What does it mean to be a Digital Bank?
In this short video, @Stuart Johnson explains what it truly means to be a digital bank.
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TRINA: Tell us the meaning to be digital bank. Stuart is, I’ve got your last question here. So, in December 1995 Advanced Bank acquired by St. George, paved the way to provide customers with 24 by 7 banking with the rollout of the C++ internet banking program which was downloaded by 350 customers in the first month. 12 years later in 2007, Telstra launched Australia’s first consumer smartphone, the Nokia 925. That said, the term “digital” didn’t gain any popularity until about five years later. Many wondered then, what “digital” meant, considering we hadn’t been analog in a long time. What does being a digital bank mean to you?
STUART: Okay, so firstly digital’s probably… I “hate” digital.. the word “digital”. It’s overused and used for everything and anything. But if I go back to your example then… you talk about Nokia in 2007 and five years, so it was 2012. So, back then, “digital” would have meant a funky new App; being a banking App. So, digital back there 2012 meant that you could build a banking App.
Fast forward a few years from there, “digital” probably expanded to include elements of social media. But, if I then step back and go, well, if I take all the tech out of it, what does “digital” mean? It’s around providing a better customer experience, so let’s just take tech out of the conversation. It’s about… so that’s back in 2012; a banking App. Still providing a better customer experience. Now, people will throw around machine learning, AI and data and there, that’s why… some of the technical blocks required to get a better customer experience. But, it’s… what is a better customer experience today?
And, I’ll give you a couple of examples from my life and then … to paint the picture. So, we all know some simple ones. You go and… if you’re a Woollies member and you go and tap your rewards card and you’ve got your App that every week or month it’ll tell you “oh Stuart you like ginger beer, ginger beer is on special, go and buy it”. So, they know what I buy. There you go. Go and buy this.
If I go into Google and I’m Googling sneakers, next time I go into some other website there will be an ad on the side for the sneakers. So, those channels are really good at that kind of targeted marketing. But then it starts to get better.
So 12 months ago, my wife bought a new car and it’s the first time we’ve had a car that was connected to the internet, yeah? So, voice-enabled you go press the button… go “call mum”, Yeah? And it rings automatic. Fantastic! Or… “navigate home” whatever and a map comes up. That’s fantastic! And the scary thing is we were just having a conversation… talking, we didn’t have the map on or anything we were just talking about a restaurant in Cronulla and then later on we didn’t navigate … navigate to wherever you’re going. And up on the right hand side, where comes up to recent searches where you might go to, it had that restaurant there. Now, we’ve never navigated there because we walk to it, yeah? We’ve never bought online from (there). So, just be careful. The car’s listening in or Google’s listening …whatever. And, it’s listening to what you’re talking about, yeah? That… that is scary.
Another example is … recently, I bought tickets to Chris Rock’s concert. He was out here the other week and I didn’t tell her; it was supposed to be a surprise. Two days later, she starts telling … she starts getting all of these Chris Rock ads on her Instagram feed. Now, I bought it on my mobile, through my account, but she started getting all the Chris Rock Instagram feeds.
So, what … so for me “Digital” is around how Banks can take Data to provide better customer service… further insights. And, Banks aren’t that good at it yet. They focus on the data they have, yeah? and sometimes, they’re good at just using the data that they’ve got, but they don’t look at what other data is out there. So, “Digital” is around, how you can better bring in other data sources, and bringing those insights to provide a better customer experience.
