what are those three steps that you'vewritten about in the guide, so yeah from Arpal, former Groupzo roalBAC on Scotland and he's the currency of the Begnette Beau, and so the threesteps that he says is that you need the back, an youversee o chairman mm. So he says unless the CO is driving thevision, there's no point in starting purplask, but if you can get there, ifyou can get your executive team on board- and you know that you have thebacking of the executive team you're in a really good place. Second, is thedigital bank must be separated from the core business while still havingexecutive level sponsorship? So this can be difficult, but this is like whatyou're saying it's really about straddling the the divide between future facing n andrespect for the past o. You still want him to have executivel sponsorship.TBAT. You really can't be tighed of the court, because you need to be able todevelop this in a way that can be fable...

...for whatever technology comes for inthe future and then third, the EXAC, the digitalbank, must fit within the existing risk appetite framework and work in the longterm. It's really about establishingsomething that is going to be viable, even if thefuture brings us a completely different way of thinking about technology. Inother words, like T are, or Internet n things you have to be building in sucha way that what you build today can easily port coin. Whatever is coming, Ithink, looking outside the industry. A really good example of this is almostlike: transforming your own pusiness model before the environment forces youto to do that, taking what's again proactive versus reactive net flicksand that flicts us such a great story, because netflicks obviously was adirect consumer. You know d deliver the DVD vml, then they disrupted ortransformed that business model they went to streaming. They almost lost itat that point. They were ahead of the time withat thinking, but that was whatwas almost the demise of blockbuster and that retail organization, but theNetflicxk took it even further, which you, you being you know. With YourPerspective on consent, N Tatflex became a production organization towhere they're now there they almost control the entire experience,delivered digitally so a lot of future thinking and being one step ahead,taking a little bit of risk, but it's calculated risk and then reaping therewards from that John. I appreciate all the insights that you shared todayas we've wrapped up very, very practical stuff. Looking ahead into thenext twelve months, I'm a financial brand C E O I'm on their marketing team,I'm leading cells. What is one practical recommendation oraction item that you could recommend for my team to move forward withconfidence down this journey? I'd Sayi now th man there're, so many things tothink about. If I had to choose one and the moment, I would say that you would want to be thinking aboutwhether customer can do anything they want to do by a digital channel andpreferably mobile, because I mean we're saying: what's happening: W iththe corona virus, people just aren't able to do the things that they they are able to de banking, the waythat they used to be able to do it. R, Co Ryncoble. He he talks about hisexperience with chick file using doordash and thereat and being able toUm get in with their P NC. I believe thisis ATRIKLIZAP. I should a should clarify that and do his order that wayand even pay by his phone and can just...

...go through the drives through get theget the food and go and talking about that experience and how quickly they'vethey're pivoting, when they can't have diners insidetheir store n. How financial institutions can learn somethingsimilar? Can you offer an experience thatseemless that in some way is, is even preferable to going into to the branch,and, if you can, then I think you're well, positioned for what the futuremight bring and that's a great place to be in yeahI mean it's just like we started this conversation that we're never going togo back to the way that work was before. Because of all these environmentalchanges brought about Bicovin nineteen, I we will never go back to banking. Theway that we banked before Cova nineteen, because, just like financial brands arebeing forced to change consumer behavior's, changing and once those newbehaviors once those new habits are imbedded, it is going to be a new normal, John,great insights, very, very practical stuff. Today, if there's someone listening, they havea question: they want to connect with you wan to continue the dialogue. Whatis the best way for someone to reach out and say hello to me personally, you could reach out, let's say by Lindon perfectly Om again we'll get you we'llget that lenked up. In the show. Note so thanks again for joining me, JohnYeah. Thank you as allways until next time be well, do good and wash yourhands. Thank you for listening to anotherepisode of banking on digital growth with James Robert Lay like what youhear tell a friend about the podcast and leave us a review on apple podcast,Google, podcast or spotify, and subscribe, while you're there to geteven more practical, improvent insights visit, www don digital growth, dcom tograb a preview of James Robert's, best selling book banking on digital growth,or order a copy right now for you and your team from Amazon inside you'llfind a strategic marketing and sales blueprint framed around twelve keyareas of focus that empower you to confidently generate ten times moreloans and deposits. Until next time be well and do good.

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