Banking Is Essential, Banks are notPresentation Transcript
‘ Banking is essential, Banks are not’ Bill Gates The competition comes from outside the industry
Money = Margin
Money is no longer the territory of banks. More and more non-financial companies will develop or sell financial services as an additional service to their basic product.
They do this because the financial services generate more revenue than the basic product.
Post-offices sell financial products
Retailers sell financial products
Car manufacturers sell financial products
Direct sellers sell financial products
Virgin is everything and a bank
Zopa introduced peer-to-peer lending An online marketplace where people meet to lend and borrow has huge cost advantages which is why Zopa members get a fairer deal when it comes to their money. In Zopa’s wake, copycats such as Prosper in the US, Smava in Germany and Boober in the Netherlands have sprung up across the world. Social Lending is a financial category of genuine and increasing importance.
Social networks are the dominant internet hotspots
Social networks combine entertainment, communications, news, hobbies, and gossip. They are almost like a mashup of every major medium: television, radio, magazines, and newspaper combined with communications both private one-to-one and public broadcast modes.
Banks must be where the people are
Facebook starts peer-to-peer Lending Club
Financial Institution Opportunities on Social networks
4 financial services already launched on Facebook:
Lending Club's person-to-person loan marketplace
Prosper's lending game
Wesabe's personal finance groups
Pay Me , a payment service developed by Australian Ad Agency, Yellow Media using the PayPal engine
But so far there is no: Bank, Credit union, Credit card issuer, Mortgage lender, Brokerage (although there are several stock monitoring service including Forbes, Yahoo, and Social Picks), Rates tracking service, Credit report monitoring service (though Identity Guard is advertising heavily today),Identity theft protection service
Own your own bank in SL LindeX - the official Second Life Linden Dollar exchange.
E-bay en Google offer payments anywhere
Internet tears down entrance walls for new competitors