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- There is obviously a lot that retail can learn also
from financial services.
You know, I mean, I'd say the last two years
just the 10 year growth in eCommerce that we've seen
in retail which, you know, is definitely
on the back of financial services.
I mean, if you can't do the eCommerce payments transaction,
then none of that would have happened.
- That's right.
- But, what else would you say as you look at your industry,
or in my industries should be looking at and learning?
- Well, I still think the retailing experience
and the focus of the financial transaction
that occurs is still going to evolve, right.
So, you know, at the end of the day, retailing
at some point in time is going to come down to
the exchange of value, right, for that product or service.
And so, once you get to that exchange in value point
that's where financial services comes in.
So, you know, we've been thinking, you know,
horizontally about how we serve the industry,
but I think we have to have many more conversations
around jointly if we were going to go pitch
retailers together, what would that be?
And, here's the reason why.
The banking industry realizes it's got to work on
two dimensions, right.
It's got to deepen its direct relationships
with its customers, right.
Meaning that, it's got to compete with all the other
neo-banks and the neo-insurance companies
and the new start ups that are trying to create
cooler experiences and quicker, faster experiences
and take their customers away
from the bigger, established institutions.
And so, they've got to create more excitement.
They've got to create more multi-channel experience
for the customers so they can get products and services
and have a 360-degree view and serve them, right,
as consumers expect to be served in other industries
that they're seeing, right.
So, banks, vertically, very much have to have that going on
with their direct customer relationships.
However, as you know, everything is becoming experiential.
So, the super apps in Asia are proving that out, right,
where the Alipay is now because they drove so much commerce.
Or, if you think if Amazon, right?
They can now offer financial services
products to their customers, right.
But, the Alipays and the AWSs and the Googles don't want
to be regulated entities, right.
They want to offer those services,
but they don't want to be regulated.
So, what does that mean for banks
and financial service institutions?
They're saying, well, how do I offer those services
in those experiences?
So, that means, I have to create an infrastructure
so I can extend my lending, mortgage lending,
car app, payments, buy now, pay.
How can I extend those into other ecosystems to be
a part of those experiences, right.
So, when I'm about to go on a skydiving trip
and I'm signing up for that app, right,
how does that insurance provider
actually give me an update on my insurance, right?
Or, when you are as you know at the point of sale
checkout, right, look at all the options you have
with checkout, right.
That's because financial institutions are able to extend
those services into that experience.
And so, that horizontal connectivity of extending
financial services into other experiences,
and retail is going to be a big one is
something that we have to stay ahead of the curve on, right.
And so, we have to have much more discussion around that,
because these institutions want to do that.
There's a whole bunch of start ups in that space.
And, we should just be, kind of,
I think there's a lot more opportunity for us
to be much more jointly engaged around how to do that.
- I really-
- And here's another. I'm going to throw one out at you.
- Yeah.
- Sorry.
- Yeah, do it.
- So, and here's one that's very interesting, right.
Because I work with a company that's getting into
servicing electric vehicle chargers, right.
And so, why are retailers thinking
about electric vehicle chargers?
- Yeah, why are they?
Tell me. I don't know the answer.
- This is where, because, think about it.
You need to, it takes, it's not like getting a gas,
filling up your gas tank and it takes,
you know, 15 minutes.
You actually need to go sit somewhere for an hour.
- Oh.
- So, why not have a bunch
of electric vehicle charging stations at Ikea
so that people view it as a destination now.
So, wow, I'm going to go charge up
and then I'm going to have a retailing experience
while my car is charging.
And, guess what?
When that happens, there's going to be an exchange of value
in a value proposition around
how do you attract somebody there
to actually pay for their charging and pay
for their retailing, and what's that going to mean, right?
- Wow.
- And so, anyways, classic example around these experiences
that are coming together that we have to kind of be thinking
and be ahead of, right.
And so, why not us have a partnership
with those companies that are going after those EV chargers
and have a whole proposition where we think about that, so.
- I love that. Wow.
I mean, like, that's how like companies
like duty-free shopping were born was
because people were trapped at airports.
- Exactly.
- They've got, you know, an hour with nothing to do.
- Now what.
- And, those are some of the most profitable stores,
like airport stores, and then, you know,
you have those catalogs that sit in front of you
when you're in the seat pocket.
Captive audiences to your point on charging stations are
great retail customers, because you know,
retail, to your previous point, can be very transactional
but can also be very experiential.
- Right.
- And, giving those experiences while you're charging
your car, it's a great idea.
- So, more to come.
We should talk about that.
- Yeah. We should.
Here we are doing it on a webcast
with 20,000 of our best friends.
Well, Bill, we've covered so much ground
from sort of, you know, your early jobs.
I still have the image of you pulling
a lawn mower behind a bicycle in my head
to pouring asphalt to all the way
to amazing leadership at, you know,
our company and of course other
of these amazing financial institutions.
But, as we close out, you know,
any words of advise or thoughts for,
you know, for this audience who's tuning in today?
- No. I mean, we are just exciting.
We are just at the cusp really around
at least how our industry is going to migrate
to the use of cloud and cloud technology, right.
If you think of the amount of technology budget
that a financial services has
and probably less than 15% of that budget
all up is still used
to spend on cloud-related digital transformation.
The majority of that is still on-prem.
There is a massive TAM environment that we're all chasing
together, and I think us chasing it collectively
with a joint industry view to actually talk
about the intersection between financial services
and retailing and obviously energy and power
and you see it in automotive.
And, we just have so much more in front of us
for us to think about in getting ahead of the curve.
And, with our solution set and as we figure out
our cloud strategy which is, you know,
just being incubated, right, around industry clouds.
Just really excited about the opportunity.
So, I look forward to continue to work Shelley,
with you and your team on doing that
and having that kind of that cross-thinking ideation
around it.
And, like anything, you know, it's just great.
There's so much opportunity to go after.
Our challenge is is how do we prioritize, right?
It's a different story when you talk to a lot
of other companies when you only have
like two opportunities to chase.
We have many.
So, our job is to, you know, what are
the best priorities to chase
and I look forward to continue to partner with you on that.
- Oh. Well, thank you.
It's entirely mutual.
And, as I'm sure the people who are watching can feel,
through the screens, it's such a privilege.
And, you're right.
It's a really interesting balance,
because like you, in retail, we're in the very early innings
of cloud transformation,
and just sort of the fundamental shift from on-premise
to cloud and then unlocking, you know,
personalized experiences
and much more responsive supply chain.
And so, the trade-offs around sort of how do I go deeper
within my industry, while also keeping an open mind
around the cross-industry perspectives.
Like, you know, it's a great problem and challenge to have,
but it is a crisis of prioritization.
- Mm-hmm (affirmative).
- So, I can't really imagine a better person to go
through those trade offs with than you, Bill.
And, I just really want to thank you for joining me today.
I hope you'll continue to say yes to these opportunities.
- Oh, of course.
- I'm sure we'll get a lot of questions
from the viewers out there.
And, for all of you who tuned in today,
I just want to say, thanks for joining.
We always love seeing all of your questions.
And, anytime you want to see more or hear more
about anything we always love to see that too.
So, Bill, a huge thank you for joining today.
- Thanks for having me. I appreciate it.
- Yeah, definitely.
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