Sunday, December 21, 2014

Finance 2.0 New Year Resolutions for Swiss Banking CEOs



Finance 2.0 New Year Resolutions for Swiss Banking CEOs
Finance 2.0 New Year Resolutions for Swiss Banking CEOs

Dear CEOs of Swiss Banks, the end of the year is near. In case you have not found any New Year Resolutions below I would have some ideas. As always there are many things we want to make better in the new year. An area where you certainly have room for improvement is Finance 2.0.


Open a Twitter Account and build a Community


 Opening a Twitter Account and build a Community
Opening a Twitter Account and build a Community


With Finance 2.0 it is like with investing in stock markets you can read books over books but to really understand it you must be active and gain experience in the real world. That is why you should open a twitter account in your name. I assume you agree, that a CEO of a bank needs to understand the markets. With Finance 2.0 it is the same. The topic is too important to relay 100% on others. You have no time, your afraid to do something wrong? If Obama found a way to be active on Twitter you really should too don't you think? A number of Banking CEO's are already on Twitter. Check it out! List of Banking – Financial Services – Insurance Senior Executives on Twitter .  If you want to here it from other Banking CEO's why you should be on Twitter please download The Top 10 Community Bank CEOs on Twitter Report


Make Head of Digitization a Member of Management Committee


In a Finance 2.0 Bank Head of Digitization belongs in the Management Committee
In a Finance 2.0 Bank Head of Digitization belongs in the Management Committee









If you don't have yet a Head of Digitization, nominate one. Finance 2.0 is not at all purely IT. A significant part of it is Business. It is all about client interaction hence you need a person who connects the two worlds. Finance 2.0 has to be a significant part of the banks strategy. As a consequence the Head Digitization belongs in the management committee. 


Have a Finance 2.0 Expert in your Board

A Finance 2.0 Expert in the Board
A Finance 2.0 Expert in the Board

It is only logical. The main responsibility of Board members is to develop or at least sing off and monitor the bank's strategy. Since Finance 2.0 should be an important part of the strategy, there should be somebody in the driving seat who is an expert. There are enough good people available you just need to reach out.


Start to think in Processes for Finance 2.0 and not in Channels

Finance 2.0 : Think in Processes
Finance 2.0 : Think in Processes


Decide on Finance 2.0 Channels or on tools and then assign them to an according business field is like putting the cart before the horse. This approach generates little efficiency and quality improvement and certainly no leverage. Define which process has priority and then decide step by step what activity is needed for improvement and based on this decide which tool you want to use. Offline and online activities need to go hand in hand.



Get Head of Compliance to have a Twitter Account as well


Head of Compliance at Swiss Banks has to have a Twitter Account as well
Head of Compliance at Swiss Banks has to have a Twitter Account as well


The main problem is, that Compliance has mostly a limited know how of Finance 2.0. They very often only see the negative aspects and potential risks. It is key that Compliance gains experience and knowledge and starts to understand that the chances exceed the risks. More on this in my blog post And if compliance were Finance 2.0’s best friend…and the other way around?



Train your Employees on Social Media and let them use these media


Swiss Banking Employees should be well trained on Social Media and be allowed to use them
Swiss Banking Employees should be well trained on Social Media and be allowed to use them


You can buy and implement Finance 2.0 software within months, but creating a Finance 2.0 culture takes years. Therefore start training of your employees as soon as possible if not started yet. On one hand you reduce risks of wrong handling but above all you benefit from a massive potential. You still think employees posting on company topics is a to big risk and too much could go wrong? Need I to mention the things which went terribly wrong on employee side within the last years?  Stolen client data, huge trading losses, Libor & Forex manipulation etc... The risk with Finance 2.0 employee activities seems defenitely smaller



Be a Finance 2.0 Innovator and not a Follower



Be a Finance 2.0 Innovator and Leader
Be a Finance 2.0 Innovator and Leader


We only see the top of the iceberg. We only see about 5% of how Finance 2.0 can change our life and are still in the error an trial face. Of course it is important to see what others do but just to copy them and not risk to try something new is bad. Everybody is just experimenting and if it really works we will see in a few years. Only because a product, a Finance 2.0 strategy doesn't work for a bigger competitor doesn't mean it won't work for you. Therefore, don't follow, lead!


Dear Swiss Banking CEO's I am looking forward to seeing your Finance 2.0 Strategies for 2015. These are challenging times but they bring big chances as well. Finance 2.0 is one of them. I hope sincerely you are going to grab these opportunities.

















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