I Googled the words “digital disruption” today just for fun. My search yielded 82 million results in 0.67 seconds. I bet if I did another search a week from now, Google would generate even more results. I’m ok admitting that this is all very exciting to me.
What is digital disruption? According to Technopedia, it’s what happens when advances in technology change our markets and our societies. Let’s think about this for a second, because we are literally living in the age of digital disruption. Nothing has impacted our markets and societies more than the around the clock connectivity of the smartphone and all of its associated digital technologies, social, content and purchasing platforms. It’s changed the way we work, play, interact, purchase, plan, find information and even how we manage and spend our money.
The group of platform companies at the forefront of this age of digital disruption have dominated the industry so completely that they have their own acronym: FAANG. This stands for Facebook, Apple, Amazon, Netflix and Google. These big five have made it their mission to transform the consumer experience by removing barriers that have traditionally caused friction. Each of the FAANG giants has in its own way redrawn the customer journey, allowing it to happen seamlessly from the palms of a person’s hand. In doing this, they’ve redefined how we operate in this world.
But what does FAANG have to do with how we operate as a credit union? In a word, everything. It’s changed what our members expect of us. It’s changed how they want to interact, bank, engage, join and learn more about what we believe in and what we can do for them. It has elevated its day-to-day online experiences. They want us to match that level of experience, and rightfully so.
I think about this a lot as CEO. I want to understand all that I can about how the FAANG companies have done this. I want to apply that understanding in a way that emboldens our team to achieve our mission of improving our members’ experience. While each FAANG company is a completely unique entity, they share the quality of bold, visionary thinking. They’re not afraid to upend old models to improve the customer experience and they’re not put off by resistance. Here’s what I admire about each of them and want to parallel in our approach to building frictionless experiences for our members.
Facebook has redefined community. In a space of just 15 years, it has changed the way we connect, share, consume content and align ourselves with like-minded people. Facebook reminds us to think more widely about the people and communities we serve both physically and virtually. Building strong networks whose experiences can be shared and enjoyed by our larger Innovation family is key.
Apple is all about making things easy. When you buy an iPhone, for example, there’s no need for a how-to manual. Despite the unimaginable amount of computing power packed into that little touchscreen, the user experience is easy and completely intuitive. You can watch videos, download maps, listen to music, pay for a purchase, text, talk and solve almost any problem with the ‘there’s an app for that’ philosophy. Apple reminds us to think differently and not to be afraid of challenging traditional banking practices in our mission to make member experiences as frictionless as possible.
Amazon describes itself as ‘customer obsessed”, which is very apparent in a digital shopping platform that’s so seamless it’s almost invisible to the customer. Amazon prioritizes the customer experience above all, making it their core business to understand what people are looking for and filling those needs by partnering with sellers across the globe. Amazon has also changed the playing field with the transparency of its customer and product reviews. They don’t shy away from feedback, even if it’s negative. We’re looking at implementing these kinds of practices at Innovation as well, as it will allow us to adjust products and services with real-time feedback rather than waiting for an annual member satisfaction survey.
Netflix found a point of friction and provided a simple but revolutionary way to overcome it. People wanted an alternative to the video rental store, so Netflix found a way to offer low-cost online content that’s easy to plug and play 24/7 from anywhere. With 139 million subscribers globally, Netflix continues to keep customers happy by always evolving while keeping things simple. Netflix shows us how to do things and is an amazing model for Innovation to follow.
Google prides itself on using ‘people analytics’ to build a better world. These analytics are a combination of hard data and human feedback and Google uses it to systematically improve performance, remove friction and help people find what they need. Innovation can use the data our members authorize us to use to help us better connect with them in a more meaningful and valuable way that builds sustainable long term relationships.
FAANG has revolutionized the customer experience. They inspire me to consider all of the ways that Innovation is and will embrace the business model from product to platform (even though all but Netflix are direct competitors) to the benefit of our current and future members.
Looking ahead, we’re currently in the process of becoming a Federal Credit Union. This will create a significant and positive disruption of the financial services space in our country. Our member-first value proposition is unique compared to those of large national retail banks. Extending our reach will help us live our cooperative values on a national scale. The market share we’ll gain from this endeavour will enable us to invest in solutions that will allow us to empower even more Canadians financially and invest in the communities that they live in.
In terms of what we’re already doing, the truth is that Innovation has been embracing disruption for positive change for years. Our No-Fee Bank Account is truly that, with no strings attached. Member Rewards have paid members over $30 million over the past 12 years and we’ve shared our profits with our communities. We’re also embracing an omni-channel workforce to make it easy for members to connect with us. We’re finding innovative ways to expand our services. We’ve also established an Enterprise Resource Planning professional, whose primary role is to explore all of the ways that we can become a frictionless credit union. We are changing in positive ways, evolving into what our members need us to be and not what the industry says we should be.
The FAANG gang has taught me about how to do things intentionally, deliberately and with purpose. These disruptors don’t just add a new product or feature on a whim. Every offering is well thought out based on consideration, analysis and practice. This is the path we are on at Innovation as well. Like the FAANG group, we’re not about disrupting just for the sake of disrupting. It’s about growth, challenging the status quo and looking for new ways that will improve the continued focus on our current member experience. This is innovation. And that is what we are all about.
October 08, 2019