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Financial institutions were built for the physical 
distribution of paper in a localized network 
Financial institutions n...
from Physical to Digital 
from Channel to Access 
from Product to Customer
RETAIL BANKING 
PRIVATE BANKING 
COMMERCIAL BANKING 
TRANSACTION BANKING 
INVESTMENT BANKING 
INSURANCE
RETAIL BANKING 
PRIVATE BANKING 
COMMERCIAL BANKING 
TRANSACTION BANKING 
INVESTMENT BANKING 
INSURANCE
RETAIL BANKING 
PRIVATE BANKING 
COMMERCIAL BANKING 
TRANSACTION BANKING 
INVESTMENT BANKING 
INSURANCE
RETAIL BANKING 
PRIVATE BANKING 
COMMERCIAL BANKING 
TRANSACTION BANKING 
INVESTMENT BANKING 
INSURANCE
RETAIL BANKING 
PRIVATE BANKING 
COMMERCIAL BANKING 
TRANSACTION BANKING 
INVESTMENT BANKING 
INSURANCE
RETAIL BANKING 
PRIVATE BANKING 
COMMERCIAL BANKING 
TRANSACTION BANKING 
INVESTMENT BANKING 
INSURANCE
RETAIL BANKING 
PRIVATE BANKING 
COMMERCIAL BANKING 
TRANSACTION BANKING 
INVESTMENT BANKING 
INSURANCE 
* Foundation Capi...
RETAIL BANKING 
PRIVATE BANKING 
COMMERCIAL BANKING 
TRANSACTION BANKING 
INVESTMENT BANKING 
INSURANCE
RETAIL BANKING 
PRIVATE BANKING 
COMMERCIAL BANKING 
TRANSACTION BANKING 
INVESTMENT BANKING 
INSURANCE
RETAIL BANKING 
PRIVATE BANKING 
COMMERCIAL BANKING 
TRANSACTION BANKING 
INVESTMENT BANKING 
INSURANCE
RETAIL BANKING 
PRIVATE BANKING 
COMMERCIAL BANKING 
TRANSACTION BANKING 
INVESTMENT BANKING 
INSURANCE
RETAIL BANKING 
PRIVATE BANKING 
COMMERCIAL BANKING 
TRANSACTION BANKING 
INVESTMENT BANKING 
INSURANCE
RETAIL BANKING 
PRIVATE BANKING 
COMMERCIAL BANKING 
TRANSACTION BANKING 
INVESTMENT BANKING 
INSURANCE
RETAIL BANKING 
PRIVATE BANKING 
COMMERCIAL BANKING 
TRANSACTION BANKING 
INVESTMENT BANKING 
INSURANCE
RETAIL BANKING 
PRIVATE BANKING 
COMMERCIAL BANKING 
TRANSACTION BANKING 
INVESTMENT BANKING 
INSURANCE
RETAIL BANKING 
PRIVATE BANKING 
COMMERCIAL BANKING 
TRANSACTION BANKING 
INVESTMENT BANKING 
INSURANCE
RETAIL BANKING 
PRIVATE BANKING 
COMMERCIAL BANKING 
TRANSACTION BANKING 
INVESTMENT BANKING 
INSURANCE
RETAIL BANKING 
PRIVATE BANKING 
COMMERCIAL BANKING 
TRANSACTION BANKING 
INVESTMENT BANKING 
INSURANCE
RETAIL BANKING 
PRIVATE BANKING 
COMMERCIAL BANKING 
TRANSACTION BANKING 
INVESTMENT BANKING 
INSURANCE
RETAIL BANKING 
PRIVATE BANKING 
COMMERCIAL BANKING 
TRANSACTION BANKING 
INVESTMENT BANKING 
INSURANCE
RETAIL BANKING 
PRIVATE BANKING 
COMMERCIAL BANKING 
TRANSACTION BANKING 
INVESTMENT BANKING 
INSURANCE
Revenues Expenses 
October 2011 
Launch of X.commerce API October 2011 
Launch of X.commerce API 
June 2013 
Launch of mob...
