Jahangiri: As Group General Manager of Innovation, what do you consider to be the most notable innovation taking place in the banking and financial services sector?


Dalton: Traditionally, banks have not been particularly innovative organisations. But we believe that banks are very technology driven organisations, and particularly so now that customers are becoming more willing to embrace new ideas. At ANZ, we are developing new products and services that better meet our customers’ needs – and make better use of technology. Examples are our SmartyPig online savings account, and our Online Investment account – which were two of only six new products to win CANSTAR CANNEX Innovation Excellence Awards this year. Sometimes it’s a matter of applying existing technology in a different way like ANZ has done with its MoneyManager budgeting tool. MoneyManager (which is free, and available to non-ANZ customers) connects more than 9000 financial institutions globally, helping individuals collate their financial data and set a budget.


Jahangiri: How do you feel innovation can flourish against the backdrop of the economic crisis?


Dalton: During economic downturns it’s even more important that companies capitalise on opportunities to innovate. That way, they can better differentiate themselves from the competition. At ANZ, we realise that to become a super-regional bank of global quality, we need to continue making strategic investments in technology, systems and products.


Jahangiri: What is the most innovative initiative taking place within ANZ Bank right now?


Dalton: There are a number of exciting things that we are working on but we do not discuss future innovations.
However, another way that we are innovating is by using technology that helps us work across ANZ’s many different geographic locations. For example, we have installed Cisco TelePresence suites in our new global headquarters at Docklands (to open officially in November) that will allow our staff to conduct live, face-to-face meetings using ultra-high definition video without having to travel long distances.


Jahangiri: How do you define and measure success with respect to business-enabled innovation?


Dalton: We have defined a few key metrics to measure the success of innovations at ANZ and will track these regularly to ensure we are making progress. The main measures are around bringing new innovations to market, improving the experience our customers have when banking with us, and generating strong growth for ANZ.


Jahangiri: At a time when most banks are facing cost-reduction pressures, ANZ Bank continues to lead the expansion charge into Asian markets. How does innovation play a role in ANZ’s mandate to be a super regional bank?


Dalton: Innovative banking solutions are a key part of our plans to grow in Asia.


Jahangiri: What techniques do you use to foster an environment in which your team innovates?


Dalton: We have chosen a very disciplined innovation process, gleaned from some of the best companies worldwide. Our processes will ensure that our innovation projects either succeed - or fail fast. True innovation does require some failure.


Jahangiri: What do you consider to be the key drivers and disruptions of virtualisation, Software-as-a-Service and cloud computing?


Dalton: The key drivers of these trends are threefold: the growth of the internet and broadband services, the ability to gain economies of scale and more powerful internet software and standards. These trends make it possible to deliver cloud and software services today that were not possible five or 10 years ago.


Jahangiri: What are your views on peer-to-peer banking (social banking and POPmoney); and is there a place for it in Australia’s retail banking sector?


Dalton: It’s an early innovation we are watching closely but our jury is out on its place in retail banking. Particularly in today’s economic climate, we think people want to deal with a large, trusted organisation that they know will be there for them tomorrow and in the years to come. It’s something to watch closely though.


Jahangiri: From where or whom do you draw your inspiration to innovate?


Dalton: We have three main sources of ideas - our customers, our staff, and the world's most innovative companies. Our customers tell us what they need - they are a great source of new ideas. Our staff deal with customers, businesses and complex issues every day - they are a great source of ideas. And some of the most innovative companies in the world, such as Apple, Google and Toyota are another source of inspiration.


Jahangiri: Every leader, particularly at your level, has a legacy they wish to be remembered. What is yours?


Dalton: At ANZ we want to deliver truly great products that make banking simpler, more useful, more personable and more empowering. Ultimately it’s about making banking and finance better for people - so they can spend less time worrying about money and more time doing what they love.