11:FS - June 2020

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.

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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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“ Culture, if I’m honest, is our secret sauce” — David M. Brear, Group CEO, 11:FS

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11:FS - trust and control CLICK TO WATCH

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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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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

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11:FS

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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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