Future of Financial Services, Banks, Insurance, Auditors - keynote speaker

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Future of banking and financial services. Global trends, emerging markets, mobile banking and new payment systems, fund management, customer relationships, new technology, cloud-based banking services, security and hacking, challenge of legacy systems. New government regulation in banking and the future of the Euro zone. Future of London as a global financial centre. Compliance and the ultimate corporate value for every banker. Impact of big data on customer insight. Telecom and banking convergence. Future of insurance industry, underwriting and risk management. Why market research does not work. Conference keynote speaker on banking trends and insurance industry. Patrick Dixon.

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Future of Financial Services, Banks, Insurance, Auditors - keynote speaker

  1. 1. Dr Patrick Dixon Chairman Global Change Ltd Take Hold of Your Future Big issues for Financial Services and for those who advise or audit them
  2. 2. Greatest risk is institutional blindness
  3. 3. only sell or do things you really believe in Life  is  Short    
  4. 4. Why  I  believe  in   banking  and  insurance    
  5. 5. ‘6 words spell F U T U R E of banking’ F ast U rban T ribal U niversal R adical E thical
  6. 6. ALL      BIG      TRENDS      ARE      RELATED MANY  TRENDS  CHANGE  (RELATIVELY)  SLOWLY eg  demographics,  emerging  markets,  digital  tech  
  7. 7. But bank strategies often overtaken by events World can change faster than your clients can hold a board meeting
  8. 8.
  9. 9. 13
  10. 10.
  11. 11. • Click  to  edit  Master  text  styles 16
  12. 12. 18
  13. 13. Shocks Require Agility EU / Euro Syria / Iran / US / Israel China / Japan Mutant virus Libor lawsuits (Asbestos: 730,000 claimants - 8500 defendents - $250bn already)
  14. 14. Banks and Insurers need more than one strategy
  15. 15. WGP  1980-­‐2013  (%,constant  prices)  
  16. 16. US  GDP  1980-­‐2013   (%,constant  prices)  
  17. 17. EU  GDP  1980-­‐2013   (%,constant  prices)  
  18. 18. Vietnam  GDP  1985-­‐2011  
  19. 19. >40% WDP by 2015 — IMF - adjusted for Purchasing Power Parity
  20. 20. Looks  like  more  of  the  same  ?
  21. 21. EU card issuance/ debt - LOW / ZERO GROWTH Regulation and competition - MARGINS CUT BIG FINES FOR PAYMENT SYSTEMS FAILURES Payment  Revenues  Crisis
  22. 22. 30
  23. 23. • Click 33
  24. 24. • Click 34
  25. 25. • Click 35
  26. 26. • £ 375 bn $2.3 trillion US + $85bn a month
  27. 27. 38
  28. 28. 39
  29. 29. Text
  30. 30. The future of banking is about EMOTION
  31. 31. Passions Change Demands for more sustainable, socially responsible and ethically managed banking, stronger accountability and far more robust auditing
  32. 32. Bank Customer / Client : Simple, elegant solutions to complex problems Anticipate, instinct, smart Thought-leadership, common sense, reliable advice Superb backup in crisis Sharp insight and total honesty
  33. 33. 300 million move to cities in China and 475 million to cities in Africa by 2025
  34. 34. 1 billion over 60 year olds in 10 years
  35. 35. Europe Dying 4 couples to produce single great-grand child Stop Ageing
  36. 36. 75%  of  all  US  and  UK  wealth  owned  by   those  over  65  -­‐  but  many  need  to  work
  37. 37. Immigration Remittances Drive Payment Innovation
  38. 38. CUSTOMER  CHOICE   200  million  payments  globally >  80%  in  E  Africa   >  $170bn  in  2012 >  $700bn  in  2016
  39. 39. Kenya  -­‐  17m  customers $9bn  pa  -­‐  >33%  GDP Tanzania  9m  people 35  na^on  links  via  HomeSend  Hub
  40. 40. •$550bn in 2012 - 214m transfers •150m immigrants globally •World’s poorest 48 nations = double FDI value •33% of Liberia economy •$55bn remittances by mobile in 2016 • Global  Remi_ances
  41. 41. lPeople like to belong lSense of identity lCommunity lFamily lPersonal advisor Happy to Belong
