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.