The banking industry has experienced a rapid technological transformation over the past few years, significantly altering its landscape. Global banking leaders recognise the need for their organisations to expedite their innovation strategies to stay ahead in today’s fast-paced financial technology era. As fintech startups continue to disrupt traditional banking models and customer expectations rapidly evolve, the urgency for innovation has become increasingly evident in banking objectives.
During this swift banking process transformation, customary techniques for evaluating and implementing technology are proving insufficient, frequently falling behind rapid advancements. Progressive financial institutions are embracing a novel tactic: providing hackathons as a service. In fact, 48% of firms are adopting hackathons as a service to advance their innovation agenda as per the Survey of Innovation Excellence by Deloitte.
In this blog, we’ll explore the transformative potential of hackathons as a service within the banking industry, delving into their groundbreaking impact on banks’ ability to identify, evaluate, and incorporate technologies to fuel progress and preserve their competitive edge.
Understanding the concept of hackathon as a service
Hackathons as a service offer a fresh approach to cultivating and fostering innovation within enterprises, particularly in the banking industry. McKinsey’s research indicates that companies effectively using digital tools, which often include hackathons, can achieve significantly higher growth rates for organisations. These specialised firms or platforms administer tailored hackathon-style events for their client organisations, such as fintech banks.
Expert providers offer a comprehensive solution that encompasses event planning and logistics, participant recruitment, and technology support. By delegating the management of hackathons to these specialists, banks can access an abundance of resources and knowledge, allowing them to concentrate on propelling innovation and amplifying the influence of these gatherings.
Hackathons as a service usually commence by outlining major obstacles or possibilities that the bank endeavours to tackle through innovation. The hackathon provider cooperates with the bank in specifying the extent and aims of the hackathon, guaranteeing coherence with fundamental priorities and commercial objectives.
After establishing the parameters, the service provider utilises its network and assets to attract a myriad of participants, including developers, designers and specialists. These individuals are then invited to jointly strategise and ideate breakthrough solutions at the hackathon event, which may extend from a few hours to multiple days.
During the event, teams collaborate to brainstorm, create models, and bring their solutions to fruition. They are guided by mentors and aided by technological platforms offered by the service provider. The hackathon culminates with teams showcasing their projects to a panel of judges who assess them according to predetermined standards, including originality, feasibility, and potential influence.
93% agree that organisations are operating with a renewed sense of purpose to approach the new reality of digital transformation in financial services, as per research by Accenture. Through the utilisation of participants’ collective ingenuity and proficiency, hackathons as a service embolden banks to quickly create and experiment with novel concepts, recognise favourable resolutions, and expedite the rate of advancement.
How do firms benefit from the concept of hackathon as a service?
- Innovation and creativity: Hackathons as a service provide banks with access to a diverse talent pool and fresh perspectives, fostering innovation and creativity. Hackathons have become a key driver of innovation ecosystems in cities around the world, attracting talent, investment, and entrepreneurship. According to a study by Accenture, 78% of banking executives believe that hackathons are effective in driving innovation within their organisations.
- Rapid prototyping: With the support of hackathons as a service provider, banks can rapidly prototype and test new ideas in a low-risk environment. This enables them to experiment with emerging technologies and business models, accelerating the development of innovative solutions.
- Talent acquisition: Hackathons as a service offer banks the opportunity to identify, select and recruit top tech talent from a pool of candidates. According to a report by McKinsey, collaboration through broad, diverse ecosystems is recognised as a key driver of innovation, 57% of banking executives view innovation and creativity as an effective way to attract and retain talent in the digital age.
- Community and collaboration: By participating in hackathons as a service, banks can build a community of innovators and foster collaboration both within and outside the organisation. This collaborative spirit can lead to the co-creation of solutions that address complex challenges more effectively.
What are the best practices for firms to follow when using hackathon as a service?
- Define objectives: Define objectives: Precisely establish the aims and objectives of the hackathon. Determine what your organisation aims to accomplish, whether it be addressing specific challenges, fostering ingenuity, or attracting exceptional individuals.
- Select theme: Choose a theme or focal point for the hackathon that aligns with your objectives and aptly reflects the challenges or opportunities confronting your organisation or industry.
- Identify stakeholders: Discover key stakeholders responsible for coordinating and carrying out the hackathon, encompassing internal departments, external collaborators, benefactors, and attendees.
- Set budget and resources: Determine the financial means and provisions at hand for the hackathon, encompassing necessary expenditures such as rental, culinary arrangements, commendations, promotional efforts, technological advancements, and staffing requisites.
- Choose date and venue: Select an appropriate date and venue for the hackathon that caters to the requirements of participants and offers sufficient space and amenities for the event.
- Recruit participants: Develop a plan for enlisting participants, encompassing skilled developers, visionary designers, enterprising entrepreneurs, and knowledgeable subject matter specialists.
- Form teams: Employ the use of social media and email marketing techniques, as well as collaborations with esteemed universities or influential tech communities to gain access to potential contenders.
- Secure mentors and judges: Motivate participants to create teams before the hackathon or facilitate team assembly during the event. Take into account various elements, such as talents, proficiency, and passions when organising teams.
- Plan the agenda and activities: Craft a comprehensive itinerary for the hackathon, encompassing both inaugurating and concluding events, workshops, networking opportunities, and project showcases. Guarantee a harmonious blend of organised programs and open periods for participants to collaborate and dedicate themselves to their projects.
