A new era in banking is underway. Social networking based innovations together with mass education on the use of technology have resulted in a new paradigm for managing money. Check www.builttothrive.com and www.systemiclogic.com

1. Radical Ideas | Practical Implementation
Emergence of Bank 2.0
a brief view on a new world
Dr. Jay van Zyl
www.BuiltToThrive.com
www.SystemicLogic.com

2. Radical Ideas | Practical Implementation
Towards a New Landscape
Towards a New Landscape

3. Radical Ideas | Practical Implementation
BANK 1.0

4. Radical Ideas | Practical Implementation
Signs of Change?
Signs of Change?
Emergence of habitual based banking
Emergence of habitual based banking
More interactions, more often
More interactions, more often

5. Radical Ideas | Practical Implementation
The “service” era...
The “service” era...
human or machine?
human or machine?
What I say
What I say
What I do
What I do
Surprise me...
Surprise me...
What I say
What I say
What I do
What I do
Surprise me...
Surprise me...
Out of only 16%
Out of only 16%
that switched...
that switched...

6. Radical Ideas | Practical Implementation
Translate innovation into action...
Translate innovation into action...
Reputation for innovation creates visibility
Reputation for innovation creates visibility
Capture value though enlightenment
Capture value though enlightenment

7. Radical Ideas | Practical Implementation
The potential to enlighten...
The potential to enlighten...
re-Emergence of social interaction
re-Emergence of social interaction
re-Defining the financial experience
re-Defining the financial experience

8. Radical Ideas | Practical Implementation
1950’s
1800’s
Passbook
Industrialize
Credit
Card
Mass
Production
1980s
Debit
Card
2000’s
Internet
& Mobile
Banking
Mass
Automation
Banking Historical View
Banking Historical View
2005 2007 2009
Social
Lending
Visa
Microtag
Social
Banking
Adoption
Social
Networks
Web 2.0 Crowds
Networked
World

9. Radical Ideas | Practical Implementation
BANK 2.0

10. Radical Ideas | Practical Implementation
The Evolution of Strategic Paradigms
The Evolution of Strategic Paradigms
Ref: Reframing Business
Co-producer
(crowds)
Source
Receiver
(market)‫‏‬
Production Relationships Organization of
Value Creation
Critical
Critical
competence
competence
View of
View of
Customer
Customer
Industrialism
Industrialism
Customer base
Customer base
Management
Management
Configurable
Configurable
Social Systems
Social Systems
BANK 2.0
Adapted from Richard Normann

11. Radical Ideas | Practical Implementation
The Future: Banking Process
The Future: Banking Process
 Bank 1.0
Bank 1.0
 Processes are
Processes are internal
internal, and orchestrated by salaried
, and orchestrated by salaried
personnel. Confidentiality and privacy of all information
personnel. Confidentiality and privacy of all information
is paramount in this model.
is paramount in this model.
 Bank 2.0
Bank 2.0
 Process of loan and investment evaluation is
Process of loan and investment evaluation is
crowdsourced to
crowdsourced to community
community.
.
 The firm is responsible to make the right information
The firm is responsible to make the right information
available to
available to facilitate
facilitate processes, yet maintain confidentiality
processes, yet maintain confidentiality
on the rest.
on the rest.
 The firm must provide processes to
The firm must provide processes to validate reputation
validate reputation, to
, to
support community interaction.
support community interaction.

12. Radical Ideas | Practical Implementation
The Future: Distribution Channels
The Future: Distribution Channels
 Bank 1.0
Bank 1.0
 Channels are
Channels are self owned
self owned, including online banking, etc
, including online banking, etc
 Bank 2.0
Bank 2.0
 No centralised channels. Customer acquisition, and
No centralised channels. Customer acquisition, and
retention is
retention is increasingly viral
increasingly viral in nature.
in nature.
 ...provide the right
...provide the right flow of information
flow of information between
between
members.
members.
 ...culture has to be
...culture has to be open and transparent
open and transparent, to engender
, to engender
trust, and promote customer advocacy.
trust, and promote customer advocacy.
 Everyone in the firm is an advocate, as are all customers.
Everyone in the firm is an advocate, as are all customers.

13. Radical Ideas | Practical Implementation
The new Banking Landscape...
The new Banking Landscape...

14. Radical Ideas | Practical Implementation
Evolution of Social Banking
Evolution of Social Banking
Money
Management
Personal
Social
Loans
Business
Social
Loans
Social
Investing
Payment
Solutions

15. Radical Ideas | Practical Implementation
Emerging Signs
Emerging Signs
on the
on the
Business Landscape
Business Landscape

