Innovation Driven Growth

 Big data centers are getting more and more popular, and it's expected for institutions to use them. Are they necessary for banks? David shares his view on this actual topic. There is a need for a data acquisition tool that can connect to external systems without centralizing data. The speaker outlines three key outcomes for effective data management: dashboards, graphical reporting, and targeted marketing lists. The episode concludes by urging banks to focus on outcomes that drive business success and improve customer experience, rather than getting caught up in the pursuit of big data solutions.Banks should be good stewards of their data and not be embarrassed or afraid to use it. Notes:  🤔 Banks shouldn't be chasing a solution that fixes a nonexistent problem. 00:55🟫 Bankers have several types of data like financial, customer, and transaction data: there's an idea to create a new repository that extracts from all the existing data sources into some single composite database. 02:40😵‍💫 Even if you get all the data extracted and normalized but gets dated: daily update of all data from every source. 04:08✅ There are three categories of data management outcomes - creating dashboards, graphical reporting, and marketing lists: deliver value beyond the cost of acquisition of the chosen management tool. 05:21👉 The tools you're looking for should specifically address how you accessed third-party databases without pulling all of that into a consolidated new database. 08:16❗ Tools you choose should perform the outcomes that you want: smart bankers are the ones who force vendors to show specific outcomes. 09:31🤩 There are big payoffs for the banks that can get their arms around their data: improve the gross margin, internal efficiencies within their institutions, and customer satisfaction. 12:16 Links: Email David: david@davidpeterson.com   Connect with David: www.linkedin.com/in/dlpspeaks Learn more about David: www.davidpeterson.com Consult with David: www.i7strategies.com Sail with David: www.i7sailing.com

Where failure is discouraged, much less rewarded, why would anyone stick their neck out on the line, bringing a creative idea? Innovation occurs when failure is an option.Challenging the status quo and allowing failure, will initially lead to disruption, however, ensuring failure leads to learning will allow for improvement in banking as a whole. There is much to be learned about the challenge of allowing failure within your organization.Notes:⛹️‍♂️ Innovation occurs when failure is an option: the players who lead baseball leagues and home runs almost certainly lead that league into strikeouts - apply that to your business. 01:20✅ Not only should bankers stop punishing failure, but encourage it using the fail-fast fail-often model. 03:00👉 Executives should encourage innovation and responsible risk-taking across the entire enterprise: ideas that don't go anywhere are not a strikeout - usually, it takes 30 ideas to get one right. 04:01⁉️ Innovation occurs when failure is an option: will you take up the challenge to encourage failure at your organization? 06:07Links:The Financial Brand Fear of Failure Hurts Innovation in Banking: https://thefinancialbrand.com/news/banking-innovation/fear-of-failure-innovation-in-banking-deming-management-transformation-151415/ Email David: david@davidpeterson.com   Connect with David: www.linkedin.com/in/dlpspeaks Learn more about David: www.davidpeterson.com Consult with David: www.i7strategies.com Sail with David: www.i7sailing.com

 In the world of faster payments, fraud is a hot topic. But is it the technology's fault? Not really. Fraud can happen with any payment method. It's about individuals making mistakes.Learn more about App Fraud and its implications in the latest episode of our podcast. We dive into the industry's response and the possible changes ahead.Notes: 💸 The banking industry is going to overreact to address app fraud: David explains why Zell draws the attention of criminals looking to commit payment fraud. [00:36]❓ The systems that the customers are using operate exactly the way they were designed: is the financial institution responsible for the behavior of their customers? [03:07]👉 While the banking industry should undertake any reasonable efforts to protect customers, it cannot absolve the customer from the responsibility for their actions: clients are informed that payment to the recipient is final and irrevocable. [05:35]   Links: A resource from the Federal Reserve on how they will address fraud: https://explore.fednow.org/resources/fraud-at-a-glance.pdf Article on LinkedIn that has more on APP Fraud and Reg E: https://www.linkedin.com/pulse/does-reg-e-cover-scams-pj-rohall Email David: david@davidpeterson.com   Connect with David: www.linkedin.com/in/dlpspeaks Learn more about David: www.davidpeterson.com Consult with David: www.i7strategies.com Sail with David: www.i7sailing.com  

