AUSTIN, Texas–Forget the digital future; the real future is all about algorithms, according to one person, who also shared a “secret sauce” CUs should be giving attention.
Futurist and author Mark Walsh told PSCU’s Member Forum here that computer algorithms are where the real future lies, as algorithms are critical to getting value out of data. It’s going to take a lot of adjustment for business leaders, he said.
“We are fundamentally unprepared for the new world that is coming,” he said. “It’s going to transform the way we see the world.”
Noting it’s no longer about talking about 2020 as the future but is now instead about 2030, Walsh said there is good news to be found in the “generation that has been troubling us for some time: Millennials.”
“Millennials are no longer the future, they are the present,” he said. “They are the vast majority of this country, with the exception of this ballroom. The reason we don’t have to worry about them is by 2030 they will be as old and miserable as the rest of us.”
The “far more terrifying generation” according to Walsh, is called eight-year-olds.
“Have you seen the way this generation interacts with technology; it’s extraordinary, it’s intuitive,” he said. “It’s just assumed they will never use an instruction manual, they just dive in. And you only have yourselves to blame.” Why? “What have you done anytime they are crying?” The audience responded, “Hand them the iPad.”
Three Implications
Walsh urged credit unions to think about three implications of an algorithmic future:
- By 2030, we will compete to win consumers and members on the strength of the algorithmic experience we can create for them. According to Walsh, algorithmic experiences will shift our expectations of how the world should work. Consumers will expect their needs to be anticipated before they even ask. “What’s the point of having data if you can’t fulfill people’s needs before they’ve even asked?” said Walsh.
- The way we interface with technology. It will be more than just screens. “This is big; we will just talk to things. Whisper-tech will augment our capabilities with persistent AI. You will be able to start to augment yourself with the wisdom of the system.”
Walsh said earpiece-wearing MSRs and call center agents will use the technology. “There’s going to be a fundamental reboot in the way we see the world, because of augmented reality.”
Next year, it’s rumored Apple will release its first AR-product and all of the data that’s now invisible will be seen, said Walsh.
- Sensors, devices and smart platforms will transform our sense of identity. “Basically, it’s going to start to become difficult to figure out where our personality begins and where the algorithm ends,” said Walsh. Among the sensors will be those measuring health, he said, which will lead to information insurance companies will want in deciding how to price policies, or not offer them at all.
‘Totally on Board’
The next generation is going to be totally on board with all the change, according to Walsh, who said consumers will expect from their credit unions to predict their needs as well as other providers.
“Don’t plan for just your current members, plan for your future members, too,” said Walsh. “Ask yourself how you can reinvent, reimagine? Constantly challenge your assumptions about the future. Most of us are a bit too old to envision how the future is going to be. But the good news is there are people in your worlds who can envision the future. They’re your kids.”
Forget the Fantasy
Walsh noted everyone fantasizes about being part of a start-up, but said that really is a “fantasy,” as scale is increasingly needed, and there are other issues, as well.
“The world is difficult and complex. If you can’t be agile and creative when you have four people, you have bigger problems. It’s even harder when you have 100 or 500 people. When you get a critical mass of people together, things get difficult. What you really want is not to be viewed as a startup, what you want is to be seen and valued like a technology company.
“But it’s not about the technology. To really transform, you’ve got to figure out how to make culture your operating system,” Walsh continued. “This is where the magic is. It’s in how people interact, communicate, collaborate and solve problems. This is the secret sauce that is your path to true digital communication.”
A Mind Grenade
Looking forward, Walsh said credit unions should recognize that many of the jobs of the future don’t yet exist, so CUs should not hire as much for skill sets as mindsets.
“Hire people who can make good decisions in uncertain and unknown situations,” he advised.
Also looking forward, Walsh cautioned credit unions that “Everything that has made you successful to this point, could be what kills you in the future.”
Finally, Walsh offered this “mind grenade”:
“If you were to start your organization again today, leveraging all available technology, data and new ways of thinking, what would you do differently?”