RETAIL BANKING 
PRIVATE BANKING 
COMMERCIAL BANKING 
TRANSACTION BANKING 
INVESTMENT BANKING 
INSURANCE
RETAIL BANKING 
PRIVATE BANKING 
COMMERCIAL BANKING 
TRANSACTION BANKING 
INVESTMENT BANKING 
INSURANCE
This is about more than currency and traditional 
payments… 
Asset Transfer with Finality 
Advanced Transaction 
Scripting...
RETAIL BANKING 
PRIVATE BANKING 
COMMERCIAL BANKING 
TRANSACTION BANKING 
INVESTMENT BANKING 
INSURANCE 
Every single smar...
RETAIL BANKING 
PRIVATE BANKING 
COMMERCIAL BANKING 
TRANSACTION BANKING 
INVESTMENT BANKING 
INSURANCE
RETAIL BANKING 
PRIVATE BANKING 
COMMERCIAL BANKING 
TRANSACTION BANKING 
INVESTMENT BANKING 
INSURANCE
RETAIL BANKING 
PRIVATE BANKING 
COMMERCIAL BANKING 
TRANSACTION BANKING 
INVESTMENT BANKING 
INSURANCE
RETAIL BANKING 
PRIVATE BANKING 
COMMERCIAL BANKING 
TRANSACTION BANKING 
INVESTMENT BANKING 
INSURANCE
RETAIL BANKING 
PRIVATE BANKING 
COMMERCIAL BANKING 
TRANSACTION BANKING 
INVESTMENT BANKING 
INSURANCE
from Physical to Digital 
= component-based finance 
from Channel to Access 
from Product to Customer
WEB/TABLET “SCREENS” 
7–10 times 
per month 
CALL CENTRE, IVR & VOICE RESPONSE 
BRANCH 
5–10 times 
per month 
5–10 times ...
Barclays took 13 years to get two million 
customers using internet banking. 
It took just two months to reach 
that numbe...
Only 5% of customer interaction in the banking 
industry will be in branch by 2017 
– BBVA
The old channel thing …
Augmented digital has no channels
CHANNELS 
Branch ATM/Kiosk Internet Call Center Mobile Direct sales Future 
PRESENTATION LAYER 
MULTICHANNEL LAYER 
LEGACY...
ACCESS 
Branch ATM/Kiosk Internet Call Center Mobile Direct sales Future
from Physical to Digital 
= component-based finance 
from Channel to Access 
= rearchitect the core 
from Product to Custo...
from Physical to Digital 
= component-based finance 
from Channel to Access 
= rearchitect the core 
from Product to Custo...
RETAIL BANKING 
PRIVATE BANKING 
COMMERCIAL BANKING 
TRANSACTION BANKING 
INVESTMENT BANKING 
INSURANCE
You need to be social because 
that’s where your customers are.
Average Facebook user has 338 friends* 
2,000 Likes = 676,000 Views 
Average cost to gain a registration: €1.33 
Average c...
Social capitalism… 
P2P payments 
Crowdfunding 
Social lending 
Alternative finance 
…the result of when work & life colli...
from Physical to Digital 
= component-based finance 
from Channel to Access 
= rearchitect the core 
from Product to Custo...
How to do this?
Agricultural Revolution coins 
Industrial Revolution notes and checks 
Service Revolution cards 
Digital Revolution chips
Within 15 years, “computers will be at human levels, such that you can have 
an emotional relationship with them.” Ray Kur...
“It’s not an operating system; it’s a consciousness”
Digital bank   latest - october
Digital bank   latest - october
Digital bank   latest - october
Digital bank   latest - october
Digital bank   latest - october
Digital bank   latest - october
Digital bank   latest - october
Digital bank   latest - october
Digital bank   latest - october
Digital bank   latest - october
Digital bank   latest - october
Digital bank   latest - october
Digital bank   latest - october
Digital bank   latest - october
Digital bank   latest - october
Digital bank   latest - october
Digital bank   latest - october
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Digital bank latest - october

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A version of the keynote I gave at DreamForce, 15-10-14 (or 10-15-14 if you're in the USA)

Published in: Economy & Finance

Digital bank latest - october

  1. 1. Financial institutions were built for the physical distribution of paper in a localized network Financial institutions need to design for the digital distribution of data in a globalized network
  2. 2. from Physical to Digital from Channel to Access from Product to Customer
  3. 3. RETAIL BANKING PRIVATE BANKING COMMERCIAL BANKING TRANSACTION BANKING INVESTMENT BANKING INSURANCE
  4. 4. RETAIL BANKING PRIVATE BANKING COMMERCIAL BANKING TRANSACTION BANKING INVESTMENT BANKING INSURANCE
  5. 5. RETAIL BANKING PRIVATE BANKING COMMERCIAL BANKING TRANSACTION BANKING INVESTMENT BANKING INSURANCE
  6. 6. RETAIL BANKING PRIVATE BANKING COMMERCIAL BANKING TRANSACTION BANKING INVESTMENT BANKING INSURANCE
  7. 7. RETAIL BANKING PRIVATE BANKING COMMERCIAL BANKING TRANSACTION BANKING INVESTMENT BANKING INSURANCE
  8. 8. RETAIL BANKING PRIVATE BANKING COMMERCIAL BANKING TRANSACTION BANKING INVESTMENT BANKING INSURANCE
  9. 9. RETAIL BANKING PRIVATE BANKING COMMERCIAL BANKING TRANSACTION BANKING INVESTMENT BANKING INSURANCE * Foundation Capital, 2014
  10. 10. RETAIL BANKING PRIVATE BANKING COMMERCIAL BANKING TRANSACTION BANKING INVESTMENT BANKING INSURANCE
  11. 11. RETAIL BANKING PRIVATE BANKING COMMERCIAL BANKING TRANSACTION BANKING INVESTMENT BANKING INSURANCE
  12. 12. RETAIL BANKING PRIVATE BANKING COMMERCIAL BANKING TRANSACTION BANKING INVESTMENT BANKING INSURANCE
  13. 13. RETAIL BANKING PRIVATE BANKING COMMERCIAL BANKING TRANSACTION BANKING INVESTMENT BANKING INSURANCE
  14. 14. RETAIL BANKING PRIVATE BANKING COMMERCIAL BANKING TRANSACTION BANKING INVESTMENT BANKING INSURANCE
  15. 15. RETAIL BANKING PRIVATE BANKING COMMERCIAL BANKING TRANSACTION BANKING INVESTMENT BANKING INSURANCE
  16. 16. RETAIL BANKING PRIVATE BANKING COMMERCIAL BANKING TRANSACTION BANKING INVESTMENT BANKING INSURANCE
  17. 17. RETAIL BANKING PRIVATE BANKING COMMERCIAL BANKING TRANSACTION BANKING INVESTMENT BANKING INSURANCE
  18. 18. RETAIL BANKING PRIVATE BANKING COMMERCIAL BANKING TRANSACTION BANKING INVESTMENT BANKING INSURANCE
  19. 19. RETAIL BANKING PRIVATE BANKING COMMERCIAL BANKING TRANSACTION BANKING INVESTMENT BANKING INSURANCE
  20. 20. RETAIL BANKING PRIVATE BANKING COMMERCIAL BANKING TRANSACTION BANKING INVESTMENT BANKING INSURANCE
  21. 21. RETAIL BANKING PRIVATE BANKING COMMERCIAL BANKING TRANSACTION BANKING INVESTMENT BANKING INSURANCE
  22. 22. RETAIL BANKING PRIVATE BANKING COMMERCIAL BANKING TRANSACTION BANKING INVESTMENT BANKING INSURANCE
  23. 23. RETAIL BANKING PRIVATE BANKING COMMERCIAL BANKING TRANSACTION BANKING INVESTMENT BANKING INSURANCE
  24. 24. Revenues Expenses October 2011 Launch of X.commerce API October 2011 Launch of X.commerce API June 2013 Launch of mobile API June 2013 Launch of mobile API
  25. 25. RETAIL BANKING PRIVATE BANKING COMMERCIAL BANKING TRANSACTION BANKING INVESTMENT BANKING INSURANCE
  26. 26. RETAIL BANKING PRIVATE BANKING COMMERCIAL BANKING TRANSACTION BANKING INVESTMENT BANKING INSURANCE
  27. 27. This is about more than currency and traditional payments… Asset Transfer with Finality Advanced Transaction Scripting (Ethereum) “Digital Scarcity” Near-Instant, Near Free International Value Transfer Transaction Scripting Open Access through API or Protocol Public Visibility of Transactions The First Killer-App? “Push Payment” by Design A new Custody Model? Smart Property Revolution in Retail “Programmable Money” “Economy of Things” A new model for AML Smart Contracts The Core Bitcoin Innovation
  28. 28. RETAIL BANKING PRIVATE BANKING COMMERCIAL BANKING TRANSACTION BANKING INVESTMENT BANKING INSURANCE Every single smart computer science person I’ve had look into it has reached the same conclusion — Blockchain is a fundamental breakthrough in technology “ Mark Andreessen ” http://techcrunch.com/2014/02/12/marc-andreessen-tech-is-still-recovering-from-a-depression/
  29. 29. RETAIL BANKING PRIVATE BANKING COMMERCIAL BANKING TRANSACTION BANKING INVESTMENT BANKING INSURANCE
  30. 30. RETAIL BANKING PRIVATE BANKING COMMERCIAL BANKING TRANSACTION BANKING INVESTMENT BANKING INSURANCE
  31. 31. RETAIL BANKING PRIVATE BANKING COMMERCIAL BANKING TRANSACTION BANKING INVESTMENT BANKING INSURANCE
  32. 32. RETAIL BANKING PRIVATE BANKING COMMERCIAL BANKING TRANSACTION BANKING INVESTMENT BANKING INSURANCE
  33. 33. RETAIL BANKING PRIVATE BANKING COMMERCIAL BANKING TRANSACTION BANKING INVESTMENT BANKING INSURANCE
  34. 34. from Physical to Digital = component-based finance from Channel to Access from Product to Customer
  35. 35. WEB/TABLET “SCREENS” 7–10 times per month CALL CENTRE, IVR & VOICE RESPONSE BRANCH 5–10 times per month 5–10 times per month ATM 3–5 times per month MOBILE 20–30 times per month 2016 Digital interactions with banks will outnumber branch interactions 300 to 1
  36. 36. Barclays took 13 years to get two million customers using internet banking. It took just two months to reach that number for mobile banking. The average Barclays customer visits a branch less than twice a month and uses the mobile app 26 times a month
  37. 37. Only 5% of customer interaction in the banking industry will be in branch by 2017 – BBVA
  38. 38. The old channel thing …
  39. 39. Augmented digital has no channels
  40. 40. CHANNELS Branch ATM/Kiosk Internet Call Center Mobile Direct sales Future PRESENTATION LAYER MULTICHANNEL LAYER LEGACY LAYER
  41. 41. ACCESS Branch ATM/Kiosk Internet Call Center Mobile Direct sales Future
  42. 42. from Physical to Digital = component-based finance from Channel to Access = rearchitect the core from Product to Customer
  43. 43. from Physical to Digital = component-based finance from Channel to Access = rearchitect the core from Product to Customer
  44. 44. RETAIL BANKING PRIVATE BANKING COMMERCIAL BANKING TRANSACTION BANKING INVESTMENT BANKING INSURANCE
  45. 45. You need to be social because that’s where your customers are.
  46. 46. Average Facebook user has 338 friends* 2,000 Likes = 676,000 Views Average cost to gain a registration: €1.33 Average cost to gain a fully KYC processed customer: €16.70 * Pew Research
  47. 47. Social capitalism… P2P payments Crowdfunding Social lending Alternative finance …the result of when work & life collide
  48. 48. from Physical to Digital = component-based finance from Channel to Access = rearchitect the core from Product to Customer = build communities
  49. 49. How to do this?
  50. 50. Agricultural Revolution coins Industrial Revolution notes and checks Service Revolution cards Digital Revolution chips
  51. 51. Within 15 years, “computers will be at human levels, such that you can have an emotional relationship with them.” Ray Kurzweil
  52. 52. “It’s not an operating system; it’s a consciousness”

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