 Having the right leadership in place for your digital channels is extremely important. If you want your branch to have long-lasting success, it's time to find leaders who will bring your virtual branch up to the same level as your physical branch. A successful future needs innovative and open-minded leadership that is ready to push the strategic vision for your virtual branch forward and treat it with the same level of scrutiny as a physical branch. Show notes:✅ 9 key points about virtual branches in banking that sum up Pinkston's article and the previous podcast episode. 01:14👉 Vendors should be held accountable for the systems they deploy: a virtual branch senior executives should regularly communicate with all relevant vendors to discuss product roadmaps, suggest enhancements, and actively participate in user groups. 02:25🔵 A senior executive of the virtual branch should have specific attributes and an open and innovative mind. 03:37🫵 Bankers, own it! 05:13 Links: Blog post: www.bankers-bank.com/who-owns-the-virtual-branch-part-2 The article by Jessica Pinkston: “Who Owns Digital? Ugh, That’s the Problem for Bankers”  Email David: david@davidpeterson.com   Connect with David: www.linkedin.com/in/dlpspeaks Learn more about David: www.davidpeterson.com Consult with David: www.i7strategies.com Sail with David: www.i7sailing.com 

Setting up proper accounting for your virtual branch is crucial for future success. The value of your online presence must be clear and concise in order to foster the support and funding it needs from the leadership in your company, so it's time to start strategizing how to measure this. The truth is that it's very likely that your virtual branch is much more profitable than you think, but is being underrepresented in your general ledger. The future of your business may depend on the quality of the digital solutions that you offer, so start investing in your online services today!Notes👉 The importance of setting the proper accounting in your General Ledger (GL). 00:52✅ Your virtual branch may include consumer online banking, online cash management/treasury services, mobile banking, executing payments, access to eCommerce and others can be part of the virtual branch. 02:08❗ You are probably not accurately representing the actual activity of customers on your GL: Peterson paints four scenarios to show you that. 04:23💲 GL accounting is important because it drives executive decision-making on where money is spent. 08:25‼️ The virtual branch must have its own management and budget: the support of the virtual branch by the C suite and board must be equal to or exceed the support given to physical branches. 10:45⭐ Your virtual branch is likely your largest and most profitable branch: this exercise will not only highlight the need for a permanent change to your GL, but also make it clear that the virtual branch needs to be upgraded. 13:06Links Email David: david@davidpeterson.com   Connect with David: www.linkedin.com/in/dlpspeaks Learn more about David: www.davidpeterson.com Consult with David: www.i7strategies.com Sail with David: www.i7sailing.com

You can elevate your level of service with the way you use data mining. Targeting customers with suggestions and recommendations based on mined data needs to be done paternalistically and carefully to avoid being seen as creepy. The goal is to offer a higher level of service that maximizes convenience and personalization, but these personalizations must be communicated appropriately. If you have the customer's best interest at heart, find out how you can better serve them by utilizing data mining.🧑‍🏫 David teaches a banking technology class at the Graduate Banking School at the University of Colorado: he helps them understand what kinds of decisions they'll make as senior executives in terms of evaluating and understanding technology. 00:584️⃣ Data mining can be used in many scenarios: David shares four examples. 02:54👉 The creepiness is not how we feel about doing something, but how the customer feels. 05:43🏦 Financial institutions can get very granular about how to use customers' data and behavior to provide a very high level of personal service: creepiness is in the eye of the beholder. 07:02🤝 What banks could do with the data is likely paternalistic: it's all about benefiting the customers. 10:59🗣️ How we communicate defines what's creepy. 12:36❓ A key question that we have to ask is, “What is the desired outcome for which this data mining is to occur?” 14:31✅ What most of us think is creepy is likely applied to older customers, particularly baby boomers or super seniors: younger generations expect you to use their data to provide highly personalized service. 15:31🙂 Don't show the same ads to everyone - personalize the customer experience. 16:53 Links: Blog post: www.bankers-bank.com/lessons-from-gsbc-whatever-we-do-we-cant-be-creepy Email David: david@davidpeterson.com   Connect with David: www.linkedin.com/in/dlpspeaks Learn more about David: www.davidpeterson.com Consult with David: www.i7strategies.com Sail with David: www.i7sailing.com

