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Market DisruptionMarket Disruption
InspirationInspiration
InstigationInstigation
InnovationInnovation
Transformation
THE POWER OF TOGETHER
MAGIC MAGIC SHOWSHOW
From Burgers…From Burgers…
Innovation got me pressInnovation got me press• 3 patents3 patents• Chaired the innovation team for Chaired the innovation team for
McDonald’sMcDonald’s• Involved in every innovation with Involved in every innovation with
McDonald’s in the last 10 years McDonald’s in the last 10 years • The mentality had to changeThe mentality had to change
Press got me in “The World is Flat”Press got me in “The World is Flat”• NYT, WSJ, AP, Bloomberg, USA TodayNYT, WSJ, AP, Bloomberg, USA Today
THE POWER OF TOGETHER
To BankersTo Bankers
Lead to America’s FamilyLead to America’s Family• Necessity is the mother of inventionNecessity is the mother of invention
Fortune off the backs of themFortune off the backs of them
Employer based modelEmployer based model• Tremendous tractionTremendous traction
Sticky surface is CAPITALIZATIONSticky surface is CAPITALIZATION
To the Working PoorTo the Working Poor
9 reasons9 reasons
9 reasons9 reasons
1-5 – kids1-5 – kids
6. Pancakes for dinner 6. Pancakes for dinner
7. Fortune on the backs of them7. Fortune on the backs of them
8. Nothing American about working 8. Nothing American about working hard and being poor hard and being poor
#9#9
"This same road has opened for all "This same road has opened for all Americans a new era of progress and Americans a new era of progress and hope. It has led to a new civil rights hope. It has led to a new civil rights bill, and it will, I am convinced, be bill, and it will, I am convinced, be widened and lengthened into a widened and lengthened into a superhighway of justice as Negro and superhighway of justice as Negro and White men in increasing numbers White men in increasing numbers create alliances to overcome their create alliances to overcome their common problems. common problems.
THE POWER OF TOGETHER
American dream scorecard 1970-American dream scorecard 1970-2003 2003
PovertyPoverty / child poverty / child poverty / dist of wealth / dist of wealth
Average net assetsAverage net assets / / readiness for readiness for retirement /retirement /econ. econ. mobility mobility
grad rates / grad rates / achievement test achievement test scores scores
college matriculation college matriculation compared to others compared to others
college completion by college completion by income income
health ins/ 2 parent health ins/ 2 parent families / asthma / families / asthma / obesity obesity
parent in prison and parent in prison and violent crimeviolent crime
ANYONE happy with ANYONE happy with this progressthis progress
THE POWER OF TOGETHER
How toHow to
Harness innovation, technology and Harness innovation, technology and entrepreneurial spirit toentrepreneurial spirit to
InspireInspire InstigateInstigate InnovateInnovate And ultimately GRADUALLY And ultimately GRADUALLY
Transform the nationTransform the nation
THE POWER OF TOGETHER
4X more expensive 4X more expensive to be poorto be poor
8.7% of all US families (slightly 8.7% of all US families (slightly less than 10 million families) less than 10 million families)
do not have a checking or do not have a checking or savings accountsavings account
THE POWER OF TOGETHER
Payday CostsPayday Costs Current CostsCurrent Costs Yearly (24 Pay Yearly (24 Pay
Periods)Periods) Cab FareCab Fare $54.00$54.00 (Could get a (Could get a
ride)ride) Lunch for KidsLunch for Kids $10.20$10.20 (Without (Without
feeding the kids)feeding the kids) Check CashingCheck Cashing $20.25$20.25 $486.00 $486.00
Money OrdersMoney Orders $3.95$3.95 $94.80 $94.80 Money WireMoney Wire $16.99$16.99 $407.76 $407.76 P/U Money WireP/U Money Wire $25.00$25.00 $600.00 $600.00
Total Yearly Cost: Total Yearly Cost: $3,129 total$3,129 total $1558 in fees$1558 in fees AND She spent THE ENTIRE DAYAND She spent THE ENTIRE DAY
THE POWER OF TOGETHER
The steps to transformationThe steps to transformation
Inspiration
Instigation
Innovation
THE POWER OF TOGETHER
Disruptive InnovationDisruptive InnovationClay ChristensenClay Christensen
Introduce a New value Proposition Introduce a New value Proposition • New Market (Kodak Camera / Xerox / E-bay)New Market (Kodak Camera / Xerox / E-bay)
Key – Bring Consumption to Non consumersKey – Bring Consumption to Non consumers• Bring banking to the un-banked Bring banking to the un-banked
This new model will use these principlesThis new model will use these principles
THE POWER OF TOGETHER
LEVERING THE MARKETPLACELEVERING THE MARKETPLACE
Inspiration Inspiration
InstigationInstigation
InnovationInnovation
THE POWER OF TOGETHER
McPlasticMcPlasticAn example 15 years in the makingAn example 15 years in the making
THE POWER OF TOGETHER
Explosive TransformationExplosive TransformationCredit and debit small ticket growth
0
10
20
30
40
50
60
70
1 2 3 4 5 6
Year
In B
illi
on
s
1997 1999 2001 2003 2005 2006
Transformation ThruTransformation ThruInnovationInnovation
EZ BankEZ Bank
THE POWER OF TOGETHER
EZ BankEZ Bank
InspirationInspiration• No one wants the unbanked - ClayNo one wants the unbanked - Clay• MLK Nobel Peace Speech – Anybody happy?MLK Nobel Peace Speech – Anybody happy?
