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Market Disruption Market Disruption Inspiration Inspiration Instigation Instigation Innovation Innovation Transformati on THE POWER OF TOGETHER

Market Disruption

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Transformation. Market Disruption. Inspiration Instigation Innovation. THE POWER OF TOGETHER. MAGIC SHOW. From Burgers…. Innovation got me press 3 patents Chaired the innovation team for McDonald’s Involved in every innovation with McDonald’s in the last 10 years - PowerPoint PPT Presentation

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Page 1: Market Disruption

Market DisruptionMarket Disruption

InspirationInspiration

InstigationInstigation

InnovationInnovation

Transformation

THE POWER OF TOGETHER

Page 2: Market Disruption

MAGIC MAGIC SHOWSHOW

Page 3: Market Disruption

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

Page 4: Market Disruption

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

Page 5: Market Disruption

To the Working PoorTo the Working Poor

9 reasons9 reasons

Page 6: Market Disruption

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

Page 7: Market Disruption

#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

Page 8: Market Disruption

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

Page 9: Market Disruption

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

Page 10: Market Disruption

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

Page 11: Market Disruption

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

Page 12: Market Disruption

The steps to transformationThe steps to transformation

Inspiration

Instigation

Innovation

THE POWER OF TOGETHER

Page 13: Market Disruption

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

Page 14: Market Disruption

LEVERING THE MARKETPLACELEVERING THE MARKETPLACE

Inspiration Inspiration

InstigationInstigation

InnovationInnovation

THE POWER OF TOGETHER

Page 15: Market Disruption

McPlasticMcPlasticAn example 15 years in the makingAn example 15 years in the making

THE POWER OF TOGETHER

Page 16: Market Disruption

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

Page 17: Market Disruption

Transformation ThruTransformation ThruInnovationInnovation

EZ BankEZ Bank

THE POWER OF TOGETHER

Page 18: Market Disruption

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

Page 19: Market Disruption

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?

Page 20: Market Disruption

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

Page 21: Market Disruption

Bridging the Gap Bridging the Gap

THE POWER OF TOGETHER

Page 22: Market Disruption

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

Page 23: Market Disruption

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

Page 24: Market Disruption

AAdvocacydvocacyPartner to SuccessPartner to Success

Hard Work - Education - Relationships

THE POWER OF TOGETHER

Page 25: Market Disruption

AAssociationssociationConnect to SuccessConnect to Success

Hard Work - Education - Relationships

THE POWER OF TOGETHER

Page 26: Market Disruption

CCapitalizationapitalizationAccess to SuccessAccess to Success

Hard Work - Education - Relationships

THE POWER OF TOGETHER

Page 27: Market Disruption

TTransportationransportationTransport to SuccessTransport to Success

Hard Work - Education - Relationships

THE POWER OF TOGETHER

Page 28: Market Disruption

SScholarshipcholarshipTeach to SuccessTeach to Success

Hard Work - Education - Relationships

THE POWER OF TOGETHER

Page 29: Market Disruption

Why AMFAM worksWhy AMFAM works

THE POWER OF TOGETHER

Page 30: Market Disruption

Back to the beginningBack to the beginning

Page 31: Market Disruption

Questions?Questions?

THE POWER OF TOGETHER

Page 32: Market Disruption

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