The SWOT analysis tool is an excellent way for your business to take advantage of opportunities. It's critical to regularly assess your business in order to be competitive in your market. By analyzing your strengths, weaknesses, opportunities and threats, you can develop crucial offensive and defensive strategies. When done right, you can minimize the damage from external sources and find great opportunities to invest in. Take strategic control of your business, and focus on the "O!”Notes:🟦 SWOT represents Strengths, Weaknesses, Opportunities, and Threats: the purpose of SWOT is to understand the interplay of the organization's internal capabilities with the external activities or entities that might interact with that organization. 01:00👍 The process should accurately represent the organization's strengths and weaknesses: we can assess strengths and weaknesses without being ugly to each other. 02:42📋 It's critical to carefully brainstorm the opportunities and threats to get a realistic list of what they are: there is absolutely no benefit of overstating or understating them. 03:55✅ When you combine each of the four quadrants, the organization can determine a series of offensive or defensive actions or strategies, make targets, and prioritize. 04:46🏦 From an innovation standpoint, any of those four SWOT alignments could be the target of a creative idea: some financial institutions are still making decisions about how overdrafts fit into their long-term future - that falls right into the SWOT analysis. 07:18😀 Focus on opportunities first: David shares examples from the Financial Services realm and several others. 09:51🔷 Securing against threats is important and should not be ignored: if you're not in the habit of getting innovative ideas out in the open across your enterprise, focus on The “O.” 11:15Links: Where will you get Innovative Ideas: www.bankers-bank.com/where-will-you-get-innovative-ideas Email David: david@davidpeterson.com   Connect with David: www.linkedin.com/in/dlpspeaks Learn more about David: www.davidpeterson.com Consult with David: www.i7strategies.com Sail with David: www.i7sailing.com

To think outside the box, you have to know what the box is. Change your perspective on what the main focus of your business is, and start to think outside the industry norms. When you shift the perspective of the services you provide, this changes the branding of your business, so you can deliver a more profound and appealing message to your customers. Get outside your comfort zone and change the dynamic of your box!🤔 We need to know where we are if we're going to challenge ourselves to get out of the box. 01:16🧑‍💼 Banking is a transaction-focused business, so banks have trained their people to execute transactions with an extremely high level of proficiency and professionalism. 03:16❓ How would our thinking change regarding services if we don't focus on transactions? 05:26🏦 A bank's primary focus could be targeting, identifying, and establishing customers' goals and dreams: ask each manager that reports to you to come up with an example of a goal or dream that a typical customer would have. 06:12❗ Start a conversation about the value of moving your business focus away from a transactional one: change focus and start the hard work of change of your institution's branding. 08:35📤 It feels comfortable to stay within our industry norms, but radical changes are coming: Are you ready, willing, and able to get out of your box? 10:57Links: Link to Previous Episode: ADD LINK Link to The Episode About Goals And Dreams: 37. What do you do? – And How Bankers Should Answer That Question Email David: david@davidpeterson.com   Connect with David: www.linkedin.com/in/dlpspeaks Learn more about David: www.davidpeterson.com Consult with David: www.i7strategies.com Sail with David: www.i7sailing.com

Thinking outside the box is essential for cultivating innovation in the workplace, and sometimes the craziest ideas can lead to the best results. When we can escape the limitations that we often think with, it can lead to profoundly creative solutions. Exercise your ability to think outside the box and produce ideas in great volume to achieve success!📤 Thinking outside the box is to explore ideas that are creative, unusual, and not limited or controlled by rules or tradition. 01:22🧩 We assume the solution to the puzzle is contained inside the box: there is no box. 03:48🧠 The key to the puzzle is overriding our brains' tendency to be constrained to predetermined boundaries. 05:55🧒 Put yourself in a mode of out-of-the-box thinking by changing your thinking space, getting a different perspective, and talking to kids - the most creative people on the planet. 06:58📦 You can play thinking games and practice reverse brainstorming to step out of the thinking box. 08:10📣 Getting creative is a volume exercise. 09:52👍 If you have a question about creativity and innovation, reach out to David, and he will get back to you as soon as possible. 10:38Links: The Diagrams for Thinking Outside the Box: www.bankers-bank.com/think-outside-the-box 9-Dot Puzzle: Sam Loyd’s Cyclopedia of 5000 Puzzles, Tricks, and Conundrums with Answers Email David: david@davidpeterson.com   Connect with David: www.linkedin.com/in/dlpspeaks Learn more about David: www.davidpeterson.com Consult with David: www.i7strategies.com Sail with David: www.i7sailing.com

