Banking on Innovation: Is There any Real Banking Innovation

Bank Innovation BRETT KING BANK 2.0 Is there any real Retail Banking AN TECLIY VELL CNE Timeline Innovation ? Major innovations in banking 1977 9 BCE 3 AD 9 AD 1650 1920 1967 1977 1994 1998 The first hard Merchant Credit Barclays deploys the first Albert, Prince of Stanford Federal Credit Union is the first to offer Internet Banking The world's first The first Cheques are used to assist The first forward Cards first appeared in the 1920s, but online WAP Mobile Banks started in Persia in the 3rd Century contracts were written Japan for Rice purchases Belgium (now King), sends the first SWIFT interbank currency starts to etween mechanical Automated Teller Machine appear China and Arabia Diners Club in 1950 is Banking credited with the real appears innovation here message FAST @MPANY Top Innovators 2010 Percentage of Customers who don't trust banks since the global financial crisis I. Facebook Where are the Banks? 70% 2. Amazon 3. Apple 4. Google Top 10 Industry 5. Huawei Finance Source: OneNewsPage.com Poll Mar 2010 6. First Solar 7. PG&E Chance of Core Banking 8. Novartis customer loss FiLife intuit Service in first year 9. Walmart YODLEE Credit Card 73% only 10. НP Current Account Itaú UNIBANCO credit.com 50% onlv Savings Account only Source: FastCompany Only 3 Financial Institutions appear in the top 250 companies, no Fortune 500 banks 33% vittana Current & Savings 10% GOSIMPLIFI.COM Current, Savings, Fixed Deposit 8% YEnterprise- Vancity Current, Savings, Mortgage 2% appear Source: Bank Marketing Association Retail Banking Product Innovation 4.0% Product Innovation Average Margin 60,000 Unique # of products has improved AUM, but has reduced 3.0% margin and heavily commoditized financial services 45,000 2.0% 30,000 Differentiation as a 1.0% result of product is virtually impossible as a result, and service differentiation is not 0% 15,000 1910 a high enough priority 1930 1950 1970 1990 2010 Source: HSBC, Wharton Study, Econometrica Produced and designed by BANKING4TOMORROW.com Brett King, Author BANK 2.0