Interview with Chris Skinner at Money20/20 — Transcript

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1. 0:02all right great so sitting here with
2. 0:05Chris Skinner on money 2020 I know we're
3. 0:08only like a third way into the
4. 0:10conference but do you have any
5. 0:11reflections or any sort of insight so
6. 0:14far from the day yesterday but one of
7. 0:17the things that kept coming up as a
8. 0:18theme yesterday was gdpr and data
9. 0:21privacy data protection and the idea
10. 0:23that banks could become safe vaults of
11. 0:26data for customers which is a
12. 0:28possibility but then would I trust a
13. 0:31bank more with my data than I would
14. 0:33trust Amazon a lot of people are talking
15. 0:37about you know the opportunities are in
16. 0:39platforms openness and collaboration but
17. 0:42if we go to sort of the more practical
18. 0:43part of things like what is really the
19. 0:46key things banks should focus on to sort
20. 0:49of stay relevant tomorrow what you'll
21. 0:52understand I talk a lot about digital
22. 0:56and how banks need to be digital and
23. 0:59then I hear a lot of banks talking
24. 1:01digital but there's very few actually
25. 1:03walking know there's a lot of talk
26. 1:05there's not a lot of actual
27. 1:06implementation and delivery and they may
28. 1:08think they've done digital because
29. 1:09they've rolled out on mobile app they're
30. 1:11doing blockchain proof-of-concept
31. 1:12they're experimenting with the artifice
32. 1:14intelligence etcetera etc but none of
33. 1:17that is digital because digital is not
34. 1:18about technology it's about culture and
35. 1:20that's something that I think is the
36. 1:22biggest challenge which is how do you
37. 1:24build a groundswell within the bank of a
38. 1:26culture and a DNA of digital
39. 1:28transformation and if you can't build
40. 1:30that you'll never be successful but you
41. 1:32know how how would a bank start moving
42. 1:34on that journey I mean what does it
43. 1:36takes to become great then well I think
44. 1:39there's two or three things of the banks
45. 1:41that are really doing this well yeah of
46. 1:43which there are only a handful of the
47. 1:44big banks are doing as well and what
48. 1:46they all have in common is the
49. 1:48leadership team completely committed to
50. 1:50digital transformation and are ensuring
51. 1:53that that's pushed through the middle
52. 1:55management as not just a message but as
53. 1:57a structural change programs are you
54. 2:00focusing on customer experiences with
55. 2:02digital reach so the second thing
56. 2:03they're measuring is how much onboarding
57. 2:06a customer's sales to customers
58. 2:09service to customers are being delivered
59. 2:11digitally rather than physically you
60. 2:13think like a startup which is focusing
61. 2:16on customers innovating destroying all
62. 2:18the rules that are stupid and becoming
63. 2:21much more agile all those things are
64. 2:24delivered through leadership and it's
65. 2:26that leadership that gets a digital DNA
66. 2:28there aren't many banks that have
67. 2:29leaders who really believe in digital
68. 2:31DNA there's lots to talk about it but
69. 2:33believing in it is different but at the
70. 2:35end of the day there are always those
71. 2:37that that's gonna say so how does that
72. 2:39impact my business or where will I make
73. 2:41money I mean it's that something that
74. 2:43then limit the banks because there's
75. 2:45still think about sort of the money or
76. 2:47do you need that connection in order to
77. 2:49sort of transform everything well
78. 2:51most banks obviously have to think about
79. 2:54profit margin and shareholder value and
80. 2:57it's difficult right now because I
81. 2:59talked about this a lot what the banks
82. 3:00are doing digital well to link digital
83. 3:03transformation to shareholder return and
84. 3:05to see the differential but it is coming
85. 3:08through and over time you'll see this
86. 3:11chasm created between the banks haven't
87. 3:13got digital transformation the banks
88. 3:14that have the new mentality of how you
89. 3:17make money in a bank is enriching the
90. 3:19customer experience with informed advice
91. 3:22through data analysis and what we're
92. 3:26seeing is that chasm starting to grow so
93. 3:28for example BBVA have 92 percent of
94. 3:31their products digitally available at
95. 3:33protestant and services 43 percent of
96. 3:37their sales in Spain last year were
97. 3:40through customers using digital service
98. 3:41which are compared to 13 percent three
99. 3:44years ago so it's tripled in just two
100. 3:46years and the reason for that is the
101. 3:48measures to focus on getting the middle
102. 3:51management to deliver digital services
103. 3:53but equally it's getting them to focus
104. 3:55on the customer in those services so the
105. 3:58customer measurements around attrition
106. 4:01retention service and Net Promoter
107. 4:03scores all those things combined say
108. 4:05we're not just delivering sales through
109. 4:07digital we're delivering service and
110. 4:09customer experience and focus through
111. 4:11digital and
112. 4:12all of that if we turn it around like
113. 4:14what are the what are the things that
114. 4:16bangs as of today typically like this
115. 4:19regard or fail to acknowledge that they
116. 4:22need to do well use this statistic a lot
117. 4:25because I like it which is from an
118. 4:27analysis of the biggest banks of the
119. 4:30world's annual reports and the
120. 4:32leadership teams of those banks a number
121. 4:35came out that 94% of the c-suite
122. 4:39leadership teams of banks our bankers
123. 4:41who have no technology experience ever
124. 4:43in their life so how can you become a
125. 4:45digital bank if you're led by people who
126. 4:47don't understand digital you've got I
127. 4:49have a leadership that has technology
128. 4:50experience and digital DNA in their
129. 4:52blood but the problem with that is that
130. 4:54that says ok I've got a sec myself thank
131. 4:57you for your time and looking forward to
132. 4:59seeing you don't forget to read my book
133. 5:01digital humans for I win I win it's on
134. 5:03top did you get back read the book thank
135. 5:07you