Keynote de Ron Shevlin en Next Bank Madrid 2013
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The document discusses emerging competitive dynamics in retail banking, emphasizing the shift towards neochecking products and mobile shopping as new interaction points. It highlights how consumer feedback and performance metrics are evolving within banking services. The analysis predicts a significant change in banking operations, including pricing strategies and revenue sources.
Keynote de Ron Shevlin en Next Bank Madrid 2013
- 1. © Copyright 2013 Aite Group, LLC 1 @rshevlin The Future of Retail Banking Ron Shevlin Senior Analyst Next Bank Madrid June 2013
- 2. © Copyright 2013 Aite Group, LLC 2 @rshevlin “We’re one Bad Axe Bank.” Bad Axe Bank “If you want to get rich, there’s Little Hope for you.” Bank of Little Hope “UBS. So we BS. It’s only fair.” UBS
- 3. © Copyright 2013 Aite Group, LLC 3 @rshevlin
- 4. © Copyright 2013 Aite Group, LLC 4 @rshevlin
- 5. © Copyright 2013 Aite Group, LLC 5 @rshevlin Theme A new competitive dynamic in retail banking is emerging
- 6. © Copyright 2013 Aite Group, LLC 6 @rshevlin Agenda • What’s driving change? • What is the future of retail banking? • What does this mean for banks?
- 7. © Copyright 2013 Aite Group, LLC 7 @rshevlin -‐2% 3% 8% 13% 18% 1994 1996 1998 2000 2002 2004 2006 2008 2010 Source: Federal Reserve Bank US bank return on equity
- 8. © Copyright 2013 Aite Group, LLC 8 @rshevlin Spanish bank ROE Source: European Banking Federation 2007 1.1% 2011 0.2%
- 9. © Copyright 2013 Aite Group, LLC 9 @rshevlin Non-interest income % of assets Source: “The Impact of Strengthened Basel III Banking Regulation on Lending Spreads,” Chun, Kim, Ko 2007 1.0% 2011 0.4% Sample=670 banks in 16 developed countries, including 25 Spanish banks
- 10. © Copyright 2013 Aite Group, LLC 10 @rshevlin The future of retail banking
- 11. © Copyright 2013 Aite Group, LLC 11 @rshevlin
- 12. © Copyright 2013 Aite Group, LLC 12 @rshevlin The future of retail banking • NeoChecking: The new type of product • Mobile shopping: The new points of interaction • Performance: The new competitive dynamic
- 13. © Copyright 2013 Aite Group, LLC 13 @rshevlin The growth of prepaid Source: MasterCard
- 14. © Copyright 2013 Aite Group, LLC 14 @rshevlin The Debanked Mainstream consumers who willingly opt out of the traditional banking system
- 15. © Copyright 2013 Aite Group, LLC 15 @rshevlin NeoChecking accounts • Mobile-first design
- 16. © Copyright 2013 Aite Group, LLC 16 @rshevlin
- 17. © Copyright 2013 Aite Group, LLC 17 @rshevlin
- 18. © Copyright 2013 Aite Group, LLC 18 @rshevlin NeoChecking accounts • Mobile-first design • Point-of-decision input/feedback
- 19. © Copyright 2013 Aite Group, LLC 19 @rshevlin Digital receipt provides real-time feedback to consumers on their purchase along with contextual transaction insights. Spend tracking tracks how fast consumers spend month-to-date compared to historical spending patterns.
- 20. © Copyright 2013 Aite Group, LLC 20 @rshevlin NeoChecking accounts • Mobile-first design • Point-of-decision input/feedback • Dynamic account structure
- 21. © Copyright 2013 Aite Group, LLC 21 @rshevlin
- 22. © Copyright 2013 Aite Group, LLC 22 @rshevlin The new points of interaction
- 23. © Copyright 2013 Aite Group, LLC 23 @rshevlin
- 24. © Copyright 2013 Aite Group, LLC 24 @rshevlin JIMMY CHOO $400 Can I afford it? How should I pay? Can I get an offer? What did others pay?
- 25. © Copyright 2013 Aite Group, LLC 25 @rshevlin
- 26. © Copyright 2013 Aite Group, LLC 26 @rshevlin
- 27. © Copyright 2013 Aite Group, LLC 27 @rshevlin
- 28. © Copyright 2013 Aite Group, LLC 28 @rshevlin The new point of interaction PurchaseIdentification of need Old point of interaction New point of interaction Google’s point of interaction
- 29. © Copyright 2013 Aite Group, LLC 29 @rshevlin Theme A new competitive dynamic in retail banking is emerging
- 30. © Copyright 2013 Aite Group, LLC 30 @rshevlin Performance: New competitive dynamic 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2025 Location Rates Performance
- 31. © Copyright 2013 Aite Group, LLC 31 @rshevlin • Monthly fees Costs Benefits • Penalties • Service fees • Interest earned • Rewards redeemed • Savings generated TBO: Total Benefits of Ownership
- 32. © Copyright 2013 Aite Group, LLC 32 @rshevlin
- 33. © Copyright 2013 Aite Group, LLC 33 @rshevlin The performance hierarchy Oversight Insight Foresight • Where did it go? • How did I do? • What should I do? • What do I have? PFM
- 34. © Copyright 2013 Aite Group, LLC 34 @rshevlin Theme A new competitive dynamic in retail banking is emerging
- 35. © Copyright 2013 Aite Group, LLC 35 @rshevlin What it means • Branches – Low (not high) transaction automation • Pricing – Alignment of price and value • Revenue – Googlification of sources
- 36. © Copyright 2013 Aite Group, LLC 36 @rshevlin The future of retail banking • NeoChecking: The new type of product • Mobile shopping: The new points of interaction • Performance: The new competitive dynamic
- 37. © Copyright 2013 Aite Group, LLC 37 @rshevlin “The secret to crea,ng strong rela,onships is honesty and fair dealing.” “If you can fake those, you have it made.” — Groucho Marx
- 38. © Copyright 2013 Aite Group, LLC 38 @rshevlin Aite: Partner, Counterpart Aite Group (eye-tay) is an independent research and advisory firm focused on business, technology and regulatory issues and their impact on the financial services industry. Ron Shevlin rshevlin@aitegroup.com www.aitegroup.com Twitter: @rshevlin Blog: Snarketing2dot0.com