1. Opportunities for Entrepreneurs in Financial Services What’s On The Horizon? And Where Are the Entrepreneurial Opportunities? A hypothetical conversation about opportunities for the entrepreneur in the banking sector.

2. What Does the Macro Banking Environment Look Like In The Next Five Years Or So? Equities Perform “OK” -- In high single digits. Recessions more frequent – closer to historical norms. Healthcare, Energy and IT are economic drivers. The dollar becomes less “the standard.” Interest rates rise steadily – to inflation concern from deflation. “Protectionist” trends increase trade conflict. (Outsourcing) World growth comes from emerging markets. China continues its ascendancy. Economists will continue to predict the obvious and miss the actual. Will predict nine of the next six recessions. Henry H. Doss, EIR, T2VC 2

3. So What? Henry H. Doss, EIR, T2VC 3 Banking is the second largest market, behind government. It is open to innovative development, but oftentimes a bit opaque. Here are a few potential “strategic implications” for the entrepreneur, that we might derive from the macro view. There are hundreds of different strategic lenses through which opportunities could be viewed. This is just one.

4. The Financial Services ConsumerMight Be Looking For . . . Henry H. Doss, EIR, T2VC 4 Information: Support decision making and planning. Competitive products: Feature, Price, “Novelty” Personalized: Everything Control: Security, Access, Customization My Way: And My When, My How, My Device. Ease of access: Fast, Faster, Fastest Everything “linked”: Banking, Social Media, Payment, Etc .

5. The Financial Services Company Might Focus On . . . Henry H. Doss, EIR, T2VC 5 Cost control: ROI; Profitability Impact; Etc Fixed Cost: Outsourcing; near sourcing. Profitability: “Performing relationships.” Efficiency: Everywhere Marketing Edge: Insight, Data, Targeting. Differentiation. ROI on Tech Investment: Mysterious. Compliance: More and More “Tech-Driven.” Maybe.

6. Some “Areas To Watch” --Or --“A Blinding Glimpse of The Obvious” Mobile Apps Not Just Mobile Channel But, Specifically, Mobile Apps (iPhone 5 = “iWallet”) Outsourcing (Or, Nearsourcing, Closer to Home?) PFM (Personal Financial Management) Think “Mint” Think “Big Picture” for Individual Think Aggregation Payments Social Media A big puzzle for banks Social Media/CRM “Merger” The Cloud – Of Course Internal External Data Analysis, Insight, and “Real” Data Mining Collaboration Tools, Internal and For Customers Henry H. Doss, EIR, T2VC 6

7. So, Where To Focus Banking – Like All Business – Will Be In A State of Flux Bankers Are Often Second Adopters . . . Or Third . . . Or . . . But . . . Efficiency and Cost Issues Will “Push” Innovative Technologies Tactical Risk Appetite May Increase Strategic Competitive Advantage Will Sell Henry H. Doss, EIR, T2VC 7 As a working hypothesis, assume three primary technology areas of emphasis for development/entrepreneurial opportunity spaces:

8. Henry H. Doss, EIR, T2VC 8

9. Mobile Mobile Products Will “Rule” “Mobile App Stores” Within Bank Hierarchy Multiple choices, across multiple devices, across multiple platforms. Security The Device “Is” The Bank Henry H. Doss, EIR, T2VC 9 In a sense, mobile banking is the fulfillment of “branchless banking” . . . Or at least it could be. As devices and apps become more ubiquitous and more complete in offerings, the device and the app become the portal for building relationships . . . Which has enormous implications for . . .

10. Data Analysis Data Mining Has Lagged In Effective Deployment The Technology Has Always (Nearly) Been Ahead of the Strategy Issue Was “What Can We Know” vs “How Can We Use Insight” Analytics More “Market Issue” Than Technical Target Marketing/Messaging Retention/Attrition Product Development/Pricing Understand Customer Across Multiple Inputs (Financial/Social) Henry H. Doss, EIR, T2VC 10 Data mining (in banking) has been “under-delivered” for many years. This has largely been driven by poor strategy, rather than poor technology. User interfaces and platforms that can drive effective use of insight technologies could be significant . . . Which has enormous implications for . . .

11. The Cloud PaaS -- Platform DaaS -- Database SaaS – Software Cost Allocation/Tracking Scalability, Elasticity Switch from Tactical To Strategic Focus In IT Henry H. Doss, EIR, T2VC 11 As much as anything, the growth of cloud computing seems certain, in spite of security concerns and occasional reliability issues. (Amazon.)

12. Henry H. Doss, EIR, T2VC 12 So, how can entrepreneurs find the best “opportunities” to develop technology (and other) solutions for the banking sector? Said differently, how can the entrepreneur focus strategic thinking to develop and evaluate entry into the banking world?

13. Look for Opportunities . . . Henry H. Doss, EIR, T2VC 13 . . . That leverage data analysis and insight, on mobile platforms via mobile applications, residing in the cloud.

14. Henry H. Doss, EIR, T2VC 14 Play Here!

15. Henry H. Doss, EIR, T2VC 15 Discussion

16. Thank You! Henry H. Doss, EIR, T2VC 16 Henry H. Doss, Executive-in-Residence henry@t2vc.com henrydoss@mac.com 1+ 336 489 0053 Once-upon-a-time retired, former banker, oftentimes rock guitarist/composer, sort-of data geek, serial “attempter” at multiple adventures, master meeting/conversation facilitator, won-some/lost-some, been there/done that, community leader/volunteer, idea-generator.