In today’s podcast we interviewed Scott Anthony, President of Innosight, the company that was co-founded by innovation guru and Harvard Professor Clayton M. Christensen. We talked about disruptive innovation, its impact and if it could occur in private banking and wealth management.

It was interesting to hear from Scott that he believes that disruptive innovation is possible in private banking, though it would probably happen at a slower pace than in other industries. He puts forward examples from other industries like health care or legal services.

One quote from the discussion that particularly reminds successful banks to stay vigilant, in case disruptive innovation should indeed happen in their industry:

When the rules of the game stay the same the market leaders win, when the rules of the game change the market leaders can suddenly fall and find themselves at big disadvantages

In the podcast Scott also provides us with a first simple recipe to avoid falling victim to disruptive innovation:

• We must keep looking a the world through our customer’s eyes not by the way our companies are organized internally
• We shouldn’t just focus on our best customers. We must keep looking at the fringes, because it is there that disruptive innovation occurs.
• We have to create the organizational space for innovation. Else, the importance of running the core business will crowed out any innovative activity

Enjoy the full podcast with Scott Anthony:

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