Banking on Digital Growth
Banking on Digital Growth

Episode · 1 year ago

21) #ByTheBook: Think Beyond the Present Moment or Get Stuck in the Past

ABOUT THIS EPISODE

Is your financial brand stuck in the present moment?

Too afraid of risk? Of loss?

If you don’t think strategically about your future…

You’ll get left in the past. 

In the latest By the Book episode, I explain how the natural risk-aversion of financial brands prevents actually becomes a liability in the future. 

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

You're listening to banking, on digitalgrowth, with James Robert Lay a podcast that impowers financial brand marketingsales and leadership teams to maximize theiir digital growth potential bygenerating ten times more loans and deposits. Today's episode is part ofthe by the book series where James Robert unlocks and shares the secretsof Digital Marketing and sale strategies for financial brands fromhis best selling book banking on Digital Growth, the strategic marketingmanifesto to transform financial brands that is now available on Amazon. Let'sget into the shell greetings in hello. I am James, RobertLa and welcome to the twenty first episode of the banking on digitalgrowth podcast. Today's episode is part of the by the book series, where Ishare insights for my best selling book banking on Digital Growth, thestrategic marketing manifesto to transform financial brands, I'd like tostart off the day by giving a shot out to Rami T for his Amazon Book Review,Romie rights for someone who has been in the financial industry, the digitaltransformation sector. This book is a must. I always talk to my clients thath could you could have the best online and mobile banking channels stillwithout the right audience and custoer based to use them? These channels willbe useless and will bring no added value to customers more than checkingtheir account balance or making a bill payment transfer Romi continues. My approach workingwith clients has always been we plan, we build, we grow and digital marketingplays a roll in each of these stages. Ramy shares. I was so pleased tofinally find a book that addresses how digital marketing can help you buildthat lasting relationship with your clients and truly nurture it to providethem with the personalized experience...

...they seek. This is a much reed for every bakingexecutive, regardless of job function, as financial institutions need toembrace a growth mentality across all functions rameands. I will berecommending this book to my clients. Well Ramie. Thank you so much for thekind words and I'm glad that you have found this helpful you'd, also sharedthat this was a was a go Tho Guide and speaking of guides hit's. What I wantto do dear lessener, on this podcast, what to guide you and those that youwork with beyond what I call digital denial now digital denial is actuallyclosely tied to the three future growth pitfalls that I had unpacked an episodenumber Nineteen We get trapped in digital denial when we're shortsightedand we don't see the enormous digital growth potential ahead for really whatit is e a lot of times we'll try this we'lltry that we'll dabble, but we give up when it doesn't yield results. Quickenough at such a mistake when any industry istransformed by disruption. Inevitably, the digital growth potential willalways it'll always appear limited at first and deceptively. So you see when we're thinking aboutdigital growth, we're thinking about digital transformation, value creation, out of the gate, ismost likely going to lag for some period of time and in some cases itmight be not existent or or even if, if there's a tremendous upfront cost toestablish new foundational systems processes habits, it could feel like anenormous weight that just drags us all down, but don't be fooled.

This is one of the deadliest blindspots, but also the most common see what happens when Digil denial is permeating within the leadershipteam at a financial brand. The leadership team mistakenly makestheir most important decisions based on past performance based on past success,and this is very understandable. As these folks mind, you they've builttheir entire career on past performance, but now they're in a situation wherethey're stuck in the present moment, but they're making these strategicpresent day decisions, whether that be around marketing cells, growth modelsrooted in past perspectives, past experiences, which have really beeninformed by earlier successes that are no longer relevant or even usefulanymore, specifically in this postcovet world. So what do you think happens when theydo that? Well, I it really just depends the result of their decisions. They might not be disastrous. They mayas well continue down a path of we'll call it just incremental lineor growth,the Trin line. Will Nudge up they'll, get that two experformance versus theTenex that I've spoken about in previous podcast episodes ut? That's it they're not taking advantage- and thisis the key Theu'r not taking advantage of the exponential growth curve thatdigital makes possible. Its E in digital value creation, there's adeceptive doubling effect, referring back to Peter Damonuss and and StephenCotler's book, the sixts model, which I new ad an episode, numer eighteen,where digital first appears to bring a loss, but then the value and the growthgenerated by digital becomes twice as...

...great, which becomes four times asgreat. Then eight, then sixteen it's the doubling pattern, which willcontinue until you reach a point where digital growth becomes the primarydriver of growth and eventually crushes the old legacy growth bodel builtaround the physical world. Let's look at a Amazon, for example,according to the street DOTCOM, without as a without the prime membershipprogram, Amazon lost around two billion dollars in Kon of twenty eighteen. Thisloss is really rooted in the retail side of their business, whichinteresting makes up about sixty percent of their entire revenue model.Put this another way: Sixty percent of Amazon's total business operated at aloss. However, they have offset these losses with multiple diverse revenue,extreems like a US Amazon web services and their prime membership program. Sowhat Amazon is doing, N and really what they have done since the very beginningis they are playing the long game which is opposite of what we see a lot of risk?Averse financial brand leaders, W O, who are looking at the situation at thepresent moment, but they're being informed by past decision. So they playthe short game and when we're stuck in the present moment, we really risk getting crushed gettingrun over and never even making it into thefuture. It's a heads down verses, a head's up way of operating, butunfortunately, I'm still seeing it's very typical of today's legacy leaders.They stay heads down, they're trapped in the hare and now they're using pasesand previous biases and previous winds...

