- What happened all the years with all the money?
- Why is my broker app still ugly to use?
- Why is the functionality of my retail app still so limited and did not fundamentally change the last 20 years?
- Why is my banking still so isolated and closed?
- Why don’t I have online access to my insurance contracts?
- With my bank identity I would like to register and login wherever a verified and trusted identity is necessary. I don’t any longer want to stick with Facebook or Google to login to 3rd party services. And I don’t always want to register again
- I what to pay and transfer with my bank account as seamless as possible. I don’t want to register for Paypal, register for a credit card, transfer money. I just want to enter my bank id
- I want to apply 2FA systems for transactions easy to use and transparent (face, fingerprint etc.)
- I want many new services connected to my bank account and portal. E.g. I want my bank to analyse my payments and to tell me how and where to insure. I want my bank to be my trusted ‘check24 price comparison’ without the need to register or to use another 3rd party service
- I want my bank to provide me advice on every transaction. Maybe to register an item in my personal item store, to tell me my car is due for service or to apply for an extended guarantee because they know standard guarantee is ending soon
- I want my bank to offer me a tax accounting and consulting service. They have all my data and my bills. They could directly interact with the tax accounting office without having me to printing out tons of papers
- I want to do everything digital. I want to change any property of my account. I want to process every possible transaction in an electronic way
- But I also want branches. Much fewer, but more beautiful, more stylish in central locations with best services and consulting like Apple is showing us the way. For the seldom cases I need one I’m willing to drive
- As long as we need cash I want to withdraw money at every supermarket with my mobile app and deposit either
- I want my other bank data integrated via Open APIs
- I want my insurance data and processes integrated via Open APIs
- I want a document and key store
- I want my bonus programs to be integrated into my account and my payments. I don’t want to be urged to pay with Payback Pay only because I want to collect bonus points
- I want…
- Become a better, become my trust ecosystem – you already own the entry and the exit, all my keys, but the room between is rather empty
- Don’t necessarily invent, copy, collect good ideas instead and much faster
- Develop yourself to an independent software company, everything is software in these days, you need to deliver software
- Fight centralisation, globalisation and outsourcing if it hinders to following your strategy, don’t follow blindly your CFO, CEO or your headquarter anywhere in the world – follow me, your customer
- Cooperate faster and more often
- …just please do something!
- Love what you do!
- Love how you do it!
- Love where you do it!
- A Platform Strategy is a Business Strategy and Business Architecture and not a Technical Architecture or Strategy. A new technical architecture might be a supporting part, but only a part of. One selling you the implementation of a new core system as the core of a platform strategy is fooling you
- Although there are vertical and horizontal platform models when we talk about platform economy we refer to horizontal models – we don’t see the ‘taylorization’ of vertical production lines as modern platform approaches
- There is no one role in a platform strategy. There is no one winner and are many losers. There are many roles and you need to define yours first. From service provider to platform operator, to name just a few.
- The platform economic approach is neither new and nor a revolution. It’s a very old evolutionary approach. The multi-industry company is so to say the ‘mother of the all platform economies’. Companies like Siemens and Samsung have been the prototypes for such companies, but in the 90ties Europe and especially Germany declared this model to be an outdated one. In Europe we focused on vertical models with high dependencies and got rid of most of the horizontal models. This is one reason, why we in Germany and probably also in Europe now lack behind
- Although the GAFAs are already far ahead we, in Europe and Germany, still have a lot of chances to catching up. Successful platforms combine services under one entry (‘Login’) and one exit (‘Checkout’). It’s now important to win the ‘Digital Identity- and Payment/Checkout War’ to reshuffle the cards (Think of Verimi, Yes, Paypal, Paydirekt and many others)
- If somebody talks about about Platform Economy ask him for successful examples in Germany. If he doesn’t name Rewe or Check24 he has never really thought about seriously. Check24 combines already a lot vertical financial services and Rewe supermarkets become the physical touchpoint for a strong digital ecosystem in my eyes
“Banking is necessary, banks are not” (Bill Gates 1994)Sometimes it takes 20 years and more for good ideas.
- Focusing Innovation
- Focusing the customer’s need and
- Focusing Delivery
How to understand the Thermonuclear Threat of CryptocurrenciesAnd you don’t need Bitcoin for this. Due to its technical limitations Bitcoin doesn’t even have the necessary potential for this kind of nuclear disruption in my eyes. But others have. Others like Stellar Lumen and Satoshi Pay. Give both a try. Be a customer paying with Satoshi Pay using the new Satoshi Pay WordPress Plugin. (WordPress plugin with Pay and Top Up Option via Satoshi Pay) Or be a publisher and try to monetize your contents and goods with micropayments. (Satoshi Dashboard – Content bought with 1 Lumen via WordPress Plugin) Once done and recognized how fast and simple and how cheap micropayments work, for both, the seller and the buyer, you will feel this new threat. A payment works within a second. A Top Up didn’t take more than 5 seconds either. The transfer of some Lumen from Kraken to Stellar was done within 5 seconds as well. If you, like me, are coming from the traditional banking industry this all is really impressive! And exactly these depicted revolutionary new processes here let you very easily understand, why people are buying cryptocurrencies like hell. They believe, like I do either, that this all will change the world of banking and payments forever. Give it try and buy for only 1 Lumen one empty content page via my blog 🙂
Very often people ask what makes Insurtechs or startups more innovative and more successful than traditional incumbents and insurers.
And the answers usually are:
- They can start from scratch
- They don’t have to deal with legacy
- Processes are simple and very agile as company is much smaller with less people
- Governance is very lightweight or even not existing
- People are much more motivated
- People are more skilled
All valid answers.
But today I would like to add another, in my eyes often an even more important reason:
Insurtechs and startups are managed by people, who still apply the necessary technologies, are very hands-on and know the pros and cons of all their architectures and technologies by being a developer or architect or both.
IT managers and decision managers in traditional incumbents and Insurers, even at the lowest level of management, had been technologist at the start of their careers, but usually have lost all their technology skills over the years.
I have been with so many banks and insurers over the last 30 years, but I never met a 40 or 50 years old manager being able to develop with the latest technologies, even not being able to develop with a 15 years old Java stack.
And these guys in a faster than ever technology driven disruptive insurance world have to decide and to manage technology projects and innovation.
How shall and can this work?
Startups work differently – developer, technologists, typically the best developers and architects within a Insurtech or Fintech make the decisions, even the most important ones.
What does this mean for the incumbents?
They have to change their management structure and their processes radically! Smaller teams, self-contained, connected network-like and not hierarchically, managed by the best technologist within the team. Deciding and working autonomously against company’s strategy.
What does this mean for the IT Manager?
The IT Manager always has to question himself and change roles regularly. After a time of pure administrative leadership work he needs to go back to projects in order to make his ‘hands dirty again’. Work again as an architect, developer or project lead within the latest project and retrain himself.
The incumbent and the manager himself should always see the IT manager role as a role for a limited period of time.
If not they will kill innovation and in the long run the company.