Banking on Digital Growth
Banking on Digital Growth

Episode · 1 year ago

53) #InsideDigitalGrowth: How COVID Is Affecting Digital Transformation

ABOUT THIS EPISODE

What have been COVID's greatest effects on digital transformation?

Brett King, guest editor for the FinTech Times, asked me that question on LinkedIn. I answer Brett's question and share why COVID isn't the end of the road for FinTechs on this episode of Banking on Digital Growth.

Here's what I discuss:

  • How COVID has exposed experience and communication capability gaps for incumbent financial brands
  • Opportunities that COVID creates for FinTech collaboration
  • The future COVID offers us all

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

Brett King asked, would have been thebiggest effects covert has had on digital transformation. That's a greatquestion Bread and one that I look forward to answering for you on today'sepisode of the Banking on Digital Growth podcast, You're listening to Banking on DigitalGrowth with James Robert Lay, a podcast that empowers financial brand marketing,sales and leadership teams to maximize their digital growth potential bygenerating 10 times more loans and deposits. Today's episode is part ofthe inside digital growth Siri's, where James Robert shares answers to some ofthe biggest digital marketing and sales questions he gets from the digitalgrowth community. Have a question you want to get answers to on a futureepisode? Visit www dot go ask jr dot com to submit your question today. Nowlet's go inside. Digital growth Greetings and hello, Thank you fortuning into the 53rd episode of the Banking on Digital Growth podcast,where I James Robert Lay, your digital anthropologist coach and guide youalong your digital growth journey to provide clarity to help you avoid thebiggest pitfalls and mistakes that will keep you from maximizing your futuredigital growth potential. Today's episode is part of the inside digitalgrowth, Siri's and I'll be answering a question from Brett King, as herecently asked me, on linked in what have been the biggest effects cove ithas had on digital transformation. Now Brett asked me this question when hewas guest editing the 35th edition of The Fintech Times, which is the world'sFintech newspaper. And I recommend that you grab a copy of this yourselfbecause there are tremendous insights that air shared from Brett on hisperspective of fintech and a post covert world, as well as from RonShevlin, among others. When Ron sharing us thinking about Finn Tex and wantingto generate revenue, they need to do so by creating a financial health platform.In this 35th edition, I also enjoyed a book review by Polly Harrison, who wascovering an Bowden's new book, Banking on It, which is now available on Amazon.So when Brett reached out, Toe asked me this question. I started toe rightthrough my thoughts for an article that was posted on published on page 28 inthe Fintech Times, and I wanted to take some time today to share this thinkingwith you because this is a question that I've been doing a lot ofreflection on as we wrap up the century that we call 2020. So what have beenthe biggest effects covert has had on digital transformation? Because what acentury 2020 has been covert has completely transformed our livesforever. And when working with advising andcoaching financial brand leaders, I understand that for many, change ishard. Change is uncomfortable, it's scary. It's covert has forced us tomove outside of our comfort zones toe leave our caves of complacency, whichis really a good thing because the caves of complacency that so many of ushave been trapped in. We found a false sense of security there in these cavesof complacency because we were informed by experiences and constructs that wererooted in the past. And it doesn't matter what vertical you're in frommarketing from cells toe leadership, from education to financial services,from retail to health Care...