 Once your business is committed to innovation, the next step is focusing on the problems that require innovative solutions. This should involve picking a trending or pertinent problem in your industry and engaging your new innovation-driven workforce. Gather data, brainstorm and explore even the craziest of ideas before preparing the final strategic recommendations and putting them into action. Implement your new ideas, overcome obstacles and boldly move forward with success! Show Notes:💲 To understand the story, you need to know the OD background: how will your institution tackle this issue? 01:08📊 Data gathering -  assign somebody in your organization to be the repository of gathering all the information. 06:06☑️ Be sure to check out the competitive intelligence. 06:31💵 Brainstorm OD changes and revenue replacement. 07:20🤡 Explore truly crazy ideas: you must not only encourage these crazy ideas but ensure that they will not be ridiculed, even inadvertently. 10:22✍️ Prepare a strategic recommendation for senior leadership and the board. 11:24▶️ Whether you take on the overdraft issue or any other significant change in your service offerings, you can use the template provided above as a high-level methodology for the last step: action. 12:21  Links: The Death of Overdraft Fees: www.bankers-bank.com/the-death-of-overdraft-fees About OD: Overdraft and Offsetting the Gap Email David: david@davidpeterson.com   Connect with David: www.linkedin.com/in/dlpspeaks Learn more about David: www.davidpeterson.com Consult with David: www.i7strategies.com Sail with David: www.i7sailing.com 

 Implementing an innovation mindset into your business is crucial for its future success. Building the foundation for this may be a harrowing task, but the steps in this quick start guide are a great place to begin. There must be a desire and commitment to building a culture of innovation from all levels of leadership that is backed by actionable processes. Integrate these values into regular communications within the workplace and support innovative ideas with encouraging facilitation and incentives. Make innovation a mission-critical value in your business and transform your workforce into inspired problem-solvers! Timestamps:👔 David summarizes the talk he held at the FNBB Summer Conference. 01:12👉 The precursors of the four steps to making innovation a reality. 02:16🩸 No#1 Desire: innovation must be significant enough for you to put blood and treasure on the line. 04:21💪 No#2 Action: focus on education and modelling behavior. 06:21🏅 No#3 Support: motivation and incentives are key. 09:15🛑 No#4 Remove barriers: stop limiting innovation and ideas. 10:29🏦 FNBB has made great strides in how they view innovation. 14:01📋 A quick start guide to start with innovation: figure out how to change your organization into one driven by innovation growth. 15:12  Links: Email David: david@davidpeterson.com   Connect with David: www.linkedin.com/in/dlpspeaks Learn more about David: www.davidpeterson.com Consult with David: www.i7strategies.com Sail with David: www.i7sailing.com 

Converting an unused space into a “Thinking Room” will add great value to your business. This is an inexpensive strategy for increasing innovation and creativity in your workplace. Create a functional safe space that promotes innovative thinking and get the ideas flowing!🥳 The Thinking Room is an unused space converted into a place where thinking and creativity can flourish. 01:06🤩 Check out the Thinking Room David created in FNBB. 02:16❗ Innovation occurs if failure is an option. 03:44❔ What's stopping you from creating a similar thinking room in your organization? 04:47🤗 People need to have a safe space to ideate. 05:35Links: The Thinking Room: www.bankers-bank.com/the-thinking-room-is-ready-for-ideas Email David: david@davidpeterson.com   Connect with David: www.linkedin.com/in/dlpspeaks Learn more about David: www.davidpeterson.com Consult with David: www.i7strategies.com Sail with David: www.i7sailing.com

