DES MOINES, Iowa—It’s no secret innovation will drive credit unions forward. Now one person is offering five steps to creating that innovation.
Shazia Manus, CEO at The Members Group, is the author of a new white paper titled, “Reimagined: Banking In The Age Of The Consumer.” Manus, in her report, explores what can be done to inspire teams to think in new ways, including:
- Understanding the difference between innovation and invention.
- Looking outside the financial industry to entertainment, automotive, photography and retail sectors for inspiration.
- Taking a look at the successful innovators from within the financial services ecosystem.
- Mastering the “exploit and explore” business philosophy.
- Learning how to link innovative endeavors with the strategic business plan.
“Financial leaders are fortunate to be operating in an industry ripe for reimagining. A rapidly changing marketplace functioning in the Age of the Consumer makes this an ideal time to reimagine banking,” writes Manus.
A powerful deterrent to innovation in many industries, and especially financial services, is a base misunderstanding of the concept. Many executives confuse innovation with its “much loftier sister concept” — invention, according to the paper.
“The pressure of creating something entirely new, something no one has thought of since the beginning of time, naturally keeps leaders from becoming disruptors. It keeps them from innovating for the future,” said Manus.
That’s why it’s critically important to understand innovation is not invention, explained Manus.
“Something requires an entity to dream up a product, solution or concept never before seen by the human race. The Information Age made invention both easier and more difficult. With global sharing of ideas and data, discovery — and therefore, invention — became possible for more people in more corners of the world. At the same time, that sharing of ideas also challenged inventors to work at a breakneck pace, before their inventions could be thought of and shared by someone else,” said Manus.
Manus concludes the choice is either evolution or extinction.
“In the age of the dinosaurs, size often prevailed. Today, agility rules. Technological and other advancements are no different than the asteroid that rendered the dinosaurs obsolete. Artificial intelligence, robotics, digital manufacturing, biology and infinity computing will force all businesses to adapt. These are the advancements changing the way every industry will operate in the not-so-distant future.
In 1920, the average S&P 500 company had a run rate of 67 years. Today, the rate is down to 15 years, she explained.
“At the risk of sounding the alarm, our business species (financial services) is exhibiting all the tell-tale signs of mass extinction. For all organizations, especially credit unions and community banks, to survive in the fast-moving Age of the Consumer, explore and exploit must become the new norm for today’s leaders. As Diamandis said, ‘The best way to predict the future is to create it yourself.’”