...cove, it has been a massive agent ofchange on a scale that none of us could have number one ever imagined or neverthought that we were number two experience either personally orprofessionally. And as we look ahead to the new Year,now is the time to make a choice for how we will continue to move forward.Either as an individual, as a team, as an organization, we can choose toremain stuck and what I call the circle of chaos, where we feel confused,frustrated, overwhelmed. Because, my gosh cove, it has brought the confusion.Covert has brought the overwhelm. But if we stay stuck in the circle of chaos,we're gonna get trapped deeper and deeper in the caves of complacency aswe cower and hide from our fears of the unknown and what lies ahead.Alternatively, we can choose to come out of the caves with courage and withconfidence to move forward toe battle our fears of the unknown to battle ourfears of the change and blaze a new path that leads to a bigger, better andbrighter future. Because we can learn from the lessons that cove it hastaught each one of us. This is my hope for you. This is my hope for financialservices because I see an opportunity for banks for credit news for fintechtoe work together and finally finally put the transformation of people overthe commoditized transactions of dollars and cents. And to do so, wewill guide people beyond their financial stress, which is truly at anall time high towards a bigger, better and brighter future. So as we lookahead to the future, that is ours to create. I want to explore some of thebiggest roadblocks that we need to eliminate, along with some of thegreatest opportunities that are available for all of us. They're justwaiting to be captured, and I post covert world. In fact, there are threethings that I'd like for you to think about as we continue to move forwardtogether today. Number one. We're going to start off by talking about how Coveit has exposed both experience, as well as communication capability, gaps forincumbent financial brands for traditional banks and credit unions.From there, we're going to talk through the opportunities that cove it createsfor Fintech collaboration and the number three we're going to take a peektogether into the future. That cove it providesall of us. So let's first explore how Cove it has exposed experience incommunication capability gaps for incumbents, for traditional banks andcredit unions. First, by talking about why this is important, and then we'llfollow that up around what you can do about it. When I look out at the financialservices landscape and and think about co vid, I think about how Cove it hasreally been like a trip to the doctor's office for that check up, you know, theone that you've been putting off for way far too long. You know, you should have made thatappointment years ago, but you kept putting off the visit because you werebusy. Other things kept coming up, and...

...life, for the most part was good. Yousimply didn't have time to do what you knew needed to be done. And as a result,now that you finally made that trip to the doctor because you probably weren'treally feeling so great anymore. But bluntly, you're sick and tired offeeling sick and tired. What happens? The doctor examines you. He asked you about your symptoms you'vebeen experiencing. He reviews your labs, looks at your blood work, takesdiagnostic findings from the X rays that his team has gathered, and thensomething happens, the doctors, his brow begins to furrow. He looks at youin the eye. Straight look comes over his face because he's about to deliversome not so good news about your health about your condition. And the doctor explains that if youdon't make some changes quickly with your diet, if you don't cut back onyour drinking, if you don't start a new exercise habit, you're going toexperience a pretty catastrophic event. This is a wake up call for you, butsomething happens. You begin to feel a little bit sorry for yourself insidethat you you didn't address these issues sooner. However, the good news is, the doctorexplains, is that you have a choice to improve these areas in your life. So the doctor gives you a plan for youto take action to transform your health for the better. Now, as you leave the doctor's officeinstead of feeling sorry for yourself, you feel energized, feel excited aboutthe future that awaits you and is yours to create with newfound courage andconfidence. You see, when it comes to financial services, incumbents withtraditional banks and credit means 2020 has been your trip to the doctor'soffice and co vid has been your wake up call because it has exposed capabilitygaps in your growth model that was built for the physical retail world ofbrick and mortar branches. Up to this point, many financial brands havesimply been content to Onley dabble in digital as they have adopted digitaland mobile banking technologies. But that created a false sense of securityfor many because they took refuge in their caves of complacency, thinkingthat legacy thinking their legacy financial brand because they adoptedthese new digital mobile banking technologies, check that off the listwere now digitally transformed. Well, covert exposed. Also, numerous consumerexperience, expectation and communication gaps throughout theentire buying journey for pretty much almost every single product line, bothon the retail side as well as on the commercial side of the house on this isbecause before co vid many thought for both marketing andsells at incumbent financial brands, many thought that digital was justsimply a way of serving consumer needs, primarily on the transaction side ofthe business. Now, looking ahead, the biggest opportunities for traditionalbanks and credit means is to reset to refocus and to redefine digital growth and apost covert world, not just as an exercise at digitizing traditionalservices and fulfillment activities, which is where a lot of the focus hasbeen up to this point. The opportunity is instead to systematize processesthat air centered around the modern...

