At the "How to Build a New Bank" Seminar hosted by Fiserv, Alessandro Hatami of The Pacemakers discusses innovation in fintech and how banks can innovate their experience and business models.

1. Can Banks Innovate?
Alessandro Hatami
The Pacemakers

2. © The PACEMAKERS
Today banks are…
 Again making money
 Already Online and on mobile
 Experimenting with small-scale FinTech partnerships
 Establishing Innovation teams
 Investing in FinTech
2
Current approach is delivering results

3. 3
Why worry about innovation?

4. 4
Competition is growing

5. 5Graphic by CB Insights

6. 6
Customer inertia is waning

7. © The PACEMAKERS 7
➔ Worldwide 77% customers dissatisfied*
➔ 38% of UK SMEs would use non-bank for banking services*
➔ The FCA received 29 new bank applications in 2014
➔ Account mobility a core objective of the Regulator
* EY research

8. 8
Money Pouring into FinTech

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Can Banks Innovate?

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Banks are designed to improve incrementally
NOT
Designed for
Innovation
Strive to be
predictable and
reliable
Dislike change
and disruption
Incentivise the
short term
Crave certainty
Failure not an
option
Build on legacy
systems
Internal
procedures focus
on control

12. 12
Real innovation needs a process
Going from Leap to Process Innovation often challenges the
corporate cultures of banks
Process
Innovation
Leap
Innovation
Disruptive businessesTraditional businesses

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The challenge for banks…
Is it possible to innovate working with the existing culture?
Build the new
Deliver quickly
and cheaply
Keep the existing
Using existing
delivery capability
Using short-term
tools
Deliver long-term
growth

14. The Pacemakers
Implementing Innovation