It’s a WWWorld...Lessons and insights from SXSW 2010

(with a slight financial institution bias)

One of the largest digital conferences in the world.

Featuring... 14251 people & 1100+ events

2010 event attended by a delegation of 25 South African’s representing the local internet industry and business.

The attraction of SXSW?

Highest Quality content in the digital industry...

Gary Veynerchuk(WineLibrary.TV)

Evan Williams (CEO of Twitter)Danah Boyd

(Microsoft Research WorldWide)

Ze Frank(The Web’s Picasso)

Clay Shirky(Social Economist, NYU)

Guy Kawasaki(Author, VC)

Texas or Bust!

The home of big cups and strange politics...

Where restaurants have recovery guides and toilets have timers...

Recovery guides are a good idea...

Recovery guides are a good idea...

The Taco’s were hotter than they looked...

And where the city’s slogan is: Keep Austin Weird!

It’s a little off centre...

SA delegation of 25 people, including 1 panel on www.crowdfund.co.za

The 2010 State of the Internet.

Our overall impression?

Unless you really hit the righttime / right place...

Unless you really hit the right time / right place...

There are only 3 ways to make serious money on the Internet.

Gambling. Porn. Banking

Exploring SXSW...

Location Based Services / Marketing

Real Time Everything

Engagement – cutting through the BS

Banking and the Internet

Culture vs Strategy

Location Based Services / Marketing

10 million mobile internet usersmeans...

Location based services might just be the next big thing.

http://www.thegrid.co.za/

Breakfast.Courtesy...

Travel / Tourism Experience The Marketing Possibilities...

Success!

Why so much oversharing?

Grannies, CD’s and Wikipedia vs Brittanica

Oversharing is creating and killing entire industries...

Oversharing does raise issues...

http://pleaserobme.com/

But ignoring that for the moment...

Location Services raise fulfilment to critical status.

Location. What does it mean for a financial institution?

Find an ATM near me...

Voucher: Come into the Sandtonbranch now and get free Online

Banking training...

Head to Makro and “you’ll save” R2000 on the SamSung LCD TV with

your Platinum Credit Card.

Etc.

Real Time Everything

Everything is going “real time”.

This is changing the way we present...

FNB experienced this recently:)

https://www.fnb.co.za/promotions/PayPal.html

So did Julius...

And Mr Visagie...

And it’s changing the way we interact with data...

http://twitterfall.com/

Did you know? Google is now indexing Tweets.

http://twitter.com/

Now. With real time data, we’re also starting to see different methods of

data visualisation

http://pepsicozeitgeist.com/

http://pepsicozeitgeist.com/

http://www.wefeelfine.org

http://now.sprint.com/nownetwork/

Now imagine real time visualisationin a financial context...

Number of customers busy with a sales application...

Number of transactions per second on Online Banking...

Total social media mentions(happy / sad) of FNB per hour...

Number of online purchases using an FNB product per hour...

Real time information also causes its own set of problems.

Customer: If data is real time, why isn’t service?

Social Media & Engagement. (Cutting through the BS)

What cultural effects are we witnessing in the social space?

Don’t be fooled by “social media gurus”!

It’s easy. Unless you’re being targetted.

http://www.youtube.com/watch?v=tPgQsv2KPwc

Why is social media so hard?

Because real relationships require that you give up control.

** Cover your ears if you don’t like foul language **

http://www.youtube.com/watch?v=BEYjvifUdeM

And now onto the tricky part of the social equation...

Engagement as it applies to a business.

The first problem of engagement is understanding what the hell

engagement means?

Gary: Caring. Don’t talk to sell. Talk to understand.

Wikipedia: Meaningful brand experience at a contact point.

We’ll look at some global trends for the answers...

Trend #1The Democratisation of Influence

Trend #2Attention has become the major

currency in attracting customers to content / products

Trend #3Social Media is driving the wrong

kind of behaviour.

Trend #4Social Media doesn’t scale.

And so the big question becomes...

What is the difference between engagement and service?

Where could we / should we play?

Servicing:

Engaging:

Oh. And...

More importantly...What do customers want?

Banking and the Internet

The difference between banksand web companies?

Web companies have MILLIONSof active users.

Banks have MILLIONS of payingcustomers!

So banks aren’t going anywhere.

But will need to be aware that the major competition will be around

the customer interaction layer.

Major trends to watch out for.Internet vs Banking.

TREND #1Social Saving & Goal Based Financial

Management

http://www.smartypig.com/

Demand?SmartyPig.com has $350 million in

actual deposits.

TREND #2Peer advice

http://www.sharechat.co.za/

http://www.peopleandpicks.com/

http://www.socialpicks.com/

http://www.howcanwehelpyou.co.za

TREND #3Lending clubs

http://www.lendingclub.com

http://www.lendingclub.com

Demand?LendingClub.com has $1 billion

dollars in requested loans.

TREND #4Transparency / Education /

Empowerment around credit history

http://www.creditkarma.com/

As South Africans, we get 1 free credit check per year from ITC.

How many people know this?

TREND #5Personal financial management

http://www.mint.com/

http://www.mint.com/

Demand?Mint.com has 2.5 million users

TREND #6Anonymous aggregation and

benchmarking of financial data

An easy example...

Using aggregate data to encourage participation.

http://www.linkedin.com

Why can’t we use this for CIS profile updates?

Did you know? 365 customers updated their profiles in the last 48 hours. Click here to update yours!

Why can’t we use this for benchmarking and adding value to

customers?

Example:People in your income group have

an average debt of...

Example:People in your neighbourhood have

home repayments of...

Example:People in your age group invest an

average of...

Banks have this data.Don’t they?

Aggregate data and benchmarkingopens the door for using incentives as a process mechanism instead of

an initial attraction strategy.

Back to web intermediaries...

When asked, “What was the biggest surprise in building intermediary

financial businesses?”...

The CEO’s answered...

Extremely low marketing spend.

Word of mouth brought in the business.

Huge benefit gained by includingcustomers in the product

development process (using social media).

What was the gap that these intermediaries saw?

Banks don’t proactively inform customers when things change (eg.

Spend patterns).

Build our businesses around pro-active communication.

Banks know everything about their customers, but they don’t leverage

it to add value.

Build intelligence. Leverage that intelligence with pro-active value /

information.

The risk?

If we don’t fight for the customer relationship we could end up

becoming a commoditised transaction factory.

Culture vs Strategy

http://www.trendhunter.com/

Culture eats strategy for breakfast.

Why?

Social trends give context to messaging and products.

So as we end off...

I’d like YOU to think of how you’re shaping your products, services and

messages to take advantage of culture.

http://www.youtube.com/watch?v=goMoO3DLDNw

</end>

Full coverage, thoughts, opinions and more available on:

http://www.andyhadfield.com/search/label/SXSW%20South%20Africa

www.twitter.com/andyhadfieldwww.twitter.com/lynettekloppers

http://www.sxsw.comhttp://www.youtube.com/user/sxsw

http://www.amazon.com/Engage-Complete-Businesses-Cultivate-Measure/dp/0470571098/ref=ntt_at_ep_dpi_1

http://www.amazon.com/Crush-Time-Cash-Your-Passion/dp/0061914177/ref=sr_1_1?ie=UTF8&s=books&qid=1270036477&sr=1-1