My latest slide deck on the future of banking.

1. Chris Skinner
@FSClub
and
@Chris_Skinner
www.thefinanser.com
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2. www.thefinanser.com
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3. ©
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4. Don’t
TELL Mum
I work for
a BANK
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6. ©
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7. credit subprime
property liquidity
europe facebook
nokia iphone
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8. subprime credit
liquidity property
facebook europe
iphone nokia
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15. ©Chris
Skinner
+44
790
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chris.skinner@fsclub.co.uk

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20. Ø traders
believed
credit
risk
was
managed
and
covered,
when
it
wasn’t
Ø separated
real
world
from
simulated
models
Ø No-­‐one
had
considered
‘liquidity
risk’
Ø systems
leveraged
the
formula
to
death
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21. ©
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23. ©
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24. Reports
• Macro-­‐economic
risk
• Dodd-­‐Frank
• Basel
III
• Credit
risk
• Volcker
• CRD
• Liquidity
• Durbin
• MiFID
II
• Capital
availability
• Vickers
• PSD
II
• PoliTcal
interference
• Barnier
• SEPA
end-­‐dates
• RegulaTon
• Lagarde
• Solvency
II
• Profitability
• Geithner
• UCITS
IV
• DerivaTves
• Bernanke
• EMIR
• Corporate
governance
• King
• T2S
• Quality
of
risk
management
• Dragi
• Bribery
Act
…
…
…
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25. http://bit.ly/HgSjOZ

26. Dodd-Frank has 400 rules
286 have deadlines
Regulators missed 1 in 4
Volcker rule delayed
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28. Then
…
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31. www.thefinanser.com
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33. ©
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34. May
2012
• Facebook
is
the
worlds
largest
social
network
• Every
other
person
on
the
internet
are
users
• That’s
over
900
million
monthly
acTve
users
(up
from
680
million
a
year
ago)
and
526
million
daily
acTve
users
(up
from
372
million
last
year)
• Monthly
mobile
users
now
total
488
million
• 300
million
photos
are
uploaded
to
the
site
each
day
• 3.2
billion
Likes
and
Comments
daily
• 125
billion
friendships
are
forged
per
day
• Revenue
for
the
first
quarter
of
2012
was
$1.058
billion,
up
from
$731
last
year
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35. • 850 million users • 150 million users
• 166,890,779 user visits, February • 26,186,877 user visits, February
2012 2012
• 500 million registered / 200 million • One hour of video is loaded every
active users second
• 37,201,228 user visits, February • 147,739,093 user visits, February
2012 2012
• 90 million users • 51 million users
• 18,915,810 user visits, February • 18,255,322 user visits, February
2012 2012
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36. Mohammed Bouazizi
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37. Molly Katchpole
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40. ©
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41. Mark
Zuckerberg
(facebook)
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42. Mark
Zuckerberg
(facebook)
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43. Julian
Assange
(wikileaks)
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45. Aaron
Barr
(HB
Gary)
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48. The times, they are changing
1962
1972
1982
2012
1992
2002

