Category: Innovation

Business Models, Innovation

The value of patience | Haldane BofE

Colin Henderson

This is a remarkable paper from Andrew Haldane at the Bank of England.  There are lessons and direction here for everyone and it is not as dry as one might expect.  It is the more remarkable because it addresses human behavior and relates to economic context.  Not your typical Central Bank speech.  Lessons from Asia are being learned. The most amazing for me is the HFT (high frequency trading) stat about Accenture in bold. A few quotes to whet your appetite. Take happiness. Studies have shown that happy people save more and spend less. Happy people also take longer to make … Continue reading The value of patience | Haldane BofE

Innovation3 Comments

“Islamic finance is a medicine for economy” | Linar Yakupov in Tatarstan

Colin Henderson

I continue to be fascinated by product design in western banks and the sheer lack of innovation despite a clear permanently different business and consumer environment.  By innovation I don’t mean higher or lowers fees and interest rates.  What about the substantive design of products?  The tile of this post is a provocative statement I located at Islamic Finance Expert that will likely meet mostly deaf ears in the US however when we dig beneath the surface , there is merit to the statement when we appreciate it speaks to the methodologies and product design employed by banks to fund … Continue reading “Islamic finance is a medicine for economy” | Linar Yakupov in Tatarstan

Innovation1 Comment

Goodbye Wesabe – now we will never know what could be developed

Colin Henderson

In what is the largest shock for me for a long time, Wesabe has shut down. I have long sung the praises of Wesabe and saw great potential for future expansion and delivery of innovative and useful services for people that no-one bank can ever offer. It appears they have run out of funding which I presume is because VC’s are not willing to support a competitor to Mint/ Intuit. This is shortsighted in my view but there we have the harsh reality of business. Online Finance Startup Wesabe Heads To The Deadpool | Techcrunch The startup’s homepage now consists … Continue reading Goodbye Wesabe – now we will never know what could be developed

Business Models, Innovation2 Comments

A Sure Sign that we are at a Turning Point in Mobility and Use of Internet

Colin Henderson

I noticed an ad on CNN this afternoon, that really shows the gap that lies between old business and new business. The topic here is personal use of technology – how individual managers and executives use it. This reflects personal,and therefore institutional effectiveness. It reflects the difference in things happening over days, versus over months. The ad was for GotoMyPC that “allows you to access your PC from anywhere in the word”. Its a funny ad that begins with a travelling executive who realises the information he needs is on his PC back at the home office, so he sends … Continue reading A Sure Sign that we are at a Turning Point in Mobility and Use of Internet

Innovation

You know its bad when … the government is more innovative than your Bank

Colin Henderson

This post from James following his first week at the DWP (Department of Works and Pensions, and hosts of direct.gov). DWP, is running an innovation experiment where they allow citizens to put their own applications on top of government data. Yes, that’s right: an API for the government.Show me a bank with API. You can’t, because there isn’t one. I have to go to a third party like Wesabe, who basically have to suck data out of banks without their permission, to get one. I think it is early days for what Direct.Gov is doing, but you can see the … Continue reading You know its bad when … the government is more innovative than your Bank

Innovation, Profitability

The Productivity Gap is closing in on Banks’ | Branches will be next

Colin Henderson

FT reports on a new Bain report concerning RoE at Banks, and the unliklihood that Banks’ can regain previous RoE levels. This fits with the theme here of no more business as usual, post crisis. The spreads in this low interest enviroment are simply not high enough to accomodate spreads like we saw over the late 90’s and early 2000’s. Furthermore and separate from the spread issue, the growth in credit will not be there either because consumers are unwinding unwieldly debt levels that are now disproportionate to asset levels. The course banks must follow is rejuvenated product suites, and … Continue reading The Productivity Gap is closing in on Banks’ | Branches will be next

Innovation

The Best Business Model in the World

Colin Henderson

Umair zeros in on a real point that is precisely correct.  The point here is not what you may or may not think about prezi … the point is what prezi’s users think. Then relate that to what customers think of your bank’s products. The best business model in the world is also the simplest: make stuff that’s insanely great Everybody’s searching desperately for business model innovation: Detroit, newspapers, record labels, banks. No market is left untouched, no value proposition sacrosanct. Yet, the best business model in the world is also the simplest: make stuff that’s insanely great. Stuff that’s … Continue reading The Best Business Model in the World

Innovation3 Comments

Wesabe today announce that Palo Alto-based Addison Avenue Federal Credit Union is to integrate Springboard Community App

Colin Henderson

Wesabe are making progress with their Springboard product that I blogged about in March. For the details here is that post. They are announcing today that they have signed Palo Alto-based Addison Avenue Federal Credit Union. That is a big one, given the internet savviness of their customers reflected in the fact only 30% ever visit the branch. The groundbeaker for me with this service, is the integration of a web app with an individuals online banking. This brings the outputs of the wealth of a social site into the personal world of online banking allowing the customer to investigate … Continue reading Wesabe today announce that Palo Alto-based Addison Avenue Federal Credit Union is to integrate Springboard Community App

Business Models, Innovation, Social networks2 Comments

Collaboration (1) vs Beaurocracy (0) | Wikipedia & CIA Factbook example

Colin Henderson

Here is a striking example of the power of collaborative ‘wisdom of crowds’ approach to information preparation, versus traditional top down beaurocratic approach. I was reading the Obama speech in Ghana, and his references to the current and previous governments, including Jerry Rawlings which rang a history bell for me, so thought I would read up.  First off I checked what used to be my old favourite the CIA factbook, and it has not been updated since sometime before Dec 2008 [note highlight]. On the other hand a quick visit to Wikipedia had more than enough detail being up to … Continue reading Collaboration (1) vs Beaurocracy (0) | Wikipedia & CIA Factbook example

Innovation, VRM2 Comments

A market test alternative for credit cards

Colin Henderson

This is a variation on the theme I cover periodically called Vendor Relationship Management (VRM). The variation here is that the Vendor must place the consumers product up for bif from competition when they are considering changing the terms, such as interest rates.  The consumer would then have the choice of accepting the change, or accepting one of bidders. (HT Payments News) A Market Test for Credit Cards We have an alternative solution, employing a market test of a proposed change. At the time when the lender proposes a unilateral change, it would be required to put the existing account … Continue reading A market test alternative for credit cards