The document discusses the challenges facing traditional banks and proposes co-created ecosystems as a potential solution. It notes that banks' branch networks are costly and customers expect a better digital experience. Competitors are also entering the market. The document suggests banks take inspiration from Apple, Google and Facebook by becoming a platform and allowing third parties to create apps and services using bank data. This could help banks address issues with products, technology and operations by moving to more customer-focused models. It outlines a potential roadmap for banks to develop co-created ecosystems over 18 months.

1. Copyright © 2015 Liam Ó Móráin
Banking as we know it...
may it...
Rest in Peace (RIP)
Liam Ó Móráin
wjmoran@gmail.com Twitter maigheox2
BANKS

2. Copyright © 2015 Liam Ó Móráin
TOPICS FOR TODAY
LOYALTY & PASSION
CO-CREATION
CHALLENGES & OPPORTUNITIES
RIP... an alternative

3. Copyright © 2015 Liam Ó Móráin
Top 50 Global Brands
Source & Copyright © Interbarnd 2014.
(23)
(32)
(33)
(44)
(48)

4. Copyright © 2015 Liam Ó Móráin
Loyalty & Passion
Things that serve a purpose Things that people love
Emotional connections make great brands.
The relationship is often irrational!

5. Copyright © 2015 Liam Ó Móráin
Loyalty & Passion
Emotional connections make great brands.
The relationship is often irrational!
Things that serve a purpose Things that people love

6. Copyright © 2015 Liam Ó Móráin
Apple realized if it created everything itself it would greatly constrain the number
and range of apps.
Apple has become a platform where 3rd
parties can create products and
services known as ‘apps’.
Apple maintains the standards for publishing the apps and pays the developers.
Apple is the distribution channel in this co-created ecosystem.
Downloads to date
$ app revenue in 2014
$ app revenue paid to developers in 2014
15,000,000,000
100,000,000,000
Loyalty & Passion
10,000,000,000
iTunes accounts and credit card numbers (2014)800,000,000
iTunes accounts and credit card numbers1,200,000

7. Copyright © 2015 Liam Ó Móráin
mobile monthly active users
downloads to date60,000,000,000
1,500,000,000
APRU Q1-15 in US & Canada$9.30
Co-created Ecosystems
mins worldwide average time spend on Facebook
per day
20
$ revenue in 20131,300,000,000
apps available1,600,000,000

8. Copyright © 2015 Liam Ó Móráin
Co-created Ecosystems

9. Copyright © 2015 Liam Ó Móráin
An APP
A piece of software performing a single
task or small set of tasks which is very
different from the more traditional big
enterprise apps banks have built and
deployed.
Co-created Ecosystems
The co-creators
The creations

10. Copyright © 2015 Liam Ó Móráin
Source NUI Galway & Gigaom Research 2014.Co-created Ecosystems….

11. Copyright © 2015 Liam Ó Móráin
Co-created Ecosystems….
What are the challenges facing banks today that
suggest the current business model is under threat
and that co-creation is a viable option?
How can banks draw inspiration from companies
like Apple, Google, and Facebook and offer
products and services created by others that
customers want?
Should banks copy Apple, Google, and Facebook
and develop their own co-created ecosystems?

12. Copyright © 2015 Liam Ó Móráin
Challenges facing (retail) banks!
While numerous, focus today is on:
The distribution model i.e. branch network
... Physically constraint and very costly
Customers have an incredible digital retail experience in
most places except in retail banking (think Apple!)
Competitors are eating away at the fringes:
Wonga, Betterment, Stripe, DWOLLA, Square, Nutmeg, Ripple,
Currency Fair, Tesco

13. Copyright © 2015 Liam Ó Móráin
Challenges facing (retail) banks!
Branch network:
Swallows nearly 50% of bank operational costs
Is not open 24/7
Legacy locations may not be fit-for-purpose
Product & Services: banks and in particular banking
processes make it hard for customers to love them!
Technology & Operations:
Held together with band aids
Smothered with compliance and fear of screwing up!
Legacy systems may not be fit-for-purpose.
RIP
PLEASE

14. Copyright © 2015 Liam Ó Móráin
Opportunity for (retail) banks!
Branch network:
Varied layouts and types of branches
Some full service; some very basic; some in between
Digital and Physical blend seamlessly
Perception of scale and ability to meet customer
needs any where, any time
Product & Services designed to meet varied and tailored
needs of customers often created by others.
Technology & Operations:
Operational excellence e.g. STP
Exceptions are rare!
FOCUS
TODAY

15. Copyright © 2015 Liam Ó Móráin
Co-created Ecosystems…
Offers huge customer base
Core business is a platform through which all
activity flows
Powerful network effect
Manages revenue collection and distribution
Major data and customer analytics
Why 3rd
Party Developers Love
these ecosystems?

16. Copyright © 2015 Liam Ó Móráin
Great customer base – low churn
Incredible depth of data on customers
Co-created Ecosystems…
Why 3rd
Party Developers would love to
work with banks?
What 3rd
Party Developers need?
A Platform
Access to the bank’s DATA VAULT!
Combine with other data sources to create
services of value.
Banks' data want to break free

17. Copyright © 2015 Liam Ó Móráin
Banking as we know it RIP
Co-created Ecosystems…

18. Copyright © 2015 Liam Ó Móráin
`
Oct 9-11, 2015
Edinburgh
Jan 2015 Dublin
Feb 2015 Belfast
Jan 2016 Dublin
Banking as we know it RIP
Co-created Ecosystems…

19. Copyright © 2015 Liam Ó Móráin
Banking as we know it RIP
Co-created Ecosystems…

20. Copyright © 2015 Liam Ó Móráin
Banking as we know it RIP
Co-created Ecosystems…

21. Copyright © 2015 Liam Ó Móráin
Q1 Y1 Q2 Y1 Q3 Y1 Q4 Y1 Q1 Y2 Q2 Y2
Hackathon
London
Open/Linked Data
Census Data, Revenue Data
Hackathon
Stockholm
Bank APP Store 1.0
Hackathon
Berlin
Hackathon
Dublin
Hackathon
San Francisco
SDK & API
Transactional Data
Account ActivityBank APP Store 2.0
Customer Data
Global App Developer Base
Global Reach
Global Customer
Base
Group-wide
capability
Bank APP Store 5.0
Economically Viable Ecosystem
18 months to TAKE OFF!
Banking as we know it RIP
Co-created Ecosystems…

22. Copyright © 2015 Liam Ó Móráin
Banking as we know it RIP
To banking as it should be RIP
BANKS
Banking Tech & Operations...
From 'restricted' to a 'RESTful' state
From 'insane' to 'Information'
From 'painful' to 'Personal'