the bank model is dead

Reinventing Financial Models:

Revenue Mix, Pricing,

Distribution

Chris Skinnerwww.thefinanser.com

The current banking model is dead

80% of operational costs are in branches and staff

It should be in technology

Banks today?

May 2009: 742m people worldwide access a social networking website

Facebook from 100 to 200 million users in less than eight months

March 2009: YouTube reaches 100m monthly viewers

Twitter yearly growth rate: 1382%

150 bank channels in 25 countries

http://thefinanser.co.uk/fsclub/2009/03/jibun-bank-the-mobile-only-bank.html

Content is dead …

…context is all

684 Financial Institutions on Twitter in September 2009 (compared to 54 in March)

in 38 Countrieswith

225,000 Followers

http://www.clanglois.blogs.com/internet_banking/blog_index.html

55

http://thefinanser.co.uk/fsclub/2008/07/bbva-the-first.html

The Precog Bank

CONCLUSIONS

Population of Earth: 6,676,120,288 Internet Users, Q2 2008: 1,463,632,361Internet Users, Q4 2000: 360,985,492Mobile Users, Q2 2008: 3, 352,237,974

Population of Earth: 6,676,120,288 Internet Users, Q2 2008: 1,463,632,361Internet Users, Q4 2000: 360,985,492Mobile Users, Q2 2008: 3, 352,237,974

The current banking model is dead

80% of operational costs are in branches and staff

It should be in technology

1975

2000

Today

2000

85

Mailing10,000 peopleTwice weekly

Brochures10,000+

Annual update

Meetings40 UK

8 Ireland6 CEE

Newsletter1,000 people daily

Text only WebsiteNon-interactiveCustom-build

$150,000

$100,000

$100,000

$300,000

$150,000

$800,000

86

Mailing10,000 peopleTwice weekly

Brochures10,000+

Annual update

Meetings40 UK

8 Ireland6 CEE

Newsletter1,000 people daily

Multimedia WebsiteNon-interactiveCustom-build

$150,000

$149

$10,000

Free

Gone

TodayFree

“We can move into a new country with credit cards with an investment of $1-$2 million, mainly on marketing, because we don’t have to build all that infrastructure.”

Case Study: http://thefinanser.co.uk/fsclub/2008/12/-hsbc-banking-on-the-network.html

Summary

• Be there• Be everywhere• Be predictive• Be proactive• Be reactive• Be 24*7

• Be personal• Be social• Be integrated• Be open• Be transparent• Be honest

Don’t be constrained by legacy(systems, thinking, people)

http://thefinanser.co.uk/fsclub/2009/04/a-directory-of-social-finance.html

Thank you

Reinventing Financial Models:

Revenue Mix, Pricing,

Distribution

Chris Skinnerwww.thefinanser.com