Celent Banking Newsletter, February 2013

From the Senior Vice President

Banking innovation is not an oxymoron. Yet a quick search of the literature on the subject shows an enormous focus on why banks can't innovate: the obstacles, the barriers, the difficulties. But there’s a fundamental reason why it's harder for a bank than a nimble startup to do something new (and Clayton Christenson touched on it in The Innovator’s Dilemma): banks have a lot to lose if they don’t get it right! Banks, run well, are custodians of their customers’ financial assets; customers expect their bank to just get it right. It’s one thing if a driver gets momentarily lost because of a faulty mapping application; it’s another if your savings account disappears (an exception may be Australia, where there are stories of police calling mapping apps that led drivers astray in the desert “life-threatening”).

But despite the difficulties -- we still have to innovate. And that's why I'm so excited about Celent's Innovation and Insight Day on February 27 in Boston.

In a contest leading up to our upcoming Innovation and Insight Day, we've asked our readers to complete the thought “Innovation is...” using only six words. Early entries are fascinating:

“Making Complex Simple and Simple Brief.”

“Bringing dreams into reality before others.”

There is still time to add yours. To borrow from one of my colleagues: “Celent fosters innovation insights. Ideas welcome.”

I hope to see many of you later this month in Boston.

All the best,

Dan Latimore
Senior Vice President, Banking Group

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