Upload
mvull
View
216
Download
0
Embed Size (px)
Citation preview
7/26/2019 Miklos+Dietz+-+Bank+of+the+Future_LendIt+presentation+vFinal
http://slidepdf.com/reader/full/miklosdietz-bankofthefuturelenditpresentationvfinal 1/14
WORKING DRAFT
Last Modified 4/1/2016 5:10 PM Central Europe Standard Time
Printed
Bank of the FutureDiscussion on the latestbanking and digital trendsand their implications
April 11-12, 2016
7/26/2019 Miklos+Dietz+-+Bank+of+the+Future_LendIt+presentation+vFinal
http://slidepdf.com/reader/full/miklosdietz-bankofthefuturelenditpresentationvfinal 2/14
McKinsey & Company 2|SOURCE: McKinsey
In the next decade, we will see the emergence of a unified mobile
ecosystem of 24 trn, most of the world's customers
B a n k i n g
D
a t a c om p ani e s
DATA
COMPANIESData
Customer ownership
Talent pool
Difficult to monetize
Limited emotionalconnection withcustomers
TELCO
Owns the channel
No emotionalconnection withcustomers
BANKING
Data
Trust
Regulation
Slow reaction
RETAIL
Data on customers’buying habits andspending
Lack of dailycustomer contact
7/26/2019 Miklos+Dietz+-+Bank+of+the+Future_LendIt+presentation+vFinal
http://slidepdf.com/reader/full/miklosdietz-bankofthefuturelenditpresentationvfinal 3/14
McKinsey & Company 3|SOURCE: McKinsey
Primarilyfront end
Full
Primarilyback end
Value
chain
Niche player
Narrow spectrum
Typical broad
banking spectrum
Offering
Broader than banking
Ecosystemorchestrator
White-labelback-officeoperator
In the new ecosystem banks will have to fundamentally rethink their
business model and they have three strategic options to go after
Fully digitizeduniversal bank
ILLUSTRATIVE
7/26/2019 Miklos+Dietz+-+Bank+of+the+Future_LendIt+presentation+vFinal
http://slidepdf.com/reader/full/miklosdietz-bankofthefuturelenditpresentationvfinal 4/14McKinsey & Company 4|
An option is to become an ecosystem owner bank ILLUSTRATIVE
SOURCE: McKinsey
Niche player Ecosystemorchestrator
White-labelback-officeoperator
Fully digitizeduniversal bank
7/26/2019 Miklos+Dietz+-+Bank+of+the+Future_LendIt+presentation+vFinal
http://slidepdf.com/reader/full/miklosdietz-bankofthefuturelenditpresentationvfinal 5/14McKinsey & Company 5|
An option is to become an ecosystem owner bank ILLUSTRATIVE
SOURCE: McKinsey Panorama
7/26/2019 Miklos+Dietz+-+Bank+of+the+Future_LendIt+presentation+vFinal
http://slidepdf.com/reader/full/miklosdietz-bankofthefuturelenditpresentationvfinal 6/14McKinsey & Company 6|
Banks need to proactively follow innovative ideas from inside and outside
banking, including ideas from thousands of FinTech startups
SOURCE: McKinsey Panorama
Retail
Institutional
RETAIL ASSET
GATHERING
C/A
B2C
PAYMENTS
LENDING
CAPITAL
MARKETSAND AM
CASHMANAGEMENT
LENDING
B2BPAYMENTS
SELF-LEARNINGEFFICIENT
OPERATIONS
E2E
PROCESSES
INNOVATIVE
ORGANIZATIONAND CULTURE
DISTRIBUTION
MARKETING
DIGITIZED ADMINAND SUPPORT
NEXT GENERATIONRISK AND PRICING
2-SPEED IT
CUSTOMER
SERVICE
7/26/2019 Miklos+Dietz+-+Bank+of+the+Future_LendIt+presentation+vFinal
http://slidepdf.com/reader/full/miklosdietz-bankofthefuturelenditpresentationvfinal 7/14McKinsey & Company 7|
RETAIL ASSET
GATHERING
C/A
B2C
PAYMENTS SELF-LEARNING
EFFICIENT
OPERATIONS
E2EPROCESSES LENDING
INNOVATIVE
ORGANIZATION
ANDCULTURE
DISTRIBUTION
MARKETING
CAPITAL
MARKETS
ANDAM
DIGITIZEDADMIN
ANDSUPPORT
NEXTGENERATION
RISKANDPRICING
CASH
MANAGEMENT
LENDING
