Articles covering Blue Ocean Strategies (BOS) that are industry specific are not published often. The website thebanker.com published such an article on May 1st this year. Banking is a sector where innovation is greatly needed. Most of the innovation is put forward by start-ups and small companies known as "fintechs". The article was authored by management consultant Francisco Burelli at Arkwright Consulting in Hamburg and Andrew Shipilov at INSEAD.
"The financial industry seems to lend itself to BOS improvements. The key principles involve the need to challenge conventional wisdom, expand the target market to attract non-customers, and achieve differentiation at a low cost. "
There are obviously many reasons (challenges) as to why financial institutions would be hesitant to implementing new technologies: regulations, cybersecurity, errors, etc. and in many jurisdictions this is more or less emphasized. In Canada for example, the fintech have seen very limited success. The type of innovation that they bring is often more on the technological innovation side than value innovation but we have seen a few successes over the past decade or so.
We have seen companies like Hardbacon, Wealthsimple, Zensurance make waves. They have mostly changed the industry by being very user-friendly, simple to use and completely online. Simply integrating some of the best personal and business banking practices already implemented elsewhere in the world could help advance the Canadian user experience. Is there a client need? Why is innovation in the banking sector so rare? You can read the article at:
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