The Bank Model Is Dead

Reinventing Financial Models: Revenue Mix, Pricing, Distribution Chris Skinner www.thefinanser.com

The current banking model is dead 80% of operational costs are in branches and staff It should be in technology

Banks today?

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

150 bank channels in 25 countries

http://thefinanser.co.uk/fsclub/2009/03/jibun-bank-the-mobile-only-bank.html

Content is dead … … context is all

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

http://thefinanser.co.uk/fsclub/2008/07/bbva-the-first.html

The Precog Bank

CONCLUSIONS

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

The current banking model is dead 80% of operational costs are in branches and staff It should be in technology

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

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

“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

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)

Thank you http://thefinanser.co. uk/fsclub/2009/04/ a-directory-of-social- finance.html

Reinventing Financial Models: Revenue Mix, Pricing, Distribution Chris Skinner www.thefinanser.com

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The Bank Model Is Dead

by Chris Skinner

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