11:FS
DIGITAL REPORT 2020
Delivering next-generation financial services
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Delivering next-generation financial services WRITTEN BY
MATT HIGH PRODUCED BY
GLEN WHITE
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11:FS
11:FS Group CEO, David M. Brear, on leadership, culture and why digital financial services are only 1% finished
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is built on a very definite premise: digital financial services are only around 1% finished. It is, as Group
CEO David M. Brear concedes, not a statement backed by ‘10,000 surveys’, but rather, by a singular belief and dedication to building the next-generation digital propositions that challengers and financial 04
services institutions need to complete that journey. “There are still large parts of the industry that are just fundamentally broken,” he explains, joining us remotely under COVID-19 lockdown. “You know, when we say digital banking is only 1% finished, what we really mean is that with all of the innovations and technological advancements, plus the requirements of consumers and the increasingly competitive landscape, there is still so much opportunity to get better and grow. For the amount of money and hours of development that is spent, we should be doing a lot better in serving customers.” The not insignificant 99% that’s left of that journey is where 11:FS comes in. The company was founded just four years ago – in a Starbucks
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David M. Brear, 11:FS Group CEO w w w.1 1fs . com
Listen to the Podcast here
11:FS
“ There are still large parts of the industry that are just fundamentally broken” — David M. Brear, Group CEO, 11:FS
research, core banking capabilities and industry benchmarking, as well as industry-led content and insight.
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in London, to be exact – and since,
CULTURE: THE SECRET SAUCE
has grown to encompass almost 200
Of course, in an industry as fast-paced
people based in London and New York,
as financial services, there are many
but delivering a host of cutting-edge
that purport to be driven by a disruptive
services to clients all over the world.
or pioneering approach to the sector.
These include transformation and advi-
11:FS has a differentiator: its people.
sory services, consumer and market
The business is driven by experts in engineering, design and transformation and world-class researchers, product managers and technologists, all of whom work closely with their respective clients. Brear was keen to give his thoughts on that culture,
11:YEARS – The Rise of UK Fintech | Full Documentary CLICK TO WATCH
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58:14
09 and how his approach to leadership
continues. “If we can do that, there’s
reflects the core values embedded
no doubt that we’ll be more successful
in 11:FS. “Culture, if I’m honest,” Brear
in the longer term. As an organisation,
says, “is our secret sauce. For me, I
we’ve really practiced a ‘power to the
think it’s often such a misunderstood
edges’ approach in terms of decision
thing, too. It’s not about copying Google
making, having everyone involved
or Apple, or mirroring what Facebook
where necessary and establishing
does; so many organisations and peo-
an environment where people are
ple spend so little time prioritising the
empowered to do their best.”
tactics, strategies and culture that lets you get the very best out of the people
ON LEADERSHIP
that work for you.
Leadership, of course, can be the
“Our vision is to change the fabric
difference between setting that tone
of financial services, but our mission
correctly or not. Brear not only brings
is purely about unleashing talent,” he
to 11:FS a host of experience at names w w w.1 1fs . com
11:FS
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WONDERWOMANTECH ©
such as Gartner, where he was Global
he elaborates. “I’ve always taken the
Director Digital Banking, Lloyds Banking
view that leaders are more important
Group, HBOS and, more recently, busi-
than managers in an organisation,
ness banking fintech, Mettle, but also a
and I think great leaders should be as
positive stance on leadership.
consistent and contextual as they can
“Regardless of how smart or skilled they are, everyone needs leadership,”
be for everyone. I try and lead each person as an individual, to understand
what motivates them and what makes them perform. Personally, I feel like I learned more playing sports than I ever did in the business world, and I bring almost a sports psychology mentality into 11:FS that has allowed us to build such a strong company and vision.” That vision sets out that the industry continues to repeat the mistake of digitising analogue products and creating experiences that aren’t fit for the digital age. It is, says 11:FS, shying away from building truly digital native propositions. “Some areas of the industry are just decades out of date,” Brear concedes. “The interesting thing is that many of the big incumbent financial services players are at a pretty significant risk of being left behind in terms of their underlying technology and operational capabilities. For many of those types of organisations, digital has been implemented at a veneer level more than anything.” Brear is keen to affirm the positive notion of this vision: “It’s not an
E X E C U T I V E P R OF IL E :
David M. Brear Title: Group CEO Industry: Financial Services Location: London I’m the Group CEO at 11:FS who are focussed on changing the fabric of financial services. Before 11:FS I took on a variety of different roles around the financial services industry working client side, product heavy, working with customers and delivering in a corporate environment. I’ve worn my fair share of suits and shiny shoes and witnessed companies spend billions and billions of pounds and not really achieve much. Suffice to say it was super frustrating.
indictment,” he states. “It’s more of an aspiration. Things can be done better, and they should be done better. The COVID-19 pandemic is a good w w w.1 1fs . com
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11:FS
example – we’ve seen, and not just in
urgency; it’s really on the march – you
banking, that when organisations are
have players like Monzo, for example,
forced to do something, regardless
that in three and half years have gen-
of how complex, they will.”
