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

55

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

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

1975

2000

Today

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