WHAT’S NEXT FOR BANKS

Andy CowlesAndy PembertonJames Lumley

PLEASE TURN YOUR PHONE

ON

Anxiety is the predominant emotion of the age.

This means customers are more open than ever before to emotional engagement and reassurance.

Other voices can connect with banks’ customers too.

BUT…

Here are some examples:

A checking service with a smartphone App and ATM card.

A plastic debit card for Google Wallet.

A prepaid card that functions like a debit account.

Applepay turns your iPhone and Apple Watch into a contactless debit card.

The world’s largest peer-to-peer lending platform.

Connects to small businesses data sources and leverages it to deliver fast, flexible funding.

Lets customers transfer money abroad in a cheap, fast and easy way.

Their loyalty card is used in almost one third of US. Starbucks are selling their payment app technology to other businesses.

Allows investors to invest in off-the-peg portfolios based on trends or popular strategies.

Allows buyers to pay for ordered goods after receiving them.

A digital payment service enabling safe and fast account-to-account transfer.

Providing cheap loans to Amazon sellers.

China’s Amazon have become a $16b lender in three years.

Uses big data and machine-learning algorithms to make faster, better credit decisions.

A zero commission stock brokerage.

Allows businesses to accept payments in more than 100 different currencies.

Makes it easy for the average person and business to use the digital currency Bitcoin.

A platform where investors can browse businesses that Funding Circle has credit assessed and approved for lending.

Offers consumers a free look at their credit score and presents easy-to-digest information around that data.

Customer-centric retail investment management, banking and personal finance services.

This peer-to-peer lending service matches lenders to borrowers.

THE BIG RISK

New competitors will consign banks to a limited role as back-office utilities, while non-banks become the new face of their customer’s financial lives.

SO WHAT CAN BANKS DO NOW?

We all know that to defend their turf banks must move further into the commercial lives of their customers.

It’s a given there’s an opportunity to play a greater role both before and after the moment of financial transaction.

Everyone agrees banks must make the most of their digital assets: databases, hard-to-copy capabilities in payments, security and financing.

And most of all, leverage the trust customers still have in their bank.

KEY THEMES THREE

1 DIGITAL

HALF THE WORLD DOES NOT HAVE A BANK ACCOUNT. MOBILE IS CHANGING THAT.

DIGITAL

The Commonwealth Bank of Australia developed NFT mobile transactions themselves to stay ahead in the market.

DIGITAL CASE STUDY 1

By striking first, Commbank beat the mighty Apple.

The takeaway

Bank of America built a Win-Win-WIN ecosystem.

DIGITAL CASE STUDY 2

Merchants get more business, customers get relevant deals and the bank profits too.

If you haven’t already, you can copy this idea today.

The takeaway

How Turkey’s Zirrat bank put the emotion into the ATM.

DIGITAL CASE STUDY 3

VTM’s are entertaining, but more importantly, they build trust.

The takeaway

2 NEW MARKETS

THEY’RE OPENING UP ALL AROUND US, RIGHT NOW.

New markets

Mastercard have partnered with eTranzact to make it easy for millions of Nigerians to send and receive money.

NEW MARKET CASE STUDY 1

Make it easy for smartphone users to move money, and millions of new customers will open a bank account with you.

The takeaway

iZettle’s point-of-sale software enables card sales through mobile, meaning SME’s can bypass banks.

NEW MARKET CASE STUDY 1

The latest generation of small business entrepreneurs increasingly see the bank simply as a place to deposit money.

Stop this happening.

The takeaway

Santander creates a digital bank vault in the cloud.

NEW MARKET CASE STUDY 3

Banks who offer a secure digital bank vault will make their relationship with customers even stronger.

The takeaway

3 BLOCKCHAIN

‘THE FIRST ATTEMPT AT AN INTERNET OF FINANCE’The Bank of England

Blockchain

BNP Paribas, the world’s third largest bank, agrees blockchain is a gamechanger.

BLOCKCHAIN CASE STUDY 1

This is the way ledgers will be managed in the future. If banks don’t provide an effective service, someone else will.

The takeaway

UBS have opened a blockchain lab in London, putting their money and reputation behind the technology publicly.

NEW MARKET CASE STUDY 2

UBS are taming a disruptive innovation by joining the ranks of the disruptors.

The takeaway

Blythe Masters launches a start-up developing Settlement through the Blockchain.

NEW MARKET CASE STUDY 3

If Masters can create a successful semi-private blockchain, it can be deployed across all banks.

The takeaway

Thanks for listening!