16. Radical Ideas | Practical Implementation
SOCIAL NETWORKS
PARTICIPATIVE CUSTOMER
OBSESSIVE EXECUTION

17. Radical Ideas | Practical Implementation
SOCIAL NETWORKS

18. Radical Ideas | Practical Implementation
Social Network Adoption
Social Network Adoption

19. Radical Ideas | Practical Implementation
Social Network Adoption
Social Network Adoption

20. Radical Ideas | Practical Implementation
Social Network Acceleration
Social Network Acceleration

21. Radical Ideas | Practical Implementation

22. Radical Ideas | Practical Implementation
Credit card hacking, so easy?
Credit card hacking, so easy?

23. Radical Ideas | Practical Implementation

24. Radical Ideas | Practical Implementation

25. Radical Ideas | Practical Implementation

26. Radical Ideas | Practical Implementation

27. Radical Ideas | Practical Implementation

28. Radical Ideas | Practical Implementation

29. Radical Ideas | Practical Implementation

30. Radical Ideas | Practical Implementation

31. Radical Ideas | Practical Implementation

32. Radical Ideas | Practical Implementation

33. Radical Ideas | Practical Implementation

34. Radical Ideas | Practical Implementation

35. Radical Ideas | Practical Implementation

36. Radical Ideas | Practical Implementation

37. Radical Ideas | Practical Implementation

38. Radical Ideas | Practical Implementation
PARTICIPATIVE CUSTOMER

39. Radical Ideas | Practical Implementation
New social order developing…
New social order developing…

40. Radical Ideas | Practical Implementation
Banking Conference agenda in Second Life:
1. Introductions:
2. Overview of current events/financial
Market
3. Brief overview regarding banking in sl
a. What is banking in sl
b. Safety & Liquidity
c. Private Insurance
4. Need for Regulation or at the very least
independently verified transparency.
Experimenting with Avatars
Experimenting with Avatars

41. Radical Ideas | Practical Implementation
Challenging the Norm...
Challenging the Norm...
 Mobile Payments
Mobile Payments
 (OboPay, PayPal)
(OboPay, PayPal)
 Financial Management and Analysis
Financial Management and Analysis
 (Mint.com, Wesabe, Geezeo)
(Mint.com, Wesabe, Geezeo)
 Account Aggregation
Account Aggregation
 (Yodlee, CashEdge)
(Yodlee, CashEdge)
 Bill Pay
Bill Pay
 (Billeo)
(Billeo)

42. Radical Ideas | Practical Implementation
Mobile Payments
Mobile Payments

43. Radical Ideas | Practical Implementation
Financial Management & Analysis
Financial Management & Analysis

44. Radical Ideas | Practical Implementation
Account Aggregation
Account Aggregation

45. Radical Ideas | Practical Implementation
Technology to Bypass Banks
Technology to Bypass Banks
 P2P Lending
P2P Lending
 (Kiva, LendingClub, Virgin Money, Prosper)
(Kiva, LendingClub, Virgin Money, Prosper)
 Online Payments
Online Payments
 (Google Checkout, Amazon Payments)
(Google Checkout, Amazon Payments)
 Social Money
Social Money
 (Buxfer)
(Buxfer)

46. Radical Ideas | Practical Implementation
Peer-to-Peer Lending
Peer-to-Peer Lending

47. Radical Ideas | Practical Implementation

48. Radical Ideas | Practical Implementation
Social Money
Social Money

49. Radical Ideas | Practical Implementation
Social Money
Social Money

50. Radical Ideas | Practical Implementation
OBSESSIVE EXECUTION

51. Radical Ideas | Practical Implementation
Mobilised Capability
Mobilised Capability

52. Radical Ideas | Practical Implementation
ICBC bought 20% of Standard Bank recently for
ICBC bought 20% of Standard Bank recently for
R36.7billion (about $6-billion).
R36.7billion (about $6-billion).
The deal is the largest investment by a Chinese
The deal is the largest investment by a Chinese
bank outside China.
bank outside China.
...currently the world's largest bank in terms of
...currently the world's largest bank in terms of
market capitalisation, worth some $319-billion
market capitalisation, worth some $319-billion
Standard Bank group is the African continent's
Standard Bank group is the African continent's
largest lender, with over R1-trillion in assets
largest lender, with over R1-trillion in assets
(approximately $156-billion) and a market
(approximately $156-billion) and a market
capitalisation of R145-billion ($21-billion).
capitalisation of R145-billion ($21-billion).

53. Radical Ideas | Practical Implementation
Engage to Surprise: Scion.com
Engage to Surprise: Scion.com

54. Radical Ideas | Practical Implementation
Idea Ecologies and Customerization:
Idea Ecologies and Customerization:
Where are the banks?
Where are the banks?

55. Radical Ideas | Practical Implementation
SOCIAL NETWORKS
PARTICIPATIVE CUSTOMER
OBSESSIVE EXECUTION
The move towards using the shadow and social based organization is driving new forms of
innovation in the service oriented organization.
Customers co-produce and co-design their experiences with providers though crowdsourcing
to ensure optimal fit of offering and expectation.
Delivering on the renewed mandates require collective, synchronised and
obsessive execution capabilities.