James Patrick Q. Bonus l May 26, 2023 l The Manila Times
I WAS terrible at drawing as a kid, which is why pursuing a career in architecture or interior design was never an option. However, I discovered that accounting and finance are kind of my strong suits. Hence, I decided to pursue a career in finance instead. Now an adult with nearly two decades’ worth of professional experience in banking and fintech (financial technology), I’ve learned to appreciate the application of design thinking as a transformative approach in the ever-evolving landscape of finance, controllership and risk management.
Design thinking has gradually found its way into financial management — providing both unique benefits and challenges. With a rich history rooted in human-centered problem-solving, design thinking possesses the potential to revolutionize the way finance professionals approach their work, leading to enhanced innovation and better decision-making.
Customer-centric solutions
Design thinking prioritizes human needs at the core, encouraging finance professionals to empathize with customers and stakeholders. Finance professionals may develop tailored processes, services and risk management strategies when equipped with a thorough understanding for their pain points. These strategies address genuine needs and provide superior experiences for both its internal and external customers.
Enhanced innovation
The iterative nature of design thinking promotes a culture of experimentation and risk-taking. Finance professionals can generate innovative ideas that result in breakthroughs in financial products, business models and risk management frameworks through the encouragement of diverse perspectives and fostering collaboration across teams.
Better decision-making
Design thinking incorporates a range of tools and methodologies to gather insights, frame problems and generate solutions. This systematic approach empowers finance professionals to make informed decisions backed by thorough research, analysis and testing. It reduces the reliance on assumptions and biases, leading to more effective risk management strategies and robust financial controls.
Challenges and costs of design thinking in finance
Design thinking in finance has many benefits, however, utilizing this approach also presents challenges. Implementing design thinking requires a cultural shift, breaking away from traditional siloed structures and embracing collaboration and experimentation. It demands investment in training and development to equip finance professionals with the necessary skill set, such as empathy, creativity and prototyping. Moreover, the iterative nature of design thinking may require a longer timeframe for delivering solutions, which could impact time-sensitive financial decision-making processes.
In the face of rapidly changing customer expectations, technological disruptions and evolving regulatory landscapes, finance professionals must embrace design thinking as a tool for success. By studying, adopting, investing in and applying design thinking principles, finance professionals can unlock innovation, elevate customer experiences and make data-driven decisions. It is time for finance professionals to reimagine their roles and evolve the finance profession. No doodling nor drawing templates required, at least in my experience.
*** James Patrick Bonus is the deputy country manager and chief finance officer of FinScore, a fintech firm providing alternative data-based consumer credit scoring and identity verification solutions for financial institutions. Japs is also a regular subject matter resource speaker for the Bankers Institute of the Philippines and other organizations through Acepoint.ph Training Consultancy Services.