Instigation – what’s out thereInstigation – what’s out there• Companies with employeesCompanies with employees• Cash – DepositsCash – Deposits• AFAF• TechnologyTechnology
Innovation – EZ BankInnovation – EZ Bank
THE POWER OF TOGETHER
CompaniesCompanies
McDonald’sMcDonald’s• AUV – $2.1mm per AUV – $2.1mm per
locationlocation• 14,000 US Locations14,000 US Locations• All A real estateAll A real estate• Over 650,000 hourly Over 650,000 hourly
staffstaff• $86,661,157 average $86,661,157 average
DAILY DepositDAILY Deposit• No need for a local No need for a local
BankBank
WalMartWalMart• AUV - $97 millionAUV - $97 million• 3,189 US locations3,189 US locations• Not A real estateNot A real estate• Over 1.5 million hourly Over 1.5 million hourly
staff staff • $852,157,000 average $852,157,000 average
DAILY depositDAILY deposit• No need for a local No need for a local
BankBank
THE POWER OF TOGETHER
Why not use these deposits for a day?
TechnologyTechnology
Similar to V-Com Similar to V-Com
in 7-11 stores – in 7-11 stores – fees a fraction of the fees a fraction of the costcost
Entry level bankEntry level bank NO BANKING PARADIGMNO BANKING PARADIGM Located where they areLocated where they are Scalable costScalable cost
THE POWER OF TOGETHER
Bridging the Gap Bridging the Gap
THE POWER OF TOGETHER
Long-term EZ Bank ModelLong-term EZ Bank Model
AMFAM manages the relationship AMFAM manages the relationship between the employer and the bankbetween the employer and the bank
AMFAM helps the employees with AMFAM helps the employees with counseling, loan programs, and other counseling, loan programs, and other AACTSAACTS
Once the employee becomes Once the employee becomes “bankable” we help transition the “bankable” we help transition the employee to a traditional local employee to a traditional local banking partnerbanking partner
THE POWER OF TOGETHER
Payday After EZ BankPayday After EZ Bank
Gas for VehicleGas for Vehicle $5.00$5.00 Kiosk FeeKiosk Fee $1.50$1.50 BillsBills $2.50$2.50 Overseas Transfer $1.50Overseas Transfer $1.50 $10.50 x 24 Pay Periods = $250 $10.50 x 24 Pay Periods = $250 Fees = $130Fees = $130 (A difference of up to $2,999 (A difference of up to $2,999
annually)annually)
THE POWER OF TOGETHER
AAdvocacydvocacyPartner to SuccessPartner to Success
Hard Work - Education - Relationships
THE POWER OF TOGETHER
AAssociationssociationConnect to SuccessConnect to Success
Hard Work - Education - Relationships
THE POWER OF TOGETHER
CCapitalizationapitalizationAccess to SuccessAccess to Success
Hard Work - Education - Relationships
THE POWER OF TOGETHER
TTransportationransportationTransport to SuccessTransport to Success
Hard Work - Education - Relationships
THE POWER OF TOGETHER
SScholarshipcholarshipTeach to SuccessTeach to Success
Hard Work - Education - Relationships
THE POWER OF TOGETHER
Why AMFAM worksWhy AMFAM works
THE POWER OF TOGETHER
Back to the beginningBack to the beginning
Questions?Questions?
THE POWER OF TOGETHER
Content PlusContent Plus
Website – i3cms.com / Theboxyougot.comWebsite – i3cms.com / Theboxyougot.com Steve Bigari – “The Box You Got”Steve Bigari – “The Box You Got”
• Theboxyougot.comTheboxyougot.com Clayton M. Christensen – “Seeing What’s Next”Clayton M. Christensen – “Seeing What’s Next” Thomas L Friedman – “The World is Flat”Thomas L Friedman – “The World is Flat”
• FootnotesFootnotes ETA 2005 Annual Meeting and Expo. (Mar 05) Fast Food Solutions on a Fast Track: ETA 2005 Annual Meeting and Expo. (Mar 05) Fast Food Solutions on a Fast Track:
An Industry Update on QSR. By Gary Holmes (Sr VP First Data Bank) and An Industry Update on QSR. By Gary Holmes (Sr VP First Data Bank) and Paul Bazylak (VP of Merchant Relations, Visa USA)Paul Bazylak (VP of Merchant Relations, Visa USA) Visa Takes Bite Out of Small Ticket Payments (Sep 06). By Dori Busell and Emily Visa Takes Bite Out of Small Ticket Payments (Sep 06). By Dori Busell and Emily
Collins, Visa USACollins, Visa USA 2004 Survey of Consumer Finances2004 Survey of Consumer Finances www.mcdonalds.comwww.mcdonalds.com www.walmart.comwww.walmart.com