The Fidor Bank Story - Banking with friends

Frank Schwab, CEO

ABTEC

April 2014

Financial crisis 2009

Lost of trust in banks Tr

ust

100

0

2004 2014

Bahrain, Feb 2011

Source: Wikimedia Commons

New York, USA, October 2011

Source: Wikimedia Commons

Frankfurt, Germany, October 2011

Source: Wikimedia Commons

Number of US banks

Source: FDIC

1990 2011 2000

16,000

8,000

Number of German banks

Source: Deutsche Bundesbank

1990 2011 2000 0

2,000

4,500

Source: Deutsche Bundesbank

1995 2011 2003

Number of German bank branches

0

40,000

70,000

There is a need to change the relationship

between customer and banks

Disruptive innovation

Wikipedia

is an innovation that helps create a new market

If I had asked people what they wanted, they would have said faster horses.

“The future is always here - it’s just not evenly distributed yet.”

William Gibson, Fiction Novelist

Digital Natives

Soci

al s

tatu

s

Orientation

High

Low

Internet distant unsettled

27%

Internet Layman 12%    

Responsible established 10%

Skeptic

10%

Carefree

Hedonist 12%

Efficiency Oriented Performer

14%

Digital Sovereign 15%

Source: Sinus 2011

Outsiders

Traditional Modern

Immigrants Natives

Digital lifestyle

And banking?

Trust

Loan

s

Tran

sfor

mat

ion

Inve

stm

ents

Pay

men

ts

Customer

Trust

Loan

s

Tran

sfor

mat

ion

Inve

stm

ents

Pay

men

ts

Customer

Banking with friends

Community

Transparency

Sharing

Rate bank advisors

Rate products

Raise & answer questions

Get money for

250,000

CpC < 20 €

Trust

Loan

s

Tran

sfor

mat

ion

Inve

stm

ents

Pay

men

ts

Customer

Emergency money

Peer to peer loan via SMAVA

Trust

Loan

s

Tran

sfor

mat

ion

Inve

stm

ents

Pay

men

ts

Customer

Trust

Loan

s

Tran

sfor

mat

ion

Inve

stm

ents

Pay

men

ts

Customer

Email

Twitter

Mobile number

Real time

And next?

Context

Banking Next

Do you want to buy a new B&O TV set? We can help you.

18 €

53 € 17 €

Source: Google

Technology?

The need for new Banking IT Platforms

Google

Apple

IT Intensity

IT cost per user

200

Tier 1/2 Bank Google

3,4

Facebook

3,8

eBay

7,4

[in USD p.a.]

# Web APIs

2000 2005 2014

>10,000

0

programmable web

There are already 451 financial APIs

CBS Country 1

Community Payments Account

Fron

t End

Web / Mobile

Product- Features

Core- Module/s FidorOS CORE

Interface to Core Banking

Country-specific Core Banking System

LAYERS

CBS Country 2 CBS Country n

Mid

dle

War

e B

ack

End

RE

STf

ul A

PIs

Fidor Operating System (fOS) is API based, modular, future-proof and free of legacy

Technology

HTML5 / Native iOS, Android

Ruby/ Ruby on Rails/ MySQL

MQ Series

CBS specific

Bonus Third party

Third party apps / in account apps

General Admin

Cor

e

Activities

Security

Fidor OS

Transaction

Authorisation

Customer

Booking

...

FidorOS on top of local CBS

Fidor TecS AG

The FUTURE is NOW!

„The Fidor Smart Account kills the

traditional bank account, like the

smartphone killed the mobile phone“.

Matthias Kröner, CEO Fidor Bank Group

Schwab@Fidor.de