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Brett King Presents The Future of Banking in an exclusive Backbase webinar. The future of banking will not be about a place you go, about branch networks, rates or product features. The future of banking is in the utility and connectedness with customers.In this exclusive Backbase BANK 2.0 webinar, the bestselling author of BANK 2.0, discusses how the very nature of banking is changing, how customer's expectations, customer behavior and context will force banks to reboot the way they work their customers.Highlights of this webinar include:The Changing Behavior of CustomersThe Generational Cliff – when your customers are all goneThe Loss of Physicality – No Paper, No PlasticThe New Utility – Connected, Contextual, Fun, and FairThe New Banking Ecosystem – BANK 1.0 versus BANK 2.0
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@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
