Weekly FinTech Tip: Surviving the Financial Zombie Apocalypse Requires Team Members With A Particular Set of Skills
Data Analytics in the Zombie Apocalypse, Part Two.
For those of you who missed Part One, let’s recap.
What is a Financial Zombie Apocalypse? Reduced Interchange Income due to new products and services that demand a customer keep a remote balance. Think about the Target card, Facebook’s new Libra product, etc. They’re going to want you to change your money into Libra and then keep a balance on the other side. As all of these balances come in, it’s going to reduce your ability to get interchange because you’re going to be spending through other platforms. Two, proliferation of new digital services among the world’s largest banks makes it harder to acquire new customers as well as provide competing services and products. Three, reduced margins create more competition from non-bank entities. That brings us to number four. Large entities such as Apple, Google, Facebook, and Microsoft start providing bank-like services through their models.
That could be the beginning of what I’m calling the Financial Zombie Apocalypse.
If you saw Part One, you know that one of the skills you need to survive a Financial Zombie Apocalypse is to find and keep a team. This week, we’re going to dig more into that. Let’s see what a team looks like and how we keep them during a Financial Zombie Apocalypse.
The people you hang out with are going to be really important, especially in what they’re capable of. Do they know how to shoot a gun? Do they know how to hunt? Farm? Do they know some science? What is their value to the team? How does this translate to a Financial Zombie Apocalypse? Recently I was at our AXFI conference in Minnesota. For those of you that don’t know, my company, BIG, and, as of this year, Trellance, put on a conference every year called AXFI, which stands for Analytics by Financial Innovation. This year, we had Patrick Schwerdtfeger on to speak, and he is a futurist. He provided a glimpse into the future and revealed what jobs will be removed by automation. In the picture below, you’ll see that the number one job that will be removed by automation is loan officer.
Right off the bat, here’s a skill that’s probably going to be deprecated in your world and replaced by AI. You don’t need more of those folks. So, what do you need?
Here are your two new best friends.
The first person you need is a Chief Data Analytics Officer. This person can’t be under some other branch like account or IT because they need to have the autonomy to understand the data, be available to everyone, and have a seat at the table. They are going to be super important. They’re the ones that are going to gather up all of the data in your organization and make sense of it. They’re also going to hire the right people to make sure that that next-level team is strong, powerful, and can actually bring you results. If this guy isn’t trustworthy, then your data won’t be trustworthy and your results won’t be trustworthy. It starts at the top.
The next important team member is a Chief Digital Officer. This has been called other things, like Digital Czar, but I’m going to call it Chief Digital Officer. Understand that this person is not your CTO. He’s not a Chief Technical Officer, whose job it is to look at technology and how it plays into your company, look for efficiencies, those sorts of things. He’s also not your CIO, your Chief Information Officer, whose job it is to help operations, run everything and keep it moving strong, and make sure that the infrastructure that you currently have is all functioning in the right way and that you have the right skill sets and the right people around. A Chief Digital Officer is responsible for translating your products, your services, your features, and your culture into digital services that your customers can understand and imbibe. It’s going to be a combination of someone who understands digital services, products, features and user experience, but also understands your business, and the analytics person is going to help them determine where to start. What part of the fence do you need to start on? Is it loans? Growth? Deposits? Is there great opportunity over here, but less opportunity over there?
These two people together are going to focus your resources so that you can survive the Financial Zombie Apocalypse.
This has been a FinTech Minute. My name is John Best. I am the CEO of Best Innovation Group and author of Breaking Digital Gridlock. If you like this data analytics in the zombie apocalypse motif here, there’s an entire chapter in the book about it. You can find my book on breakingdigitalgridlock.com, Amazon, and anywhere that books are sold.
If you’re watching this on LinkedIn or Youtube, do me a favor and please leave a comment on this video. I’m trying to figure out where and how many people are watching these. We know people are because we’re getting lots of feedback at conferences and things like that, but it’s hard to track. If you know of a way to do that or if you’ve got some magic product or something – which is also something you would need to survive the Financial Zombie Apocalypse – feel free to reach out, because I’d love to hear your story.
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