branches are dead, the future is social

©Chris Skinner +44 790 586 2270 [email protected]

BRANCHES ARE DEAD

the future is social


Population of Earth: 6,676,120,288 Internet Users, Q2 2008: 1,463,632,361Internet Users, Q4 2000: 360,985,492Mobile Users, Q2 2008: 3, 352,237,974

1969 1979

1989 1999

1959

2009

The times, they are changing

1969 1979

1989 1999

1959

The times, they are changing

2009

May 2009: 742m people worldwide access a social networking website

Facebook from 100 to 200 million users in less than eight months350 million+ users today

March 2009: YouTube reaches 100m monthly viewers

Twitter yearly growth rate: 1382%


Banking is Different

• It’s Mashed Up

• It’s P2P

• It’s Social

• It’s Hybrid

• It’s Mobile

• It’s Mine

• It’s All About Data

• It’s Real-Time

• It’s Free

Agenda


EvErything is EvErywhErE

Chris Skinner, www.thefinanser.com


EvErything is changing

fastChris Skinner, www.thefinanser.com


2002: Bought by eBay for $1.5 billion, with revenues at $200 million

2005: Revenues reach $1 billion

2008:

• Purchases made outside eBay > on eBay

• PayPal provides 28.2% of eBay revenue, up from 24.8% a year before.

2009:

Q1 revenues $645 million, up 11% YOY; Q2 $669 million, up 11% YOY; Q3 $688 million, up 15% YOY

Q4 2009: $796 million, up 28% YOY and transactions exceed $20 billion for first time

Q4 2008: 70 million active users, an increase of 23% year-over-year.

Q3 2009: 78 million, up 19% YOY

2009: Mobile transactions up from $24 million in 2008 to $140 million

2010: >$75 billion transactions, >$3 billion revenues, $1 billion profit


Microtransactions are the future


EvErything is virtual



EvErything is mobilE


©Chris Skinner +44 790 586 2270 [email protected]://thefinanser.co.uk/fsclub/2009/01/mobile-payment-provider-infuriates-banks.html

M-PESAHow it works

Source: Olga Morawczynksi, CGAP, 2009

©Chris Skinner +44 790 586 2270 [email protected]://thefinanser.co.uk/fsclub/2009/03/jibun-bank-the-mobile-only-bank.html


EvErything is an app



http://thefinanser.co.uk/fsclub/2008/07/bbva-the-first.html


https://www.wonga.com/HomePage.aspx�

http://www.chi-x.com/default.asp�


EvErything is data



Data is the greatest raw material of business, on a par with capital and labour.

“What we are seeing is the ability to have economies form around the data and that, to me, is the big change at a societal and even macroeconomic level.” Craig MundieHead of Research and Strategy Microsoft


Visa crunched through two years of customer records, or 73 billion transactions amounting to 36 terabytes of data, in 13 minutes by using clouds, compared to a month with traditional methods


“Information about money has become almost as important as money itself .”Walter Wriston, CEO/Chair, 1967-1984

“Banking is just bits and bytes.”John Reed, CEO/Chair, 1984-1998


EvErything is fast



1.0 second (s)

0.01 (a hundredth) centisecond (cs) 0.001 (a thousandth) millisecond (ms) 0.000 001 (a millionth) microsecond (µs) 0.000 000 001 (a billionth) nanosecond (ns) 0.000 000 000 001 (a trillionth) picosecond (ps) 0.000 000 000 000 001 femtosecond (fs) 0.000 000 000 000 000 001 attosecond (as) 0.000 000 000 000 000 000 001 zeptosecond (zs)0.000 000 000 000 000 000 000 001 yoctosecond (ys)

How fast do you go?


EvErything is frEE



1975


2000


Today


2000

53

Mailing10,000 peopleTwice weekly

Brochures10,000+

Annual update

Meetings40 UK

8 Ireland6 CEE

Newsletter1,000 people daily

Text only WebsiteNon-interactiveCustom-build

$150,000

$100,000

$100,000

$300,000

$150,000

$800,000


Mailing10,000 peopleTwice weekly

Brochures10,000+

Annual update

Meetings40 UK

8 Ireland6 CEE

Newsletter1,000 people daily

Multimedia WebsiteNon-interactiveCustom-build

$150,000

$149

$10,000

Free

Gone

Today

Free


Banking is Different

• It’s Mashed Up

• It’s P2P

• It’s Social

• It’s Hybrid

• It’s Mobile

• It’s Mine

• It’s All About Data

• It’s Real-Time

• It’s Free

Agenda


• Banking is now Mashed-Up in Real-Time

• A Mobile, Social Revolution = Mobile, Social Banking

• Specifically, because it’s Mobile, it’s 24*7 and Ubiquitous

• The Economics is Different

• Branches are less Worthwhile

• Much of Banking is Commoditized and Free

• New Revenue Models, including Banking Sponsored By ...

• New Partner Models, with Hybrid Banks

Summary


Really Useful Stuff• http://thefinanser.co.uk/fsclub/2009/04/a-directory-of-social-finance.html

Payments• http://thefinanser.co.uk/fsclub/payments/

Mobile Finance• http://thefinanser.co.uk/fsclub/mobile/

Social Finance• http://thefinanser.co.uk/fsclub/social_networking/

SEPA and the Payment Services Directive• http://thefinanser.co.uk/fsclub/sepa/

The Financial Services Club• http://www.fsclub.co.uk/

Further Reading

http://thefinanser.co.uk/fsclub/2009/04/a-directory-of-social-finance.html�

http://thefinanser.co.uk/fsclub/payments/�

http://thefinanser.co.uk/fsclub/mobile/�


http://thefinanser.co.uk/fsclub/social_networking/�

http://thefinanser.co.uk/fsclub/sepa/�




Chris Skinner

www.fsclub.netwww.thefinanser.com

www.shapingtomorrow.com

branches are dead, the future is social

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