an analogy between the way Skype changed the Telco's and the way bitcoin will change the banks.

1. A boring story without
pictures on the future of
banking

2. Recent headlines
• Banks will disappear.
• Bitcoin and crypto currencies will make banks
obsolete.
• Tech companies will devour “the banks”.

3. Where the telco’s come in
• If I would like to talk by wire to you 25 years ago,
I had to go to a telco, I had to get a subscription
and a number and you had to go to a telco too
and you had to get a subscription too with a
number.
• It was the only way.

4. Now, if I want to talk to you
by wire we have:
• the - mobile - phone (still)
• Skype
• ooVoo
• FaceTime
• Ringcredible
• etc. etc. etc.

5. But…if it is really important…
• I will grab my phone provided by my telco, and so
will you.
• And of course, despite of all these new
technologies, telco’s still play an important role.
Who provided you with your internet access?
• However, telco’s have been “beaten back” to their
core capabilities - providing communication
infrastructure - and away from the customer’s
touch points.

6. Telco’s did try…
…to develop and roll out technology very close at
the first points of contact of their customers, but
their organizational DNA made them no match for
fast moving and well funded high tech companies.

7. Now for banks
• If I would like to pay you by wire 5 years ago, I
had to go to a bank, I had to get a number and
you had to go to a bank too, and you had to get
a number too.
• It was the only way.

8. Now, if I want to wire money
to you we have
• PayPal
• Bitcoin
• Amazon coins
• E-wallet
• etc. etc. etc.
PS: I am aware that I am mixing up different types of crypto
currencies here, but that is besides the point for this presentation.

9. But…if it is really important…
• I will log in at the portal of the bank and wire you
the money. So will you.
• Despite of all these new technologies, banks will
play an important role in your and my life the next
25 years. Who provided your mortgage?
• However, banks will be “beaten back” to their core
capabilities - providing payment infrastructure -
and away from the customer’s touch points.

10. Banks will try…
…to develop and roll out technology very close at
the first points of contact of their customers, but
their organizational DNA will make them no match
for fast moving and well funded high tech
companies.
By the way, the high tech companies play in a
“winner takes all” market, so perhaps the banks
shouldn’t even try.

11. Paul Harts
paul.harts@visionpartners.ae
www.visionpartners.ae
+971 55 45 28 480
Thank you for your attention. Really appreciated.
Conclusion?
Forget about the headlines. Banks are here
to stay.