“Committee planning does not work for innovation because most innovations fail and slight differences between similar projects can be huge key factors of success, and as a result it is impossible to predict from which team innovation will come from.” 2. This is very true – I believe that a challenge with committees are the people are not team members – they want to protect their own turf and there is a natural contention built into a committee. Teams on the other hand have a single goal – WINNING. Minor change in semantics, but a real change in purpose. I don't know of much innovation that comes from a committee, but a good team with a real purpose and you have winners.

“Banks are social intermediaries, and as a result, social services that focus on social lending or social saving pose a major threat to them, but could also turn out to be a major opportunity if they manage to re-intermediate these relationships and combine it with their unique competitive advantage: creating money from thin air.” 3. This is a great observation and one banks can leverage, if they can get the customers permission (Privacy Act) to create more social interaction between customers, which will help foster business.

“Banks have some of this social data, in a way that is most likely much more authentic than a Facebook (think about all the documents you need to provide to open a checking or brokerage account compare to what you need to provide to open a Facebook account). It is just a matter for them to put in place the right environment and culture in place to attract people.” 4. Good idea but, the regulations don't allow it – they have a responsibility to 'know their customer' this helps with preventing money laundering, and other illegal acts that can be done through banks and their systems, the Congress has in some sense made banks part of the eyes of the government to watch over the flow of money. (makes sense that is where the money is). So it is not an easy thing to open an account, however with some innovation – it could be simpler. For example if you have one account at a bank – you should be able to open another account with out going through all the same stuff all over again. After all they have your information for the first account.

W Brock – http://www.denovostrategy.com

Realistically, banks can only hope to be the back office service providers for the retail financial service providers of the future. And only then if they can match their most cost-effective, reliable capabilities with the needs of truly innovative customers.

“Committee planning does not work for innovation because most innovations fail and slight differences between similar projects can be huge key factors of success, and as a result it is impossible to predict from which team innovation will come from.” 2. This is very true – I believe that a challenge with committees are the people are not team members – they want to protect their own turf and there is a natural contention built into a committee. Teams on the other hand have a single goal – WINNING. Minor change in semantics, but a real change in purpose. I don’t know of much innovation that comes from a committee, but a good team with a real purpose and you have winners.

“Banks are social intermediaries, and as a result, social services that focus on social lending or social saving pose a major threat to them, but could also turn out to be a major opportunity if they manage to re-intermediate these relationships and combine it with their unique competitive advantage: creating money from thin air.” 3. This is a great observation and one banks can leverage, if they can get the customers permission (Privacy Act) to create more social interaction between customers, which will help foster business.

“Banks have some of this social data, in a way that is most likely much more authentic than a Facebook (think about all the documents you need to provide to open a checking or brokerage account compare to what you need to provide to open a Facebook account). It is just a matter for them to put in place the right environment and culture in place to attract people.” 4. Good idea but, the regulations don’t allow it – they have a responsibility to ‘know their customer’ this helps with preventing money laundering, and other illegal acts that can be done through banks and their systems, the Congress has in some sense made banks part of the eyes of the government to watch over the flow of money. (makes sense that is where the money is). So it is not an easy thing to open an account, however with some innovation – it could be simpler. For example if you have one account at a bank – you should be able to open another account with out going through all the same stuff all over again. After all they have your information for the first account.

W Brock – http://www.denovostrategy.com