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Breaking Digital Gridlock: Improving Your Bank's Digital Future by Making Technology Changes Now 1st Edition John Best
Breaking Digital Gridlock: Improving Your Bank's Digital Future by Making Technology Changes Now 1st Edition John Best
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John Best
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Copyright © 2018 by John Wiley & Sons, Inc. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
No part of this publication may be reproduced, stored in a retrieval system, or
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Library of Congress Cataloging-in-Publication Data:
Names: Best, John, 1970– author.
Title: Breaking digital gridlock : improving your bank’s digital future by
making technology changes now / by John Best.
Description: Hoboken, New Jersey : John Wiley & Sons, Inc., [2018] | Includes
bibliographical references and index. |
Identifiers: LCCN 2017060722 (print) | LCCN 2018000084 (ebook) | ISBN
9781119421993 (pdf) | ISBN 9781119421924 (epub) | ISBN 9781119421955
(cloth)
Subjects: LCSH: Banks and banking—Technological innovations. | Banks and
banking—Information technology. | Bank management. | Information
technology—Management.
Classification: LCC HG1709 (ebook) | LCC HG1709 .B48 2018 (print) | DDC
332.10285—dc23
LC record available at https://lccn.loc.gov/2017060722
Cover Design: Wiley
Cover Image: © 45RPM/iStockphoto
Printed in the United States of America.
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Contents
Foreword xi
Preface xv
Acknowledgments xxi
Introduction xxiii
Five Myths about Going Digital xxiii
John’s Story xxvi
k Part I Processes 1 k
Part II Technology 21
Chapter 2 Tech Evolution versus Tech Revolution 23
Evolutionary Technology 23
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vi Contents
Evolution in Banking 25
True Revolution 27
The Financial Revolution 29
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Contents vii
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viii Contents
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Contents ix
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x Contents
Conclusion 279
Cultural Issues 281
People Strategy 282
Process Changes 283
Technology 284
Security 286
Index 291
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Foreword
Brett King
International Bestselling Author of Augmented: Life in the Smart Lane and Bank 4.0
W henever you have a book that rounds out with a chapter entitled
“Big Data and the Zombie Apocalypse,” you know you’re in for an
unconventional ride, and yet I have to say the conclusions behind
John Best’s debut tome are undeniable and sound.
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In a world where almost every industry on the planet is being
transformed in some way by digital technologies, the question always
seems to be can the incumbents do enough to survive? In the case of
music, books, retail, transportation and video, we’ve seen enormous
disruption through the emergence of pure-play digital competitors.
Initially, this was through so-called e-commerce players during the
dot com, and in 2007 it started all over again with the emergence of
the iPhone and its App ecosystem. Today we’re talking blockchain,
artificial intelligence, robotics, energy transformation and gene ther-
apy, but the pattern is the same. It’s been the same since the luddites
smashed up the steam machines, the first US transcontinental tele-
graph line killed off the pony express, and automobiles disrupted
horses.
Faced with potential disruption many organizations delay a
response, hoping upon hope that they’ll be “different”, and when
the inevitability of change is evident, the organization is simply
unable to adapt fast enough. Best tackles this from a practitioner’s
point of view, of someone who has been in the trenches trying to
enable such transformation. He starts with the classic psychological
myths that inhibit a reasoned response in the early days of the digital
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xii Foreword
threat, and then details the building blocks of resistance and how to
circumvent those processes, legacy behavior, thinking and systems.
I’ve seen many of the organizational symptoms Best identifies
over and over again. Even today when we’re seeing the emergence
of so called “unicorns” in financial services such as Ant Finan-
cial, Stripe, Klarna, Credit Karma, Transfer Wise, Ripple, SoFi,
LuFax and many more that could end up dominating in their
categories, and where they’ve mostly already overtaken incumbent
contemporaries – there’s still uniform denial that there’s any
“threat”.
Breaking Digital Gridlock, however, is about just that. It’s about how
you truly transform your organization. We hear a lot about digital
transformation in the current day and age, but if you were to ask
me (and I get asked this constantly) which banks or financial insti-
tutions were the best examples of true transformation, I’d struggle
to identify a handful. Why? Because if you want to compete against
the FinTechs and Technology (or TechFin) companies gunning for
you, competing as a traditional player is like having both hands tied
behind your back and your shoelaces tied together in a 100-meter
k world championship sprint final. If you’re going to try to win or just k
survive in the digital world – you have to think and act differently.
