Times are getting tougher, fewer statements of advice are being written and discretionary inflows are down, and following on from the innovation theme from the recent Investment and Financial Services Association conference, there is no time better than now for innovating and thinking outside the square.
It was interesting last week to see Woolworths had partnered with HSBC to strengthen its thrust into the financial services industry. Its new credit card will be available from September 1.
According to Woolworths, its customer base is an ideal target market for the credit card as it processes more than 114 million credit cards each year.
As an incentive to spend, cardholders will be given points redeemable for vouchers valid at any of Woolworths' businesses, including Dick Smith, Dan Murphy's and Big W.
Woolworths' entry into the credit card game comes five years after Coles joined forces with GE Money to provide the Source Mastercard, but is ahead of David Jones's new offering.
As a distributor of financial services, Woolworths is in an enviable position to quickly gain traction in a market of which they had little experience.
It's this kind of thinking that may lead to great success. Risk and reward - it's a familiar adage.
The Beijing Olympics results were extraordinary this year. There was an inordinate number of broken records on the track and in the swimming. To me it showed that no matter how close to reaching human limits we think we are there is always someone able to push the boundaries.
Even if you are the biggest now, someone may overtake you by merger or acquisition, or new players may enter the game. To be constantly innovating is essential.
