"I've always been obsessed with customers and customer experience" - The CYBG Story

Ben and I interviewed David Judic, Head of Retail Banking at Clydesdale and Yorkshire Banking Group, about the huge transformation journey the bank has been on in the last 5 years. When David first came to the role, he hadn’t worked in customer innovation before, so he engaged Market Gravity to provide him the support he needed.

David’s a straight-talking, super smart, no nonsense visionary who started out with an ambition to leap ahead of the competition by putting the customer at the heart of the bank.

“I felt the business was ripe for change…it had been steady going for 175 years, but had been on the fringes of being a challenger.”

David Judic

This sounds like a huge task, right?

Here’s how David approached it:

  • The core team moved to a secure site where they could co-locate
  • Far from being a fully kitted out space, this was an ex-job centre where the team had to do their own DIY to make it work
  • This created a real ‘start-up’ feeling inside the bank
  • Engaged Market Gravity to support the journey
  • The core team shared their fears, working through key questions and working out how to manage stakeholders together

How did they bring the customer into the heart of everything?

  • Every day and month, CYBG constantly tested and re-tested with customers; testing with 10,500 all in all
  • Each time they ran a session with the bank colleagues, they also ran a mirror session with customers. This gave fresh opinion to every session
  • The team ran different types of sessions with customers, including 1-1 interviews, user experience design, focus groups, workshops and co-creation sessions.
  • The bank acknowledged that customer insight provides direction, but not the complete answer.  Having created a product with a price point that was developed with customers, it launched and became apparent that customers were not wiling to pay. The bank had to pivot quickly based on the fresh evidence.

What part did Studio B play in this?

  • Studio B is CYBG’s innovation studio on Kensington High Street – a physical space in the bank that customers can walk into and work on real problems with the team, to co-create solutions
  • The idea for Studio B came from the acknowledgement that the bank wanted to create an ideas factory – one that came from customers and not bankers
  • The ‘Labbers’ working in Studio B were from a mixture of backgrounds, united in being uninterested in pursuing a career in banking.
  • Studio B also showcased the outputs they created within the core banking space. This served to break the taboo of walking into a bank that you don’t bank with, in order to find out what’s going on.
  • Studio B also played a commercial role:

 

“Whether customers want to buy products and services and experience today, or are inspired by what we’re talking about so they come back to us later…this builds awareness and brand. Hopefully over time that translates into commercial performance. “

  • David acknowledged that every facet of running Studio B was – in his words – scary, but it has delivered results. They recently won an FS Tech Award for their augmented reality currency conversion app – a concept which came out of Studio B.

What’s next for the bank?

  • A recent launch by CYBG is B Works with the tagline: “Learn, work, bank”
  • B Works is the new creative hub for small businesses in Manchester and demonstrates the future of banking in action
  • It’s a mixture of free co-working space, a coffee shop and a business hub. There’s on-hand access to experts, a social studio (where you can even record a podcast) and the ability for businesses to showcase their content
  • Untraditionally, there are no banking counters. It’s all about conversations with the customer, rather than a transactional banking experience
  • CYBG have also acquired Virgin Money; it is still the early stages of the transition programme but the acquisition demonstrates the journey that CYBG have been on, to get them to this point

A huge thank you to David for giving us his time and so much rich insight and perspective on this transformational journey. 

If you’d like to listen to the podcast, you can find it here (also available on Spotify) 

If you’ve been inspired by David’s story and CYBG’s journey, and think that Market Gravity could help you, then get in touch with us, at launchbreak@marketgravity.com


Studio B, innovation lab, banking innovation lab,

NEWS: Driving digital disruption with Studio B

Thanks to the power of a continuing partnership, it's all systems go this month as we help Clydesdale and Yorkshire Banks to launch Studio B - the UK's first design-led banking innovation lab on Kensington High Street.

Working with the Banks’ innovation team, our talented team has helped design, implement and launch the UK’s first experiential banking innovation lab – Studio B.

Studio B invites and encourages members of the public as well as squads of next generation innovators and talented young designers to come in and test, trial and provide feedback on new technology, develop new products and ideas and share insights on their banking behaviours.

 

Studio B, banking, innovation lab
The Studio B banking innovation lab on Kensington High Street, London

 

Located on Kensington High Street, London, squads will take part in timeboxed sprints and apply their perspective to set challenges in order to create solutions to customer problems. They will work with and design technology to meet the needs of the next generation of banking customers. Applicants can apply to join the studio through social media, design blogs, and creative networks and will be judged on their creative thinking and ability to work in teams via a short video interview.

There will be interactive experiences as well as banking facilities and self-service branch technology to give visitors an immersive experience while allowing them to carry out practical banking activities using new technology.

 

Studio B, banking, innovation lab
Studio B offers visitors an immersive experience.

 

Studio B, banking, innovation lab
The Studio B innovation lab space is both inspiring and functional, it is as much a factory, as it is a showroom – designed to deliver, not just to imagine.

 

Nick Sherrard, managing director Market Gravity Edinburgh, led the project. He says: "Studio B will be a unique experience featuring retail, experiential and interactive activities with a programme of creative and informative events to engage with audiences. It’s exciting to see the concept come to life and it’s great to work with such a forward–thinking team bringing disruption and innovation to the banking sector. We’ll be exploring voice recognition, Artificial Intelligence, Virtual Reality, Internet of Things, blockchain and other innovations set to disrupt the sector even further. Exciting times ahead!"

Helen Page, Group Innovation and Marketing Director, Clydesdale and Yorkshire Banks, says: "We want to create the next generation of banking services delivered by the next generation of users. Studio B is our way of reaching out to identify the challenges within banking and to draw out creative and innovative ideas for solutions.

"With the development and launch of our super smart banking service "B" in 2016, and now Studio B, Market Gravity continues to be a brilliant partner. Their experience in banking innovation and disruptive new propositions perfectly complements the ambition and creativity within Clydesdale and Yorkshire Banks. For us, pairing our tech partners with invited guests and members of the public will give us real insights into customer problems and together we will devise solutions that fit into modern, and future, lifestyles and we’re excited to see new ideas brought to market very soon."

If you'd like to read a fuller story and understand how we created Studio B - click here.

For more information about B and Studio B - click here or head to Studio B on Kensington High Street, London.