49. The times, they are changing
1962
1972
1982
1992
2002
2012

50. Tim Berners-Lee (www)
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51. 2002:
Bought
by
eBay
for
$1.5
billion,
with
revenues
at
$200
million
2005:
Revenues
reach
$1
billion
2009:
transacTons
exceed
$20
billion
per
quarter
for
the
first
Tme,
and
revenues
now
$2.8
billion
2010:
>$75
billion
transacTons,
>$3
billion
revenues,
$1
billion
profit
Q4
2011
• 106
million
acTve
registered
accounts
• 190
markets
• $4.4
billion
annual
revenue
• $118
billion
transacTons,
of
which
$4
billion
was
on
mobile
(2009:
$140
million)
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52. Martin Cooper (mobile)
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53. ©
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54. Ø According
to
a
2012
survey
by
the
Gates
FoundaTon,
the
World
Bank
and
Gallup,
more
than
10%
of
adults
said
they
had
used
mobile
money
in
the
last
year;
of
the
20
countries
surveyed,
15
were
in
Africa
Ø Somalia
lacks
a
funcToning
government
but
34%
of
adults
use
mobile
money
(onen
to
receive
remioances
from
family
members
abroad)
Ø In
Kenya,
68%
of
adults
use
mobile
money
and
half
have
paper-­‐based
bank
accounts
Source:
the
Economist,
April
2012
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Skinner.
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55. • 20%
of
Kenya's
GDP
• At
peak,
200
tx/second
• KES15
billion
($180
million)
is
stored
in
M-­‐PESA
at
any
Tme
• Fraud
is
1/20th
of
Banking
• 17%
of
Safaricom's
revenue
–
more
than
text
and
data
combined
• When
launched,
2.5
million
bank
account
holders
in
Kenya;
five
years
later
there
are
over
9
million
• Safaricom
does
not
earn
interest
on
the
money
stored,
but
gives
interest
to
a
charitable
foundaTon
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56. Jack Dorsey (twitter & square)
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57. Within
a
year
of
launch,
Square
was
processing
over:
• $2
million
a
day
in
April
2011,
rising
to
over
• $3
million
a
day
by
May
2011
• $4
million
a
day
by
July
2011;
and
• $11
million
a
day
by
November
2011.
In
October
2011
they
had
750,000
merchants
rising
to
over
a
million
by
December
–
there
are
only
eight
million
card-­‐accepTng
merchants
in
the
USA
in
total.
By
March
2012,
Square
was
processing
$4
billion
a
year
in
payment
volumes,
double
the
amount
announced
in
October
2011.
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58. March 2012
April 2012
June 2012
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59. Mark Pincus (zynga)
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67. Satoshi
Nakamoto
(bitcoin)
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70. ©
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71. ©
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72. 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
Mundie
Head
of
Research
and
Strategy
Microson
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73. ©
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75. GLoSoMo
• Global
• Social
• Mobile

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79. American
Express’s
Facebook
page
has
around
13,500
crowd
sourced
stories
at
any
moment
in
Tme
(this
is
the
number
of
ac;ons
such
as
likes,
comments
and
shares
by
AMEX’s
fans).
MulTply
this
by
the
number
of
friends
each
of
these
stories
reach
(the
average
user
has
234
friends)
then
the
“poten;al”
reach
is
over
three
million
people
all
the
Tme.
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81. ©
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82. ©
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83. Personal
Financial
Management
(PFM)
• Over
25%
of
online
users
signed
up
for
stand-­‐alone
PFM
within
6
months
• Over
75%
of
new
PFM
users
use
PFM
again
within
two
weeks
• Over
25%
of
new
PFM
users
use
PFM
five
Cmes
or
more
in
the
first
month,
and
spend
more
than
double
the
Cme
in
PFM
compared
to
general
online
banking
• The
average
Cme
onsite
is
12
minutes,
with
35
pageviews
per
PFM
session
• More
than
half
of
all
PFM
users
are
sCll
acCve
a
year
aJer
signing-­‐up
• Over
80%
of
users
are
“pleased”
or
“highly
pleased”
with
PFM
• 9
out
of
10
users
say
they’d
recommend
PFM
to
others
• 66%
say
PFM
has
helped
them
see
how
they
can
improve
financially
• 41%
say
they
have
improved
financial
behaviour
aJer
starCng
to
use
PFM
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Skinner.
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84. ©
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85. ©
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86. ©
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87. ©
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89. ©
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90. ©
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91. ©
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92. Body
monitor
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93. ©
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94. ©
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95. Financial
Data
Wars
“Banking
is
just
bits
and
bytes.”
John
Reed,
CEO/Chair,
1984-­‐98
“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
Mundie,
Head
of
Research
and
Strategy,
Microson
“I
look
at
Wall
Street
as
broken,
from
the
point
of
view
of
Silicon
Valley”
Roger
McNamee,
founder
of
ElevaTon
Partners,
the
$1.9
billion
fund
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96. ©
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97. Financial Digital Actual
= CRED
Behaviour Behaviour Behaviour
Ability to be a
Ability to Ability to be Movenbank
= CRED
manage trusted advocate
money
PFM, DDA, LinkedIn, eBay,
Loans, Facebook, Movenbank
= CRED
Savings, Twitter, Prosper gamification
Investments … …
= CRED

