{"id":1565,"date":"2019-02-21T17:50:09","date_gmt":"2019-02-21T14:50:09","guid":{"rendered":"http:\/\/avigo.consulting\/?p=1565"},"modified":"2019-02-21T17:50:29","modified_gmt":"2019-02-21T14:50:29","slug":"the-digital-ivasion-is-the-ice-age-for-dinosaur-banks","status":"publish","type":"post","link":"https:\/\/avigo.consulting\/en\/the-digital-ivasion-is-the-ice-age-for-dinosaur-banks\/","title":{"rendered":"THE DIGITAL IVASION IS THE ICE AGE FOR DINOSAUR BANKS"},"content":{"rendered":"\n


<\/p>\n\n\n\n

New times and\nnew heroes have come. The Digital booming absorbs people and all the\nsurrounding business environment. Banks are no exception. The main question for\ntheir top managers and owners: How to plunge into this race of IT achievements,\nsocial networks, virtual services, widget products? How to attract customers,\nalmost merged with gadgets in everyday life? Many banks are slow and believe in\nthe model of externally reliable and conservative financial institution. They\noffer customers the Internet banking maximum, naively regarding it as a digital\nsolution …<\/p>\n\n\n\n

Last month,\nI was kindly invited to give a lecture<\/a> about digital banking to students of the Kiev\nNational Trade and Economic University. The topic of digital technology in\nbanking practice sounds very fashionable and on everyone\u2019s lips. Students in\nBanking are well prepared and meticulous audience. The key question is: What is\nnew and useful I can bring to the audience during two hours? Intuitively we all\nunderstand that the digital technologies conquer our life globally. I decided\nto consult with my daughter regarding the attractiveness of the title of the\nlecture topic. The advice from the younger generation was made instantly: Only\nthe word INVASION correctly characterizes the digital. The joy of the\ndiscoverer of an interesting slogan was short-lived, since a simple click on\nthe Internet led immediately to the book The Digital Invasion by Archibalt D.\nHart and Sylvia Hart Frejd. Already done … Thinking about the banking business\nand digital technologies, I ventured to add a metaphor about the inevitability\nof the ice Age for dinosaur banks. And this was the essence of this lecture<\/a>.<\/p>\n\n\n\n

I will give\nthe main arguments for this statement, undermining the ideology of classical\nbanking conservatism:<\/p>\n\n\n\n

  1. Digital Devices. <\/strong>Digital electronics fills all our life with incredible speed. Only\nyesterday, in the 80s-90s, we were surprised and pleased with the first mobile\nphones weighing from one to three kilograms, digital cameras instead of film\ncameras, car navigators with electronic voice, portable laptops instead of\nstationary computers. And today, all this and much more is placed in the hand\nof a kid in the form of a smartphone. Digital devices have become massive,\naccessible interfaces between our brain and the outside world.<\/li>
  2. WWW <\/strong>(World\nWide Web). From the first concept of the Joseph C.R. Licklider Galactic Network\nto the 2011 UN Resolution, which recognizes access to the Internet as a basic\nhuman right, a little less than 50 years have passed. The global web with\nsearch browsers, social networks, online protocols, revolutionizes the flow of\ninformation. The flow of information about each and for everyone. Digital\ndevices, paired with the new WEB space, destroyed the monopoly on distribution\nand access to information.<\/li>
  3. Digital Natives grow up. <\/strong>Back in 2001, American writer and\neducational technologies popularizer, Marc Prensky proposed the terms Digital\nnatives and Digital immigrants. In my opinion, it\u2019s a very successful\nassessment of the new and old generations of the XXI century. Digital natives had\nstarted to hold in their hands and use smartphones before they learned to\nspeak. Digital immigrants are constantly trying to master the Digital\ntechnologies to not fall behind. Today is 2019. Digital natives are growing up\nand actively occupy the dominant role in society. This fact is a serious change.<\/li>
  4. The Ocean Big Data is a new home for humanity.<\/strong> Whether we want it or not. The\ntriad, consisting of WWW, Digital Devices & Digital Natives (WWW DD &\nDN), forcibly generates and scales Big Data. It lives in Big Data. It transforms\nsocially under the influence of Big Data. Who can call today a real force capable\nwithstand to Big Data and the WWW DD & DN Triad? Consumers want to get everything\nonline and quickly. It\u2019s convenient and comfortable for them. Producers want to\neffectively sell goods and services at the same pace. Governors want to easily\nmanage by large groups of people to keep stability. There is one who is really\nagainst?<\/li>
  5. Is there a future for banks?<\/strong> To survive, banks need to adopt the Challenger\nBank strategy. It is obvious that as long as states exist, as long as taxes\nexist, while savings and redistribution of money \/ assets are in demand, banks\nwill exist. But the business model of banks will critically change. It is\nalready changing rapidly. The Big Data and the Triads of WWW DD & DN will\neither embrace the banks if they are actively playing by the new Digital rules\nor become the ice Age for conservative and traditional dinosaur banks.<\/li><\/ol>\n\n\n\n

    Growing up\nDigital Natives have already created a radically new wave of banking for\nbusiness environment. Bank 24\/7 in the smartphone on the palm. Banking service\ntransforms into an elementary widget, essentially a digital picture, that\nconsumers receive with a flick of a finger across the screen. The values \u200b\u200bof\nthe social client\u2019s group are permanently created online with the bank. Mass\npersonalization of clients through Big Data. Customer service where and when it\u2019s\nappropriate. Smart, updated database of customers\u2019 attitude and behavior.\nUnderstanding of customers\u2019 business relations and banks\u2019 possibilities. The\navailability of mutual preferences from this understanding. <\/p>\n\n\n\n

    This is the\nmain list of banking strategies and tactics today in order to survive the ice\nAge of the Digital Invasion tomorrow.<\/p>\n","protected":false},"excerpt":{"rendered":"

    New times and new heroes have come. The Digital booming absorbs people and all the surrounding business environment. Banks are no exception. The main question for their top managers and owners: How to plunge into this race of IT achievements, social networks, virtual services, widget products? How to attract customers, almost merged with gadgets in […]\n","protected":false},"author":1,"featured_media":1544,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[18],"tags":[],"_links":{"self":[{"href":"https:\/\/avigo.consulting\/en\/wp-json\/wp\/v2\/posts\/1565\/"}],"collection":[{"href":"https:\/\/avigo.consulting\/en\/wp-json\/wp\/v2\/posts\/"}],"about":[{"href":"https:\/\/avigo.consulting\/en\/wp-json\/wp\/v2\/types\/post\/"}],"author":[{"embeddable":true,"href":"https:\/\/avigo.consulting\/en\/wp-json\/wp\/v2\/users\/1\/"}],"replies":[{"embeddable":true,"href":"https:\/\/avigo.consulting\/en\/wp-json\/wp\/v2\/comments\/?post=1565"}],"version-history":[{"count":1,"href":"https:\/\/avigo.consulting\/en\/wp-json\/wp\/v2\/posts\/1565\/revisions\/"}],"predecessor-version":[{"id":1566,"href":"https:\/\/avigo.consulting\/en\/wp-json\/wp\/v2\/posts\/1565\/revisions\/1566\/"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/avigo.consulting\/en\/wp-json\/wp\/v2\/media\/1544\/"}],"wp:attachment":[{"href":"https:\/\/avigo.consulting\/en\/wp-json\/wp\/v2\/media\/?parent=1565"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/avigo.consulting\/en\/wp-json\/wp\/v2\/categories\/?post=1565"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/avigo.consulting\/en\/wp-json\/wp\/v2\/tags\/?post=1565"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}