Welcome to the exponential financial services world

Discover why digital technology and Millennials’ behaviours are accelerating the pace of change in financial services, and how to adapt so you thrive in the experience economy with Telstra’s latest report.

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Exponential Performance in a Millennial, Mobile and Programmatic World

Technological innovation has had a spectacular effect on financial services over the past decade, creating deep disruption and valuable opportunities for companies to achieve ‘exponential’ growth.

Exponential businesses are those that use new organisational techniques and accelerating technologies to expand their contact with customers, multiply the services they offer, and grow their business on a global scale with output at least 10 times that of their peers.

Our latest report offers you insights to help your organisation become an exponential performer by addressing three important questions.

How do Millennials and mobile technologies collectively influence exponential growth? 

Millennials, their consumption of mobile technologies and their wallet size have become lead indicators of performance and, by 2028, they will become the main profit source for institutions.

Institutions have the opportunity to digitally transform their business now to take advantage of the coming shift in market power to Millennials.

Using the unique Telstra Millennial, Mobile, Money Index (3MI™) we assess institutions’ capacity to attract Millennials, their ability to engage them through mobile devices, and how much Millennials invest in that relationship. Our report delivers a verdict on financial institutions performance in today’s exponential market.

How do legacy business models need to transform to perform in an exponential world?

Exponential business models create a new economic physics, enabling digital challengers to achieve a cost advantage of two-to-three times and helping FinTech businesses outperform their traditional counterparts on the exponential quotient by 36 per cent.

We identify the traits that enable organisations to achieve exponential performance, and apply these traits to traditional and disruptive financial services organisations to show firms where they need to transform.

See our infographic for a snapshot of how legacy businesses need to transform. 

Becoming a programmable enterprise – what are the enabling technologies?

New customer engagement technologies are driving growth and separating exponential organisations from traditional institutions. AI, machine learning, big data, cyber security and APIs are the technologies that the financial services industry expects to be most disruptive over the next three years. 

However, legacy business models can hold back traditional organisations from adopting these technologies and stop them competing effectively against digital challengers. In our paper, we show how organisations can transform into programmable enterprises using Distributed, Software-Controlled, Data-Driven, Autonomous, Real-Time and Programmable systems to power exponential growth.

Telstra expert series

Listen to leaders share their insights into the increasing importance of Millennials to the financial services sector, the criticality of the customer experience, and the new technologies driving industry change and innovation to deliver exponential growth. In this series we speak to a major high street bank, the number one online bank, an award winning superannuation fund and an internationally recognised, innovation-leading bank.

Your first steps towards exponential performance

Organisations can become exponential if they invest to reduce cost to acquire and own the customer relationship, and/or invest to radically reduce the marginal cost of service. 

We make three recommendations for firms that aim to become exponential organisations.

  1. Adopt a new approach to technology investment decision-making
  2. Become a programmable enterprise with software-controlled, 
data-driven automation of infrastructure, and intelligence that provide the data insights to reduce costs and grow revenues.
  3. Embrace new interaction technologies that create deep 
engagement with near-zero cost of service for exponential organisations.

A decade of research and insight

Telstra has been reporting on the effect of digital disruption on the financial services industry for nearly a decade. Read our library of research reports and follow the sector’s transformation journey here:

Meet the author

Rocky Scopelliti
Global Industry Executive
Financial Services

Rocky Scopelliti is Telstra’s global strategy and thought leader in financial technology services. He is also a non-executive director on the board of Community First Credit Union. Rocky has more than twenty years senior management experience in the Information Technology and Financial Services sectors.

A distinguished strategist, author and international speaker, Rocky has contributed to the World Economic Forum’s Disruptive Innovation in Financial Services Program, delivered key note addresses at events such as Mobile World Congress and published twelve thought leadership research reports on digital disruption that have become internationally recognised.

Educated in Australia and trained in the USA at Sydney and Stanford Universities respectively, he has a Graduate Diploma in Corporate Management and an MBA. He is also a graduate and member of the Australian Institute of Company Directors (AICD).

Thank you

Thank you for your interest in our report. You can download the full report in PDF via the link below, or click on the eBook link to take an interactive journey through the report’s key findings.

Download the full Exponential Performance In Millennial, Mobile And Programmatic Era Report

To download our latest report on digital transformation in the financial services industry, please provide us with a few details using the form below.