+ All Categories
Home > Presentations & Public Speaking > Future Bank Summit 2014

Future Bank Summit 2014

Date post: 23-Aug-2014
Category:
Upload: maigheo
View: 401 times
Download: 4 times
Share this document with a friend
Description:
Invited speaker at Future Bank Summit. Spoke on 'breaking open the bank' through co-creation. http://www.futurebank.ie/ #futurebank
Popular Tags:
26
Copyright © Liam Ó Móráin 2014 Breaking Open the Bank Liam Ó Móráin
Transcript
Page 1: Future  Bank Summit 2014

Copyright © Liam Ó Móráin 2014

Breaking Open the Bank

Liam Ó Móráin

Page 2: Future  Bank Summit 2014

Copyright © Liam Ó Móráin 2014

Top 50 Global BrandsSource & Copyright © Interbarnd 2014.

(23)

(32)

(33)

(44)

(48)

Page 3: Future  Bank Summit 2014

Copyright © Liam Ó Móráin 2014

Loyalty & Passion

Things that serve a purpose Things that people love

Emotional connections make great brands.

The relationship is often irrational!

Page 4: Future  Bank Summit 2014

Copyright © Liam Ó Móráin 2014

Loyalty & Passion

Emotional connections make great brands.

The relationship is often irrational!

Things that serve a purpose Things that people love

Page 5: Future  Bank Summit 2014

Copyright © Liam Ó Móráin 2014

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

$ paid to developers to date

$ app revenue in 2013

15,000,000,000

60,000,000,000

Loyalty & Passion

10,000,000,000

iTunes accounts and credit card numbers800,000,000

Page 6: Future  Bank Summit 2014

Copyright © Liam Ó Móráin 2014

mobile monthly active users

downloads to date 60,000,000,000

1,000,000,000

$ revenue/user/year in US & Canada5.18

Co-created Ecosystems

average number of apps installed each day20,000,000

mins average time spend on Facebook per visit 18

$ revenue in 20131,300,000,000

apps available1,200,000,000

Page 7: Future  Bank Summit 2014

Copyright © Liam Ó Móráin 2014

Co-created Ecosystems

Page 8: Future  Bank Summit 2014

Copyright © Liam Ó Móráin 2014

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

Page 9: Future  Bank Summit 2014

Copyright © Liam Ó Móráin 2014

Source NUI Galway & Gigaom Research 2014.Co-created Ecosystems….

Page 10: Future  Bank Summit 2014

Copyright © Liam Ó Móráin 2014

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?

Page 11: Future  Bank Summit 2014

Copyright © Liam Ó Móráin 2014

Challenges facing (retail) banks!

While numerous, focus today is on:

The distribution model i.e. branch networkPhysically 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, Stripe, DWOLLA, Square, Ripple, Currency Fair, Tesco

Page 12: Future  Bank Summit 2014

Copyright © Liam Ó Móráin 2014

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.

Page 13: Future  Bank Summit 2014

Copyright © Liam Ó Móráin 2014

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 customer

needs 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

Page 14: Future  Bank Summit 2014

Copyright © Liam Ó Móráin 2014

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?

Page 15: Future  Bank Summit 2014

Copyright © Liam Ó Móráin 2014

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.

Break Open The Bank!

Page 16: Future  Bank Summit 2014

Copyright © Liam Ó Móráin 2014

BROAD customer data

Bank Credit Card

16

Day in the life of a customer What a Bank sees …

Customer: Joe Bloggs • Withdrawal Grafton St. ATM• Transaction successful• Account: -€60

On the way to work, Joe calls his friend in Berlin.

At work, he Googles to research impact of the Ukrainian crisis on the stock market.

Joe wakes up in the morning. He checks the news on his iPad.

At lunch, Joe goes to the ATM to withdraw money.

He pays for a wedding anniversary gift for his wife with his credit card.

Joe calls his Bank’s Relationship Manager, Shirley, to confirm the position of his stocks given situation in Ukraine. However Shirley was not available so he left her a voice mail.

Going home, Joe uses Twitter, Facebook and LinkedIn account, and watches YouTube.