erated five million customers. To put that in perspective, First Direct took
FINTECH: A NARRATIVE OF URGENCY
30 years to get close to one and half
The digital evolution of the sector has
million. So, the speed of change is just
been rapid. Technology is advancing
exponential, and that’s having a huge
faster and being commoditised quicker
impact.”
than ever before, and incumbents face
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According to Brear, one of the
a market increasingly populated by
biggest challenges facing banks isn’t
innovative startups and fintechs. “The
necessarily the technology itself or
context of the industry is just funda-
‘what your app looks like’, but rather
mentally different today,” Brear says.
the economics of the back office
“Fintech has created a narrative of
functions tasked with building that
11:FS - understanding the consumer CLICK TO WATCH
JUNE 2020
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1:27
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“ Culture, if I’m honest, is our secret sauce” — David M. Brear, Group CEO, 11:FS
w w w.c o mpa nywwe w w.1 bsite. 1fs . com
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11:FS - trust and control CLICK TO WATCH
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3:15
14 technological and operational capabil-
needs of modern customers.
ity. “It’s difficult for them to do anything
Personalisation and a more customer-
about,” he expands. “There are chal-
centric approach in particular are
lenger banks entering the market that
driving change. There are, says Brear,
are more operationally efficient, more
two key drivers in this narrative: trust
nimble in making changes and better
and control. The former, has always
suited to rolling out these technologies,
been a concern to financial institutions.
as well as regulatory pressure – it’s a
“People trust their banks not to disap-
bizarre confluence of pressures and
pear with their money,” he states, “but
we’re seeing a real resetting of what
they don’t necessarily trust them to
good looks like in financial services.”
do the right thing by them.
Another contributor to this shifting
“Greater control is shifting the
landscape is the role of the consumer.
dynamic – we want to feel in control
Financial services is not alone in its
of our money and our situation – and
quest to satisfy the digitally-driven
today consumers are more in control
“ Our vision is to change the fabric of financial services, but our mission is purely about unleashing talent” — David M. Brear, Group CEO, 11:FS
key areas that contribute to the next generation of digital financial products, Brear is also a firm believer in getting the basics right first. Or, as 11:FS terms it – the infrastructure. It is here that the strong culture in place within 11:FS pays dividends. “People often talk about technology debt or legacy technology as the major inhibitor,” he says, “but for me that’s not the case – you get the right culture in any of these organisations and any challenge is surmountable. The newer organisations are those that are able to possess that more entrepreneurial
than ever before with access to credit,
spirit which means they’re not operat-
savings, lending and more 24/7 at
ing in silos, they’re curious, always
our fingertips. And, with fintechs
asking ‘why?’ They don’t treat digital
and mobile banks there’s a plethora
as just another distribution channel,
of organisations that fundamentally
but as everything.”
want to serve customers; fintech is
On this point, says Brear, incum-
rekindling the ‘services’ within finan-
bent institutions too often park their
cial services.”
digital aspirations firmly in one corner, under the guise of an innovation lab
PARTNERSHIP AND SUCCESS
or similar. Rather, he encourages
11:FS helps financial services compa-
collaboration between incumbents
nies navigate these challenges and to
and fintechs as bringing a significant
understand the competitive landscape
advantage. “Partnerships are a major
on their journey to digitisation. And
step forward for those legacy players,”
while its proposition covers a host of
he explains. “Making this kind of digital w w w.1 1fs . com
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11:FS
“ Let’s focus on getting to the 2% mark first…” — David M. Brear, Group CEO, 11:FS
11:FS - leadership 16
CLICK TO WATCH
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2:03
transformation is really difficult and we
the direction the industry is taking.”
shouldn’t underplay the challenge fac-
Partnerships have proven fruitful for
ing the CEOs of many of those more
11:FS too, specifically with regards to
established banks. The biggest advan-
11:FS Foundry. The project, which has
tage of partnerships is the unlocking
been undertaken in collaboration with
of that new way of doing things that is
DNB, is a modular, ledger-first set of
just so critical to be able to evolve with
components that allows the building of
“ Let’s focus on getting to the 2% mark first…” — David M. Brear, Group CEO, 11:FS
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digitally native propositions to scale and
“Foundry is really us putting our money
at speed. 11:FS Foundry allows for the
where our mouth is and demonstrating
standing up of an entire proposition, or
that the technology used in banking
the mixing and matching of components
doesn’t just require a rethink, it needs to
to build a product for specific customers’
be started from scratch,” Brear notes.
needs. It is truly digital banking infra-
“DNB has been a phenomenal partner
structure fit for the 21st century
that has a very similar view of the future w w w.1 1fs . com
11:FS
WONDERWOMANTECH ©
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as us in terms of consolidating a lot of the back office capability to ensure cost efficiencies can be passed to consumers.” There is, as Brear concedes, a long way to go in terms of the industry’s digital journey. In terms of what that journey looks like for 11:FS, he predicts a maturing of the markets that the company currently operates in and a development of the company’s consultancy arm in line with the wider evolution of the sector. “Foundry could eclipse everything, though,” he adds. “When it comes to the technology side of things it’s the real fabric that’s holding banks back, and there aren’t many players in the market that are approaching this as aggressively or boldly as we are. More broadly, I see this journey to the next generation of digital financial products as a problem that isn’t going to go away anytime soon. Let’s focus on getting to the 2% mark first…”
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