  42. 42. 1  trillion pages   a  month Most  bank  and   insurance  customers   now  influenced  by   social  media
  43. 43. Would recommend you to a friend ?
  44. 44. "Perfection!, Wonderful hotel. Good value, beautiful views.“ Madrid May 20, 2013 This was the most beautiful hotel. Clean, friendly and good value. “Worst hotel I have ever been in. Should be closed down.“ Paris April 11, 2013 NEVER stay in this terrible place. Rats, insects, dirty. Many guests got sick. 74  million  users  a  month
  45. 45. Market  research  cannot  predict  future
  46. 46. 80%  web  customers  (tribe)   lost  in  ??  seconds  
  47. 47.                
  48. 48. 68 Future of London as global banking centre
  49. 49. Why “old” outsourcing story in India nearly over
  50. 50. We are only in first hour of first day of eCommerce
  51. 51. e-­‐commerce  hit   $1  trillion  in  2012  e-­‐marketer  
  52. 52. Mobile More than a Channel
  53. 53. 76 1.7bn  phone  users   are  unbanked
  54. 54. 77 2m  businesses  use   SQUARE   in  US
  55. 55. 78 •In UK alone.... •Transactions >£600 billion pa •Credit card debt >£60bn •Average card interest rate 16% •2% commissions worth £12bn Payments Doorway
  56. 56. Retail Banks and Telcos on Collision Course
  57. 57. Vodafone Mastercard Sprint Vamoosle
  58. 58. Free mobile devices calls / web / TV / games / pay Higher income model 2010                                                  2013                                  2015                                                     TelcoBanks
  59. 59. • Zettabyte = 1024 Exabytes Exabyte = 1024 Petabytes Petabyte = 1024 Terabytes Terabytes = 1024 Gigabytes That's a data explosion of 44x in approximately 10 years. BIG Data
  60. 60. Aramco - 30,000 computers hit - files lost
  61. 61. 5.5 billion attacks 42% increase / year >160Gbps in denial of service 1000 major attacks / hr in UK Worries about US Prism / security services Huge potential impact on cloud computing
  62. 62. •Home •Work •Online •Offline •Sales •Entertain •Phone •Mobile •Chat •Inst Investor / UHNW / Corporate FD etc ONE CUSTOMER
  63. 63. Regulatory Swings eg Capital Adequacy / ROI Public pressure v Reality
  64. 64. Nationalism Expect more efforts to skew financial markets with government policy Exchange rate wars Corporation tax spiral Turning a blind eye
  65. 65. $40 Trillion Green Tech Boom driven by oil price, cost cuts, green activism
  66. 66. Shale gas 33% US supplies 200 years global supply Up from 60 years in 5 years
  67. 67. 120,000 terawatts of sunlight /day 7,000 times total global power use Power Moscow from Libyan Desert
  68. 68. 120,000 terawatts of sunlight /day 7,000 times total power use
  69. 69. only sell what you believe in and would sell to your family and friends .....The  only  corporate  value  worth  having.....  
  70. 70. Teams  in  top  half  of  Engagement 86%  more  likely  be.er  customer  metrics 70%  more  likely  to  have  low  staff  turnover 70%  more  likely  to  be  highly  produc>ve 44%  more  likely  to  be  profitable   — 10  million  surveyed  by  Gallup
  71. 71. Beyond Compliance Perfect compliance will keep bankers out of prison but cannot protect brand, because public expectations change rapidly - with severe judgment on those who justify past “unethical” behaviour on grounds that it was 100% compliant.
  72. 72. Truth about Retail Funds —Next miss-selling scandal? —65-75% of actively managed funds fail to beat trackers —Most fund managers are reluctant to invest own money in own retail funds and do not recommend to their friends
  73. 73. Agility means specialist partners Your clients can’t do it on their own
  74. 74. •Individuals •Families •Teams •Communi0es •Wide  World Building  a  BeQer  World Be_er  leadership,  customer  service,  underwri^ng,  risk   management,  cost  control,  marke^ng,  mo^va^on
  75. 75. Dr Patrick Dixon Chairman Global Change Ltd Take Hold of Your Future Big issues for Financial Services and for those who advise or audit them

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