@brettking

The Future of Banking

Changing Behaviour

3,364average SMS

messages/mth13-17 year olds

18-24 send 109 texts/day

Things you don’t need to teachDigital Natives

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.,

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

Behavioral Shift42% of the workforce in 2020 will be Y-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

juicystar071.7m views/video

“Haul Videos”

Transparency

CRED is about transparency

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

The Generational Cliff

© COPYRIGHT 2010 SAPIENT CORPORATION | CONFIDENTIAL

Can you compete against Apple for cards in 2011?1/5th of all US households are underbanked

That’s estimated to be around 40-70 million people (source: FinancialTimes, FDIC)

50% of those have college degrees

Date25% of the unbanked have prime credit ratingsAround 30% of the banked have sub-prime credit ratings

50%+Mobile Bankingusage by 2015

16%+Mobile Bankingusage by 2015

© COPYRIGHT 2010 SAPIENT CORPORATION | CONFIDENTIAL

Source: Packaged Facts

$200 Billion in Pre-Paid Debit Cards...by the end of 2011

RISE OF THE DE-BANKED

The loss of physicality

source: ABA, Nielsen Research, Javelin Strategy & Research

SMARTPHONE TRANSACTION VOLUME IS EQUAL TO 40 BRANCHES TODAYST GEORGE BANK - THE AUSTRALIAN

@brettking

1m users$5m per day

11,400

8,550source: Novantas LLC, FDIC

20062010

Average In-Branch Transactions per Month

Which will require a

reduction in teller

staff by 2015

50%

Checks as a percentage of retail payments in the US

59.5% 2000

4.3% 2010source: Federal Reserve, NACHA, National Retail Federation

Context...

Gamification is about behavior

Simplicity

Relevance

ContextGreat Journeys @brettking

brett@movenbank.com✉