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 the biggest effects covert has had on digital transformation. That's a great question Bread and one that I look forward to answering for you on today's episode of the Banking on Digital Growth podcast, You're listening to Banking on Digital Growth with James Robert Lay, a podcast that empowers financial brand marketing, sales and leadership teams to maximize their digital growth potential by generating 10 times more loans and deposits. Today's episode is part of the inside digital growth Siri's, where James Robert shares answers to some of the biggest digital marketing and sales questions he gets from the digital growth community. Have a question you want to get answers to on a future episode? Visit www dot go ask jr dot com to submit your question today. Now let's go inside. Digital growth Greetings and hello, Thank you for tuning into the 53rd episode of the Banking on Digital Growth podcast, where I James Robert Lay, your digital anthropologist coach and guide you along your digital growth journey to provide clarity to help you avoid the biggest pitfalls and mistakes that will keep you from maximizing your future digital growth potential. Today's episode is part of the inside digital growth, Siri's and I'll be answering a question from Brett King, as he recently asked me, on linked in what have been the biggest effects cove it has had on digital transformation. Now Brett asked me this question when he was guest editing the 35th edition of The Fintech Times, which is the world's Fintech newspaper. And I recommend that you grab a copy of this yourself because there are tremendous insights that air shared from Brett on his perspective of fintech and a post covert world, as well as from Ron Shevlin, among others. When Ron sharing us thinking about Finn Tex and wanting to 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 was covering 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 right through my thoughts for an article that was posted on published on page 28 in the Fintech Times, and I wanted to take some time today to share this thinking with you because this is a question that I've been doing a lot of reflection on as we wrap up the century that we call 2020. So what have been the biggest effects covert has had on digital transformation? Because what a century 2020 has been covert has completely transformed our lives forever. And when working with advising and coaching financial brand leaders, I understand that for many, change is hard. Change is uncomfortable, it's scary. It's covert has forced us to move outside of our comfort zones toe leave our caves of complacency, which is really a good thing because the caves of complacency that so many of us have been trapped in. We found a false sense of security there in these caves of complacency because we were informed by experiences and constructs that were rooted in the past. And it doesn't matter what vertical you're in from marketing from cells toe leadership, from education to financial services, from retail to health Care...

...cove, it has been a massive agent of change on a scale that none of us could have number one ever imagined or never thought that we were number two experience either personally or professionally. 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 to remain 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 as we 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 with confidence to move forward toe battle our fears of the unknown to battle our fears of the change and blaze a new path that leads to a bigger, better and brighter future. Because we can learn from the lessons that cove it has taught each one of us. This is my hope for you. This is my hope for financial services because I see an opportunity for banks for credit news for fintech toe work together and finally finally put the transformation of people over the commoditized transactions of dollars and cents. And to do so, we will guide people beyond their financial stress, which is truly at an all time high towards a bigger, better and brighter future. So as we look ahead to the future, that is ours to create. I want to explore some of the biggest roadblocks that we need to eliminate, along with some of the greatest opportunities that are available for all of us. They're just waiting to be captured, and I post covert world. In fact, there are three things that I'd like for you to think about as we continue to move forward together today. Number one. We're going to start off by talking about how Cove it has exposed both experience, as well as communication capability, gaps for incumbent financial brands for traditional banks and credit unions. From there, we're going to talk through the opportunities that cove it creates for Fintech collaboration and the number three we're going to take a peek together into the future. That cove it provides all of us. So let's first explore how Cove it has exposed experience in communication capability gaps for incumbents, for traditional banks and credit unions. First, by talking about why this is important, and then we'll follow that up around what you can do about it. When I look out at the financial services landscape and and think about co vid, I think about how Cove it has really been like a trip to the doctor's office for that check up, you know, the one that you've been putting off for way far too long. You know, you should have made that appointment years ago, but you kept putting off the visit because you were busy. Other things kept coming up, and...

