branches are dead, the future is social
DESCRIPTION
Presentation from the European Banking Forum, March 2010. Audio file is also available. Download the speech I gave at the European Banking Forum here: http://thefinanser.co.uk/fsclub/2010/04/branches-are-dead-the-future-is-social.html and then watch the slide show.TRANSCRIPT
©Chris Skinner +44 790 586 2270 [email protected]
Population of Earth: 6,676,120,288 Internet Users, Q2 2008: 1,463,632,361Internet Users, Q4 2000: 360,985,492Mobile Users, Q2 2008: 3, 352,237,974
©Chris Skinner +44 790 586 2270 [email protected]
Population of Earth: 6,676,120,288 Internet Users, Q2 2008: 1,463,632,361Internet Users, Q4 2000: 360,985,492Mobile Users, Q2 2008: 3, 352,237,974
1969 1979
1989 1999
1959
2009
The times, they are changing
1969 1979
1989 1999
1959
The times, they are changing
2009
May 2009: 742m people worldwide access a social networking website
Facebook from 100 to 200 million users in less than eight months350 million+ users today
March 2009: YouTube reaches 100m monthly viewers
Twitter yearly growth rate: 1382%
©Chris Skinner +44 790 586 2270 [email protected]
Banking is Different
• It’s Mashed Up
• It’s P2P
• It’s Social
• It’s Hybrid
• It’s Mobile
• It’s Mine
• It’s All About Data
• It’s Real-Time
• It’s Free
Agenda
©Chris Skinner +44 790 586 2270 [email protected]
EvErything is EvErywhErE
Chris Skinner, www.thefinanser.com
©Chris Skinner +44 790 586 2270 [email protected]
©Chris Skinner +44 790 586 2270 [email protected]
©Chris Skinner +44 790 586 2270 [email protected]
©Chris Skinner +44 790 586 2270 [email protected]
©Chris Skinner +44 790 586 2270 [email protected]
©Chris Skinner +44 790 586 2270 [email protected]
EvErything is changing
fastChris Skinner, www.thefinanser.com
©Chris Skinner +44 790 586 2270 [email protected]
©Chris Skinner +44 790 586 2270 [email protected]
2002: Bought by eBay for $1.5 billion, with revenues at $200 million
2005: Revenues reach $1 billion
2008:
• Purchases made outside eBay > on eBay
• PayPal provides 28.2% of eBay revenue, up from 24.8% a year before.
2009:
Q1 revenues $645 million, up 11% YOY; Q2 $669 million, up 11% YOY; Q3 $688 million, up 15% YOY
Q4 2009: $796 million, up 28% YOY and transactions exceed $20 billion for first time
Q4 2008: 70 million active users, an increase of 23% year-over-year.
Q3 2009: 78 million, up 19% YOY
2009: Mobile transactions up from $24 million in 2008 to $140 million
2010: >$75 billion transactions, >$3 billion revenues, $1 billion profit
©Chris Skinner +44 790 586 2270 [email protected]
©Chris Skinner +44 790 586 2270 [email protected]
©Chris Skinner +44 790 586 2270 [email protected]
©Chris Skinner +44 790 586 2270 [email protected]
©Chris Skinner +44 790 586 2270 [email protected]
©Chris Skinner +44 790 586 2270 [email protected]
©Chris Skinner +44 790 586 2270 [email protected]
Microtransactions are the future
©Chris Skinner +44 790 586 2270 [email protected]
©Chris Skinner +44 790 586 2270 [email protected]
©Chris Skinner +44 790 586 2270 [email protected]
©Chris Skinner +44 790 586 2270 [email protected]
EvErything is virtual
Chris Skinner, www.thefinanser.com
©Chris Skinner +44 790 586 2270 [email protected]
©Chris Skinner +44 790 586 2270 [email protected]
©Chris Skinner +44 790 586 2270 [email protected]
©Chris Skinner +44 790 586 2270 [email protected]
EvErything is mobilE
Chris Skinner, www.thefinanser.com
©Chris Skinner +44 790 586 2270 [email protected]://thefinanser.co.uk/fsclub/2009/01/mobile-payment-provider-infuriates-banks.html
M-PESAHow it works
Source: Olga Morawczynksi, CGAP, 2009
©Chris Skinner +44 790 586 2270 [email protected]://thefinanser.co.uk/fsclub/2009/03/jibun-bank-the-mobile-only-bank.html
©Chris Skinner +44 790 586 2270 [email protected]
©Chris Skinner. All rights reserved. +44 790 586 2270 [email protected]
©Chris Skinner +44 790 586 2270 [email protected]
EvErything is an app
Chris Skinner, www.thefinanser.com
©Chris Skinner +44 790 586 2270 [email protected]
©Chris Skinner +44 790 586 2270 [email protected]
http://thefinanser.co.uk/fsclub/2008/07/bbva-the-first.html
©Chris Skinner +44 790 586 2270 [email protected]
©Chris Skinner +44 790 586 2270 [email protected]
©Chris Skinner +44 790 586 2270 [email protected]
EvErything is data
Chris Skinner, www.thefinanser.com
©Chris Skinner +44 790 586 2270 [email protected]
Data is the greatest raw material of business, on a par with capital and labour.
