Branches are dead, the future is social

Chris Skinner www.fsclub.net www.thefinanser.com www.shapingtomorrow.com ©Chris Skinner +44 790 586 2270 chris.skinner@fsclub.co.uk

www.thefinanser.com ©Chris Skinner +44 790 586 2270 chris.skinner@fsclub.co.uk

©Chris Skinner +44 790 586 2270 chris.skinner@fsclub.co.uk

BRANCHES ARE DEAD the future is social ©Chris Skinner +44 790 586 2270 chris.skinner@fsclub.co.uk

Population of Earth: 6,676,120,288 Internet Users, Q2 2008: 1,463,632,361 Internet Users, Q4 2000: 360,985,492 Mobile Users, Q2 2008: 3, 352,237,974 ©Chris Skinner +44 790 586 2270 chris.skinner@fsclub.co.uk

The times, they are changing 1959 1969 1979 2009 1989 1999

The times, they are changing 1959 1969 1979 1989 1999 2009

Facebook from 100 to 200 million users in less than eight months 350 million+ users today March 2009: YouTube reaches 100m monthly viewers Twitter yearly growth rate: 1382% May 2009: 742m people worldwide access a social networking website

Agenda 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 ©Chris Skinner +44 790 586 2270 chris.skinner@fsclub.co.uk

EvErything is EvErywhErE Chris Skinner, www.thefinanser.com ©Chris Skinner +44 790 586 2270 chris.skinner@fsclub.co.uk

EvErything is changing fast Chris Skinner, www.thefinanser.com ©Chris Skinner +44 790 586 2270 chris.skinner@fsclub.co.uk

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 chris.skinner@fsclub.co.uk

Microtransactions are the future ©Chris Skinner +44 790 586 2270 chris.skinner@fsclub.co.uk

EvErything is virtual Chris Skinner, www.thefinanser.com ©Chris Skinner +44 790 586 2270 chris.skinner@fsclub.co.uk

EvErything is mobilE Chris Skinner, www.thefinanser.com ©Chris Skinner +44 790 586 2270 chris.skinner@fsclub.co.uk

M-PESA How it works ©Chris Skinner +44 790 586 2270 chris.skinner@fsclub.co.uk Source: Olga Morawczynksi, CGAP, 2009 http://thefinanser.co.uk/fsclub/2009/01/mobile-payment-provider-infuriates-banks.html

http://thefinanser.co.uk/fsclub/2009/03/jibun-bank-the-mobile-only-bank.html ©Chris Skinner +44 790 586 2270 chris.skinner@fsclub.co.uk

EvErything is an app Chris Skinner, www.thefinanser.com ©Chris Skinner +44 790 586 2270 chris.skinner@fsclub.co.uk

©Chris Skinner +44 790 586 2270 chris.skinner@fsclub.co.uk 57

http://thefinanser.co.uk/fsclub/2008/07/bbva-the-first.html ©Chris Skinner +44 790 586 2270 chris.skinner@fsclub.co.uk

EvErything is data Chris Skinner, www.thefinanser.com ©Chris Skinner +44 790 586 2270 chris.skinner@fsclub.co.uk

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 Mundie Head of Research and Strategy Microsoft ©Chris Skinner +44 790 586 2270 chris.skinner@fsclub.co.uk

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 chris.skinner@fsclub.co.uk

“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 chris.skinner@fsclub.co.uk

EvErything is fast Chris Skinner, www.thefinanser.com ©Chris Skinner +44 790 586 2270 chris.skinner@fsclub.co.uk

How fast do you go? 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) ©Chris Skinner +44 790 586 2270 chris.skinner@fsclub.co.uk

2000 $800,000 Meetings Mailing 40 UK 10,000 people 8 Ireland Twice weekly 6 CEE $300,000 $150,000 Brochures Newsletter 10,000+ 1,000 people daily Annual update Text only Website $100,000 Non-interactive $150,000 Custom-build $100,000 82 ©Chris Skinner +44 790 586 2270 chris.skinner@fsclub.co.uk

Today Free Meetings Mailing 40 UK 10,000 people 8 Ireland Twice weekly 6 CEE Free $150,000 Brochures Newsletter 10,000+ 1,000 people daily Annual update Multimedia Website Non-interactive Gone $149 Custom-build $10,000 83 ©Chris Skinner +44 790 586 2270 chris.skinner@fsclub.co.uk

Agenda 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 ©Chris Skinner +44 790 586 2270 chris.skinner@fsclub.co.uk

Summary • 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 ©Chris Skinner +44 790 586 2270 chris.skinner@fsclub.co.uk

Further Reading 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/ ©Chris Skinner +44 790 586 2270 chris.skinner@fsclub.co.uk

Chris Skinner www.fsclub.net www.thefinanser.com www.shapingtomorrow.com ©Chris Skinner +44 790 586 2270 chris.skinner@fsclub.co.uk

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Branches are dead, the future is social

by Chris Skinner on Apr 14, 2010

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