the future of banking

Financial institutions were built for the physical distribution of paper in a localized network

Financial institutions need to design for the digital distribution of data in a globalized network

from Physical to Digital

from Channel to Access

from Product to Customer

RETAIL BANKING

TRANSACTION BANKING

COMMERCIAL BANKING

PRIVATE BANKING

INVESTMENT BANKING

INSURANCE

RETAIL BANKING

TRANSACTION BANKING

COMMERCIAL BANKING

PRIVATE BANKING

INVESTMENT BANKING

INSURANCE

RETAIL BANKING

TRANSACTION BANKING

COMMERCIAL BANKING

PRIVATE BANKING

INVESTMENT BANKING

INSURANCE

RETAIL BANKING

TRANSACTION BANKING

COMMERCIAL BANKING

PRIVATE BANKING

INVESTMENT BANKING

INSURANCE

RETAIL BANKING

TRANSACTION BANKING

COMMERCIAL BANKING

PRIVATE BANKING

INVESTMENT BANKING

INSURANCE

RETAIL BANKING

TRANSACTION BANKING

COMMERCIAL BANKING

PRIVATE BANKING

INVESTMENT BANKING

INSURANCE

RETAIL BANKING

TRANSACTION BANKING

COMMERCIAL BANKING

PRIVATE BANKING

INVESTMENT BANKING

INSURANCE

$1 TRILLION BY 2025*

* Foundation Capital, 2014

RETAIL BANKING

TRANSACTION BANKING

COMMERCIAL BANKING

PRIVATE BANKING

INVESTMENT BANKING

INSURANCE

RETAIL BANKING

TRANSACTION BANKING

COMMERCIAL BANKING

PRIVATE BANKING

INVESTMENT BANKING

INSURANCE

RETAIL BANKING

TRANSACTION BANKING

COMMERCIAL BANKING

PRIVATE BANKING

INVESTMENT BANKING

INSURANCE

RETAIL BANKING

TRANSACTION BANKING

COMMERCIAL BANKING

PRIVATE BANKING

INVESTMENT BANKING

INSURANCE

Revenues Expenses

October 2011

Launch of X.commerce API October 2011

Launch of X.commerce API

June 2013

Launch of mobile API June 2013

Launch of mobile API

RETAIL BANKING

TRANSACTION BANKING

COMMERCIAL BANKING

PRIVATE BANKING

INVESTMENT BANKING

INSURANCE

RETAIL BANKING

TRANSACTION BANKING

COMMERCIAL BANKING

PRIVATE BANKING

INVESTMENT BANKING

INSURANCE

RETAIL BANKING

TRANSACTION BANKING

COMMERCIAL BANKING

PRIVATE BANKING

INVESTMENT BANKING

INSURANCE

Every single smart computer science person I’ve had look into it has reached the same conclusion — Blockchain is a fundamental breakthrough in technology

“

”Mark Andreessenhttp://techcrunch.com/2014/02/12/marc-andreessen-tech-is-still-recovering-from-a-depression/

RETAIL BANKING

TRANSACTION BANKING

COMMERCIAL BANKING

PRIVATE BANKING

INVESTMENT BANKING

INSURANCE

RETAIL BANKING

TRANSACTION BANKING

COMMERCIAL BANKING

PRIVATE BANKING

INVESTMENT BANKING

INSURANCE

RETAIL BANKING

TRANSACTION BANKING

COMMERCIAL BANKING

PRIVATE BANKING

INVESTMENT BANKING

INSURANCE

RETAIL BANKING

TRANSACTION BANKING

COMMERCIAL BANKING

PRIVATE BANKING

INVESTMENT BANKING

INSURANCE

RETAIL BANKING

TRANSACTION BANKING

COMMERCIAL BANKING

PRIVATE BANKING

INVESTMENT BANKING

INSURANCE

from Physical to Digital

from Channel to Access

from Product to Customer

= component-based finance

from Physical to Digital

from Channel to Access

from Product to Customer

= component-based finance

WEB/TABLET “SCREENS”

7–10 times per month

BRANCH

5–10 times per month

CALL CENTRE, IVR & VOICE RESPONSE

5–10 times per month

ATM

3–5 times per month

MOBILE

20–30 times per month

2016Digital interactions with banks will outnumber branch interactions 300 to 1

Barclays took 13 years to get two million customers using internet banking.

It took just two months to reach that number for mobile banking.

The average Barclays customer visits a branch less than twice a month and uses the

mobile app 26 times a month

Only 5% of customer interaction in the banking industry will be in branch by 2017

– BBVA

The old channel thing …

Augmented digital has no channels

CHANNELS

MULTICHANNEL LAYER

PRESENTATION LAYER

LEGACY LAYER

Branch ATM/Kiosk Internet Call Center Mobile Direct sales Future

ACCESS

Branch ATM/Kiosk Internet Call Center Mobile Direct sales Future

from Physical to Digital

from Channel to Access

from Product to Customer

= component-based finance

= rearchitect the core

from Physical to Digital

from Channel to Access

from Product to Customer

= component-based finance

= rearchitect the core

RETAIL BANKING

TRANSACTION BANKING

COMMERCIAL BANKING

PRIVATE BANKING

INVESTMENT BANKING

INSURANCE

You need to be social because that’s where your customers are.

Average Facebook user has 338 friends*

2,000 Likes = 676,000 Views

Average cost to gain a registration: €1.33

Average cost to gain a fully KYC processed customer: €16.70* Pew Research

from Physical to Digital

from Channel to Access

from Product to Customer

= component-based finance

= rearchitect the core

= build communities