...life, for the most part was good. You simply 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't really feeling so great anymore. But bluntly, you're sick and tired of feeling sick and tired. What happens? The doctor examines you. He asked you about your symptoms you've been experiencing. He reviews your labs, looks at your blood work, takes diagnostic findings from the X rays that his team has gathered, and then something happens, the doctors, his brow begins to furrow. He looks at you in the eye. Straight look comes over his face because he's about to deliver some not so good news about your health about your condition. And the doctor explains that if you don't make some changes quickly with your diet, if you don't cut back on your drinking, if you don't start a new exercise habit, you're going to experience a pretty catastrophic event. This is a wake up call for you, but something happens. You begin to feel a little bit sorry for yourself inside that you you didn't address these issues sooner. However, the good news is, the doctor explains, is that you have a choice to improve these areas in your life. So the doctor gives you a plan for you to take action to transform your health for the better. Now, as you leave the doctor's office instead of feeling sorry for yourself, you feel energized, feel excited about the future that awaits you and is yours to create with newfound courage and confidence. You see, when it comes to financial services, incumbents with traditional banks and credit means 2020 has been your trip to the doctor's office and co vid has been your wake up call because it has exposed capability gaps in your growth model that was built for the physical retail world of brick and mortar branches. Up to this point, many financial brands have simply been content to Onley dabble in digital as they have adopted digital and mobile banking technologies. But that created a false sense of security for many because they took refuge in their caves of complacency, thinking that legacy thinking their legacy financial brand because they adopted these new digital mobile banking technologies, check that off the list were now digitally transformed. Well, covert exposed. Also, numerous consumer experience, expectation and communication gaps throughout the entire buying journey for pretty much almost every single product line, both on the retail side as well as on the commercial side of the house on this is because before co vid many thought for both marketing and sells at incumbent financial brands, many thought that digital was just simply a way of serving consumer needs, primarily on the transaction side of the business. Now, looking ahead, the biggest opportunities for traditional banks and credit means is to reset to refocus and to redefine digital growth and a post covert world, not just as an exercise at digitizing traditional services and fulfillment activities, which is where a lot of the focus has been up to this point. The opportunity is instead to systematize processes that air centered around the modern...

...consumer buying journey to unify marketing cells ops I T teams all to increase website traffic to generate leads from that website traffic to nurture those leads with content and automation and then convert those leads in the loans and deposits on leeway that we're going to be able to do that at a bank at a credit union is to make a commitment to put the transformation of people in the communities that we serve. Beyond the commoditized promotion in the commoditized transaction of dollars and cents, technology has transformed our world, and digital has changed the way consumers shop for and buy financial services forever. Now, consumers make purchase decisions long before they walk into a branch if they walk into a branch at all. But your financial brand still wants to grow loans and deposits. We get it. Digital growth can feel confusing, frustrating and overwhelming for any financial brand marketing and sales leader. But it doesn't have Thio because James Robert wrote the book that guides you every step of the way along your digital growth journey. Visit www dot digital growth dot com to get a preview of his best selling book, Banking on Digital Growth, or order a copy right now for you and your team from Amazon. Inside you'll find a strategic marketing manifesto that was written to transform financial brands, and it is packed full of practical and proven insights. You can start using today to confidently generate 10 times more loans and deposits now back to the show. So as we move forward, I want to come to Point number two and share what you can do if Cove it has in fact exposed experience in communication capability, gaps for your financial brand. That's because Cove it has also created a tremendous opportunity for Fintech collaboration. You see, in a pre covert world, it was easy for incumbents for traditional banks and credit's to view fintech as the competition. The competition that was slowly chipping away at market share because Fintech was more nimble was more quick to adapt to changes to respond to changes in consumer behavior, consumer trends, consumer demands. However, Justus Cove it has exposed numerous consumer experience, expectation and communication gaps throughout the entire buying journey. Kobe has also created a challenge for Fintech, so incumbents are struggling. Post co vid Finn Tex are also starting to struggle slightly when it comes to gaining access to ongoing capital and funding. There was an article in Ditch Finn asking what venture capitalists Ian Fintech after Kovar 19 on. There was a quote that shared investors expect a wave of mergers and acquisitions in Fintech once those companies use up the runway, although this might not become visible until late 2020 or even early 2021. That's when VC portfolios will also have to start booking losses. End quote. But here's my thought. Covad does not have to be the end of the road for Finn Tex context, who have traditionally up to this point from their view, have been competing and working to displace and disrupt the incumbents. Because this idea of competition is something that I've...

