Funds Forum 2013 Monte Carlo - Opportunities in the digital economy

1TELSTRA DIGITAL | GERD SCHENKEL | 31 OCT 2012 |

Opportunities in the digital economyFund Forum 2013, Monte Carlo

Gerd Schenkel

2OPPORTUNITIES IN THE DIGITAL ECONOMY | GERD SCHENKEL | MAY 2013 | Source: Bloomberg

IN THE BEGINNING…

3TELSTRA DIGITAL | GERD SCHENKEL | 31 OCT 2012 |

OUR WORK & LIVES, GOING DIGITAL

Source: Go-Globe.com 2012 OPPORTUNITIES IN THE DIGITAL ECONOMY | GERD SCHENKEL | MAY 2013 | 3

4TELSTRA DIGITAL | GERD SCHENKEL | 31 OCT 2012 |

INFORMATION EXPLODING

Source: Mary Meeker OPPORTUNITIES IN THE DIGITAL ECONOMY | GERD SCHENKEL | MAY 2013 | 4

2005 2006 2007 2008 2009 2010 2011 2012 2013E 2014E 2015E0

1

2

3

4

5

6

7

8

9Digital information produced and shared, Zettabytes

x2

x2

5OPPORTUNITIES IN THE DIGITAL ECONOMY | GERD SCHENKEL | MAY 2013 |

NEW BUSINESS MODELS:

6TELSTRA DIGITAL | GERD SCHENKEL | 31 OCT 2012 |

NEW OPPORTUNITIES FOROLD BRANDS

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WE’RE ONLY AT THE BEGINNING

OPPORTUNITIES IN THE DIGITAL ECONOMY | GERD SCHENKEL | MAY 2013 |

1831

Electricity

1876

Telephone

1879

Light-bulb

1888

RadioWaves

1896

WirelessTelegraph

1974

IPProtocol

2004

Facebook

1993

Internetbrowser

1903

PoweredFlight

? ??

1998

Google

IND

US

TR

IAL

RE

VO

LUT

ION

DIG

ITA

LR

EV

OLU

TIO

N

39 years

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DIGITIZATION DEATH TRAP

OPPORTUNITIES IN THE DIGITAL ECONOMY | GERD SCHENKEL | MAY 2013 |

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UBANK: A NEW KIND OF BANK

OPPORTUNITIES IN THE DIGITAL ECONOMY | GERD SCHENKEL | MAY 2013 |

Source: AFSC Gerd Schenkel UBank Feb 2010

• Started from ground up by National Australia Bank in 2008

• Aimed at new customer segment• New brand• Selective, niche product set• Digital centric operating model

• Seemingly impossible• Legacy processes & technology• Controversial model, potential to

alienate colleagues

• Customer segment proved very valuable• High average balance (~3x)• Loyal (80%+ rollover)• Low cost to serve (90%+ digital)

• Niche targeting strategy worked• >90% of balances new to bank

• Timing was everything• GFC made retail deposits very

valuable

• Now• ~$16-17bn deposits (20% of parent)• ~$2bn mortgages

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THE FIVE MINUTE ONLINE BANK ACCOUNT

OPPORTUNITIES IN THE DIGITAL ECONOMY | GERD SCHENKEL | MAY 2013 |

Source: IT Wire 2009

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A NEW LEVEL OF ENGAGEMENT

OPPORTUNITIES IN THE DIGITAL ECONOMY | GERD SCHENKEL | MAY 2013 |

Source: AFSC Gerd Schenkel UBank Feb 2010

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HAVING FUN WITH BANKING?UBANK “TAX GANGSTA”

OPPORTUNITIES IN THE DIGITAL ECONOMY | GERD SCHENKEL | MAY 2013 |

13OPPORTUNITIES IN THE DIGITAL ECONOMY | GERD SCHENKEL | MAY 2013 |

TELSTRA IS CONNECTING WITH CUSTOMERS

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SMALL THINGS MAKE ADIFFERENCE: “USEABILITY IS KING”

15OPPORTUNITIES IN THE DIGITAL ECONOMY | GERD SCHENKEL | MAY 2013 |

GOING WHERE CUSTOMERS ARE

16OPPORTUNITIES IN THE DIGITAL ECONOMY | GERD SCHENKEL | MAY 2013 |

CUSTOMERS HELPING CUSTOMERS

17OPPORTUNITIES IN THE DIGITAL ECONOMY | GERD SCHENKEL | MAY 2013 |

MANAGED INVESTMENTS ANDADVICE ARE NOT IMMUNE

18OPPORTUNITIES IN THE DIGITAL ECONOMY | GERD SCHENKEL | MAY 2013 |

1. GET SERIOUS ABOUT YOUR WEBSITE NOW

2. BE OPEN TO LEARNING THE RULES

3. DONT SPEND TOO MUCH ON I.T. UPFRONT

4. YOU DONT NEED A “SOCIAL MARKETING STRATEGY”

(& DON’T OUTSOURCE YOUR TWITTER ACOUNT)

5. EXPECT TO FEEL LIKE YOU’RE LOSING CONTROL, BUT TRUST THAT YOU WILL GAIN IN

THE END

6. WATCH FOR COMPETITION FROM OUTSIDE YOU’RE TRADITIONAL CATEGORY

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GETTING STARTED…

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WANT TO KNOW MORE?

www.tinyurl.com/leadershipdigitaleconomy

OPPORTUNITIES IN THE DIGITAL ECONOMY | GERD SCHENKEL | MAY 2013 |