Technology has a way of disrupting large industries by changing not just the tools we use, but the entire mindset of how we deliver products and services. I recently attended a presentation by Eric Cook of WSI at the Darling Consulting Group’s 32nd Annual Balance Sheet Management Conference, and the information I received was startling:
- The largest taxi company doesn’t own cars (Uber)
- The largest telephone company doesn’t own a fiber optic line (twitter)
- The largest retailer doesn’t own inventory (Alibaba)
- The largest media company creates no content (Facebook)
- The largest movie house owns no cinema (Netflix)
- The largest software company writes no apps (Google)
The banking industry, like many industries before us, are due for a big disruption. We are seeing this already with the rise of mobile banking and other tech capabilities. Could the largest bank soon have no loans or deposits?
We can take control of this disruption by being responsible for innovation within our industry. We need to use new technologies to enhance how clients interact with banking services. With more mobile devices in the United States than people, inter-connectivity is at an all-time high. It is crucial that we embrace the reach of technological communication like social media to strengthen our community and promotion. Employees need comprehensive training on legal issues, compliance issues, HR policies, and the “Do’s and Don’ts” of this new tech.
We must leverage our Enterprise Risk Management programs as a tool that enables innovation. If we can measure our current “risk DNA”, and develop new products and services, we can align it with our strategic plans to foster growth and change. Unfortunately, if your ERM program simply meets regulatory compliance requirements, you are limiting your organization's opportunity to innovate.