SEATTLE–In an “Alexa-fied” world, credit unions must recognize that the digital lifestyle is “rewriting the rules of innovation” around numerous key “ubertrends,” according to one person.
Speaking to NAFCU’s annual meeting here, Michael Tchong, founder of Ubercool Innovation, acknowledged that “forecasting the future is a hazardous job, but there are lot of tea leaves floating in our immediate past.”
Tchong ran the NAFCU audience through a list of tech innovations that have changed the world in unexpected ways, noting, for instance, in 1999 MP3s were “giving the industry fits,” yet today streaming music is that same industry’s number-one source of revenue.
Paraphrasing Bill Gates, Tchong shared, “We overestimate what can be done in three years and underestimate what can be done in 10.”
“Emojis showed up in 2011. And five years later, one was named Oxford’s 2015 Word of the Year,” observed Tchong, citing the “Face with Tears of Joy” emoji that is better known as “laughing my ass off.”
The world, said Tchong, is becoming “Alexa-fied,” with 56-million of the smart speakers set to be shipped in 2018 alone.
“There is a common thread in all of these disruptions, technology,” he said. “Technolgy is responsible for two-thirds of all trends. Tech companies have the wind in their sails because Generation Next is smitten with technology.”
Credit unions, said Tchong, must be “laser-focused” on emerging trends, including cryptocurrencies (and the blockchain that underlies them), and more.
UberTrends
Tchong said credit unions’ attention needs to be on what he calls “ubertrends,” which is not a reference to the ride-sharing company even though ride sharing is an ubertrend.
An ubertrend, said Tchong, is a “major movement, pattern or wave emerging in the consumer lifestyle that ripples through society, leaving much change in its wake.”
“An ubertrend causes a fundamental change in population values,” said Tchong. “Trends don’t change values, they merely skim the surface. The biggest change today is the digital lifestyle and marriage of man and machine. The digital lifestyle is rewriting the rules of innovation. You need to think about the values ruling America’s culture: connectivity, convergence and convenience.”
As Tchong explained:
- Connectivity: “All your com-munications options should be available online.”
- Convergence: “Combine as many functions as possible in one screen.”
- Convenience: “Make sure you have customized the member convenience for experience.”
Ubertrend/Unwired
Tchong said younger generations are now “untethered and unfettered generation.” Noting that 1.2 billion iPhones have been sold in 10 years, Tchong said the data indicate that in 2019 the mobile phone will surpass the TV in time spent on a device. “And that’s screen-sucking. It sucks you in and won’t let you go.”
Marketers, said Tchong, must adjust marketing strategies to adjust to distracted viewers. Rather than “control freaks,” Tchong said credit unions should instead think in terms of “control enthusiasts.”
Tchong said some of the implications of the unwired ubertrend are:
- Wireless. “You need to optimize the smartphone experience over the web.”
- Control. “Offer members more control over the transaction process. Let them do it.”
- Freedom. “Let the members choose their favorite touchpoint.”
Tchong recommended a credit union never use the phrase “dashboard,” but instead use the words “control panel,” as that is the psychology of today’s younger consumer.
Ubertrend/Time Compression
This is all about the “acceleration of life,” said Tchong. “It’s the era of ‘TLDR,’ too long, didn’t read. The average time spent on a website is 75 seconds per page. This is why it’s critical you keep your website as simple as possible.”
The data show that the time spent on financial institution websites has actually declined 22% year over year, more than any other category, according to Tchong.
“So, even more important for you to make your websites function smoothly, elegantly and quickly,” said Tchong.
He pointed to surveys showing 67% of consumers expect same-day response, and 42% expect an answer within an hour.
The implications from the time compression ubertrend include, according to Tchong:
- Simplify. “Keep member messaging simple and simplify account opening/financing procedures.”
- Customer service. “Respond at least on the same day of initial member contact.”
Four Simple Rules
According to Tchong, who teaches college on the issue, innovation can be taught in four simple rules:
- Challenge the Old Way of Thinking. “A lot of companies have hardened arteries and don’t want to change. So, you need to ask tough questions.”
- Identify unmet needs. “There are plenty of those. Your business is chock-a-block with pain points. Any pain point is an innovation opportunity.”
- Leverage Resources. “You have plenty of resources; leverage them.
- Ride Trend Waves. “Trends represent change and they are the best opportunity for creating disruptive innovations. One of the biggest trends you’ve got going that is going to roil you in the next few years is fintech. Billions of dollars have flowed into fintechs, another $17 billion in 2017 alone. That is a lot of money flowing into start-ups trying to attack the finance industry.”
“The one critical ingredient for success in innovation is you have to have an open mind,” said Tchong.