2-SPEEDIT
B2B
PAYMENTS
CUSTOMER
SERVICE
Banks need to proactively follow innovative ideas from inside and outside
banking, including ideas from thousands of FinTech startups
SOURCE: McKinsey Panorama
ILLUSTRATIVE
OUTSOURCED/
SAAS SERVICES
CRYPTO-CURRENCY
MARKETING AND LOYALTY
SOLUTIONS FOR SMEs
E-COMMERCE /
E-TRAILER
DIGITAL PRODUCT
AND IN-APP PURCHASES
ADVERTISEMENTS
AND DISCOUNTS
SOCIALIZING FINANCE AND
USER GENERATED CONTENT
GAMBLING
AND GAMING
INNOVATIVE LENDING
PLATFORMS
P2P AND CROWDSOURCING)
PERSONAL FINANCIAL
MANAGEMENT
BIG DATA DRIVEN
SCORING AND LENDING
NEXT GENERATION
INSURANCE
CLOUD BASED
SERVICES
B2B SERVICE
PROVIDING
FINANCIAL
MANAGEMENT
AND LENDING
Link LikeLove
E2E SERVICE IN
SELECTED VERTICALS
REINVENTED
REMITTANCE
CROWD INVESTMENT
AND ADVISORY
NEXT
GENERATION
PAYMENTS
P2P PAYMENTS
FINANCIAL
INCLUSION
7/26/2019 Miklos+Dietz+-+Bank+of+the+Future_LendIt+presentation+vFinal
http://slidepdf.com/reader/full/miklosdietz-bankofthefuturelenditpresentationvfinal 8/14
McKinsey & Company 8|
Digital players in China are at the forefront of creating such ecosystems
by expanding their core capabilities
SOURCE: McKinsey
e-Commerce
Online
search
Social
media
Ad
union
IM
payment
Security
Financialservices
Entertainment
Smart devices
O2O
ads
Yu’e Bao: AuM
$93+ billion
Sesame Credit: credit score for
300+ million
Alipay:
800+ millionNumber of registered accounts
Ant Micro Loans: SME loans
$12+ billion
WeBank: Total loan credit line for
SMEs: $300+ million
WeChat: Social and mobile wallet app with
650+ million monthly active users
7/26/2019 Miklos+Dietz+-+Bank+of+the+Future_LendIt+presentation+vFinal
http://slidepdf.com/reader/full/miklosdietz-bankofthefuturelenditpresentationvfinal 9/14
McKinsey & Company 9|
Several core elements of the new business model are visible
across the value chain, but it’s not easy for banks to adapt
SOURCE: McKinsey
Control the retail value chain
One-stop Shop for Corporates
Robo-advisory
Emerging post-trade services in CMIB
Self-learning e-operations
Big data-based real-time risk management
Augmented reality-based servicing
Fully personalized and automated customer servicing
7/26/2019 Miklos+Dietz+-+Bank+of+the+Future_LendIt+presentation+vFinal
http://slidepdf.com/reader/full/miklosdietz-bankofthefuturelenditpresentationvfinal 10/14
McKinsey & Company 10|
Fintechs have six markers of success which make them easy to achieve
this transformation, well ahead of banks
SOURCE: McKinsey
Advantaged modes of customer acquisition
Fintech attackers need to find ways to attract customers cost-effectively, e.g. via partnerships anddistribution agreements, an alternative way payments POS attacker Poynt is increasing its scale
Step-function reduction in the cost to serve
The erosion of the advantages of physical distribution make this a distinctive marker for the disruptiveFinTech attackers, e.g. FinTech lenders have up to 400 bps cost advantage over banks
Innovative uses of data
Big Data and advanced analytics allow Fintechs to experiment with new credit scoring approaches
and to understand customer needs or “next best actions”, e.g. by leveraging social media data
Segment specific propositions
Successful Fintech attackers will cherry pick from banking products and excel only in that segment,e.g. Wealthfront targets fee-averse Millenials who favor automated service over human advisors
