Chri kinner Chris Skinner

Chri kinnerChris Skinner

@FSClub and @Chris Skinner

@FSClub and @Chris_Skinnerwww.thefinanser.com

Sweden

Norway(Oslo)

Sweden(Stockholm)

Scotland

(Oslo)

Ireland

(Edinburgh)

England

(Dublin) Poland(Warsaw)

SlovakiaEngland(London)

Austria(Vienna)

Slovakia(Bratislava)

Banco Sabadell, Spain, pBarclays Bank, UKBitcoin, Globald kFidor Bank, Germany

First Direct, UKmBank PolandmBank, PolandMoven, USAM‐Pesa, KenyaySimple, USASWIFT, GlobalTh C Cl d Gl b lThe Currency Cloud, Global

©  Chris Skinner.  All rights reserved.

©  Chris Skinner.  All rights reserved.

Favourable market conditions have created a Favourable market conditions have created a “perfect storm” for the sector

Restricted bank liquidity Low interest ratesRestricted bank liquidity(European securitisation, €bn)

Low interest rates(average BoE Base Rate)

-70% -95%£710bn 8.6%£710bn

£240bn 0.5%

E-commerce adoption(% retail sales online)

Decreasing consumer trust(“banks are well run”)

1975-2008 2009-20132008 2012

(% retail sales online)( banks are well run )

-80% +430%91% 12%

2004 20141987 2012

19% 2.3%2004 20141987 2012

Source: AFME, Bank of England, British Social Attitudes survey, Verdict

©  Chris Skinner.  All rights reserved.

It took 13 years to get two million customers y gusing Internet banking; it took just two months to reach that number for mobile bankingto reach that number for mobile banking.   [Barclays Bank]

It took 10 years to get twenty million contactsIt took 10 years to get twenty million contacts per month through Internet banking. It took 18 months for mobile [Société Générale]months for mobile.    [Société Générale]

Bank of America spent almost $500 million on bil & i i th t 3 4mobile products & services in the past 3‐4 years

Commerzbank will invest €220 million to upgrade  mobile and online banking in the next 2 3 yearsmobile and online banking in the next 2‐3 years

HypoVereinsbank (Unicredit) will spend more than €300 million to transform into a leadingthan €300 million to transform into a leading multichannel bank by 2016

Connected Cars

©  Chris Skinner.  All rights reserved.

Connected TVs

The 21st century internet is as ytransformational as electricity

in the last centuryin the last century

The 21st century internet is as ytransformational as electricity

in the last centuryin the last century

Connecting humans to theConnecting humans to the internet is the war for business this centurybusiness this century

©  Chris Skinner.  All rights reserved.

Opus Research predicts that the global number of registered voiceprints will increase f 10 illi t 25 illi i 2015 d h f thi ill b b th

©  Chris Skinner.  All rights reserved.

from 10 million today to over 25 million in 2015, and much of this will be driven by the payments markets.

Agricultural Revolution… coins

Industrial Revolution

trol

td.c

om… notes and checks

ww

w.b

alat

Service RevolutionService Revolution… cards

Information Revolutionhi… chips

Over 80 percent of Tencent’ revenue comes from value added services that usersOver 80 percent of Tencent s revenue comes from value‐added services that users pay for using QQ coins (币, Bì) QQ’s virtual currency. Tencent introduced QQ coins in 2002, and the currency has since become the main driver of China’s virtual goods market, valued at about US$5 billion in 2009.

Mone is ust y j

datadata

FindingFinding value

in he Datain the Data

More than 2,500,000,000,000,000,000 bytes of data (2.5 exabytes) are produced every day:every day:

• People send more than 144.8 billion Email messages sent a day.• People and brands on Twitter send more than 340 million tweets a dayPeople and brands on Twitter send more than 340 million tweets a day.• People on Facebook share more than 684,000 bits of content a day.• People upload 72 hours (259,200 seconds) of new video to YouTube a minute.• Consumers spend $272,000 on Web shopping a day.Consumers spend $272,000 on Web shopping a day.• Google receives over 2 million search queries a minute.• Apple receives around 47,000 app downloads a minute.• Brands receive more than 34,000 Facebook ‘likes’ a minute.,• Tumblr blog owners publish 27,000 new posts a minute.• Instagram photographers share 3,600 new photos a minute.• Flickr photographers upload 3,125 new photos a minute.• People perform over 2,000 Foursquare check‐ins a minute.• Individuals and organizations launch 571 new websites a minute.• WordPress bloggers publish close to 350 new blog posts a minute.• The Mobile Web receives 217 new participants a minute.

The entire works of William Shakespeare (i(in text form) 

= 5 MB of data= 5 MB of data

= 500 billion Works of Shakespeare a day

25 exabytes Valuable

SECURE

CRITICAL

WORTHWHILE

IMPORTANT

RUBBISH

WORTHWHILE200 zetabytes Erroneous

25 exabytes

SECURE

CRITICAL

WORTHWHILE

IMPORTANT

RUBBISH

WORTHWHILE  Erroneous

Who will know myWho will know my usernames and passwords?

Who will be able to use my facebook, twitter linkedin andtwitter, linkedin and email accounts?

Who will haveWho will have access to my eBay, PayPal, Bank and trading accounts?g

Who will know about my online life assurance policies, investments and pensions?

©  Chris Skinner.  All rights reserved.

©  Chris Skinner.  All rights reserved.

©  Chris Skinner.  All rights reserved.

©  Chris Skinner.  All rights reserved.

©  Chris Skinner.  All rights reserved.

People

Process TechnologyProcess Technology

Cloud computing is the next stage in the Internet's evolution providing the meansInternet s evolution, providing the means 

through which all your computing needs can be delivered wherever and whenever you need it, y ,on demand, and paid for just what you use.

A (API) ifi h f iAn Application Programming Interface (API) specifies how software should interact with each other.  A company provides an API so that other software developers can design products that are powered by its service.

Visa analysed two years of customer records, or 73 billion transactions amounting to 36 terabytes of data, in 13 minutes when processing time would have taken a month usingwould have taken a month using traditional methods.

©  Chris Skinner.  All rights reserved.

Segmentat

Distributing

Prodion

Capabcessing

D

eten

cies

Chucts

bilities

ring

Proc

Compe

annels

Man

ufactur

Visa analysed two years of customer records, or 73 billion transactions amounting to 36 terabytes of data, in 13 minutes when processing time would have taken a month usingwould have taken a month using traditional methods.

Retail Banking

Private Banking

Commercial Banking

Private Banking

Transaction Banking

Investment Banking

Insurance

Retail Banking

Private Banking

Commercial Banking

Private Banking

Transaction Banking

Investment Banking

Insurance

Launch of x.commerce API Launch of x.commerce APILaunch of mobile API Launch of mobile API

Average Facebook user has 235 friends2 000 Likes = 470 000 Views2,000 Likes = 470,000 Views

Average cost to gain a registration:    €1.33Average cost to gain a fully KYC processed customer: €16.70Average cost to gain a fully KYC processed customer: €16.70

©  Chris Skinner.  All rights reserved.

• “I think Chris has added tremendously to the conversation with this book and I highly 

d ”recommend it.” • Brett King, author of Bank 2.0 and founder 

of Moven

• “This is an up‐to‐the‐minute look at h h ll b k f hthe challenges banks face as the information age goes into overdrive ”overdrive.  

• Michael Mainelli, Emeritus Gresham Professor of Commerce at Gresham C ll L dCollege, London

©  Chris Skinner.  All rights reserved.