1

2

3 4

5

6

7

8Joe gets home and he goes online on his iPad to

read books and surf the net.

Customer: Joe Bloggs • Credit card transaction

successful• Merchant: Cartier• Credit account: -€2,500

• Bank’s RM Shirley receives phone message to call Joe Bloggs.

Customers experience BANKS as a set of interactions through various mediums throughout their busy lives, not as a number of “channels”.

On the other hand, a BANK sees the customer as a series of discrete transactions with little context.

BANKS sees these as siloed transactions within different areas of the bank…

How well do BANKS know their customers and understand their world?

DEEP customer data

Transactional Data

Connecting the dots...crossing the data & digital divide…

Back end systems

Page 17: Future  Bank Summit 2014

Copyright © Liam Ó Móráin 2014

ARMY OF 3rd PARTY DEVELOPERS will marry the two data sets and discover

things of interest

Source: Career Rocketeer

DIGITAL FOOTPRINTAv Joe Footprint

DEEP DATA

BROAD DATA

SMART DATA &

SERVIC

ES

Connecting the dots...crossing the data & digital divide…reaching customers

BROAD customer data Google etc. great at mining!This is BIG DATA. Offers clues and insights

DEEP customer data

Transactional Data Business IntelligenceAnswers to known questions

Page 18: Future  Bank Summit 2014

Copyright © Liam Ó Móráin 2014

Connecting the dots...crossing the data & digital divide…reaching customers

Customers post ideas on CA Store

‘Les Digiculteurs’ encouraged to contact customer

Most apps have narrow but important function

Process to manage apps and seepage of malicious code

Breaking the Bank Open

Page 19: Future  Bank Summit 2014

Copyright © Liam Ó Móráin 2014

Connecting the dots...crossing the data & digital divide…reaching customers

Open source API and APP store for banks

Kinder Bank

A PFM for children. Providing kids with

categorised money trail of transaction history.

Breaking the Bank Open

Page 20: Future  Bank Summit 2014

Copyright © Liam Ó Móráin 2014

Connecting the dots...crossing the data & digital divide…reaching customers

Breaking the Bank Open

Page 21: Future  Bank Summit 2014

Copyright © Liam Ó Móráin 2014

Connecting the dots...crossing the data & digital divide…reaching customers

Breaking the Bank Open

Page 22: Future  Bank Summit 2014

Copyright © Liam Ó Móráin 2014

Connecting the dots...crossing the data & digital divide…reaching customers

Page 23: Future  Bank Summit 2014

Copyright © Liam Ó Móráin 2014

Connecting the dots...crossing the data & digital divide…reaching customers

Page 24: Future  Bank Summit 2014

Copyright © Liam Ó Móráin 2014

Q1 Y1 Q2 Y1 Q3 Y1 Q4 Y1 Q1 Y2 Q2 Y2

Hackathon Dublin

Open/Linked DataCensus Data, Revenue Data

Hackathon Stockholm

Bank APP Store 1.0

Hackathon London

Hackathon Berlin

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

Breaking The Bank Open

Page 25: Future  Bank Summit 2014

Copyright © Liam Ó Móráin 2014

Business Rationale

• A place to innovate and try new things• Free Apps (targeted advertising)• Paid Apps • Revenue to Bank & Developers• Positive reaction amongst key

influencers in digital community• Target squarely at Digital natives and

device savvy customers• Attracts non-customers• Garner digital insights• Understand better the digital footprint

and digital life of customers

Technology

• Identify and make available customer data (anonymized)

• Build SDK and development infrastructure

• Expose relevant APIs: a/c balance, ID&V, SSO, a/c transfer

• Protect customer and data privacy

• Build securely • Build transparency, audit

capability

Breaking The Bank Open

Page 26: Future  Bank Summit 2014

Copyright © Liam Ó Móráin 2014

Legal

• Legal entity 1˚ removed from parent bank!

• Toe-in-the-water approach. Easy to pull and distance Parent Bank and brand

• FSA/Central Bank and what is permissible.

• Regulated entity?

Operational Structure

• Provide infrastructure to test, validate, and approve Apps

• Management payment to developers

• Manage advertisement network

Breaking The Bank Open


Recommended