Investing in new technology is a complicated process that requires expert strategy. No matter what industry you are in, investing in new technological systems can be a time-consuming and overwhelming experience. With so many vendors competing for your business, it’s important to do a full review of their products to see exactly how they will work for your needs. Remember that strategy is key, and these investments will be impacting your business for years to come, so spend your money with specific growth and expectations in mind. Inertia is not a strategy, so review your business’s tech needs today!🏦 FNBB was in the final stages of deciding on its primary core accounting system: David shares the decision-making technologies they used. 00:56📋 Practical summarized steps for making the decision: months and months were needed to evaluate different core vendors. 02:08⚠️ The issues that FIs face when they make tech purchases. 04:34✅ Set realistic expectations, prioritize proven integrations and ease of configuration, beef up your internal IT capabilities & tie your FinTech spending to expected outcomes. 07:34📱 If you want more mobile users, invest in a better mobile platform. 10:41💸 Create a way to monitor the tech roadmap each quarter, don't just buy it and forget it. 11:43❗ Just because many of the newer technologies are not fully baked or standardized is not a reason to avoid them. 12:42🤝 David has a recommendation for bringing in additional resources that can help you sort everything out. 14:06 Links: It’s Dreadful Being a Buyer of Bank Technology: the Cornerstone article by Steve Williams Contact for Profit Resources, Inc: Dave Koto at dkoto@profitresources.com  Email David: david@davidpeterson.com   Connect with David: www.linkedin.com/in/dlpspeaks Learn more about David: www.davidpeterson.com Consult with David: www.i7strategies.com Sail with David: www.i7sailing.com

Employ modern digital marketing techniques to ensure your advertising budget reaches your target audience. Banking is a highly competitive industry, so banks must aggressively pursue new customers with great precision. It’s time to revisit your marketing budgets and allocate funds toward targeting the new generation of prospective customers in the digital world. Utilizing services and marketing strategies that find and target new customers with engaging story-based media and curated articles is the key to modern advertising.Spend your money wisely in the places your future customers are reading and listening!🏦 Today's financial institutions are in a very competitive environment, but is your marketing money being targeted adequately? 00:52📻 Many FI’s do advertising through “advocacy”: the typical nonadvocacy advertising activities are billboards, bus stops, benches, or other types of signage - newspaper, radio, television, direct mail, email, and social media. 02:30📱 Digital tools access data and target information to those most likely to seek it. 04:14🙂 Curated articles and storytelling evoke a strong response: Millennials and Gen Z are motivated by emotion. 06:15✅ You can hire professional writers that work across various areas of expertise: the response rate is significantly higher than traditional advertising. 09:01🎯 Spend advertising dollars on the specific areas where potential clients will be reading and listening. 11:11Links: Email David: david@davidpeterson.com    Connect with David: www.linkedin.com/in/dlpspeaks  Learn more about David: www.davidpeterson.com  Consult with David: www.i7strategies.com  Sail with David: www.i7sailing.com 

It’s time to change public opinion on the role of a banker. It’s no secret that the role of bankers is largely underappreciated and seen as an unexciting career. The truth is that bankers perform an essential service for people and their businesses. We can work to shift the paradigm by highlighting the importance of banking in our business language and shamelessly recognizing ourselves as facilitators of hopes and dreams. Emphasize your value and help change the narrative on banking!🏦 The general public doesn't appreciate bankers: a little thought exercise for bankers or similarly undervalued positions. 00:57🔶 Financial institutions can change a stale narrative: bankers assist with achieving people's goals and dreams. 03:41✅ Behind each & every transaction is a goal or a dream: there are numerous ways that bankers assist consumers, businesses, and nonprofits in the area they serve. 06:46💡 What if your Facebook posts start to highlight stories of customers who achieved a goal or a dream with the assistance of your organization? 09:18🎉 Over time, we can have more informational and interesting conversations at parties. 10:33Links: Email David: david@davidpeterson.com    Connect with David: www.linkedin.com/in/dlpspeaks  Learn more about David: www.davidpeterson.com  Consult with David: www.i7strategies.com  Sail with David: www.i7sailing.com 

