The Future of Banking

1. @brettking
The Future of Banking

2. Changing Behaviour

3. 3,364average SMS
messages/mth
13-17 year olds
18-24 send 109 texts/day

4. Things you don’t need to teach
Digital Natives

5. Up to 5% of banked consumers might be forced to leave the banking system if financial
institutions must alter pricing to make up for reductions in debit card interchange
JAMIE DIMON, CEO OF JPMORGAN CHASE & CO.,

7. You Tube is now the world’s second largest search engine

10. Behavioral Shift
42% of the workforce in 2020 will beY-Gen
97% own a computer
94% own a mobile phone
76% use Instant Messaging
15% of IM users are logged on 24/7
34% use websites as their primary source of news
28% author a blog and 44% read blogs
49% download music using peer-to-peer file sharing
75% of college students have a Facebook account
60% own some type of portable music and/or video device
such as an iPod
Source: Heidi Przybyla "Obama's `Youth Mojo' Sparks Student Activism, Fueling Campaign", Bloomberg.com (May 7,2007)
Source: Generation Y, Business Week, February 15 1999

11. juicystar07
1.7m views/video
“Haul Videos”

13. Transparency

15. CRED is about transparency

16. I trust my network more than I trust your brand...

17. The Generational Cliff

18. © COPYRIGHT 2010 SAPIENT CORPORATION | CONFIDENTIAL
Can you compete against Apple for cards in 2011?
1/5thof all US households are underbanked
That’s estimated to be around 40-70 million people
(source: FinancialTimes, FDIC)

19. 50% of those have college degrees

20. Date
25% of the unbanked have prime credit ratings
Around 30% of the banked have sub-prime credit ratings

22. 50%+
Mobile Banking
usage by 2015
16%+
Mobile Banking
usage by 2015

23. © COPYRIGHT 2010 SAPIENT CORPORATION | CONFIDENTIAL
Source: Packaged Facts
$200 Billion in Pre-Paid Debit Cards
...by the end of 2011

24. RISE OF THE DE-BANKED

25. The loss of physicality

26. source: ABA, Nielsen Research, Javelin Strategy & Research

27. SMARTPHONE TRANSACTION VOLUME IS EQUAL TO 40 BRANCHES TODAY
ST GEORGE BANK - THE AUSTRALIAN

28. @brettking
1m users
$5m per day

30. 11,400
8,550 source: Novantas LLC, FDIC
20062010
Average In-Branch
Transactions per Month
Which will require a
reduction in teller
staff by 2015
50%

31. Checks as a percentage of retail
payments in the US
59.5% 2000
4.3% 2010source: Federal Reserve, NACHA, National Retail Federation

34. Context...

43. Gamification is about behavior

44. Simplicity
Relevance
Context
Great Journeys @brettking
brett@movenbank.com✉