Healthy Money

"A clear, practical, and long-overdue guide to a powerful idea that the industry has largely overlooked.” Paul Cobban, ex Chief Transformation Officer, DBS "Healthy Money is a must-read for anyone serious about transforming financial services for the better."  Simon McNamara ex-CIO RBS / NatWest How-to guide for incumbent banks to use digital transformation to improve the financial lives of their customers Healthy Money serves as both a polemic and a practical handbook on upgrading banks to be future-relevant. It uniquely integrates customer, technology, and leadership perspectives to build a "Healthy Money"-oriented bank, focusing on how banks can transform, with the explicit goal of helping customers run their financial lives effectively. Written by Alastair Campbell, a seasoned executive with over 30 years of international experience in banking and banking advisory, this book delivers insights on: Thriving at a time when most growth is going on outside of the incumbent banks Leading a shift in focus to drive success through digital customer engagement, and perpetually giving customers more for less Leveraging the new realities of the deflationary effect of digital technology Redesigning the bank's architecture around a modular, layered and loosely coupled approach that emphasises rich customer IDs and networks, exchange assurance, fungible/configurable services and personalised experiences Remaking services around supporting customers to build and sustain healthy financial lives Healthy Money is required reading for all executives and professionals at Incumbent banks seeking to reclaim centre stage by fundamentally addressing their most pressing issues in a unified way.

Preface xi Introduction xv Chapter 1 Nature of the Challenge 1 1.1 Three Mutually Reinforcing Transformations 1 1.2 Banking in the Post-Bank World 18 1.3 Case Studies – Digital-Only Exemplars 27 1.4 Overview of the Three Transformations 31 1.5 Putting it All Together 57 1.6 Appendix: Are You a “2030 Probable Winner”? 62 Chapter 2 The Changing Landscape 67 2.1 Overview: Key Forces Reshaping the Sector 67 2.2 Modern Financial Lives: Four Archetypes to Consider 70 2.3 Waves of Digitization: The Era of Digital Engagement 82 2.4 Technology Trends: Impact of Artificial Intelligence, Digital Assets and New Devices 90 Chapter 3 The Customer Transformation: From Balance Sheet-driven Products to Financial Health-driven Services and Support 95 3.1 Rethinking the Chief Customer Officer 96 3.2 Rethinking Financial Health 104 3.3 Theme 1: Enable Day-to-Day Household Financial Management 109 3.4 Theme 2: Empower Exchange 124 3.5 Theme 3: Facilitate Customers’ Financial Networks 132 3.6 Theme 4: Unblock Accumulation and Decumulation 136 3.7 Theme 5: Put Customers in Control of their Money, Relationships and Data 162 3.8 Rethinking Customer Digital Engagement 166 Chapter 4 The Architecture Transformation: From Accounts-based Architecture to Customer’s Graphs, Events and Smart Contracts 171 4.1 Prisoners of the Architecture 172 4.2 Theme 1: Loose Coupling 180 4.3 Theme 2: Customer Graphs and Event Histories 183 4.4 Theme 3: Configurable Products 200 4.5 Theme 4: Context-Specific Experiences 202 4.6 Theme 5: Real-Time Settlement and Accounts 204 4.7 Summary: The Healthy Money Architectural Layers 205 Chapter 5 The Leadership Transformation From a Customer Inertia Mindset to a Customer Engagement and Renovation Mindset 209 5.1 Drivers of Incumbency Inertia 210 5.2 New Realities, New Mindsets 213 5.3 Theme 1: Perpetually Reassert the Headroom of Unmet Customer Needs 217 5.4 Theme 2: Ruthlessly Focus on the Multiplier Effects 219 5.5 Theme 3: Synchronize the Short Term and the Long Term 222 5.6 Theme 4: Reset the Language to Reflect the Economics of Technology 224 5.7 Theme 5: Define Revolution Internally, and Evolution Externally 226 5.8 Putting It All Together 228 Acknowledgements 241 About the Author 243 Index 245