98. ©
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99. ©
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Skinner.
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104. ©
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105. ©
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106. ©
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Skinner.
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107. Fingered
http://www.ushuaiabeachhotel.com/en/pioneers/
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rights
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108. Opus
Research
predicts
that
the
global
number
of
registered
voiceprints
will
increase
from
10
million
today
to
over
25
million
in
2015,
and
much
of
this
will
be
driven
by
the
payments
markets.
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rights
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109. ©
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110. ©
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111. ING
Café
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112. “We
don’t
hire
bankers,
because
bankers
come
in
with
their
DNA
and
they
have
their
legacy
which
won’t
fit.
Instead
we
hire
dancers,
musicians
and
arCsts.
People
who
can
deliver
a
great
and
different
experience.”
Arkani
Kuhlmann,
President
and
CEO,
ING
Direct
USA
BAI
Retail
Delivery
2008
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rights
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113. Umpqua
Bank
In 2003, Umpqua began opening banking centers whose designs employ a truly retail approach, including wall and floor visual merchandising.
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114. ©
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115. ©
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116. ©
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Skinner.
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117. ©
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118. ©
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119. ©
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120.
“…execu;ves
cross
the
Atlan;c
on
a
Virgin
plane,
listen
to
Virgin
records
and
keep
their
money
with
a
Virgin
bank
….”
-­‐-­‐
Richard
Branson,
‘The
Economist
World
in
1997’
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rights
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121. The
Top
5
Banks
in
the
World
2010
1999
1 Bank
of
America
1 CiTgroup
2 JP
Morgan
Chase
2 Bank
of
America
3 CiTgroup
3 HSBC
4 Royal
Bank
of
Scotland
4 Crédit
Agricole
5 HSBC
5 Chase
Manhaoan
Source:
The
Banker
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Skinner.
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rights
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122. BBC,
January
2012
Guardian,
July
2010

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124. ©Chris
Skinner
+44
790
586
2270
chris.skinner@fsclub.co.uk

125. ©
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126. ©
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Skinner.
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127. ©
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Skinner.
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rights
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128. Read
the
Case
Study

129. Read
the
Case
Study

131. Read
the
Case
Study

132. Read
the
Case
Study

133. ©
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Skinner.
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rights
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134. Read
the
Case
Study

135. Read
the
Case
Study

136. Fidor Bank thinks different!
Fidor Bank = GLOBAL PEER TO PEER BANKING.
§ Crowdsourcing, e. g. with a user-community, that allows peer-to-peer support, sharing of
experiences and cooperation in order to solve financial questions;
§ Crowdfunding, e. g. by getting paid by the bank for specific social interactions within Fidor Bank
Community;
§ User co-designed Products and user driven Prices, e. g. Product suggestions within the
community, „Zins-Consenus-Group“ within Fidor Bank Community, „Like-Zins“, an interest rate that is
directly connected to the amount of Likes on Fidor Bank´s Facebook profile.
§ Crowdfunding, via third party platforms such as startnext and others;
§ Peer to peer lending within FidorPay Account;
§ A global payment offer, that will allow „account to account“
payments or „account to cash pick up“.

137. Fidor Bank´s Customer „phase in“ allows efficient marketing spendings.
2011: proof of concept
€100,000 Communication Spendings since Kick off
75,000 top Line User registrations year end 2011
€1.33 Cost per Registration
6,000 full KYC Customers in avg 2011
€16.7 Cost per Full KYC Customer in avg 2011
€14.83 net income/full KYC user in 2011

138. ©
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139. ©
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Skinner.
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rights
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140. The
Bank
of
2020
Social
Mobile
Micro
Mining
Biometric
STll
a
bank
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Skinner.
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rights
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141. Banking is just data
“Informa;on
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

142. • It
took
radio
38
years
to
reach
50
million
listeners.
• Television
took
13
years
to
reach
50
million
users.
• The
internet
took
4
years
to
reach
50
million
people.
• The
iPad
reached
50
million
users
in
just
18
months.
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Skinner.
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rights
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143. www.thefinanser.com
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Skinner.
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rights
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144. Chris Skinner
@FSClub
and
@Chris_Skinner
www.thefinanser.com
©
Chris
Skinner.
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rights
reserved.