...and successes for their decision making,instead of being heads up looking towards the future and seeingexpinential change for what it is, and it's this heads down approach thatresults in the drowning of the deep overwhelm that I discussed an episodeof Numer Nineteen. It's true that business leaders acrossthe board in multiple verticales ind, multiple industries. According to areport from Duke University, they found that ninety seven percent of businessleaders believe strategy is important. That's great, but ninety six percentdon't feel like they have the time to think strategically. If you have not listened to episode,Numer Nineteen, I go deep deep, it's a fairly lengthy episode, but it's allabout the importance of breaking free from the doing breaking free from thehere and now, the here and now, which is oftentimes fo informed by the past,to create that space in time to review, to reflect, to learn to think so thatwe can do even better going forward now, leaders that financial brands would bewise to buck this trend and sure theyre. Youknow bankers by default. I get it once. Are there going to be more risk atverse? It's IT'! WHAT WE DO! We limit risk we're dealing with people's money,but it may be for a lot that the limiting of risk becomes aliability. It becomes a cost, and that is what we'll take so many down in the coming years. I implore you please do not let our strength become our greatest weakness or a fatalflaw.

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 practicalandprovent insights. You can start using today to confidently generate tentimes more loans and deposits. Now, back to the show, we've been lucky to have avoided a lotof the pain, a lot of the misery, for example, that the music industry wentthrough that I spoke about on episode number. Sixteen we've had the the luxury tolearn from the fellues of brands that have been down this journey before thataren't with us today, the blockbusters, the borders, the Toys Rus when it comes down to it. This is what legacy banks and creditunions have been doing historically, they're, essentially retail or retail,like institutions that, like blackbusters borders, toys rushistorically, have been built for the physical world and as anyone who has read the news inrecent years, nose, the retail sector is in trouble. Thesedays specifically postcoved, I was just...

...reading a report recently Brook'sbrothers, another well known brand, has filled for bankruptcy, but it'sinteresting because Simon Malls is picking up thesebankrupt brands like brooksbrothers the buckle for pennies on the dollar, andwhat Simon is trying to do is to to to capture all of this because Simonsmalls they want to be the last mull standing. Now, when we look at theselegacy, retail brands blockbuster and we are we're going through a retailapocalypse right now and with these legacy, retail brands lacked, wasleadership, and that is why thereis a directdistinction between financial brand leadership and management wher. Wereally must look at this in two areas. Managers operate in the present momentto avoid risk and loss. On the other hand, those in leadershippositions look ahead to create the future that does not yet exist. Let me be very clear here: one is not better than the other greatleaders need great managers to apply their statetic thinking to ensure itbecomes a reality. Their vision becomes a reality, while great managers needgreat leaders to ensure that they don't get stuck in the present moment andmake decisions informed by the past. This isn't happening nearly enough andit's one of my biggest concerns four financial brands in today's post covedworld in this digital economy, because the number of managers managingfinancial brands in the present moment for the present moment, informed by thepast, far out way the number of leaders...

...leading their financial brands withcourage, with confidence to create a bigger, better brighter future. How then, have financial brands not yetbeen destimated by digital disruption? That is a really big question. To askfor one banking is a very different kind of consumer experience then saylistening to a song watching a movie ordering food ordering a book. Thelevel of risk when it comes to banking, from from the perspective of theconsumer, is obviously much higher because they are trusting. You they'retrusting your financial brand with their life savings, but a lot of thatrisk is also just perception and here's the thing that perception of risk israpidly changing, just think. For a moment, it used to bethat people were scared to use their credit card online, and now we know howubiqitous hecommerces across almost every industry. Still perception is perception andperception shapes reality and consumer research at least precoved showed thatwhen it came to banking people, including millennials, wanted to have aphysical branch location. It's going to be interesting, interesting to see howthis plays out postcoved as new behaviors and habits are formed, butprecoved. It's that entirely logical. Why this was the case. You know peoplewere already doing online banking, mobile banking, but they were reassuredto know that a physical branch was there. They could drive by and and say,hey it's nice to see the building and think that that's where they keep mymoney, even though we all know that the money is not kept there but, like Isaid this, this isn't logical and when we're dealing with consumers we'redealing with geological beings.

The other thing tha I want to know isthe perspective of government regulation and how that has slowed downthe pace of disruption in the financial marketplace. That also is changing and we're seeingsome of that coming out. postcoved with the Charter for nonbank, FINTEC firmsand more entering the marketplace and the fact of the matter is financialbrands can no longer stave off this coming demise. Much longer, either we're going to have to make somecourageous decisions and lead or we're going to get left behind and like it ornot. When it comes to digital growth, it really is the survival of the fittesout there and that that I dive the survival of the fittest. What I call digital Darrinism is thetopic that we will discuss on the next episode of the by the book series,because I don't want you, I don't want your financial brand to end up like thedimosaurs until next time be well, do good andwash your hands. Thank you for listening to another episode of bankingon digital growth with James Robert Lay like what you hear tell a friend aboutthe podcast and leave us a review on apple podcast, Google, podcast orspotify, and subscribe, while you're there to get even more practical,improven insights, Isnit, www, don digital growth, dcom to grab a previewof James Robert's, best selling book banking. On digital growth, or order acopy right now for you and your team from Amazon inside you'll find astrategic marketing and sales blueprint framed around twelve key areas of focusthat empower you to confidently...

...generate ten times more loans anddeposits. Until next time be well and do good.

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