This interview is part of our Expert Interview Series
We have conducted a series of interviews to gather learnings and points of view from top management’s perspective on the state of innovation in banking. Those findings, among other analysis, predictions and upcoming business opportunities, are part of our “Financial Services 2021 Innovation Report” which will be released this summer.
Subscribe to get notified once it’s out.
This interview is part of our Expert Interview Series
What does innovation mean to you?
Can you share some recently launched innovations that you have been involved in at your company?
We work on many innovation projects at BNP Paribas Cardif but one in particular excites me, predictive insurance. By using AI and algorithms to analyse the data that we are able to gather through our customers and partners, we can build predictive & propensity models. These have value not only in terms of sales and contextual recommendations but also applications such as being able to settle a claim before it is reported by customers. By integrating information about accidents – for instance – we are able to proactively meet a customer’s need at the moment he or she needs them. Imagine the scenario where a Cardif customer with extended warranty drops their phone: the AI solution would allow us to trigger an eligible refund, before the customer registers a claim.
What do you think should be the focus of financial services for the short and mid term?
I can speak mainly from the insurance perspective. For me, in a single word, it’s accessibility. Customers are bogged down with processes, bureaucracy and the one thing they really need is easy and fast access to the services that solve their problems. Even things like less text in terms and conditions which are too long and complex for customers to read and understand. Our services, no matter on what level, should be intuitive and seamless. These needs are backed by the signs we see coming from financial services in general. A customer can now buy stocks with the click of a button. A while ago, this was impossible. For us in the insurance sector, an equivalent evolution is the on demand micro insurance that a customer can activate and deactivate based on their needs. One example could be when someone is playing football with friends and might want protection for the duration of the game. We should focus on more disruptive solutions for customers and partners, ensure we make these solutions financially sustainable and scalable, and find new ways to deliver ‘peace of mind’ to all our customers.
We mentioned being more relevant for customers. Do you have any preferred processes or methodologies for gaining customer insights on which you build innovative solutions?
We try to stay close to our customers so we conduct focus groups and similar methods of gaining insight. We gather feedback on new products or services and we challenge our own ideas with customers. Being part of a large Group, we at Cardif also have the luxury of being able to tap into a very large knowledge base. When doing European research for instance, we will involve expert colleagues from non European regions. I think that internal sharing and learning makes us quite unique.
As a company, we have also put together agile teams and innovation labs that enable us to experiment beyond the day to day operations of the business. It’s important to note that we take the time to understand how these teams work, when they fail, why they fail so that we can learn and continuously improve the process.
What is sometimes neglected or hard to overcome with innovation?
Scaling is sometimes an issue. Scaling a newly developed product or a service is hard to predict. Making a robust and accurate business case during the building process is very difficult.
What are the biggest hurdles that companies face when it comes to innovation?
In my personal opinion, the biggest hurdles are resistance to change and timing. Resistance to change is pretty straight forward, and it’s an issue and source of friction that all large companies face. Timing is an important issue. A team might develop a great product but the timing for the adoption by customers may not be right. Perhaps the solution comes too soon and is ahead of its time, before customers are ready for it. These two aspects are something that leaders need to be aware of and mitigate.
Is there any digital product that has caught your attention recently?
I recently came across a New York start-up called Clyde that has created a product called Auto Pilot Extended Warranty. It provides extended warranties and accident protection in minutes. The service uses AI and algorithms to automatically tailor and increase revenues on extended warranties, reducing the providers’ effort and resources significantly. The system is adaptive to new data, usage, product popularity and adjusts parameters accordingly. It allows providers to focus on their products while the extended warranty is done automatically in the back end. It’s a brilliant idea that I will be following in the coming months to see how it evolves.
In financial services, is there any competitive product or service that is a benchmark for innovation and value?
Do you have a video, a podcast, a book, or an article that you would recommend to peers?
Special thanks to Alessio Colantonio for his insights on this Interview
This interview is part of our Expert Interview Series
We have conducted a series of interviews to gather learnings and points of view from top management’s perspective on the state of innovation in banking. Those findings, among other analysis, predictions and upcoming business opportunities, are part of our “Financial Services 2021 Innovation Report” which will be released this summer.
Subscribe to get notified once it’s out.