The Bank Model Is Dead

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See http://thefinanser.co.uk/fsclub/2009/10/the-old-bank-is-dead-long-live-the-new-bank.html for a description of what this is all about.

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The Bank Model Is Dead

  1. 1. Reinventing Financial Models: Revenue Mix, Pricing, Distribution Chris Skinner www.thefinanser.com
  2. 2. The current banking model is dead 80% of operational costs are in branches and staff It should be in technology
  3. 3. Banks today?
  4. 4. Facebook from 100 to 200 million users in less than eight months March 2009: YouTube reaches 100m monthly viewers Twitter yearly growth rate: 1382% May 2009: 742m people worldwide access a social networking website
  5. 5. 150 bank channels in 25 countries
  6. 6. http://thefinanser.co.uk/fsclub/2009/03/jibun-bank-the-mobile-only-bank.html
  7. 7. Content is dead … … context is all
  8. 8. 684 Financial Institutions on Twitter in September 2009 (compared to 54 in March) in 38 Countries with 225,000 Followers http://www.clanglois.blogs.com/internet_banking/blog_index.html
  9. 9. 55
  10. 10. http://thefinanser.co.uk/fsclub/2008/07/bbva-the-first.html
  11. 11. The Precog Bank
  12. 12. CONCLUSIONS
  13. 13. 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
  14. 14. 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
  15. 15. The current banking model is dead 80% of operational costs are in branches and staff It should be in technology
  16. 16. 1975
  17. 17. 2000
  18. 18. Today
  19. 19. 2000 $800,000 Meetings Mailing 40 UK 10,000 people 8 Ireland Twice weekly 6 CEE $300,000 $150,000 Newsletter Brochures 10,000+ 1,000 people daily Annual update Text only Website $100,000 Non-interactive $150,000 Custom-build $100,000 85
  20. 20. Today Free Meetings Mailing 40 UK 10,000 people 8 Ireland Twice weekly 6 CEE Free $150,000 Newsletter Brochures 10,000+ 1,000 people daily Annual update Multimedia Website $149 Non-interactive Gone Custom-build $10,000 86
  21. 21. “We can move into a new country with credit cards with an investment of $1-$2 million, mainly on marketing, because we don’t have to build all that infrastructure.” Case Study: http://thefinanser.co.uk/fsclub/2008/12/-hsbc-banking-on-the-network.html
  22. 22. Summary • Be there • Be personal • Be everywhere • Be social • Be predictive • Be integrated • Be proactive • Be open • Be reactive • Be transparent • Be 24*7 • Be honest Don’t be constrained by legacy (systems, thinking, people)
  23. 23. Thank you http://thefinanser.co. uk/fsclub/2009/04/ a-directory-of-social- finance.html
  24. 24. Reinventing Financial Models: Revenue Mix, Pricing, Distribution Chris Skinner www.thefinanser.com

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