social and technology trends for banking

Social banking and the future

Kate Carruthers Oct 2013

Agenda

1.  Some history 2.  Social trends 3.  Technology trends 4.  New entrants and disruptors 5.  OpportuniEes

Oct 2013 2 © 2013 Kate Carruthers

a bit of history…

•  Westpac •  ANZ •  CiEbank •  Permanent Trustee •  AMP •  GE


Oct 2013 © 2013 Kate Carruthers 4

“… banking is no longer somewhere you go, but something you do” BreR King, Bank 3.0


Technology trends are driving consumer behaviour and service expectaEons

Technology trends

•  Mobile •  Ubiquitous wifi •  RealEme •  PersonalisaEon •  Peer-‐to-‐peer •  App ecosystem



12 million Australian users Source: Frank Media

Facebook has trained ordinary people to collaborate and share online in realEme.

RealEme


Source: hRp://blogs.dctc.edu/dctc-‐news/2010/05/06/going-‐with-‐the-‐dataflow/

Source: hRp://www.slashgear.com/google-‐data-‐center-‐hd-‐photos-‐hit-‐where-‐the-‐internet-‐lives-‐gallery-‐17252451/

From “when we can” to “realEme”

Smartphones


Source: hRp://www.businessinsider.com.au/the-‐massive-‐australian-‐mobile-‐explosion-‐explained-‐2013-‐7

Always connected

“We call them Genera&on C

— connected, communicaEng, content-‐centric, computerized, community-‐oriented, always clicking. ”


Source: hRp://www.booz.com/media/file/Rise_Of_GeneraEon_C.pdf Source: David Tao Photography

Personalised


Source: Vero

New entrants and disruptors

•  Non bank organisaEons •  Typically playing in NCP or peer-‐to-‐peer space •  Front end intermediaries •  Using technology to deliver customer service •  DifferenEaEng on service


New entrants


Non-‐tradiEonal compeEtors are emerging and they are bypassing tradiEonal banking systems

DistribuEon is key

New entrants either: •  Leverage exisEng relaEonship for distribuEon •  Use social plaiorms to grow distribuEon


OrganisaEons with established relaEonships have an advantage

Disruptors

“Our mission is to help you become more mindful of your spending so you can achieve your goals and get what you want out of life.”

“Fund your favorite food business by pre-‐paying.”


Disruptors

“Uber is evolving the way the world moves. By seamlessly connecEng riders to drivers… we [open] up more possibiliEes for riders and more business for drivers.”

“Whether an apartment for a night, a castle for a week, or a villa for a month, Airbnb connects people to unique travel experiences, at any price point, in more than 33,000 ciEes and 192 countries. ”


Disruptors

“Pay anyone, anyEme, anywhere. CommBank Kaching is a revoluEonary app that has changed banking and payments forever.”

“Crowdfunding with Pozible is a way for moEvated makers to access funding beyond ‘official’ channels by talking directly to switched-‐on consumers, fans, peers and like-‐minded strangers. ”


Enabling disruptors

•  Agile methods •  Nimble – no legacy systems to slow them down

•  ConnecEng users but using exisEng back-‐ends

•  Experimental – fail fast, then pivot


Source: hRp://www.jenniferarguello.com/2011/07/31/product-‐of-‐me-‐applying-‐lean-‐startup-‐to-‐myself/

Lean Startup Model

OpportuniEes

•  Adopt agile approaches – lean startup •  Partner with organisaEons that have nimble technology

•  Ignore legacy technology – go around it •  Develop digital partnerships •  Don’t try to do it all •  Focus on building foundaEons then expand


Resources

•  8th Annual Australian Mobile Phone Lifestyle Index (AMPLI)

•  Social Media StaEsEcs Australia – September 2013

•  The Lean Startup, Eric Ries •  The Rise of GeneraEon C, Booz & Co.


social and technology trends for banking

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