AMPlify - Emerging shifts and the transformation of money and wealth - June 2013

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A talk being given at the AMPlify festival in Sydney looking at some possible implications of external trends on financial products. Drawing on combination of future agenda material and additional discussions within and around the financial sector, the focus is on the key emerging shifts across sectors and their potential implications for financial products. After a decade of largely digitising existing processes, right now a host of start ups and large company innovations are looking to use digital to change the experience. Three big external shifts driving change are the redefinition of wealth away from traditional investments, new ageing lifestyles and their different need states and increasing customer / consumer led control and influence. The five associated implications for financial products covered in the talk are: pervasive mobile as the default platform for all; the shift from owning to renting products and the associated financial changes that underpin the end of loans and less need for saving;

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AMPlify - Emerging shifts and the transformation of money and wealth - June 2013

  1. 1. Emerging  Shi+s  for  Money  and  Wealth  4  June  2013  |  Tim  Jones  |  AMPlify  Sydney    
  2. 2. As  change  accelerates  in  an  increasingly  connected  world,    more  companies  are  looking  further  ahead  to  be9er    understand  emerging  opportuni:es  and  challenges  Context  
  3. 3. Organisa:ons  increasingly  want  to  iden:fy  and  understand    both  the  an:cipated  and  unexpected  changes    so  that  they  can  be  be9er  prepared  for  the  future  Context  
  4. 4. The  Future  Agenda  is  the  world’s  largest  open  foresight    program  that  looks  at  the  big  issues  for  2020  so  that  organisa:ons  can  be9er  focus  and  s:mulate  innova:on  
  5. 5. From  the  first  program,  we  highlighted  52  insights  that  many  organisa:ons  are  now  using  to  s:mulate  thinking,  challenge  exis:ng  perspec:ves  and  drive  strategic  innova:on  52  Key  Foresights    
  6. 6. Key  Shi+s  and  Implica:ons  for  Money  and  Wealth  
  7. 7. The  current  landscape  for  financial  products  shows  that,    aGer  a  decade  of  largely  digi:zing  exis:ng  processes,  new  proposi:ons  are  making  more  of  online  and  mobile  poten:al  Current  Landscape    
  8. 8. Access  not  Owning  Dynamic  Pricing  Longitudinal  Products  AlternaBve  Currencies  Pervasive  Mobile   New  Ageing  RedefiniBon    of  Wealth  Customer  Control  The  Emerging  Landscape?  
  9. 9. New  Ageing  RedefiniBon    of  Wealth  Customer  Control  The  Emerging  Landscape?  
  10. 10. An  increasingly  imbalanced  global  popula:on  is  being    driven  both  by  most  of  us  living  longer  and  steadily    decreasing  fer:lity  rates  across  many  regions  of  the  world  New  Ageing   Living  Longer  and  Decreasing  Fer:lity  
  11. 11. At  the  same  :me,  the  stereotypical  lifecycle  has    changed:  ageing  now  includes  many  new  life  stages  New  Ageing   Life  Stages  Source: Aging2.0 / AARP / Innovate50
  12. 12. Driven  by  a  collapse  in  trust  of  banks  and  a  lack  of  services  that  meet  new  needs,  individuals  are  re-­‐examining  what  is  meant  by  wealth  –  trusted  storage  vehicles  beyond  cash  are  on  the  rise  •  Art,  wine  and  collectables  Passion  Investments  •  Gold  and  own  property  Tangible  Assets  •  EducaBon  and  health  The  Family  Network  Redefini:on  of  Wealth    Trusted  Wealth  PlaSorms  