“What we are seeing is the ability to have economies form around the data and that, to me, is the big change at a societal and even macroeconomic level.” Craig MundieHead of Research and Strategy Microsoft
©Chris Skinner +44 790 586 2270 [email protected]
Visa crunched through two years of customer records, or 73 billion transactions amounting to 36 terabytes of data, in 13 minutes by using clouds, compared to a month with traditional methods
©Chris Skinner +44 790 586 2270 [email protected]
“Information about money has become almost as important as money itself .”Walter Wriston, CEO/Chair, 1967-1984
“Banking is just bits and bytes.”John Reed, CEO/Chair, 1984-1998
©Chris Skinner +44 790 586 2270 [email protected]
EvErything is fast
Chris Skinner, www.thefinanser.com
©Chris Skinner +44 790 586 2270 [email protected]
1.0 second (s)
0.01 (a hundredth) centisecond (cs) 0.001 (a thousandth) millisecond (ms) 0.000 001 (a millionth) microsecond (µs) 0.000 000 001 (a billionth) nanosecond (ns) 0.000 000 000 001 (a trillionth) picosecond (ps) 0.000 000 000 000 001 femtosecond (fs) 0.000 000 000 000 000 001 attosecond (as) 0.000 000 000 000 000 000 001 zeptosecond (zs)0.000 000 000 000 000 000 000 001 yoctosecond (ys)
How fast do you go?
©Chris Skinner +44 790 586 2270 [email protected]
EvErything is frEE
Chris Skinner, www.thefinanser.com
©Chris Skinner +44 790 586 2270 [email protected]
1975
©Chris Skinner +44 790 586 2270 [email protected]
2000
©Chris Skinner +44 790 586 2270 [email protected]
Today
©Chris Skinner +44 790 586 2270 [email protected]
2000
53
Mailing10,000 peopleTwice weekly
Brochures10,000+
Annual update
Meetings40 UK
8 Ireland6 CEE
Newsletter1,000 people daily
Text only WebsiteNon-interactiveCustom-build
$150,000
$100,000
$100,000
$300,000
$150,000
$800,000
©Chris Skinner +44 790 586 2270 [email protected]
Mailing10,000 peopleTwice weekly
Brochures10,000+
Annual update
Meetings40 UK
8 Ireland6 CEE
Newsletter1,000 people daily
Multimedia WebsiteNon-interactiveCustom-build
$150,000
$149
$10,000
Free
Gone
Today
Free
©Chris Skinner +44 790 586 2270 [email protected]
Banking is Different
• It’s Mashed Up
• It’s P2P
• It’s Social
• It’s Hybrid
• It’s Mobile
• It’s Mine
• It’s All About Data
• It’s Real-Time
• It’s Free
Agenda
©Chris Skinner +44 790 586 2270 [email protected]
• Banking is now Mashed-Up in Real-Time
• A Mobile, Social Revolution = Mobile, Social Banking
• Specifically, because it’s Mobile, it’s 24*7 and Ubiquitous
• The Economics is Different
• Branches are less Worthwhile
• Much of Banking is Commoditized and Free
• New Revenue Models, including Banking Sponsored By ...
• New Partner Models, with Hybrid Banks
Summary
©Chris Skinner +44 790 586 2270 [email protected]
Really Useful Stuff• http://thefinanser.co.uk/fsclub/2009/04/a-directory-of-social-finance.html
Payments• http://thefinanser.co.uk/fsclub/payments/
Mobile Finance• http://thefinanser.co.uk/fsclub/mobile/
Social Finance• http://thefinanser.co.uk/fsclub/social_networking/
SEPA and the Payment Services Directive• http://thefinanser.co.uk/fsclub/sepa/
The Financial Services Club• http://www.fsclub.co.uk/
Further Reading
©Chris Skinner +44 790 586 2270 [email protected]
Chris Skinner
www.fsclub.netwww.thefinanser.com
www.shapingtomorrow.com