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Copyright © 2015 Liam Ó Móráin Banking as we know it... may it... Rest in Peace (RIP) Liam Ó Móráin [email protected] Twitter maigheox2 BANKS
| Date post: | 20-Feb-2017 |
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Copyright © 2015 Liam Ó Móráin
Banking as we know it...
may it...
Rest in Peace (RIP)
Liam Ó Mórá[email protected] Twitter maigheox2
BANKS
Copyright © 2015 Liam Ó Móráin
TOPICS FOR TODAY
LOYALTY & PASSION
CO-CREATION
CHALLENGES & OPPORTUNITIES
RIP... an alternative
Copyright © 2015 Liam Ó Móráin
Top 50 Global BrandsSource & Copyright © Interbarnd 2014.
(23)
(32)
(33)
(44)
(48)
Copyright © 2015 Liam Ó Móráin
Loyalty & Passion
Things that serve a purpose Things that people love
Emotional connections make great brands.
The relationship is often irrational!
Copyright © 2015 Liam Ó Móráin
Loyalty & Passion
Emotional connections make great brands.
The relationship is often irrational!
Things that serve a purpose Things that people love
Copyright © 2015 Liam Ó Móráin
Apple realized if it created everything itself it would greatly constrain the number and range of apps.
Apple has become a platform where 3rd parties can create products and services known as ‘apps’.
Apple maintains the standards for publishing the apps and pays the developers.
Apple is the distribution channel in this co-created ecosystem.
Downloads to date
$ app revenue in 2014
$ app revenue paid to developers in 2014
15,000,000,000
100,000,000,000
Loyalty & Passion
10,000,000,000
iTunes accounts and credit card numbers (2014)800,000,000
iTunes accounts and credit card numbers 1,200,000
Copyright © 2015 Liam Ó Móráin
mobile monthly active users
downloads to date 60,000,000,000
1,500,000,000
APRU Q1-15 in US & Canada$9.30
Co-created Ecosystems
mins worldwide average time spend on Facebook per day
20
$ revenue in 20131,300,000,000
apps available1,600,000,000
Copyright © 2015 Liam Ó Móráin
Co-created Ecosystems
Copyright © 2015 Liam Ó Móráin
An APP
A piece of software performing a single task or small set of tasks which is very different from the more traditional big enterprise apps banks have built and deployed.
Co-created Ecosystems
The co-creators
The creations
Copyright © 2015 Liam Ó Móráin
Source NUI Galway & Gigaom Research 2014.Co-created Ecosystems….
Copyright © 2015 Liam Ó Móráin
Co-created Ecosystems….
What are the challenges facing banks today that suggest the current business model is under threat and that co-creation is a viable option?
How can banks draw inspiration from companies like Apple, Google, and Facebook and offer products and services created by others that customers want?
Should banks copy Apple, Google, and Facebook and develop their own co-created ecosystems?
Copyright © 2015 Liam Ó Móráin
Challenges facing (retail) banks!While numerous, focus today is on:
The distribution model i.e. branch network... Physically constraint and very costly
Customers have an incredible digital retail experience in most places except in retail banking (think Apple!)
Competitors are eating away at the fringes:Wonga, Betterment, Stripe, DWOLLA, Square, Nutmeg, Ripple, Currency Fair, Tesco
Copyright © 2015 Liam Ó Móráin
Challenges facing (retail) banks!
Branch network:Swallows nearly 50% of bank operational costsIs not open 24/7Legacy locations may not be fit-for-purpose
Product & Services: banks and in particular banking processes make it hard for customers to love them!
Technology & Operations: Held together with band aidsSmothered with compliance and fear of screwing up!Legacy systems may not be fit-for-purpose.
RIP PLEASE
Copyright © 2015 Liam Ó Móráin
Opportunity for (retail) banks!Branch network:
Varied layouts and types of branchesSome full service; some very basic; some in betweenDigital and Physical blend seamlessly Perception of scale and ability to meet customerneeds any where, any time
Product & Services designed to meet varied and tailored needs of customers often created by others.
Technology & Operations: Operational excellence e.g. STP Exceptions are rare!
FOCUS TODAY
Copyright © 2015 Liam Ó Móráin
Co-created Ecosystems…
Offers huge customer base
Core business is a platform through which all activity flows
Powerful network effect
Manages revenue collection and distribution
Major data and customer analytics
Why 3rd Party Developers Love these ecosystems?
Copyright © 2015 Liam Ó Móráin
Great customer base – low churn
Incredible depth of data on customers
Co-created Ecosystems…Why 3rd Party Developers would love to
work with banks?
What 3rd Party Developers need?
A Platform
Access to the bank’s DATA VAULT!
Combine with other data sources to create services of value.
Banks' data want to break free
Copyright © 2015 Liam Ó MóráinBanking as we know it RIP
Co-created Ecosystems…
Copyright © 2015 Liam Ó Móráin
`Oct 9-11, 2015
Edinburgh
Jan 2015 DublinFeb 2015 BelfastJan 2016 Dublin
Banking as we know it RIP
Co-created Ecosystems…
Copyright © 2015 Liam Ó MóráinBanking as we know it RIP
Co-created Ecosystems…
Copyright © 2015 Liam Ó MóráinBanking as we know it RIP
Co-created Ecosystems…
Copyright © 2015 Liam Ó Móráin
Q1 Y1 Q2 Y1 Q3 Y1 Q4 Y1 Q1 Y2 Q2 Y2
Hackathon London
Open/Linked DataCensus Data, Revenue Data
Hackathon Stockholm
Bank APP Store 1.0
Hackathon Berlin
Hackathon Dublin
Hackathon San Francisco
SDK & API
Transactional Data
Account Activity Bank APP Store 2.0
Customer Data
Global App Developer Base
Global Reach
Global Customer Base
Group-wide capability
Bank APP Store 5.0
Economically Viable Ecosystem
18 months to TAKE OFF!
Banking as we know it RIP
Co-created Ecosystems…
Copyright © 2015 Liam Ó Móráin
Banking as we know it RIPTo banking as it should be RIP
BANKS
Banking Tech & Operations...
From 'restricted' to a 'RESTful' state
From 'insane' to 'Information'
From 'painful' to 'Personal'
