Opportunities for Entrepreneurs in Financial Services

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Opportunities for Entrepreneurs in Financial Services

  1. 1. Opportunities for Entrepreneurs in Financial Services<br />What’s On The Horizon?<br />And<br />Where Are the Entrepreneurial Opportunities?<br />A hypothetical conversation about opportunities for the entrepreneur in the banking sector. <br />
  2. 2. What Does the Macro Banking Environment Look Like In The Next Five Years Or So?<br />Equities Perform “OK” -- In high single digits.<br />Recessions more frequent – closer to historical norms.<br />Healthcare, Energy and IT are economic drivers.<br />The dollar becomes less “the standard.” <br />Interest rates rise steadily – to inflation concern from deflation.<br />“Protectionist” trends increase trade conflict. (Outsourcing)<br />World growth comes from emerging markets.<br />China continues its ascendancy.<br />Economists will continue to predict the obvious and miss the actual. Will predict nine of the next six recessions.<br />Henry H. Doss, EIR, T2VC<br />2<br />
  3. 3. So What?<br />Henry H. Doss, EIR, T2VC<br />3<br />Banking is the second largest market, behind government. It is open to innovative development, but oftentimes a bit opaque. Here are a few potential “strategic implications” for the entrepreneur, that we might derive from the macro view.<br />There are hundreds of different strategic lenses through which opportunities could be viewed. This is just one.<br />
  4. 4. The Financial Services ConsumerMight Be Looking For . . . <br />Henry H. Doss, EIR, T2VC<br />4<br />Information: Support decision making and planning.<br />Competitive products: Feature, Price, “Novelty”<br /> Personalized: Everything<br />Control: Security, Access, Customization<br />My Way: And My When, My How, My Device.<br /> Ease of access: Fast, Faster, Fastest<br />Everything “linked”: Banking, Social Media, Payment, Etc<br /> .<br />
  5. 5. The Financial Services Company Might Focus On . . . <br />Henry H. Doss, EIR, T2VC<br />5<br /> Cost control: ROI; Profitability Impact; Etc<br />Fixed Cost: Outsourcing; near sourcing.<br />Profitability: “Performing relationships.”<br />Efficiency: Everywhere<br />Marketing Edge: Insight, Data, Targeting. Differentiation.<br />ROI on Tech Investment: Mysterious.<br />Compliance: More and More “Tech-Driven.” Maybe.<br />
  6. 6. Some “Areas To Watch” --Or --“A Blinding Glimpse of The Obvious”<br />Mobile Apps<br />Not Just Mobile Channel<br />But, Specifically, Mobile Apps (iPhone 5 = “iWallet”)<br />Outsourcing (Or, Nearsourcing, Closer to Home?)<br />PFM (Personal Financial Management)<br />Think “Mint”<br />Think “Big Picture” for Individual<br />Think Aggregation<br />Payments<br />Social Media<br />A big puzzle for banks<br />Social Media/CRM “Merger”<br />The Cloud – Of Course<br />Internal<br />External<br />Data Analysis, Insight, and “Real” Data Mining<br />Collaboration Tools, Internal and For Customers<br />Henry H. Doss, EIR, T2VC<br />6<br />
  7. 7. So, Where To Focus<br />Banking – Like All Business – Will Be In A State of Flux<br />Bankers Are Often Second Adopters . . . Or Third . . . Or . . .<br />But . . . <br />Efficiency and Cost Issues Will “Push” Innovative Technologies<br />Tactical Risk Appetite May Increase<br />Strategic Competitive Advantage Will Sell<br />Henry H. Doss, EIR, T2VC<br />7<br />As a working hypothesis, assume three primary technology areas of emphasis for development/entrepreneurial opportunity spaces:<br />
  8. 8. Henry H. Doss, EIR, T2VC<br />8<br />
  9. 9. Mobile<br />Mobile Products Will “Rule”<br />“Mobile App Stores” Within Bank Hierarchy<br />Multiple choices, across multiple devices, across multiple platforms.<br />Security<br />The Device “Is” The Bank<br />Henry H. Doss, EIR, T2VC<br />9<br /> In a sense, mobile banking is the fulfillment of “branchless banking” . . . Or at least it could be. As devices and apps become more ubiquitous and more complete in offerings, the device and the app become the portal for building relationships . . . Which has enormous implications for . . .<br />
  10. 10. Data Analysis<br />Data Mining Has Lagged In Effective Deployment<br />The Technology Has Always (Nearly) Been Ahead of the Strategy<br />Issue Was “What Can We Know” vs “How Can We Use Insight”<br />Analytics More “Market Issue” Than Technical<br />Target Marketing/Messaging<br />Retention/Attrition<br />Product Development/Pricing<br />Understand Customer Across Multiple Inputs (Financial/Social)<br />Henry H. Doss, EIR, T2VC<br />10<br /> Data mining (in banking) has been “under-delivered” for many years. This has largely been driven by poor strategy, rather than poor technology. User interfaces and platforms that can drive effective use of insight technologies could be significant . . . Which has enormous implications for . . . <br />
  11. 11. The Cloud<br />PaaS -- Platform<br />DaaS -- Database<br />SaaS – Software<br />Cost Allocation/Tracking<br />Scalability, Elasticity<br />Switch from Tactical To Strategic Focus In IT<br />Henry H. Doss, EIR, T2VC<br />11<br /> As much as anything, the growth of cloud computing seems certain, in spite of security concerns and occasional reliability issues. (Amazon.)<br />
  12. 12. Henry H. Doss, EIR, T2VC<br />12<br />So, how can entrepreneurs find the best “opportunities” to develop technology (and other) solutions for the banking sector?<br />Said differently, how can the entrepreneur focus strategic thinking to develop and evaluate entry into the banking world?<br />
  13. 13. Look for Opportunities . . .<br />Henry H. Doss, EIR, T2VC<br />13<br /> . . . That leverage data analysis and insight, on mobile platforms via mobile applications, residing in the cloud.<br />
  14. 14. Henry H. Doss, EIR, T2VC<br />14<br />Play Here!<br />
  15. 15. Henry H. Doss, EIR, T2VC<br />15<br />Discussion<br />
  16. 16. Thank You!<br />Henry H. Doss, EIR, T2VC<br />16<br />Henry H. Doss, Executive-in-Residence<br />henry@t2vc.com<br />henrydoss@mac.com<br />1+ 336 489 0053<br />Once-upon-a-time retired, former banker, oftentimes rock guitarist/composer, sort-of data geek, serial “attempter” at multiple adventures, master meeting/conversation facilitator, won-some/lost-some, been there/done that, community leader/volunteer, idea-generator.<br />

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