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Pitch - Mobile Banking - Speed Matters

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If you don't target Millennial Pragmatists, you're business is toast.

PS - Every app works like a charm until its hit with concurrent users and intermittent connectivity. Look towards those engineers that can build stateless backends.

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Pitch - Mobile Banking - Speed Matters

  1. 1. Speed Matters The Conspiracy of a Generation mike.jagdeo@gmail.com
  2. 2. TL;DL(isten) III
  3. 3. TL;DL(isten) III
  4. 4. TL;DL(isten) III • We must target Millennial Pragmatists or watch our Personal and Commercial Banking business evaporate in the next 5-7 years • Given the Millennials’ strong ties to Google & Apple, we’re in a fight for our lives. • This effort must be demonstrably backed by the CEO or inevitably fail. (Geoffrey Moore, Crossing the Chasm) • How do you influence MP’s to use our Wallet?
  5. 5. How Important is the RBC Smart Wallet? II • As a first step, many banks should adopt a “mobile first” philosophy, in which products and processes are completely redesigned for mobile, after which they are translated to Internet and branches. • While preserving the equity in their brand, they should reposition and rebrand the bank to appeal to millennials and compete effectively in the digital era McKinsey Global Banking Annual Review 2015
  6. 6. How Important is the RBC Smart Wallet? II [The Bank CEO] first needs to build a vision based on the premise that they will never see the customer face-to-face – only deal through screens and make no margin on their loans. Chris Skinner, Top 40 Global Fintech Influencer, WSJ
  7. 7. Speed Matters The Conspiracy of a Generation mike.jagdeo@gmail.com
  8. 8. Table of Contents 1. Innovation Monetization via Pragmatists 2. Millennials Pragmatists are your #1 Concern 3. Banking Habits of MPs 4. We’re Running Out Of Time 5. Speed Matters
  9. 9. Table of Contents 1. Innovation Monetization via Pragmatists 2. Millennials Pragmatists are your #1 Concern 3. Banking Habits of MPs 4. We’re Running Out Of Time 5. Speed Matters
  10. 10. Innovation Monetization via Pragmatists (Moore, Crossing the Chasm [Recent work with Cisco Sybase Akami Rackspace McAfee Cognizant etc.])
  11. 11. Millennials Are Your #1 Concern III • Millennials (18-34) outnumber Baby Boomers (Pew Research, 04.25.16) • Millennials, the children of the digital age, are the next wave of banking customers. (McKinsey Global Banking Annual Review 2015) • Millennials are the agent of change in shifting behaviors. (The Future of Finance, Goldman Sachs)
  12. 12. Millennials Are Your #1 Concern III
  13. 13. Millennials Are Your #1 Concern III
  14. 14. Millennials Are Your #1 Concern • Millennials (18-34) outnumber Baby Boomers (Pew Research, 04.25.16) • Millennials, the children of the digital age, are the next wave of banking customers. (McKinsey Global Banking Annual Review 2015) • Millennials are the agent of change in shifting behaviors. (The Future of Finance, Goldman Sachs)
  15. 15. Millennial Pragmatists (MPs) Are Your #1 Concern
  16. 16. Table of Contents 1. Innovation Monetization via Pragmatists 2. Millennials Pragmatists are your #1 Concern 3. Banking Habits of MPs 4. We’re Running Out Of Time 5. Speed Matters
  17. 17. The Banking Habits of MPs • Five times more likely than those over age 50 to close all accounts with their primary bank. • They are three times more likely to open a new account with another bank. • Significantly more likely to transact with their bank through mobile app. • Have more products at their primary banks than other cohorts • Unlike Innovators and Early Adopters, Millennial Pragmatists will consume technology to solve a problem, not to consume technology (Options & Opportunities, Forging Lasting Banking Relationships with Millennials, FICO)
  18. 18. The Banking Habits of MPs • Five times more likely than those over age 50 to close all accounts with their primary bank. • They are three times more likely to open a new account with another bank. • Significantly more likely to transact with their bank through mobile app. • Have more products at their primary banks than other cohorts • Unlike Innovators and Early Adopters, Millennial Pragmatists will consume technology to solve a problem, not to consume technology (Options & Opportunities, Forging Lasting Banking Relationships with Millennials, FICO)
  19. 19. Table of Contents 1. Innovation Monetization via Pragmatists 2. Millennials Pragmatists are your #1 Concern 3. Banking Habits of MPs 4. We’re Running Out Of Time 5. Speed Matters
  20. 20. We’re Running Out Of Time II A generation of consumers is learning that there are banking services from nonbank providers whether that's PayPal or Venmo to move money, or alternative lenders like Lending Club. These are the same consumers who will be opening businesses and who will be running the companies of the future. Don't you think there is collateral damage to the industry as this generation takes the reins? - The Great Rebundling of Financial Services (Bradley Leimer, Head of Innovation, Santander Bank for American Banker)
  21. 21. We’re Running Out Of Time II • 32 percent of Millennials are likely to use a mobile wallet service like Apple Pay or Google Wallet in the next 12 months – American Millennials will step up use of non-traditional banking services this year • 56 percent of younger Millennials (18-24) report that they are already using or very likely to use alternative payment services like Venmo and PayPal. FICO Survey: American Millennials Will Step Up Use of Non-Traditional Banking Services This Year
  22. 22. Table of Contents 1. Innovation Monetization via Pragmatists 2. Millennials Pragmatists are your #1 Concern 3. Banking Habits of MPs 4. We’re Running Out Of Time 5. Speed Matters
  23. 23. Speed Matters II • Instagram hit 12M users in 12 months (now 400M)…Speed Matters….Mobile experiences fill gaps while we wait. No one wants to wait while they wait. Mike Kriegman, Instagram Founder (UX Designer + Developer) • FB and IG are now “the two most important mobile advertising platforms in existence” (Sandberg, COO FB, Jan 26 2016)
  24. 24. Speed Matters II • A 1-second delay in page response can result in a 7% reduction in conversions(Gomez | Akamai | Kissmetrics) • Mobile apps that take longer than 5 seconds to load results in 19% abandonment(Gomez | Akamai | Kissmetrics) • Negative digital experiences with both online and mobile had a much bigger negative impact on Millennials than on other age groups.(Options & Opportunities, Forging Lasting Banking Relationships with Millennials, FICO)

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