You must ensure that you are adequately protected from hackers and data breaches. In the digital age, your company must have the plan to deal with cyberattacks. Working with an insurance carrier that offers coverage that is right for you is vital, and be sure to follow their protection plans carefully. Getting your employees trained and ready to handle the preparation and aftermath of a potential attack is also crucial. Ensure your business is sufficiently protected for your business and your client’s sake.📋 Insurance carriers should provide instructions regarding the protective elements you need to follow for your insurance coverage to be considered “active”. 02:57✅ You should regularly drill on the Incident Response Plan the same way as you do for a robbery or disaster: there're many elements you should have if a breach occurs. 04:35👉 The type of insurance you purchase is as critical as the policy limits. 09:05❗ It can affect your institution or customers if your "dependent vendor" is breached: do you have the right insurance partner? 10:00 Links: Book Grounded: https://davidpeterson.com/bookstore Email David: david@davidpeterson.com   Connect with David: www.linkedin.com/in/dlpspeaks Learn more about David: www.davidpeterson.com Consult with David: www.i7strategies.com Sail with David: www.i7sailing.com

Resistance is a formidable opponent to your business, but you can fight back. Resistance is that barrier to all innovation and creativity within your business, it is strengthened by fear and it wants for us to stagnate and do nothing. The key to overcoming this aggressive force is professional-grade virtues like persistence, patience, and a strong dedication to doing the hard work. We can climb the mountain of resistance and make gains in innovation within our business by ensuring that progressional attitudes are adopted and encouraged at all levels of our organization. You can’t afford to stagnate, so take the professional approach and make innovation an essential part of your business.Show Notes: 💪 What the professional does that the amateur cannot do, is effectively battle and win against resistance. 00:08✅ Resistance is invisible, internal, insidious, implacable, impersonal, infallible, and universal, it never sleeps, seeks to kill, and it's most powerful at the finish line: fear is fuel for resistance but also a barometer for us of what is worth pursuing. 02:44👉 Our goals of creativity and innovation cannot be avocation - it must be our vocation: attributes of a professional and advice on how to go pro. 06:32🎯 Fear of success can be greater than fear of failure: in a moment of decision, the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing. 09:19Links:📮 Email David: david@davidpeterson.com   🎯 Connect with David: www.linkedin.com/in/dlpspeaks 🌟 Learn more about David: www.davidpeterson.com 🍀 Consult with David: www.i7strategies.com ⛵ Sail with David: www.i7sailing.com 

🥳 The Thinking Room is a place for brainstorming, interaction, and having fun: innovation is creativity expressed, manufactured, and consumed. 00:52✅ There is no innovation and creativity without failure. 05:14💡 Innovation starts with creativity, and creativity requires lots and lots of ideas. 08:36🧑‍💼 Suggestions for senior leaders on how to break barriers and encourage a free flow of ideas. 09:40Links:📮 Email David: david@davidpeterson.com   🎯 Connect with David: www.linkedin.com/in/dlpspeaks 🌟 Learn more about David: www.davidpeterson.com 🍀 Consult with David: www.i7strategies.com ⛵ Sail with David: www.i7sailing.com 

🧑‍🔬 A story about a classic failure. 00:59💡 The weak glue had a commercial value - the birth of the post-it notes. 03:02✅ Success was born out of failure - the value was unrelated to the original purpose. 07:42🎯 How willing are you to allow your staff to experience failure? 09:51🤓 Are you encouraging employees to think of and articulate ideas, even crazy and failed ones? 11:11🕰️ Your eureka moment might be years down the road. 12:45 History of 3M’s Post-it-Notes: www.post-it.com/3M/en_US/post-it/contact-us/about-us  Email David: david@davidpeterson.com     Connect with David: www.linkedin.com/in/dlpspeaks  Learn more about David: www.davidpeterson.com  Consult with David: www.i7strategies.com  Sail with David: www.i7sailing.com 

❗ Innovation eludes organization when: we are too busy, thinking is not valued, there's resistance to change, and it requires effort. 00:52✅ We let artificial constructs about innovation limit our creativity: tackle bite-sized innovations and ideas: how employees can help. 02:45✌️ Two ways to deal with inquisition: encourage employees to be inquisitive. 07:19⏳ Save time by eliminating unneeded steps: how to take a fresh look at your processes and procedures.  11:37💥 Encourage everyone to look for innovations & see the impact they can have on the gross margin.  13:15Links:📩 Email David: david@davidpeterson.com    ✨ Connect with David: www.linkedin.com/in/dlpspeaks  ✅ Learn more about David: www.davidpeterson.com  🤝 Consult with David: www.i7strategies.com  ⛵ Sail with David: www.i7sailing.com