...consumer buying journey to unifymarketing cells ops I T teams all to increase website traffic to generateleads from that website traffic to nurture those leads with content andautomation and then convert those leads in theloans and deposits on leeway that we're going to be able to do thatat a bank at a credit union is to make a commitment to put the transformationof people in the communities that we serve. Beyond the commoditizedpromotion in the commoditized transaction of dollars and cents,technology has transformed our world, and digital has changed the wayconsumers shop for and buy financial services forever. Now, consumers makepurchase decisions long before they walk into a branch if they walk into abranch at all. But your financial brand still wants to grow loans and deposits.We get it. Digital growth can feel confusing, frustrating and overwhelmingfor any financial brand marketing and sales leader. But it doesn't have Thiobecause James Robert wrote the book that guides you every step of the wayalong your digital growth journey. Visit www dot digital growth dot com toget a preview of his 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 manifesto that was written to transform financial brands,and it is packed full of practical and proven insights. You can start usingtoday to confidently generate 10 times more loans and deposits now back to theshow. So as we move forward, I want to come to Point number two and share whatyou can do if Cove it has in fact exposed experience in communicationcapability, gaps for your financial brand. That's because Cove it has alsocreated a tremendous opportunity for Fintech collaboration. You see, in apre covert world, it was easy for incumbents for traditional banks andcredit's to view fintech as the competition. The competition that wasslowly chipping away at market share because Fintech was more nimble wasmore quick to adapt to changes to respond to changes in consumer behavior,consumer trends, consumer demands. However, Justus Cove it has exposednumerous consumer experience, expectation and communication gapsthroughout the entire buying journey. Kobe has also created a challenge forFintech, so incumbents are struggling. Post co vid Finn Tex are also startingto struggle slightly when it comes to gaining access to ongoing capital andfunding. There was an article in Ditch Finnasking what venture capitalists Ian Fintech after Kovar 19 on. There was aquote that shared investors expect a wave of mergers and acquisitions inFintech once those companies use up the runway, although this might not becomevisible until late 2020 or even early 2021. That's when VC portfolios willalso have to start booking losses. End quote. But here's my thought. Covaddoes not have to be the end of the road for Finn Tex context, who havetraditionally up to this point from their view, have been competing andworking to displace and disrupt the incumbents. Because this idea ofcompetition is something that I've...

...talked about many times before. It is astrategy rooted in scarcity because there will never be enough But insteadof competition rooted in scarcity, the opportunity for Finn Tex is totransform that competition to collaboration. That is fueled by a future of abundancewhere there is mawr than enough opportunity to go around more thanenough opportunity just waiting to be created or capture. Continuing tocompete with incumbents will really be a challenge for Fintech and a postcovert world. Chris Skinner recently wrote Quote.Banks don't die. They may be zombies failed, broken wrong, stupid, dumb orwhatever words you want to use, but you can't kill them. End quote. In fact,both incumbents and Fintech have something the other wants now, morethan ever before and this post covert world, Frontex have the capabilities,the technologies, the operational mindsets that incumbents need to bridgethe consumer experience, expectation and communication gaps that cove it hasexposed. On the other side of the coin, incumbents have the audience and theaccess to communities, both digital communities as well as physicalcommunities, much more so than fintech. And it's the access to the audience tothe communities that Finn Tex require for scale. So instead of trying todisrupt and kill off the incumbents, the traditional banks and credit unions.The biggest opportunity I see for Finn, Tex and incumbents is to approach thefuture was shared abundance. You see, Peter Diamandis once wrote, The futureis better than you think, and that's where there's an opportunity tocollaborate together and commit to transform banking for good. We'vetalked about why it's important to address the capability andcommunication Gap Cove. It is exposed for traditional banks and credit unions.We've also have explored what the incumbents conduce you to bridge thesegaps through fintech collaboration opportunities. And now I'd like to wrapup and share with you how co vid provides a peek into the future foryour financial brand as well as for your fintech. Because I look at Cove itand I see it really as a preview of all the exponential changes that we willexperience as an individual personally as a team and as an organization overthe next 5 to 10 years in the age of AI. This is why I predict both as anindividual as well as a team and an organization mindset will be far. Maura,of a strategic asset mindset will beam or of a competitive advantage, thentechnology alone to maximize your future digital growth potential in apost covert world. There are, in fact, two mindsets thatyou must consider and choose from for which you will create and build yourfuture. Around the first is a fixed mindset, which looks out at the worldand says gloomily, My best days are behind me. The fixed mindset gets stuckdwelling on the days of old pining for the physical world of brick and mortar.Have a good old days has for digital. People with fixed mindsets tellthemselves they're never going to make...