From simple innovations like remote check deposit, through to
cloud, AI, Blockchain and Crypto, Best meticulously explains what
the evolutionary or revolutionary technology impact is, why you
should be worried as an incumbent player, and what your options
are. Later in the book when explaining API banking and PSD2,
Best uses the analogy of the McDonald’s brothers faced with the
possibility of the franchising model and dismissing it as impossible
or potentially that it would undermine their core business. Banks
and FIs have some choices in this disruptive landscape, but culture,
leadership, skill sets and approaches must all be revamped. It takes
enormous will to embark on such a transformation.
In the final section around strategy, Best asks the fundamental
question that all incumbents will need to ask themselves over the next
5–7 years in order to survive. Are you a Technology Company that delivers
Financial Services? Or are you a Financial Services Company that delivers
via Technology? Best argues that many FIs in the midst of digital trans-
formation get stuck in the middle. They’re certainly not technology
companies because they don’t have the experience, pedigree, people
and technology to honestly stake that claim. But if you’re going to
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Foreword xiii
Brett King
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Preface
grid⋅lock
grid läk
noun
noun: gridlock; plural noun: gridlocks
1. a traffic jam affecting a whole network of intersecting
streets.
k
H ave you ever been in serious gridlock? When I was working in
California, I would often have to drive from Pasadena to Yorba Linda.
k
The 40-mile trip often took me three to four hours. Many days I would
find myself on a freeway at a dead stop, sometimes for hours. It’s a
helpless feeling to sit there in your car, not moving. You are stuck
and have no idea when it will clear up. Perhaps most unnerving is
that you don’t always know what is causing the gridlock.
While you settle in for the long wait, you start to look around.
You get familiar with the people in other cars. Sometimes there is a
weird moment where you catch them looking at you, and then you
quickly look away (after all, it’s not good gridlock etiquette to stare).
The smell of the exhaust forces you to recirculate the air in your
car. As you inch along the route, you suddenly find yourself reading
every street sign and examining all of the details of the freeway that
you wouldn’t normally notice. Every now and then, you get just a
glimpse of hope because the brake lights in front of you disappear
and you move forward 10 or 15 feet and you think, “This is it! We
are moving again!” Sometimes you even get up to 15 or 20 miles an
hour and you begin to celebrate with your gridlock mates, remote
high-fiving and smiling, mouthing the words, “We’re moving!”—only
xv
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xvi Preface
to have the brake lights ahead glow red. You’re stuck again. The small
celebration you were just having with the guy in the BMW two lanes
away is suddenly over. Meanwhile, someone somewhere is waiting for
you to arrive, and there is nothing you can do to get there any faster.
To me, that’s the same feeling as working in an environment
where you can’t seem to move forward. Every time you get enough
steam to move ahead, something or someone thwarts it and you are
back to being stuck in traffic.
Riskphobia
Riskphobic leaders have a default response to every new idea put on
the table: No! This is interesting because measuring and deducing
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Preface xvii
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xxx Introduction
tripled its income the first month after our little adjustment. Once
again, my super laziness and impatience paid off.
After this, I was given the task to convert the entire ATM network
from one vendor to another. It was one of my first big projects, and
it was vastly complex and difficult. That much I knew at the start.
What I didn’t realize was how dangerous this project could be to my
career. I was working directly with the ATM department. As usual, I
worked my way through the project, asking questions and learning
along the way.
We finally finished the project and I was at home having dinner
with my family when what I call “the voice from above” announced
that I needed to check in. The “voice from above” was my Nextel cell
phone. Those of you old enough to remember them know that they
worked a lot like old walkie-talkies and had a distinctive beep before
the voice would start speaking. To this day, I still twitch if I hear the
Nextel beep. The voice said that something was wrong with the debit
card network and that people’s debit payments were being declined
at alarming levels.
Now in the late 1990s, if you were declined when trying to pro-
k cess a payment at the grocery store, you would be very embarrassed. k
It would feel like the entire store stopped and everyone was star-
ing at you with their hand over their mouth in surprise and pity. At
this point, more than 50 percent of the incoming transactions were
being declined, and the worst part was that these people had plenty
of money in their accounts. It was not good, not good at all. This
was my first brush with adversity. I wasn’t yet 30 and I had just bro-
ken the payment systems for tens of thousands of people. However,
by the time I got in to the office (no VPNs back then), everything
would mysteriously have fixed itself. Then around 5 p.m. the next
day, it would happen again. I toiled over the problem for a few days,
until finally I was asked to come and explain the problem person-
ally to the CEO, Tom Dorety, a legend in the credit union industry.
