Innovations in Retail Banking

Bank Innovation BRETT ING BANK 2.0 Is there any real Retall Banking Innovation ? Timeline Major Innovations In banking 1977 3 AD 9 AD > 1650 > 1967 9 всЕ 1920 1977 > 1994 1998 The fist hard The fist forword contracts were written in Japan for Rice purchases Merchant Credit Cards frst appeared in the 1920s. but Diners Cub in 1950 is credited with the real Automated innovation here Borclays deploys the very first mechanical Albert, Prince o Belgium (now King), sends the fiest SWIFT interbonk The world's first Stanford The fist konks started in Persia in the 3rd Cheques are used to assist Federal onine WAP currency starts to appear trode between Credit Union Moblie Century China and Arabia is the first to Banking offer Internet appeors Teller Machine message Banking Percentage of FAST @MPANY Top Innovators 2010 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 EIndustry 5. Huawei Finance Source: OneNewsPoge.com Poll Mar 2010 6. First Solar 7. PG&E Chance of Core Banking 8. Novartis FiLife intuit Service customer loss in first vear 9. Walmart YODLEE Credit Card 73% 10. HP only Itaú SUNIBANco credit.com Current Account anle 50% Source: FastCompany Only 3 Financial Institutions appear in the top 250 companies, no Savings Account only 33% vittana Current & Savings 10% GOSIMPLIF1.COM Current, Savings, Fixed Deposit 8% Enterprise Vancity Fortune 500 banks Current, Savings, Mortgage 2% appear Source: Bank Marketing Association Retail Banking Product Innovation 4.0% Average Margin 60,000 Product Innovation Unique # of products has improved AuM, but has reduced margin and heavily commoditized 3.0% 45,000 2.0% financial services 30,000 Differentiation as a result of product is virtually impossible as a result, and service differentiation is not a high enough priority 1.0% 0% 15,000 1910 1930 1950 1970 1990 2010 Source: HSBC, Wharton Study. Econometrica Produced and designed by BANKING4TOMORROW.com Brett King, Author BANK 2.0