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Future of Banking - digital or analogue?

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What does the future of Retail Banking look like? Is it a digital bank, a hybrid branch / mobile version, or is it a new entrant?

Check out this presentation by futurist Anders Sorman-Nilsson.

For more info visiti www.thinquetank.com or www.anderssorman-nilsson.com

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Future of Banking - digital or analogue?

  1. 1. The Future of Bankingby Anders Sorman-Nilsson
  2. 2. The Future of BankingAnders Sorman-Nilsson (LLB MBA) isthe founder of Thinque - a strategythink tank that helps executives andleaders convert disruptive questionsinto proactive, future strategies.As an Australian-Swedish futuristand innovation strategist he hashelped executives and leaders on 4continents map, prepare for, andstrategise for foreseeable andunpredictable futures.www.thinquetank.com
  3. 3. Steady Shift Toward Digital Media200 Digital + 18%150 14 141.3 16.3 27.2 32.1 18.9 22.9 125.1 116.8 114 113.6 112.4100 50 Analogue 0 - 4.5% 2008 2009 2010 2011 2012 2013 Analogue Print Digital Media * US Statistical Abstract, CAGR
  4. 4. Result of Transition from a Single Channel to a Multichannel Strategy Increased Online Sales 78 Increased Profitability 59Increased Customer Satisfaction 52 Increased Offline Sales 36 No Impact 3 0 20 40 60 80 * Forrester Consulting, 2011
  5. 5. Perceived Branch Convenience Doesn’t Translate Into Actual Visits 2 1 2 1 10 12 15 17 19 35 35 36 36 41 29 34 26 29 23 14 19 22 20 16 8 Overall National Regional Community Credit Union Rarely or Never 3-4 Times a Year Monthly Weekly Daily * Chadwick Martin Bailey, February 2012, Consumer Survey
  6. 6. Utilization and Interest in Digital Banking Channels 90 83 82 80 79 79 79 78 7967.5 68 65 45 51 51 4222.5 31 13 0 9 Check Balance Manage Account Transfer Funds Pay a Bill Research Products Receive Account Alert Customer Support Apply for a Loan Use Digital Channels Interest in Digital Channel *Cisco IBSG, “Winning Strategies for Omnichannel Banking” Report, June 1012
  7. 7. Trust in Banks Has Eroded Since the Financial Meltdown 70 52.5 35 17.5 0 2007 2008 2009 2010 2011 2012 USA UK * Edelman, Jan 2012, annual Study
  8. 8. Mobile Banking Now Vital to Customer Acquisition 19 18.2 18.3 An Increase of 63% over the last 10 Quarters 16.9 17.614.25 14.2 13.5 12.8 12 11.6 11.2 11 9.5 4.75 0 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Percent of Consumers Selecting Mobile banking as a “must have” feature * FindABetterBank.com, Jan 2013, Survey
  9. 9. Consumer Expect More from Mobile Banking Than They’re Getting Notes about account updates and irregular activity 54 Making a Payment on a Loan or a Bill 51 Automatic Notifications of Low Balances 46 Transferring Money to Other Outside Accounts 44 Depositing a Check with My Mobile Device 43 Automated Bill Reminder 41 Other 17 0 15 30 45 60 * Varolli Corporation, Dec 2012
  10. 10. Consumer Expect More from Mobile Banking Than They’re Getting Pay Bills 39% Use Phone as ID 39% Organise / Track Rewards 38% Receive Offers Based on Location 38% View Multiple Account Information 38% Calendar to Track Spending 37% Make Online Purchases 37% Receive Offers Based on Buying Patterns 36% Make In-Store Purchases 33% Access / Control Child’s Account 27% 0 0.1 0.2 0.3 0.4 * Raddon Finanicial Group, National Online Consumer Researcg, Autum 2012
  11. 11. The Demographics of Mobile Bankers18 - 29 43.5% 16.8% 22.4%30 - 44 35.7% 24.7% 27%45 - 59 14.7% 30.2% 26.9% 60 + 6.1% 28.4% 23.7% 0 0.9 Yes No Total * US Federal Reserve, Consumer and Mobile Financial Services Report, Jul 2012
  12. 12. In-Branch 5yr Change In- 5yr Change In-Customer Activity Direct Preference Preference Branch Direct Open an Account 75% 16% -11% +8% Buy Products 65% 22% -13% +9% Resolve an Issue 36% 49% -17% +11% Transfer Funds 19% 60% -26% +29% Check Balance 6% 68% -16% +28%Research Products 16% 70% -28% +28% * Novantas Study of Customer Activity, Jan 2011
  13. 13. Product Purchasing by Channels 2010 v 2015 Current Accounts 84% 9% 53% 43% Savings Account 77% 16% 38% 59% Investments 78% 11% 58% 28% Mortgages 80% 4% 72% 10%Consumer Finance Production 73% 12% 32% 47% 0 0.375 0.75 1.125 1.5 0 0.375 0.75 1.125 1.5 Branches Agents / Brokers Call Centres Direct Channels * EFMA Online Survey Across 150+ Euro Banks
  14. 14. Preference for Retail Banking Products Online, by Market 7% 8% 35% 10% Credit Card Time Deposit New Account 11% Share Investment General Insurance ForEx 29% Bonds, Trusts and Mutual Funds Personal Loan Fixed Income * HSBC and Standard Chartered Survey 2007-09
  15. 15. Top 5 Banks and Credit Unions Have Highest Mobile Penetration 70% Percent of all Online Respondents52.5% 40% 35% 30% 63% 61% 56% 53% 20% 41% 35%17.5% 24% 25% 10% 20% 18% 0% 0% Have Smart Phone or Tablet Bank via Smart Phone or Tablet Total Top 5 Bank Regional Bank Community Bank Credit Union
  16. 16. Who is Anders?Anders Sorman-Nilsson (LLB MBA) is the founder of Thinque - a strategy think tank that helpsexecutives and leaders convert disruptive questions into proactive, future strategies.As an Australian-Swedish futurist and innovation strategist he has helped executives andleaders on 4 continents map, prepare for, and strategise for both foreseeable and unpredictablefutures. Since founding Thinque in 2005, he has worked with and spoken to clients like Xerox,Apple, Johnson & Johnson, Cisco, Eli Lilly, SAP, IBM, ABN Amro Bank, Commonwealth Bank,McCann Erickson and BAE Systems, across diverse cultural and geographic contexts. Anders is an active member of TEDGlobal (Oxford 2009 / Edinburgh 2011), has keynoted atTEDx, guest lectured at University of Technology Sydney Business School, and Anders is on theprestigious 2013 Million Dollar Roundtable roster. He is a member of the University of SydneyGlobal Executive MBA cohort, and has completed executive education at Stanford University andthe Indian Institute of Management, Bangalore.
  17. 17. Enquire now www.anderssorman-nilsson.com
  18. 18. Testimonials“There are those special moments when the right ideas and the right people collide to make magic. This isone of those times. I want to say a HUGE THANK YOU for all your work to make the Senior DirectorConference both an engaging experience, and a catalyst for change.”CMO Asia, Fortune 500, Pharmaceutical Industry“Anders provided an engaging and energetic presentation of real and relevant information to the businessthat could be used in all areas across the business both now and moving into the future.“Head of Regional Portfolio Management Asia, Fortune 500, FMCG “Anders presentation style and fresh content were an excellent and inspirational start to our Summit. Itresulted in only positive feedback from the audience. Anders is very professional and a brilliant thinker andcommunicator!”Management Consultant, Fortune 1000, Banking Industry

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