I had met Tom many times before then but I had never had to deal
with him with regard to an issue of this magnitude. Before I went to
the CEO’s office, Tom Bennett told me, “Don’t go in there until you
have some idea of a solution,” so I started working more frantically
to figure this out.
I had discovered that at the end of the day, around 5 p.m., Visa
would send what is called a “force post” of transactions down the
line to be processed. These transactions would come very quickly and
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Introduction xxxi
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Another random document with
no related content on Scribd:
La flotta, classis, composta di triremi e di liburniche e di altre navi, o
imbarcazioni minori, a ruote od a semplici remi, era così fra questi
due punti principalmente distribuita.
Ora a comandante di quella parte di flotta romana ch’era di stazione
a Miseno, si trovava essere a que’ giorni Cajo Plinio Secondo, detto
Plinio il Vecchio.
Chi egli fosse giova conoscere, siccome il più importante
personaggio che figuri nella storia ricordato nel gravissimo evento
che sto per narrare, mercè le famose epistole lasciate dal nipote e
indirizzate a Tacito, il rinomato storico, e compirò questo debito sotto
la maggior brevità.
Cajo Plinio Secondo, a dispetto di chi lo volle di Verona [84], nacque
in Como — Novocomum — l’anno 23 dell’Era Volgare, regnando in
Roma Tiberio. Suo padre fu Celere e sua madre Marcella. Datosi
alle lettere, non fu ramo di scienza cui non si fosse applicato, e dalla
assidua lettura degli autori latini e greci, solendo sempre prenderne
note, come è manifesto da quanto ne scrisse il di lui nipote e figlio
adottivo — Plinio il Giovine — potè trarne il profitto migliore. Fu un
vero miracolo di studj, considerando come perduto tutto quel tempo
che dava alle altre occupazioni. Così potè lasciare assai e assai
opere, delle quali la migliore e che si può considerare come
l’enciclopedia dello scibile antico, ci è rimasta ed è quella che si
intitola Naturæ Historiarum, divisa in XXXVI libri.
Essa fu da lui ordinata con certo metodo. Cominciò col contemplare
il mondo in generale; gli astri, le costellazioni, le comete, gli elementi
e le meteore, tutti i fenomeni celesti e terrestri passano rapidamente
sotto la sua penna. Descrive quindi la terra, cioè l’Europa, l’Africa e
l’Asia, e contiene codesta parte notizie e particolari importanti sia per
la geografia che per la storia. Segue la storia dell’uomo, poi quella
degli animali terrestri, degli acquatici, degli uccelli, degli insetti e vie
via discorrendo. Vi tien dietro il regno vegetale e vi si tratta degli
alberi stranieri, della gomma, della resina, de’ frutti, de’ grani che
servono alla alimentazione dell’uomo e per conseguenza
dell’agricoltura, del vino e della coltivazione della vigna e del lino;
degli arbusti e del loro uso nella medicina; de’ fiori, delle api, del
miele e della cera; degli usi differenti delle piante per l’industria e per
i farmaci, delle erbe che crescono senza mestieri di coltura, di loro
virtù e proprietà per certe malattie; de’ rimedj tratti dagli animali e da’
pesci. Nove libri consacra alla materia medica e riesce più completo
di Dioscoride e di Galeno. Passa di poi a’ minerali e metalli, di cui è
per avventura il primo a trattare, nè dimentica in tale proposito le
acque medicinali e i sali. Si occupa da ultimo delle materie impiegate
dalle arti, de’ colori, delle terre, de’ marmi, delle pietre da fabbrica, e
di quelle preziose; necessariamente toccando della storia della
pittura, della scultura, dell’architettura, annestandovi digressioni
curiose sul lusso de’ Romani, sulla navigazione, il commercio ed
altre interessantissime cose.
Quantità di notizie, profondità di studj e di filosofia e amenità di
forma sono pregi incontestabili di siffatta opera colossale, della quale
il celebre Buffon fa un elogio; abbenchè Geoffroy Saint Hilaire l’abbia
severamente giudicata una mera compilazione [85].
Svetonio ricorda di Plinio la Storia delle Guerre Germaniche,
compresa in venti volumi [86]; altri altre opere che lo attestano
indefesso e sapiente scrittore, e ne fanno ascendere il numero de’
volumi sino a cent’ottanta, scritti in minutissimo carattere.
Lo che non tolse che servisse dapprima nella cavalleria, che
sostenesse di poi continue e cospicue magistrature, stato essendo
procuratore altresì della Spagna, che fosse augure e da ultimo
comandante, o, come direbbesi in oggi, ammiraglio della flotta
romana a Miseno.