...talked about many times before. It is a strategy rooted in scarcity because there will never be enough But instead of competition rooted in scarcity, the opportunity for Finn Tex is to transform that competition to collaboration. That is fueled by a future of abundance where there is mawr than enough opportunity to go around more than enough opportunity just waiting to be created or capture. Continuing to compete with incumbents will really be a challenge for Fintech and a post covert world. Chris Skinner recently wrote Quote. Banks don't die. They may be zombies failed, broken wrong, stupid, dumb or whatever 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, more than ever before and this post covert world, Frontex have the capabilities, the technologies, the operational mindsets that incumbents need to bridge the consumer experience, expectation and communication gaps that cove it has exposed. On the other side of the coin, incumbents have the audience and the access to communities, both digital communities as well as physical communities, much more so than fintech. And it's the access to the audience to the communities that Finn Tex require for scale. So instead of trying to disrupt and kill off the incumbents, the traditional banks and credit unions. The biggest opportunity I see for Finn, Tex and incumbents is to approach the future was shared abundance. You see, Peter Diamandis once wrote, The future is better than you think, and that's where there's an opportunity to collaborate together and commit to transform banking for good. We've talked about why it's important to address the capability and communication Gap Cove. It is exposed for traditional banks and credit unions. We've also have explored what the incumbents conduce you to bridge these gaps through fintech collaboration opportunities. And now I'd like to wrap up and share with you how co vid provides a peek into the future for your financial brand as well as for your fintech. Because I look at Cove it and I see it really as a preview of all the exponential changes that we will experience as an individual personally as a team and as an organization over the next 5 to 10 years in the age of AI. This is why I predict both as an individual 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, then technology alone to maximize your future digital growth potential in a post covert world. There are, in fact, two mindsets that you must consider and choose from for which you will create and build your future. Around the first is a fixed mindset, which looks out at the world and says gloomily, My best days are behind me. The fixed mindset gets stuck dwelling 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 tell themselves 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 have now, of course, we know this is not true, because once again, there are tremendous opportunities for incumbent financial brands for traditional banks cretins to quickly gain new capabilities with collaboration through Finn Tex. This complaint, though, if it's not challenged of longing for the good old days or we just don't have the capabilities, it will become a self fulfilling prophecy. Because this complaint it's just a easy way to avoid conflict, to avoid the challenges that in the end you must commit to confronting with courage and confidence because, as we've seen from the hundreds of other legacy brands retail brands that have fallen victim to the retail apocalypse, it was their leaders with fixed mindsets, fixed mindsets that kept them trapped in their 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 you choose. Your team chooses, your organization chooses and it must be unorganized national commitment. The second mindset is that of a growth mindset and a growth mindset. Looks out at the world with gleaming eyes full of hope, and says, our best days have yet to come. Our best days are ahead of us. The future is bigger, the future will be better. The future will be brighter for all of us. Leaders with growth mindsets are excited and energized about the future that they have the power to shape. They have the power to create. Looking ahead to the future, I truly predict that your a que and your eq your adaptability quote shit and your emotional intelligence will be far greater will be farm or important than your I. Q. In the age of AI, so what do you do? Put bluntly, you must get comfortable being uncomfortable in a post co vid world. The best way to start this exercises today. Take a cold shower and then tomorrow take another cold shower, and then the next day, take another cold shower and you will train your mind to get comfortable being uncomfortable to environmental changes. Simple exercise. Massive pay off a little bit of pain in the short term for long term gain going forward. In addition to getting comfortable being uncomfortable, you must also be empathetic toe. Others who might not be transforming their thinking, their behaviors, their actions as quickly as you are on your own Digital growth journey from good to great because digital 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 that have to happen for you to maximize your financial brands. Post Covad Digital growth potential and it all starts with...

...the self. It starts with you Onley, then can you move from the individual to transform the team and to expand that transformation from the team to the entire organization. Because then and only then can you transform the lives of people in the communities that you serve to guide them beyond their financial stress towards a bigger, better and brighter future. And yes, I truly do believe that even Deering what feels like the dark cold days of a Covad winter. The future is bright, and I want to thank you for giving me an opportunity toe light your path this year and guide you guide your team guide your financial brand as you have continued to move forward and make progress along your own digital growth journey. As we continue to look ahead, I want you to think about where you must commit to go next on your own journey of growth. What does that future look like for you? What does the future that you must commit to create as you transform marketing and sell strategies beyond the physical world of brick and mortar branches and broadcast marketing as you think about what that looks like and what you must do? Maybe you have a question and that you'd like me to answer. If you do, now is the time to text me. Text me what you've been thinking about that you'd like to get an answer to on a future podcast episode. Text me your question toe 83 to 5495792 Once again, that's a 3 to 5495792 And remember the Onley bad question is the question that goes unasked until next time. And, as always be well, do good and wash your hands. Thank you for listening 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 on Apple podcasts, Google Podcast or Spotify and subscribe while you're there to get even. Mawr Practical and proven Insights, visit www dot digital growth dot com to grab a preview of James Roberts bestselling book Banking on 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 framed around 12 key areas of focus that empower you to confidently generate 10 times more loans and deposits until next time, be well and do good.

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