What does the future of Retail Banking look like? Is it a digital bank, a hybrid branch / mobile version, or is it a new entrant? Check out this presentation by futurist Anders Sorman-Nilsson. For more info visiti www.thinquetank.com or www.anderssorman-nilsson.com

1. The Future of Banking
by Anders Sorman-Nilsson

2. The Future of Banking
Anders Sorman-Nilsson (LLB MBA) is
the founder of Thinque - a strategy
think tank that helps executives and
leaders convert disruptive questions
into proactive, future strategies.
As an Australian-Swedish futurist
and innovation strategist he has
helped executives and leaders on 4
continents map, prepare for, and
strategise for foreseeable and
unpredictable futures.
www.thinquetank.com

3. