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20151203 people's lab presentation short
This document proposes a project to develop "dynamic money" at BNP Paribas CIB. It suggests creating money that adjusts its value based on financial, CSR, and regulatory parameters to generate bonuses or penalties. A specific example of "GreenCoin" is provided, which would incentivize environmentally friendly economic activity. The document outlines advantages for both the bank and clients, and proposes next steps such as piloting GreenCoin and developing additional applications.
20151203 people's lab presentation short
- 1. CORPORATE & INSTITUTIONALBANKING PEOPLE’S LAB PROJECT PROPOSAL – DYNAMIC MONEY Yann Le Floch – Senior Consultant INTERNAL AND CONFIDENTIAL Paris, November 2015 People’s Lab
- 2. BNP Paribas CIB& revenue creation 2November 2015People’s Lab Proposal The key factors of revenue creation for BNP Paribas CIBThe key factors of revenue creation for BNP Paribas CIBThe key factors of revenue creation for BNP Paribas CIBThe key factors of revenue creation for BNP Paribas CIB Cost reduction is a key driver for revenue creation in “CIB of Tomorrow” program. Reduce cost expenses Cost OptimizationCost OptimizationCost OptimizationCost Optimization Business OptimizationBusiness OptimizationBusiness OptimizationBusiness Optimization Business creationBusiness creationBusiness creationBusiness creation Current business optimization is an opportunity for CIB to create revenue. Increase Business Revenues Historically, the creation of new businesses remain the best way for CIB to create revenues . Create new Businesses Business creation may be an opportunity for BNP Paribas CIB Project Focus
- 3. Money - ABusiness opportunity for the bank 3November 2015People’s Lab Proposal Unit of account Give values to goods & services Unit of reserve Time value of money Unit of exchange To go beyond barter The usual functions of Money Money Could we add other functions or properties to Money ? Measure goods value Enable to buy goods & servicesEnable exchanges to be differed
- 4. Dynamic Money: aninnovative function 4November 2015People’s Lab Proposal Money Intelligence A monetary Intelligence could be defined as an economic exchange adjustment, depending on the nature of the exchange and various parameters Adjustment parameters Financial (market, equity, bonds, index, interest rate, Forex) CSRs (CSR parameters on environmental, social topics) Regulatory (regulatory parameters, RWAs, cost of liquidity, balance sheet adjustments) Others… Economic adjustment An economic adjustment on the exchange value can be expressed as a risk premium, and generate a bonus (>0) or a penalty (<0), which modifies the value of the economic exchange Dynamic Money Definition
- 5. Greencoin – ACSR Business case 5People’s Lab Proposal Interest for clients Interest for bank Use Setup Green Coin The GreenCoin is a ‘’green money’’ investment which enable users in a certain sector to pay or be paid in GreenCoins in the respect of certain environmental charters A user (Individual, SME, Corporate) buy Greencoins on a dedicated BNP Paribas website 1 GreenCoin = 1 Euro A GreenCoin users could pay off green labelled goods & services The label can be determined by specialized agencies (Vigeo for example) or supras (world bank, EIB,…) which certify the green label for proposed goods & services. BNP Paribas could use Greencoins to promote environment based investments (based on agencies definition) via the creation a Greencoin network & payment system BNP Paribas could promote the use of GreenCoins by leveraging on the interests of buy-in cash service for treasury purpose A client could earn Greecoins , spend them and contribute to this ecosystem in a unique innovative manner A green labelled corporate could earn Greencoins and use them Greencoins investment in a BNP Paribas product could generate a ‘bonus’ for ‘green’ investors or ‘green’ client A reimbursement in Greencoin could offer advantages for clients Greencoin financing advantages could be based on corporates or individual clients historical use of Greencoins (to avoid arbitrage) 1 2 3 4 5 November 2015
- 6. Greencoin – ACSR dynamic money 6People’s Lab Proposal November 2015 Market Indexation of Greencoin on Green Market price to hedge important increase of relative products, especially for individual users CSR Market creation if market doesn’t already exist Indexation on Green Agriculture Market Tax incentive National or Paranational tax insentives integrated in the Greencoin to enhance its use & improve green economy National & Para National incentive Dynamic GreenCoin
- 7. Dynamic Moneys, ideasof Business opportunity for the bank 7November 2015People’s Lab Proposal Money for ALM intragroup compensation Vanilla money indexed on markets parameters Sectorial Moneys Moneys with geographical insentives CSR Moneys Money with back-office parameters Carbon Moneys Green Moneys
- 8. Dynamic Money -Advantages for bank & clients 8People’s Lab Proposal Advantages for bank Advantages for clients Microeconomic financial flows analyse Microeconomic risk management An innovation lever A new Business creating revenues An opportunity for banking sector Dynamic Money, a Business opportunity Dynamic money, a capacity de create revenues, even a flat GDP environment Microeconomic risk management opportunity Enhance the source of information for risk manangement. smart data optimization Natural use of blockchains Lever for CSR Business Improve financial flows analysis Exemple: better & transparent assesssment on subprimes to avoid potential crisis 1 2 34 Dynamic Money, an innovation & revenue lever for Bank & clientsDynamic Money, an innovation & revenue lever for Bank & clientsDynamic Money, an innovation & revenue lever for Bank & clientsDynamic Money, an innovation & revenue lever for Bank & clients 1 2 34 A better capacity to manage financial risk A yield lever An innovation lever An opportunity for clients Microeconomic management Improve work of financing, treasury, forex, investment teams A yield levers for corporates & institutionnals Transfer of risk & intensive to the value chain Used with Smart Data, an opportunity for economical & industrial management Sectorial interets alignement An innovation lever for financial & economic risk mgt A CSR opportunity for clients November 2015 An asset for economical & industrial activity
- 9. Needs to goahead on the dynamic money project 9People’s Lab Proposal Greencoin pilot development Extended application pilot development study Regular orientation update for governance team & project team Alpha - Awareness Beta – Design Gamma – Pilot Mode Business coordination IT Dev Project Team Project team & governance definition On Greencoin On additional applications GreenCoin digital platform IT needs definition Extended application IT digital platform needs definition CSR Team coordination & support (V. Pelletier) Transversal BLs exchange for extended application design IT Greencoin digital platform design Extended application digital platform design Step 1Step 1Step 1Step 1 Step 2Step 2Step 2Step 2 Step 3Step 3Step 3Step 3 November 2015 Greencoin CSR project design Extended application BLS design
- 10. People’s Lab intrapreunor–Yann Le Floch 10People’s Lab Proposal Contact: Mail: yann.lefloch@bnp paribas.com Tel: +33 (0) 6 88 23 88 09 A general academics backround, Business, financial & technologic Via Mines de Paris, Louis Le Grand Position: Senior Consultant in CIB Strategy & Innovation team, with skills in strategy analysis, innovation markets & project development A Transversal Banking Experience: In Global Markets for institutionnal & corporate clients In Corporate Finance in financial restructuring group In Strategy consulting In Retail during student period A collaborator enable to develop an innovative project for the bankA collaborator enable to develop an innovative project for the bankA collaborator enable to develop an innovative project for the bankA collaborator enable to develop an innovative project for the bank Personal skills: File and keep a constant effort Have the creative spirit Dare to take chances Know to organize Know the bank & the organization Accept the hierarchy decision Propose to its knowledge Know to lead Know to create network contacts Manage crisis situations Remain honest and right Hope & Positive November 2015