A short presentation on the trends currently impacting banking, and a vision for what a data-driven bank-client relationship would look like (slides 49-56). Originally presented at Bilan's Digital banking event on April 29th in Geneva, Switzerland. Feedback on @laurenthaug or laurent@anthemis.com

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Digital banking trends
2014 Laurent Haug
29 Avril 2014

2. © Laurent Haug 2014
About me:
Venture partner @ Anthemis
Entrepreneur (200ideas, Lift, coComment)
Consultant, advisor, speaker
Swiss correspondent @ Wired UK
Lecturer @ HEC Lausanne
Columnist @ Bilan
@laurenthaug
hello@laurenthaug.com
+41786966480
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Digital banking trends
Mobile
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Yesterday ---> Today
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7. Jack Welch
Change before you have to.
Société Générale told a banking conference in June
that it took 10 years to get 20 million contacts per
month through Internet banking but only 18
months for the bank to do the same via mobile.
www.informilo.com/20130916/rebooting-banking-21st-century-868

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60% of Smartphone Users Consider Dropping Bank That Doesn't Offer Mobile
No longer is mobile banking a fun parlor trick
offered by the big banks, in fact AlixPartners said
that approximately 60% smartphone users would
consider leaving their financial institution if mobile
services were not offered.

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Digital banking trends
Data
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Loan officers are among the most susceptible
professions to be replaced [98% probability].
Inroads are already being made by Daric Inc.,
an online peer-to-peer lender which begun in
November, it doesn’t employ a single loan
officer. It probably never will.

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Yesterday ---> Today
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Digital banking trends
Transparency
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Yesterday ---> Today
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Yesterday ---> Today
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Yesterday ---> Today
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Yesterday ---> Today
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Digital banking trends
Bank as a platform
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Yesterday ---> Today
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Actual funds [Simple] customers deposit and
withdraw are handled by partners CBW Bank and
Bancorp, providing FDIC reassurance to customers

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Digital banking trends
Simplification
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Quote Lorem Ipsum
Source
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Quote Lorem Ipsum
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Digital banking trends
Commoditization of banking
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Quote Lorem Ipsum
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Yesterday ---> Today
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Digital banking trends
New competitors
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Intrasurance is a small company that
manages one million insurance contracts
with a team of 30 people. Everything is
digital. No phone contact. Incidents are
managed in a completely automatic way.

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Digital banking trends
New assets
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Mobile
Data
Transparency
Bank as a platform
Simplification
Commoditization
New competitors
New assets
/ Digital banking trends
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Can Silicon Valley
replace banks?
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Jamie Dimon, CEO, JP Morgan
When I go to Silicon Valley…they all want to eat
our lunch. Every single one of them is going to try,

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Bill Gates
We need banking but we
don't need banks anymore.

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The advantages of Silicon Valley
Access and simplicity
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WeChat leaps into banking, lets users set up online investment fund
WeChat has just joined China’s personal finance
race, adding a “wealth” section where users can
store their savings in a new monetary fund straight
from their smartphone.

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High-Interest Web Banks on the Rise in China
Last June, an affiliate of the Chinese e-commerce
giant Alibaba made an offer to its hundreds of
millions of users: give us your cash, and we will pay
more than Chinese banks will. […]
The fund now has $40 billion in assets under
management, making it the country’s biggest
money market fund.

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The advantages of Silicon Valley
Data, data, data…
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What if bankers were reacting to client’s
facebook feeds?
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Yesterday ---> Today
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Going to London next week, any recommendation for a good
restaurant close to the Paddington station?

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Going to London next week, any recommendation for a good
restaurant close to the Paddington station?
BANKER ACTIONS
- Client introduction
- Marketing event invitation
- Activity recommendation
- Fidelity program reminder
- Money exchange

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Going to London next week, any recommendation for a good
restaurant close to the Paddington station?
BANKER ACTION - Client introduction
Clients in London:
John Smith, CEO
Pat Summeral, Investor
John Madden, VC
INTRO
INTRO
INTRO

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Going to London next week, any recommendation for a good
restaurant close to the Paddington station?
Introduce John Doe to Pat Summeral
Dear John,
I see you are going to London next week. Let me suggest you meet
with my friend Pat cced on this message. Pat is an investor active
in biotech just like you, and someone you should meet.
Best regards
Laurent SEND

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Going to London next week, any recommendation for a good
restaurant close to the Paddington station?
BANKER ACTION - Marketing event invitation
Events next week:
World Press Awards Expo
F1 grand prix
INVITE
INVITE

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John Doe just bought 1000 NYT @ 16.34$

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John Doe’s portfolio is unbalanced (too much US stocks
exposure).
BANKER ACTIONS
- Suggest trade to rebalance portfolio
- Send NYT earnings report event invitation
John Doe just bought 1000 NYT @ 16.34$

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John Doe likes Audi.
BANKER ACTIONS
- Propose car leasing
- Send address of partner Audi reseller
- Add “Automobiles” to client’s interest in CRM system

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Can Silicon Valley replace banks?
Silicon Valley has access, simplicity and data
Banks will either acquire these, or will have
to buy them - at a high price - from Silicon
Valley.
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An industry that let silicon valley eat its lunch

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Marc Giget, Club de Paris des directeurs d’innovation
“No candle-maker has become a bulb
manufacturer, no carriage-maker has
become a car producer, and the post
office did not invent the email”

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A few certainties to prepare the future of
banks
- Follow clients where they are (mobile, social networks)
- Simplification & transparency
- Data-driven banking
- Choose your fight (platform vs high value-added service)
- Invest now!
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