Gallup recently published a poll comparing a variety of statistics between national and community banks, which illuminates a few surprising facts. One apparent paradox is that while community banks are more successful at engaging their customers, they lag behind national banks in capturing share of wallet. While customers at national banks keep 71% of their financial products with their primary banks, customers at regional banks only keep 66%. (more…)
McKinsey & Company recently posted an excellent article, “Getting big impact from big data,” and addressed a proverbial elephant in the room: while most executives believe big data analytics is a critical tool for success, fewer companies have been able to successfully use analytics to drive major business decisions.
So what is preventing organizations from unlocking the value of their data? According to McKinsey a major barrier has been internal organizational cultures that are not familiar with analytical practices and therefore unwilling to take ownership of a new system with unproven results. This keeps organizations from being able to operate data driven initiatives at scale. So while software solutions can help, there is also a significant cultural challenge that needs to be overcome for organizations to realize the full value of big data. (more…)
APT SVP Will Weidman recently authored an article for Banking Strategies, outlining his top 10 predictions for financial services institutions in 2015. Weidman summarizes, “After years of debate the battle lines have been drawn and it is clear what financial services institutions must do to succeed. In the new world order, the winners will be tech-savvy institutions that constantly innovate while managing expenses carefully.”
Weidman’s 10 predictions for financial services institutions in 2015 are:
1. Drive revenue with online/mobile channels
2. Make smart branch transformation investments
3. Improve relationship management in commercial and wealth management
4. Prepare for rising rates
5. Combat new entrants such as Walmart and GoBank
6. Accelerate and improve channel migration
7. Intelligently rationalize the branch footprint
8. Figure out universal staffing
9. Find new levers to reduce costs
10. Improve efficiency ratios in wholesale banking
Click here to read the full article.
APT Co-Founder and Chairman, Jim Manzi, recently co-authored a Harvard Business Review article with HBS Professor Stefan Thomke about how experimentation can help companies de-risk new ideas and drive innovation.
A key point that the article makes is that testing can be an agent for meaningful organizational change, rather than simply a new analytical tactic: “The lesson is not merely that business experimentation can lead to better ways of doing things. It can also give companies the confidence to overturn wrongheaded conventional wisdom and the faulty business intuition that even seasoned executives can display. And smarter decision making ultimately leads to improved performance.”
Click here to download a full copy of the article.
APT SVP and Head of Europe Luca Zuccoli recently discussed some unique challenges facing European companies today, and what they can do to address these challenges.
To “decide” can be interpreted as “picking one option and killing off all others.” In business, doing this right has large rewards, and getting it wrong has severe consequences. While executives have always made decisions, increasing amounts of data, sophisticated consumers, rapidly evolving technology, and disruptive competitors, are fundamentally changing the art and science of decision-making.
APT partnered with the Economist Intelligence Unit to study how decision-making is rapidly evolving across various industries and geographies. The resulting report addresses tough and important questions, such as:
(1) How do executives blend intuition with data? Are companies allowing executives to trust intuition?
(2) How are executives using data in decision-making when the data is counter-intuitive to their beliefs?
(3) With so much data available, which data should executives consider? And, how should they best incorporate it in decision-making?
The report will be released on June 5th in London. Please email info[at]aptmail.com to be the first to get a complimentary copy of this actionable report written by the Economist Intelligence Unit.
APT CEO Anthony Bruce was recently featured on Bloomberg TV. Click here to watch as Anthony discusses Big Data and why experimentation is the best way to determine whether a new approach or strategy really works.
In a move to make it easier for consumers to switch banks and to increase competition in the banking industry, the Payments Council of the UK has rolled out a “current account switch service” to speed up the process. The service will switch a consumer’s current account to a new bank within 7 days by transferring funds between banks, moving all standing direct debits to the new bank, and automatically redirecting any payments accidentally made from the old account to the new account for 13 months. While participating in the service is not mandated by law, 33 institutions have already enrolled.
Many banks have been using the service as an opportunity to increase their current account market share. This is creating an incentive war among UK banks, both large and small: for example, First Direct is offering £100 to customers who switch from another bank and another £100 if they aren’t satisfied within the first 12 months. Nationwide is offering 5% interest on their FlexDirect account for the first 12 months, and Santander is offering 4 free months of Arranged Overdraft for switching customers. (more…)
APT SVP Will Weidman’s article about the top five retail banking trends for 2014 was recently featured in Banking Strategies. Trends for the new year include more targeted advertising and the bifurcation of the branch. Click here to read more.