global banking innovations
DESCRIPTION
This is an update to other presentations and consolidates most of the case studies on the website thefinanser.com. This presentation is embedded in this blog entry: http://bit.ly/NEYx0, as well as being used in part for a webinar on 1st June 2009 which can be heard / watched here: http://bit.ly/1qf2NFTRANSCRIPT
Chris Skinner
www.thefinanser.com
the future of global
banking
SEPA
€50m
http://www.amazon.co.uk/Future-Banking-Globalised-Skinner-Chronicles/dp/047051034X/ref=sr_1_1?ie=UTF8&s=books&qid=1214062513&sr=8-1
MiFID
<50
http://www.amazon.co.uk/Future-Investing-Europes-Markets-after/dp/0470510382/ref=pd_sim_b_6
http://thefinanser.co.uk/fsclub/2009/02/the-new-eu-regulator-and-liquidity-risk.html
http://thefinanser.co.uk/fsclub/2009/03/robobank-no-human-hands-needed.html
http://thefinanser.co.uk/fsclub/2009/03/jibun-bank-the-mobile-only-bank.html
“Asia has around 600,000 villages and maybe 600 to 700 million
unbanked people there. If you want to get to that mass,
technology is the only thing that works.
“Today, in a bank like ICICI Bank, you have less than 15% of
transactions taking place within a branch. Five years back, 95% of
the transactions took place within a branch. So you have an idea
of what happens when the technology touches the unusual.
“If I look at cost per transaction, it is about a tenth of a western
bank. That is entirely because we could leapfrog a generation of
technology.”
K V Kamath, CEO, October 2006
http://thefinanser.co.uk/fsclub/2009/04/africas-mobile-revolution.html
http://thefinanser.co.uk/fsclub/2009/04/creating-a-bank-that-rocks.html
http://thefinanser.co.uk/fsclub/2008/07/bbva-the-first.html
http://thefinanser.co.uk/fsclub/2009/06/a-spanish-first-social-banking.html
“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. We can move into a
country with full service banking for under $10 million, which is a
fraction of our competitors. We just open a building and sell,
because everything is delivered through the network.”
Ken Harvey, CTSO
http://thefinanser.co.uk/fsclub/2008/12/-hsbc-banking-on-the-network.html
the future
©Chris Skinner +44 790 586 2270 [email protected]
the critical point
1969 1979
1989 1999
1959
2009
The times, they are changing
33
1999
Mailing
10,000 people
Twice weekly
Brochures
10,000+
Annual update
Meetings
40 UK
8 Ireland
6 CEE
Newsletter
1,000 people daily
Text only Website
Non-interactive
Custom-build
$150,000
$100,000
$100,000
$300,000
$150,000
$800,000
34
2009
Mailing
10,000 people
Twice weekly
Brochures
10,000+
Annual update
Meetings
40 UK
8 Ireland
6 CEE
Newsletter
1,000 people daily
Multimedia Website
Non-interactive
Custom-build
$150,000
$149
$10,000
Free
Gone
$160,000
1975
2000
2010
European Order Book Volumes
Figures sourced from FESE
Value of Equity trading, March 2009
Exchange / MTF Order Book Trades Order Book Turnover (EUR m)
1 London Stock Exchange 17,279,867 123,650.0
2 Euronext 15,365,479 116,839.0
3 Deutsche Borse 8,118,311 95,835.8
4 Spanish Exchange (BME) 2,832,093 60,682.8
5 Chi-X Europe 10,554,888 57,168.5
6 Borsa Italiana 6,227,802 45,937.2
7 SWX Europe 2,875,388 45,495.4
8 NASDAQ OMX Nordic 4,802,676 43,150.6
9 Turquoise 3,309,508 22,567.8
10 Oslo Bors 1,240,279 11,397.7
11 BATS Europe 1,760,985 8,277.7
12 SIX Swiss Exchange 462,090 2,802.3
13 Wiener Borse 440,927 2,781.6
14 Warsaw Stock Exchange 1,200,689 2,545.6
15 Athens Exchange 669,246 2,228.3
In a Best Price Routing world
Under best price routing, research shows that there would be a significant shift in liquidity and market share to the new MTFs, while the incumbent exchanges would lose market share.
Source: Equiduct Orange LFA
Potential Market Share Changes Under Best Price Routing
-8%-6%-4%-2%0%2%4%6%8%
10%12%14%16%18%20%
MTFs Euronext LSE Deutsche Borse
Po
ten
tial m
arke
t sh
are
chan
ge%
Nov-08 Dec-08 Jan-09 Feb-09
DoBuild customer confidence
Cut costs
Focus upon operational efficiency
Reduce branch overheads / branches
Invest in mobility services
Don’tAnger the customer
Cut for the sake of cutting
Ignore new business models
Stop innovating
Further Reading
A Directory of Social Financehttp://thefinanser.co.uk/fsclub/2009/04/a-directory-of-social-finance.html
Blog Index (from April 2009)http://thefinanser.co.uk/fsclub/the-week/
The Future of Banking: in a Globalised World http://www.amazon.co.uk/Future-Banking-Globalised-Skinner-
Chronicles/dp/047051034X/ref=pd_bxgy_b_img_b
The Financial Services Club Library (members only)
www.thefinanser.com