Why universal banking is under siege...

We live in interesting times.

TRANSPORT HEALTHCARE FINANCE TELECOMS

HOTEL MUSIC COMMUNICATION ARCHITECTURE

Times of incredible change

BIG DATA

CLOUD

LOW COST HIGH FIDELITY

Change driven by Technology Innovation.

INTERNET OF THINGS

WSJ: 25 Dec, 2012

Change driven by Technology Standards.

BARRIERS TO ENTRY DOWN STARTUP COST and runnign

Change driven by Technology Cost.

NEW CHANNEL PREFERENCE

Change driven by Customers.

ENCOURAGING COMPETITION

DRIVING STANDARDS REMOVING ADVANTAGE

Change driven by Regulation.

Change driven by Competition. Not them.

WSJ: 25 Dec, 2012

Change driven by Competition. But them.

P2P

NE

O B

AN

KS

MASS MARKET

WEALTH PURE

SMALL BIZ

Challenging Universal Banking as we know it.

High Cost 2 Serve Subutilized Premisis Addicition to People Non standard processes Entitlement Culture Overreliance on walk ins / bys

Lifetime membership Cheap Money High Margins Club payments...deposits….lending….wwealth (e.g. mPESA

Putting it on a slippery slope of commoditization.

10 Digital tactics to save Universal Banking.

#1. Focus on Unified Digital Experience not Omni Channel

#2. Pivot branches from origination to delivery & discovery powered by social conversations

#3. Focus investment on data and accessibility not on banking systems and infrastructure

#4. Ladder investments and prepare to acquire startups

#5. Build Digital First products and move to Zero Ops.

#6. Drive Sales

#7. Join ecosystems and master co-opetition.

#8. Sweat the small stuff and celebrate the long tail of innovation.

#9. Exploit privacy and security positioning with customer.

#10. Redesign your organization and culture around technology

1.  Move fast and break things (cause you can and they cant) 2.  Find climbing partners 3.  Defend your culture (if it is unique) 4.  Play the long game 5.  Be genuine about wanting to change the industry

Five ways to beat Universal Banks.