  13. 13. Over  the  past  decade  some  views  of  the  best  returns    have  been  challenged  as  higher  wealth  crea:on  investment    has  shiGed  to  align  with  be9er  performing  assets  Redefini:on  of  Wealth   10  Year  Growth  to  Q3  2012    Classic  Cars  395%  Rare  Coins    248%  Stamps    216%  Fine  Art    199%  Fine  Wine    166%    Gold                  434%  Hong  Kong  Property                    221%  Sao  Paulo  Property                211%  Paris  Property                117%  London  Property                103%  Sydney  Property                    34%      S&P  500    70%  MSCI  World  Index  66%  FTSE  100    53%  ASX  200    47%      
  14. 14. Across  mul:ple  sectors  we  can  see  ever-­‐increasing    mass  personalisa:on  ac:vi:es  to  give  the  customer  more  informa:on  and  apparent  control  of  key  product  a9ributes  Customer  Control   Apparent  Personaliza:on  
  15. 15. Access  not  Owning  Dynamic  Pricing  Longitudinal  Products  AlternaBve  Currencies  Pervasive  Mobile   New  Ageing  RedefiniBon    of  Wealth  Customer  Control  The  Emerging  Landscape  –  Product  Implica:ons  
  16. 16. In  an  unexpected  loca:on,  M-­‐Pesa  has  proven  that  money  transfer  via  mobile  is  viable  at  the  bo9om  of  the  pyramid  and  momentum  is  now  building  to  a  wider  porSolio  and  reach  Pervasive  Mobile   Mobile  Transfer  
  17. 17. Tesco’s  South  Korean  HomePlus  has  been  grabbing    innova:on  headlines  with  its  mobile-­‐based  virtual  home  shopping  success  on  Seoul  metro  sta:ons  Remote  Retail  Pervasive  Mobile  
  18. 18. Being  tracked  by  your  mobile  is  accelerated  by  successful  loca:on-­‐based  services  and  retailers  take  advantage  of  aggregated  data  and  mobile  analy:cs  to  tailor  experiences  Pervasive  Mobile    Tailored  Retail  Experiences    
  19. 19. In  several  areas  we  can  see  rising  sustainability  impera:ves    and  increasing  cost  of  ownership  shiG  the  balance  from  ownership  to  access  and  we  prefer  to  rent  than  buy  Access  Not  Owning   Lease  Everything  
  20. 20. As  norms  change  across  sectors  and  within  supply  chains,  more  items  will  be  rented  not  bought  –  loans  are  replaced  by  leasing  agreements  and  the  underlying  b2b  financial  rela:onships  shiG  Access  Not  Owning   Lease  Everything  
  21. 21. Leading-­‐edge  analy:cs  technologies  are  rapidly  migra:ng  from  military  to  commercial  applica:ons  and  providing  unique  real  :me  views  of  changing  sen:ments  across  plaSorms    Dynamic  Pricing    Real  Time  Analy:cs  
  22. 22. Some  see  that  analy:cs  can  be  used  to  dynamically  change  experiences  and  pricing  to  both  reflect  real-­‐:me  changes  in  consumer  a`tudes  to  value  as  well  as  nudging  behaviours  Dynamic  Pricing    Real  Time  Analy:cs  
  23. 23. Others  believe  that  intergenera:onal  mortgages  will    lead  to  a  migra:on  into  life-­‐long  longitudinal  financial    rela:onships  built  around  a  single  personalised  product    Longitudinal  Products  Living  on  Saved  Wealth  Building  Wealth  Student  Loan  Savings  and  Investments  Mortgage  Pension  and  Assurance  Insurance  Managing  Debt  Single  Longitudinal  Financial  Product  Age  20    30        40          50            60              70            80              90  Loans  
  24. 24. Around  the  world  several  different  organiza:ons  are  making  strong  moves  into  taking  a  share  of  online  and  offline  payments  through  alterna:ve  currencies  and  trusted  plaSorms    Virtual  Transac:ons  Alterna:ve  Currencies  
  25. 25. Decreased  trust  in  ins:tu:ons  may  broaden  the    adop:on  of  new  universal  stores  of  value  controlled  by  a    few  key  global  consumer  brands  but  used  by  many  Alterna:ve  Currencies   Global  Standards  
  26. 26. Access  not  Owning  Dynamic  Pricing  Longitudinal  Products  AlternaBve  Currencies  Pervasive  Mobile   New  Ageing  RedefiniBon    of  Wealth  Customer  Control  The  Emerging  Landscape  
  27. 27. Future Agenda84 Brook StreetLondonW1K 5EH+44 203 0088 141futureagenda.orgtim.jones@futureagenda.orgThe  world’s  leading  open  foresight  program  

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