...it in this brave new world because,well, we just don't have the capabilities that the other guys havenow, of course, we know this is not true, because once again, there aretremendous opportunities for incumbent financial brands for traditional bankscretins to quickly gain new capabilities with collaboration throughFinn Tex. This complaint, though, if it's not challenged of longing for thegood old days or we just don't have the capabilities, it will become a selffulfilling prophecy. Because this complaint it's just a easy way to avoidconflict, to avoid the challenges that in the end you must commit to confronting with courage andconfidence because, as we've seen from the hundreds of other legacy brandsretail brands that have fallen victim to the retail apocalypse, it was theirleaders with fixed mindsets, fixed mindsets that kept them trapped intheir caves of complacency because they feared facing any type of criticism.The feared failure fear changed, so they gave up. They quit and they died. Alternatively. And this is the mindset that I hope youchoose. Your team chooses, your organization chooses and it must beunorganized national commitment. The second mindset is that of a growthmindset and a growth mindset. Looks out at theworld with gleaming eyes full of hope, and says, our best days have yet tocome. Our best days are ahead of us. The future is bigger, the future willbe better. The future will be brighter for all of us. Leaders with growthmindsets are excited and energized about the future that they have thepower to shape. They have the power to create. Looking ahead to the future, Itruly predict that your a que and your eq your adaptability quote shit andyour emotional intelligence will be far greater will be farm or important thanyour I. Q. In the age of AI, so what do you do? Put bluntly, you must get comfortable beinguncomfortable in a post co vid world. The best way to start this exercisestoday. Take a cold shower and then tomorrow take another cold shower, andthen the next day, take another cold shower and you will train your mind toget comfortable being uncomfortable to environmental changes. Simple exercise.Massive pay off a little bit of pain in the short term for long term gain goingforward. In addition to getting comfortablebeing uncomfortable, you must also be empathetic toe. Others who might not betransforming their thinking, their behaviors, their actions as quickly asyou are on your own Digital growth journey from good to great becausedigital growth is in fact a journey, it is a journey that begins in the mind.It is a journey of transformation, and there are four transformations thathave to happen for you to maximize your financial brands. Post Covad Digitalgrowth potential and it all starts with...

...the self. It starts with you Onley, then can youmove from the individual to transform the team and to expand thattransformation from the team to the entire organization. Because then and only then can youtransform the lives of people in the communities that you serve to guidethem beyond their financial stress towards a bigger, better and brighterfuture. And yes, I truly do believe that even Deering what feels like thedark cold days of a Covad winter. The future is bright, and I want to thankyou for giving me an opportunity toe light your path this year and guide youguide your team guide your financial brand as you have continued to moveforward and make progress along your own digital growth journey. As we continue to look ahead, I wantyou to think about where you must commit to go next on your own journeyof growth. What does that future look like for you? What does the future thatyou must commit to create as you transform marketing and sell strategiesbeyond the physical world of brick and mortar branches and broadcast marketing as you think about what that looks likeand what you must do? Maybe you have a question and that you'd like me toanswer. If you do, now is the time to text me. Text me what you've beenthinking about that you'd like to get an answer to on a future podcastepisode. Text me your question toe 83 to 5495792 Once again, that's a 3 to 5495792 Andremember the Onley bad question is the question that goes unasked until nexttime. And, as always be well, do good and wash your hands. Thank you forlistening to another episode of Banking on Digital Growth with James Robert Ley.Like what you hear? Tell a friend about the podcast and leave us a review onApple podcasts, Google Podcast or Spotify and subscribe while you'rethere to get even. Mawr Practical and proven Insights, visit www dot digitalgrowth dot com to grab a preview of James Roberts bestselling book Bankingon Digital Growth or order a copy right now for you and your team from Amazon.Inside, you'll find a strategic marketing and sales blueprint framedaround 12 key areas of focus that empower you to confidently generate 10times more loans and deposits until next time, be well and do good.

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