È precisamente nel disimpegno di questa onorevolissima ed
importante carica che noi lo troveremo fra poco.
Spuntava l’alba dei primo giorno di novembre. — Una nebbia
trasparente, che non era delle solite d’autunno, distendevasi su tutto
il golfo e vi toglieva quell’ineffabile sorriso onde fu dal cielo
privilegiato: l’aria era straordinariamente greve e soffocante, nè
spirava da veruna parte alcun soffio di vento. Pur tuttavia,
scendendo alla marina, sarebbonsi vedute le onde disordinatamente
mosse, come in ora di tempesta. Chi andava colle idrie alle fontane
per provveder l’acqua, maravigliava di vederle gocciolare appena
appena; la poche acque de’ pozzi avevano convertito in acre il loro
gusto. Il Sarno medesimo, la cui ricchezza in allora di onde non è
bene argomentata dalla picciola sua vena d’oggidì, parevasi per
prodigio disseccato repentinamente. Miasmi sulfurei e di mofete [87]
si facevano sentire leggieri dapprima, poi rendevansi più forti e
dominavano, e la calma e affannosa atmosfera era certo in contrasto
coll’ora mattutina per consueto fresca e pura; nè di tuttociò
sapevansi indovinare le cagioni. Perocchè a quanti fosse venuto in
mente di rammentarsi il disastro del tremuoto accaduto sedici anni
addietro, e temuto avesse per quegli indizj non fosse per rinnovarsi,
rispondeva assicurando la tranquilla sommità del vecchio Vesuvio,
che sorrideva tranquillo; nè appariva perfino quella bianca virgola di
fumo che d’ordinario vedevasi liberare dalle sue fauci.
Mano mano che il giorno avanzava l’aria facevasi più pesante, più
pallida e nebulosa la luce, maggiore ed affannosa la caldura; ma la
popolazione pompeiana era ben lunge ancora dal sospettare
l’imminenza d’un gravissimo male. V’hanno scrittori perfino che
affermarono non venissero per ciò que’ noncuranti cittadini rimossi
dall’accorrere in folla allo spettacolo dell’anfiteatro ch’era indetto per
quel giorno.
E fra i sanguinosi combattimenti di gladiatori e di fiere li colse
improvvisa la collera del Vesuvio. La clessidra non aveva forse
segnata per anco un’ora dopo il meriggio. Un cupo mugolio
rumoreggia sotterra e sembra esso proceda da lunge, poi
s’approssima mano mano, e ne traballa il suolo, e prima che gli
attoniti spettatori rivengano dalla sorpresa, repenti spaventosi scoppi
si odono dal lato della Porta Ercolano come di tuoni e di folgori; una
densissima e oscura nebbia invade il cielo e l’aria si fa più bassa, e
la notte più cupa sottentra al giorno. Tutti sorgono da’ loro stalli e si
precipitano in massa per gli ambulacri e pei vomitorj, la calca urla, si
preme e svia in quella oscurità, fra clamori di uomini, strida di
femmine, e nel trambusto v’ha chi cade, chi sviene e rimane
oppresso e schiacciato. Quel generale frastuono è fatto maggiore e
s’addoppia per l’eco che si ripete da una estremità all’altra
dell’arena [88]. Urlano agli inattesi fenomeni ne’ sotterranei, che
fiancheggiano le porte principali dell’anfiteatro, spaventate le fiere, e
ne frangono i ferrati cancelli dandosi invano alla fuga [89]; gemono i
cani per le vie, mugghiano i bovi, nitriscono i cavalli e tentano
strapparsi alle greppie onde fuggirsene all’aperto.
Incomincia un grandinare di pomici e di lapilli; una pioggia fittissima
di ceneri e d’acqua bollente si rovescia a furia, mentre in qualche
parte cadono grossi basalti che sfondano, stritolano, uccidono dove
cadono.
Spesse folgori guizzano con odiosa luce ad illuminare l’orrore di
quella scena e rivelano la nera colonna di fumo che si leva dal
cratere del Vesuvio, pari a pino gigante, e i torrenti di lava
incandescente che si precipitan dal monte, che si fanno strada pei
fianchi aperti d’ogni parte e rovinano e scorrono a portar desolazione
e lutto. Gli alberi, al loro passaggio, crepitano, inceneriscono e
scompajono in un baleno; ogni vegetazione è arsa e distrutta.
La Catastrofe di Pompei. Vol. I. Cap. V. Il Cataclisma.