- Provide tools and resources: Provide participants with the means to access tools, resources, and technology platforms necessary for the cultivation of their endeavours, including software, hardware, APIs, and datasets.
- Promote diversity and inclusion: Actively promote diversity and inclusion by fostering a heterogeneous and comprehensive environment that encourages the involvement of marginalised groups and cultivates a hospitable ambience for all participants.
- Communicate guidelines and expectations: Convey the regulations, principles, and anticipations for the hackathon to attendees, advisors, evaluators, and other involved parties. Validate that all individuals comprehend the assessment standards, project submission procedure, and ethical guidelines.
- Test technology and logistics: To guarantee a seamless execution on the day of the hackathon, examine and assess all technological and logistical components beforehand. This includes scrutinising audiovisual equipment, internet connectivity, registration systems, and any other necessary technical or logistical elements.
- Collect feedback and refine: Acquire input from participants, mentors, judges, and other stakeholders following the hackathon to pinpoint strengths, weaknesses, and areas for enhancement. Utilise this feedback to refine and enhance future hackathon gatherings.
Are there organisations that have benefited from adopting hackathons as a service?
DBS Bank: Hack2Hire Program
DBS Bank, headquartered in Singapore, initiated the Hack2Hire program to secure premier technical prowess and stimulate ingenuity within its establishment. DBS collaborated with a hackathon as a service provider to host a succession of hackathons centred on addressing tangible obstacles encountered by the institution
- Approach: DBS partnered with a hackathon as a service provider to organise a series of hackathons focused on solving real-world challenges faced by the bank. The hackathon as a service welcomed entries from a multitude of individuals, encompassing developers, designers, and data scientists.
- Outcome: Through the Hack2Hire program, DBS successfully identified and recruited premier technological talent from amongst the participants. The innovative solutions generated during the hackathons were expertly incorporated into the bank's digital platforms, elevating the customer experience and propelling operational efficiencies.
Barclays: Rise Hackathon Series
- Background: Barclays, a globally operating investment bank and provider of financial services, initiated the Rise Hackathon Series to cultivate ingenuity and synergy within the fintech community.
- Approach: Barclays collaborated with a hackathon as a facilitator to curate a slew of hackathons centred around tackling predicaments in the spheres of finance, technology, and sustainability. The event amalgamated individuals hailing from startups, universities, and the fintech sector.
- Outcome: The Rise Hackathon Series yielded cutting-edge solutions to intricate financial issues, encompassing blockchain-facilitated payment networks, customer service-oriented chatbots powered by artificial intelligence, and sustainable investment avenues. Barclays harnessed these innovations to elevate its offerings and empower internal and external stakeholders alike.
Hackathons as a service can drive innovation, collaboration, and talent acquisition within the banking sector, ultimately helping banks stay ahead of the curve in a rapidly evolving industry landscape.
What are the common themes and lessons from using hackathon as a service?
- Talent acquisition and recruitment: DBS Bank and Barclays strategically incorporated hackathons to attract exceptional technology experts. By inviting individuals from diverse backgrounds such as developers, designers, and data scientists, they successfully gathered a wide range of talented contenders with unique skills and competencies.
- Real-world problem solving: Organisations utilised active and elevated language to address challenges in the banking sector. They organised hackathons around themes like improving customer experience, technological breakthroughs, and environmental sustainability. This ensured that the solutions generated during these events were not only applicable but also influential in addressing real-world issues.
- Integration of solutions: DBS Bank and Barclays seamlessly integrated cutting-edge innovations from their hackathons into their digital platforms, elevating their offerings and operational processes. This strategic use of solutions generated amplified benefits for stakeholders.
- Collaboration and community building: Fostering collaboration and community building within the fintech ecosystem was a key focus for both organisations. They partnered with hackathon service providers and extended invitations to individuals from startups, universities, and the wider fintech community. This resulted in the creation of an energetic network of innovative minds and entrepreneurial spirits.
- Focus on innovation and digital transformation: DBS Bank and Barclays emphasised innovation and digital transformation by using hackathons as a catalyst for advancement. By embracing new technologies and approaches, they maintained a competitive edge in an ever-changing industry climate.
Benefit from hackathons as a service and drive innovation with NayaOne
Innovate, create, and disrupt the status quo. Hosting a hackathon is not just an event; it’s a launchpad for your groundbreaking ideas.
Imagine the impact of your solution, the connections you’ll forge, and the skills you’ll hone. This is where your creativity meets real-world challenges, where collaboration turns into innovation, and where your efforts can change the future. So, don’t just sit on the sidelines. Join us, dive into the challenge, and let’s hack the future together. Bring your A-game, and be part of something extraordinary.
FAQs
Tailor each hackathon to meet the specific goals and audience of the organisation. This includes customising themes, challenges, judging criteria, and branding to align with the organisation’s vision and objectives.
Post-event, the organiser provides detailed analytics and reports on participation, project submissions, and outcomes. Facilitate follow-up opportunities such as mentorship for winners, potential collaborations, and media coverage to highlight the achievements.
Success is measured through a combination of metrics including participant satisfaction, the number and quality of project submissions, sponsor feedback, media coverage, and the achievement of specific event goals set by the organisation.
