Sales League Table 2020 | Banking Technology Winners

Results Announced!

IBS Intelligence launches BankTech Daily News

Subscribe today. Limited time offer.

The Black Swan Opportunity | Get your bank digital ready.

IBSI Special 5 Digital Report Package with Special Offer. Subscribe now

India FinTech Report 2020

Insights into the historical and projected market size of key FinTech categories. Subscribe now

Banks need cultural transformation to become digital, Starling says

A cultural transformation is necessary before financial institutions struggling with legacy systems can complete a digital transformation, Starling Bank’s Chief Technology Advocate said in a panel.

The debate, an initiative from cloud-based messaging platform Slack, took place Thursday morning in London, and covered topics such as digital transformation, the future of work and how people collaborate and communicate.

digital transformation talk from slack

Slack hosted the panel discussion in London

The panel included Jason Maude, Chief Technology Advocate at Starling Bank, Flora Coleman, Head of Government Relations at TransferWise and Stuart Templeton, Head of UK at Slack, and was moderated by Chris Skinner, chair of the Financial Services Club.

Addressing digital transformation, Maude said he believes it is possible for banks to adapt, but it will be hard for them to do so.

“When I talk to people from incumbent banks, they say that what’s holding them back is legacy technology from the 70s, sitting in the basement, which they can’t replace. Starling is lucky because we started building from scratch.

“But what I think is important is not that we built our technology from scratch, it’s that we started our culture from scratch. We have a culture based on ‘we are building software – let’s work in a fully agile fashion’.”

“With digital transformation, what is really needed is cultural transformation. If the banks really want to use software as one of the main core competencies, they need to move to a culture which is much more agile. The transformation doesn’t need to come from the technology side, it needs to come from the business side; the managers need to transform,” Maude said.

Coleman from TransferWise added that companies often get the focus wrong when the culture is wrong. “The culture point is so important. You look at companies like Amazon, they’re described as radical, fast tech, super agile. But the reality is a massive, radical customer obsession.

“I think implementing customer obsession is really vital to digital transformation. But that relies on the cultural change of not outsourcing responsibilities and actually living the flat structure. A flat structure is not ‘hey, we got no managers, it’s all chill’, it’s empowerment from every single individual involved in the company.”

Another challenge for financial services has been a rush to capture customers, according to Slack’s Templeton. He said: “Banks, insurance companies, et cetera, are rushing to expand their digital offering so they can catch and retain existing customers and, ideally, also attract new ones. This ambition to change quickly to meet customer demand transcends industries and puts a big spotlight on organisational alignment and productivity.

He also discussed that fallouts can be seen across the industry – HSBC, for example, will be delivering on 10,000 redundancies – proof that the rush has created a strong ambition to change quickly.

Templeton noted: “Some organisations will perceive this as a threat while others see it as an opportunity. Regardless of if you have an optimistic or pessimistic lens on life, the reality is that most banks need to change the way they operate if they want to stay relevant in today’s digital age.”

Related IBS Intelligence Research

Related Posts

NAB

NAB to recruit bankers and advisers for high net wealth clients

National Australia Bank (NAB) announced that it will recruit 50 new bankers and advisers, as part of its new strategy to provide high net wealth clients with a single point of access for their financial needs, ranging from wealth creation, business growth to retirement needs and philanthropic investment. JBWere CEO and leader for NAB Private, […]

This post is only available to members.

Read More »

EQ launches new automated complaints management product

EQ has announced that it is launching a new automated complaints management product for the financial services industry, EQ Complaints Professional. The new solution is expected to enable firms to enforce their FCA compliance immediately as well as continually as regulation changes. Andrew Edler, MD of EQ Charter, commented, “We are delighted to bring this […]

This post is only available to members.

Read More »
bank, FinTech, neobank, smartbanks, challenger banks, Asia

Australia’s big 4 banks welcome the launch of open banking

The Competition and Consumer (Consumer Data Right) Rules went live on July 1, in Australia. This has been welcomed by the big 4 banks of the country – ANZ, Westpac, Commonwealth Bank and NAB where they will be sharing their customers’ data with third parties, when requested by the customer. Angus Sullivan, CBA’s Group Executive […]

This post is only available to members.

Read More »

Lendio facilitates $8 bn in PPP loans to 100,000 small businesses

Lendio, a leading marketplace for small business (SMB) loans, announced that the company has till now facilitated $8 B in Paycheck Protection Program (PPP) loans for 100,000 small businesses. The firm’s partnership with 300 SBA-approved financial institutions and FinTech leaders has helped the company to secure COVID-19 relief funds for several underserved segments of the […]

This post is only available to members.

Read More »