| Date post: | 26-Jul-2015 |
| Category: |
Documents |
| Upload: | mapa-international-limited |
| View: | 211 times |
| Download: | 1 times |
Bank Disruption: Assessing the disruptive threat in retail banking
Mapa Insight SeriesFind out more about our research:www.maparesearch.com/research
Contents1. Report objectives and methodology2. Sample pages from the report 3. Mapa Insight Series: Report schedule 20154. Contact details@ About Mapa
Report structure:A. Objectives and methodologyB. Executive summary--------1. Background to Financial Services Disruption2. Examples of Disruptive Propositions
1. Currency Exchange and P2P Payments2. Digital-only banking3. Personal Investment and Lending
3. How Banks are Responding--------C. Conclusion
Objectives:The key objectives of the research was to:
• Identify the “pain points” in various retail banking segments
where incumbents’ income is “under attack” by new players
in the field, and demonstrate particularly outstanding
examples in each area
• Assess the short to long term threat to the traditional retail
banks from the expansion of disruptive financial services
providers
• Show how banks have responded to embrace the changes
This report will help in understanding the future of banking and
feed into strategic planning process. Furthermore, the
examples of disruptors can be used to gain inspiration for
future developments of specific banking services.
Methodology:Based on our extensive knowledge of the existing retail
banking digital offerings coupled with research and user
experience studies of fin-tech start-ups we have selected a
list of disruptive examples and estimated which of these
services could have the greatest impact on the industry.
Lastly, we highlight banking developments and partnerships
in response to the disruptive threats with insight into the
strategic moves that banks can make to maintain their
impact in the changing world of finance.
Page 2
1 Report objectives and methodology
© Mapa Research May 2015
3. Sample Slides
Page 3
© Mapa Research May 2015Page 4
3
Revolut mobile app features a mobile wallet with different currencies accompanied by a multi-currency debit card, and it offers currency exchange at interbank rates, as well as P2P payments via SMS, email or social media platforms. It was launched in March 2015 and is still in Beta phase (with a small user base of approx. 6,000), however, its combination of disruptive services could appeal to many existing customers of banks, particularly in frequent travellers segment, as well as for online shopping in foreign currencies.
+ PROs• Transparent pricing plans - currency exchange at
interbank rates and free P2P and card payments• Easy money management via mobile app and spend
with multi-currency MasterCard• Quick and easy money uploading options
- CONs• Currently available for iOS only• No desktop secure area to support the mobile app• Users still need an existing bank account to top up
Impact on banks• There is a relatively low impact on banks’ income in the short term, as the
customer base of Revolut is still small• However, the idea of holding various currencies in one mobile wallet,
exchange them at interbank rates, spend by multi-currency card and P2P payments could have long-term disruptive threat
Your personal money cloud
Simple. Fair. Fast
Examples: Currency Exchange – Revolut
© Mapa Research May 2015Page 5
3
Fidor is an online and mobile community bank in Germany, recently started expansion in the US, UK and Russia. With a full banking licence in Germany, they offer mainstream retail and corporate banking products, as well as virtual currencies trading, social media banking, and Facebook and Twitter payments.
+ PROs• Full retail banking servicing capabilities with
banking licence• Consumer finances based on community
values – requires fewer staff with customers helping each other
• Facilitates transfers of various means of value, not only traditional currency
• Open API allows to embrace innovation from external software developers
- CONs• The difficulties of being the first mover and
subscale
Impact on banks• There is a high impact on banks’ income, as Fidor offers full
spectrum of banking services at better rates • It has medium to long-term disruptive threat, as it will take
time for customers to switch their accounts, but then the threat to incumbents will be imminent due to Fidor’s more efficient community banking model
Key facts• Fully launched in Germany in 2009• 60,000 accounts opened as of Dec 2014 and 300,000
users of peer-to-peer community platform• Integrated with Ripple open-source payment network
in 2014 enabling free and instant exchange of any form of value
“We want to be the pirates of
banking”
Examples: Digital-only Banking – Fidor Bank
© Mapa Research May 2015Page 6
Examples: Personal Investment – Nutmeg
Setting up investment portfolio: Nutmeg present an interactive graph, that combines various scenarios (good to poor) and the projected fund value changes instantly upon adjusting the timeframe, contributions or risk level on the left hand side. Customers can also see a clear picture of the allocation of their funds by asset class, sector, country, etc. Continues on the next page.
It also displays the customer’s progress on achieving the target, or warns when the goal needs
attentions and suggests solutions
There is a pull-out guide with tailored FAQs
The underlying funds are “passive” index trackers.
3
© Mapa Research May 2015Page 7
3 How Banks Are Responding: Credit Agricole
Credit Agricole (France) Store is the first European appstore by a retail bank where financial apps are co-created between clients and developers thanks to opening bank’s APIs. Apps range from social apps to video games, displays of account information and budgeting, as well as apps for visually impaired people. The appstore was launched in 2012. All apps are free to download.
There are currently 49 apps and further 37 ideas in the catalogue. Users can browse the app by platforms, developers and categories (such as budgeting, travel, etc.)
4. Mapa Insight Series:
Report Schedule 2015
Page 8
1. Tablet Banking Series: A deep dive into five standout initiatives
2. SME Banking: How to win share through successful differentiation
3. Mobile Banking Series: State Of The Market 2015 –Part 1
4. Under Attack: Assessing The Disruptive Threat In Retail Banking
5. Building A PFM With Mass Market Appeal
3 Mapa Insight Series: Report Schedule 2015
6. Mobile Banking Series: State Of The Market 2015 –Part 2
7. The Digitization Of The Branch
8. The Promise Of Wearables: An Internet Of Things In Banking
9. An Engagement Banking Master Class
10. Digital Banking Security Insight Series, 4th Edition
11. Ten Things Digital Teams Should Do In 2016
Page 9 © Mapa Research May 2015
4. Contact details
Page 10
Contact Details
Authors
Meaghan JohnsonAssociate Director, [email protected]
Management
Mark PavanManaging [email protected]
Gregor McKelvieManaging [email protected]
Ross MethvenDirector of [email protected]
Mapa Research HQ4th floor 101-102 Turnmill streetLondonEC1M 5QP
Tel: +44 207 566 3940www.maparesearch.comSubscription and
Consultancy Enquiries
Ross MethvenDirector of [email protected]
Meaghan JohnsonAssociate Director of [email protected]
International Offices
Asia PacificMark DonohueRegional DirectorTel: +61 419 132 [email protected]
NordicGustavslundsvägen 143 5tr167 51 StockholmSwedenTel: +46 (0)8 509 074 [email protected]
UK Offices
The WatchtowerSt Cuthbert's Churchyard7A Lothian RoadEdinburghEH1 2EP
Tel: +44 (0)7710 305 [email protected]
4
Page 11 © Mapa Research May 2015
@ About Mapa
Page 12
OUR CLIENTS
About Mapa
Use our social media resources to keep ahead of the game
Subscribe to our RSS feed
www.maparesearch.com/news/rss
Follow what we are saying on Twitter
www.twitter.com/maparesearch
Join our LinkedIn Groups:
Digital Banking Innovation
Digital Banking Innovation – Nordic Countries
Subscribe to our free e-newsletter – Mapa Market Monitor
http://www.maparesearch.com/news
Like us on Facebook!
Or just see what is new in Mapa Research
@
Page 13 © Mapa Research May 2015
