Has the Fintech revolution actually reinvented banking?

Has the Fintech revolution reinvented banking?

Or have banks simply moved the branch to the smartphone?

It is not long ago that we were told that banking was going to be disrupted, that bankers were supposed to be frightened of Blockchain technology, that challenger banks and startups were going to shake the foundations of banking.

We are a decade into the ‘Fintech Revolution’ and the reality is that banking has hardly changed at all. Undoubtedly banking is now faster, cheaper and more convenient, but fundamentally it is no different and our banking apps very much resemble our old fashioned paper statements.

What banking really needed (and still needs) is Radical Innovation. Radical Innovation is much more than creating apps and packing technology gizmos into them. Radical Innovation is not about moving fast and breaking things, Radical Innovation is about humility (to let go of our own conditioning), courage (to overcome industry conventions and inertia) and method (creative cool is not sufficient).

Radical Innovation can create enormous innovation potential in banking to benefits banks and customers alike. Unfortunately, the innovation ecosystem is ill equipped to foster Radical Innovation because its approach is too conventional. Large corporates, start-ups, consultancies virtually all use the same methodologies. These methodologies are good for solving customer problems and producing efficiencies (in fact they are derived from manufacturing), but they are very poor at producing Radical Innovations.

So how can you foster Radical Innovations?

Using our experience and frustrations as innovation and management consultants, we have developed an approach derived from the social sciences which we have called Hacking Cultural Beliefs. It is structured and helps systematically generate Radical Innovations.