Diebold Nixdorf urges bank officials to embrace the 'larger ecosystem'

As banking technology evolves, financial institutions naturally work hard to stay on top of new innovations. One of the goals of the Diebold Nixdorf International Management Seminar this week in Lisbon, Portugal, was to encourage banking executives to focus on the bigger picture — their customer's "connected commerce" journey — that includes ecosystems beyond banking. 

The purpose of the conference, now in its 31st year, is to provide a peer-to-peer opportunity for banking decision makers to share insights.

In an opening presentation, Diebold Nixdorf Chief Marketing Officer Devon Watson welcomed 120 attendees from 36 countries, and explained the theme of the 2018 seminar, "Revitalize retail banking agility and embrace the larger ecosystem."

"Digitization alone is not enough," Watson said. "We need to leverage these things to move forward." 

Watson showed video from a tour earlier in the day that took participants to see a mobile bank branch and other highlights of Lisbon, which he described as the "California of Europe" for its technology hubs and innovative startups.

The tour not only allowed attendees to see banking technology in action, but it also emphasized the continued importance of human interaction, even in technologically advanced countries.

Watson said that the four biggest challenges the banking  industry faces today are rising competition, changing costs, a changing consumer and the unbundling of payment infrastructures. 

Text poll ranks strategic actions

During his presentation, Watson conducted a mobile text poll that asked attendees to rank the five most important actions they can take today to address current challenges. Their response was as follows:

1. Using big data, artificial intelligence, advanced analytics and cognitive computing — 34 percent.
2. Removing friction from the customer experience — 25 percent.
3. Improving integrated and multichannel delivery — 23 percent.
4. Open APIs — 12 percent.
5. Building partnerships between banks and financial technology firms — 5 percent.

Watson said that a McKinsey & Co. survey of banking officials had revealed similar results.

Embracing outside ecosystems

Watson said that even though the surveys indicate a continued focus on technology banks must pay attention to the ways that consumers interact with technology throughout their daily lives, not just when they're taking care of their banking needs.

Other ecosystems in which consumers interact include real estate, leasing, mortgages, insurance, kitchen appliances and ride sharing. Banks can partner with these ecosystems using APIs, Watson said. He added that doing so will keep the bank in front of the consumer when they are interacting with other ecosystems.

"We shouldn't let that moment go by without adding something to it," he said.

Banks need to deliver a seamless experience across the "connected consumer" value chain Watson said. He cited Amazon as an example of how this works, pointing out that the online provider has established a presence in consumers' living rooms and kitchens with its interactive technologies.

"They follow the consumer wherever they go," Watson said.

Presentations following Watson's included presentations from bank executives who explained how they are working to embrace the connected consumer, as well as how they are addressing other challenges, such as the declining use of cash and increasing costs.