THE FUTURE IS HERE - KPMG “Blockchains could greatly reduce the time, cost, and risk of many...
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THE FUTURE IS HERE
Transcript of THE FUTURE IS HERE - KPMG “Blockchains could greatly reduce the time, cost, and risk of many...
THE FUTURE IS HERE
THE FUTURE OF BANKING
AGENDA 1. Introduction
2. How we work
3. Macro-trends
4. Trends
5. Springboards
INTRODUCTION
ANY [email protected] / @JAMESWALLMAN
HOW WE FORECAST
William Gibson
“The future is already here, it’s just not very evenly distributed.”
HOW WE FORECAST
1. Understand the macro-trends
HOW WE FORECAST
1. Understand the macro-trends
2. Investigate the innovation
HOW WE FORECAST
1. Understand the macro-trends
2. Investigate the innovation
3. Use Diffusion of Innovations curve
HOW WE FORECAST
1. Understand the macro-trends
2. Investigate the innovation
3. Use Diffusion of Innovations curve
STORY OF THE SALAD
In 2002-3, McDonald’s shares fell 56%
First quarterly loss since 1954
Then, McDonalds pushed healthy eating
Next, 36 consecutive months of sales growth
The learning: salads sell burgers and fries
THE FUTURE OF BANKING
Challenger Banking report, Burnmark
“The perfectly timed external forces coming from demographic, social, economic and regulatory phenomena have contributed to
arguably the biggest revolution in the banking world in centuries”.
Bill Gates
“Banking is necessary. Banks are not.”
MACRO-TRENDS
PLANET OF THE PHONES • iPhone launched 2007
• 7.6bn people on Earth, 5.5bn over 14
• 5bn mobile phones, 3bn smartphones
• 700m iPhones, 1.8bn Google Androids, 500m Chinese Androids
Source: Benedict Evans, partner, a16z
TECHNOLOGICAL TIMES
• AI & ML
• AR & VR
• IoT
• Blockchain
Vtime is the VR social network, with more than 0.5m downloads
EVOLUTION OF CAPITALISM
• From scarcity to abundance
• From mass produced to mass customised
• Experientialism
• Sharing economy
• The platform modelMalibu Dream Airsteam on Airbnb
HERE COMES EVERYBODY
Competition can come from anywhere today.
• GAAFA entering financial services
Dyson will invest £2bn and release an EV in 2020
WHAT BARRIERS TO ENTRY?
• New EU and UK regulations is reducing barriers to entry.
• In the UK, Open Banking…
• In the EU, PSD2…
• Banks now have to open up their data via APIs so that other financial services firms can access client data
ACCELERATING CHANGE “The pace of
technological change [is] making heads
spin”. The Economist
TRENDS
FINTECH EXPLODING
Money is pouring into fintech firms.
• £524m in the UK
• £3.6bn in California
• £1.4bn in New York Source: Burnmark
OPEN BANKING Smart banks are embracing open API banking.
• Saxo Bank opened up their APIs in 2015, so that partners, customers, and fintechs can create new ways of optimizing their trading experiences
• solarisBank wants to enable “n-to-n relationships between all parties”
HERE COMES EVERYBODY
• Challenger banks
• N26
• Monzo
• Neo-banks
• Moven
• Holvi
• Non-banks
Valentin Stalf, CEO & co-founder, Number26
“We try to reimagine how a bank should work and we tried to build something that is like using Uber or Spotify or any of these
apps you love to use.”
Brett King, CEO, Moven
“[Millennials] think of banking like they do apps: ‘What’s the best app or product or service to solve this problem I have right now — whether that’s paying off a student loan or
buying a new car or buying a home or getting insurance?’ They’re starting to cherry-pick these services.”
BORDERLESS BUSINESS
In our connected world, borders are less important.
• BBVA’s Holvi
• Transferwise’s new “borderless account”
GAAFA FINANCE • 1/5 Europeans would
use financial products from Google, Facebook, and Amazon
• Google and Facebook let users send money to friends by email
Source: Fujitsu
Starling Bank is available via Google Home
NON-BANKS The long-tail of financial services.
• Monese
• Metromile
• Myloo
NON-BANKS The long-tail of financial services.
• Monese
• Metromile
• Myloo
FREE-CONOMIC BANKING
The long-tail of financial services.
• Revolut: zero-fee foreign money card
• Robinhood: free tracking and trading
Chris Anderson’s book heralded a new price.
A.I.F.A.s Artificial intelligence financial advisors make managing money easy.
“An independent, universal banking app for my generation and anyone else who wants to make their money work harder for them.” Ed Maslaveckas, founder, Bud
A.I.F.A.s • Bud
• Pocketbook
• Tink
• YOLT
• Mint
NEXT GENERATION
A.I.F.A.s A new band of fintech startups is actively advising its users.
• FutureAdvisor
• Moola
• BettermentIn Her, Theodore Twombly’s AI is
talking to 841 other people, and is in love with 641 other people.
BLOCKCHAIN BANKING
“Blockchains could greatly reduce the time, cost, and risk of many transactions… every aspect of banking… three business areas with the highest benefits [are] reference data, retail payments and consumer lending.” IBM & The Economist Intelligence Unit (EIU)
SPRINGBOARDS
HOW MIGHT WE…CREATE NEXT GENERATION UX?
HOW MIGHT WE…DEVELOP NEXT GENERATION A.I.F.A.s?
HOW MIGHT WE…DISRUPT OUR OWN BUSINESS?
THE FUTURE OF BANKING
THE FUTURE IS [email protected] / @JAMESWALLMAN
