THE PROSUMER BANK A COLLECTION OF THOUGHTS FOR BANKING 2.0 BERLIN // OCTOBER 2009 TORSTEN HENNING HENSEL PARTNER // CREATIVE CONSULTANT NOUVÉ INTERPLAY WWW.NOUVE.EU WWW.NOUVE-INTERPLAY.COM WWW.TWITTER.COM/NOUVE_INTERPLAY WWW.FACEBOOK.COM/NOUVE.INTERPLAY NOUVENEXT.TUMBLR.COM NOUVENET.MIXXT.ORG HTTP://WWW.FLICKR.COM/PHOTOS/WIECHERT/2329851504
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THE PROSUMER BANKA COLLECTION OF THOUGHTS FOR BANKING 2.0
The collapse of our financial system has inspired not merely a national but a global crisis of confidence. Good God, the world seems to be saying, if they don’t know what they are doing with money, who does?
Global Rage at Bankers' Bonus ExcessesBanks around the world may have made huge losses and be reliant on state bailouts to survive, but they're still paying out huge bonuses to their top staff. The popular outcry against the greed is growing – but few bankers are willing to go without the cash. Der Spiegel / Published: 20 Feb 2009
Losses derived from the crisis: $3.4 trillion Since the onset of the crisis in mid 2007, banks have written down $1.3 trillion worth of loans and securities which were effectively proved worthless, while IMF expects a further $1.5 trillion of “actual and potential writedowns” yet to be recognised by the end of 2010. Telegraph / UK / Published: 30 Sep 2009
a global crisis of confidence.Recent data on consumer confidence suggests that households are quite pessimistic on
the severity of the current financial crisis, and its impact on the economy at large. Confidence indicators for OECD member countries in recent months have witnessed an
almost unprecedented collapse, with some levels falling to the lowest on record.OECD / Published: 06 Feb 2009
If the financial markets industry is to prosperagain, it must primarily fulfill the promises it makes.
Most financial markets firms have brands that implicitly promise to provide agility and stability, and to focus on the interests of their In practice, however, the opposite is often true.
* Paraphrase of a quotation of Trevor Edwards, VP Global Brand & Category Management at Nike: ”We’re not in the business of keeping the media companies alive. We’re in the business of connecting with consumers.”
We're not in the business of satisfying customers. We‘re in the business of making money...*
The dominant logic that an enterprise utilizes is difficult to change. It‘s somehow like the shift from the Ptolemaic view of the universe (earth-centered)
to the Copernican view (sun-centered).
We are used to have a goods view of the economy, looking from the glass of a Goods-Dominant logic. Now a service mindset called Service-Dominant logic is available to serve as a foundation in Service Science.
In Service-Dominant Logic, service has a process orientation. Service is defined as the application of competences (knowledge and skills) for the benefit of another entity, rather than the production of units of output. Goods remain important in Service-Dominant logic, as vehicles for resource transmission (tools and appliances), rather than containers of value.
In the Service era we shift the focus from “Producing” of goods that are value enhancing add-ons, where the value creation happens with resource acquisition, to "Resourcing", where value creation happens when a potential resource is turned into a specific benefit. Resourcing allows value creation through collaborative value co-creation.
This perspective prompts the organization to consider not only its employees’ productivity but also
Innovation in the 21st century is much more than invention. It’s open, multidisciplinary and inherently collaborative — taking place with customers, across communities and among millions of people who will never meet.
Imagine a bank that can communicate to their customers through any mode of communications that the client chooses. You know, proactive alerts around things like a CD coming due or a deposit that has just hit your bank account or new refinance opportunities.
Imagine a bank that could, with your permission, look at your expenses, maybe your utility bill and compare it to your neighbors’, and can proactively advise you on not only how to reduce your expenses but also how to become more green.
The Open BankThis bank would feature radical transparency: full disclosure of performance and compensation. The group decided that a banker should not sell a product unless he could pass a test about it. They even decided that there had to be a means to confirm that customers understood what they were buying. They proposed collective risk assessment, creating a means for its constituents to select and perhaps vote on investments. They explored how to offer transparency on each product and customers’ performance with them so that you could compare your returns with fellow customers. And they argued that bankers should be compensated on profit. It wouldn’t be an easy business to run; being answerable is hard. I said later that its slogan should be, “the only bank you can trust.” That is what would make it successful. Jeff Jarvis, associate professor at the City of New York University
TheFrankBank.comCompetition in banking will increasingly revolve around the customer experience, an experience that will be delivered in a predominantly digital context. The Frank Bank incorporates all the Web 2.0 concepts like tagging, gadgets (small applications you can add) and personalization of data. On top of that it lets you administer your budget with fancy bar- and piecharts and gives you different views on your data. Banking for the digital native to love.
The Googley thing to do would be to seek innovations that make the whole banking business more efficient and better able to serve people’s needs. Googlers would figure that whatever makes the banking business better would help Google even if it also helps Google’s “competitors”. (A rising tide helps all boats — including Google’s) So, Google would address issues of the banking business’ infrastructure. For instance, you might see development of an open-source banking platform and the development of open-source banking applications. The idea would be that providing such a platform and apps would reduce the cost-structure of the business while also reducing cost of adoption of the new applications. Reducing cost of implementing new applications would tend to cause them to be more widely offered and thus tend to generate more demand for Google’s own implementations of the applications. Open sourcing the platform would encourage others to also build open-source apps on the same platform and thus make it easier for Google to expand its own services with applications which come from other platform users’ innovation.
Disney makes banking an adventureThe Great Piggy Bank Adventure is an interactive experience that brings basic savings and investment concepts to life in a fun way. The attraction includes a series of games that teach guests how to set goals, save and spend smartly, stay ahead of inflation and diversify investments.
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