Leveraging existing infrastructure
Fintech attackers embrace “co-opetition” and find ways to engage with existing ecosystem of banks,
e.g. Lending Club’s credit supplier is Web Bank, PayPal’s merchant acquirer is Wells Fargo
Managing risk and regulatory stakeholders
Regulation is a key swing factor in how Fintech disruption could play out as once these attackersreach scale they will attract more regulatory attention and the ones lacking the required capabilitiescould easily fail
1
2
3
4
5
6
7/26/2019 Miklos+Dietz+-+Bank+of+the+Future_LendIt+presentation+vFinal
http://slidepdf.com/reader/full/miklosdietz-bankofthefuturelenditpresentationvfinal 11/14
McKinsey & Company 11|
Financial attackers can choose from three different strategic directions
SOURCE: McKinsey
Compete with
and disruptthe banks
Disintermediate the customer
ownership of banks
Cooperate
and partnerwith banks
5-10
20-30
60-75
%Share offintechs
1 3
2
7/26/2019 Miklos+Dietz+-+Bank+of+the+Future_LendIt+presentation+vFinal
http://slidepdf.com/reader/full/miklosdietz-bankofthefuturelenditpresentationvfinal 12/14
McKinsey & Company 12|
True transformation and innovation in banking can only be achieved
through banks partnering with Fintechs along three pillars
Customer acquisition and retention – banks bring large,established customer bases, while non-banks give accessto ‘sticky’ and innovative products to increase involvement
Regulatory and risk management – banking players havesophisticated practices, which non-banks will likely needgoing forward entering the financial services option space
Refining and scaling new tech – collaboration providesan opportunity to pressure test innovations and expand tonew markets or demographics
NOT EXHAUSTIVE
SOURCE: McKinsey
7/26/2019 Miklos+Dietz+-+Bank+of+the+Future_LendIt+presentation+vFinal
http://slidepdf.com/reader/full/miklosdietz-bankofthefuturelenditpresentationvfinal 13/14
McKinsey & Company 13|
Partnerships between start-ups and banks take many different forms
SOURCE: McKinsey
Degree of
affiliation
High
Low Access to technology – e.g., PayPal Sandboxallowing developers to test PayPal applicationcomponents; Metro Bank agreement to use Zopa’s
P2P platform to expand lending services to its clients
Investment in products – e.g., Santander agreementto purchase up to 25% of Lending Club’s totalorigination for 3 years
Alliances – e.g., Santander and Funding Circlepartnership agreement to transfer leads of loans thatSantander is not able to finance
Funding – e.g., Credit Suisse led $165 M Series D
financing for Prosper based on a $1.9 B valuation
Acquisition – e.g., BBVA purchase of Simple andHolvi
7/26/2019 Miklos+Dietz+-+Bank+of+the+Future_LendIt+presentation+vFinal
http://slidepdf.com/reader/full/miklosdietz-bankofthefuturelenditpresentationvfinal 14/14
McKinsey & Company 14|
2015 global net profits by industry, USD trillion
Bankingand asset
management
1.3
Printing &publishing
0.1
The financial industry has a much larger profit pool than recently disrupted industries
This business transformation heralds the largest industry transformation
in history and provides a great opportunity for innovation
SOURCE: World Industry Service
1 Excluding motor vehicles 2 Transmission of sound, images, data or other information via cables, broadcasting, relay or satellite
Communi-
cations2
0.5
Retail sector1
0.7