Friday, August 3rd, 2012 - Australian Information Industry Association (AIIA)
Banks must improve the speed of mobile device innovation and increase collaboration if they are to counter the inevitable onslaught from non-bank financial services companies.

An Australian Information Industry Association (AIIA) report, Financial Services Thought Leadership Paper: FAST INNOVATION, has found that Australia's Financial Services system is a lot more functional than some of its more fragmented overseas counterparts.

"But customers are increasingly demanding that payment tools contain more value-added components such as financial dashboards, coupons, loyalty, invoices, and discounts," the paper found.

"The mobile can deliver all of these expectations, and more: micro-payments, better control, immediacy, and better information" notes lead author, Patrick Crooks, who has successfully led some of the world's largest mobile banking projects.

"The mobile revolution has opened the door for a myriad of non-bank players to deliver innovations quickly and with lower risk," says co-author Wayne Li, Senior Vice President and Country Head - Australia & New Zealand at Polaris Software Pty Ltd.

"Mega brands such as Google and Apple are successfully turning business models upside-down in a number of industries - financial services will not be spared.

"All banks know that they need to innovate, but they operate in an environment that is actually detrimental to innovation itself."

The authors write that one of the problems is that larger banks attract greater regulatory and public scrutiny due to their significance to the economy and with the Global Financial Crisis being blamed on too much innovation, this scrutiny has intensified. "They have so much more to lose than new entrants – fear of failure understandably paralyses some organisations. It is extremely brave to radically redefine an existing business model – it's so much easier to tinker around the edges."

The paper examines the impediments to fast innovation in large organisations, and finds that too many people, decision points, or technology integration points can all add to delays on a project. Counter-intuitively, increasing external touchpoints can actually increase innovation speed by increasing complementary innovation, using social media for immediate product feedback, and the new trend towards crowd-testing.

Summing up, Mr Crooks writes: "When standing at the edge of the innovation "gene pool", executives now have to decide: Do we just dip our toes in the water, or do we jump right in?"

ENDS

For more information contact:

Suzanne Campbell 0438 408 909

[email protected]

Contact Profile

Suzanne Campbell, Chief Executive Officer

P: 0438 408 909
W: www.aiia.com.au

Keywords

mobile banking, mobile security, mobile device management, AIIA

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