Timely article from BCG finds Financial Services enterprises resisting the strategy to become tech companies. BCG believes they will suffer if the continue that strategy.
"We’re not suggesting that nontech companies go toe-to-toe with the tech giants—although some companies are doing just that. In China, for example, Ma Mingzhe, the chairman of Ping An, is aiming to transform the world’s largest insurer into a technology company. Espousing the concept that “driven by technology, finance can serve life better,” the conglomerate has started to offer cloud computing services. " BCG October 30th 2018
All insurers have the opportunity to follow that path. They can partner with insurtechs that give them the short-term ability to delight customers and collapse costs. That gives them the breathing space to action the vision, strategy, talent acquisition and resourcing to become technology companies rather than die as analogue dinosaurs . his requires two main changes.
- The Technology
- The Mindset
The Technology "It goes without saying that the big tech companies are pioneers of leading-edge technology. Over the years, this has given them an advantage over conventional, nontech companies. By controlling the flow of information, they have inserted themselves between companies and their stakeholders—in particular, between suppliers and customers. In the process, they have captured a lucrative business in a wide range of sectors, including marketing, sales, and distribution. " Quote from BCG
The Restless Mindset "the biggest distinguishing factor will be their mindset. It is an irony that the most distinctive, and therefore valuable, dimension of the big tech companies is the human one. When they are pared back to their irreducible core, they are left with a “restless change” mindset." Quote from BCG
Just look at Jeff Beezos to see what this entails.
Every customer of AWS will know that innovation and a restless mindset delivers outstanding customer satisfaction.
BCG suggest a five step process to become a technology company and I urge you to follow the link below and discuss these at your next Board Meeting.
in the financial sector, Goldman Sachs, whose former chief executive Lloyd Blankfein called the bank “a technology firm,” has hired so many computer engineers that they now constitute one-quarter of the bank’s workforce. Yet, it is striking to us that not all traditional nontech companies have responded in this way. For example, some leaders in the financial services industry claim that they do not need to fear competition from technology companies, because regulators will intervene to protect consumers and traditional providers amid concern over sensitive issues such as privacy. We think this view is mistaken, if not a little complacent. In many emerging markets, for instance, consumers do not cherish privacy.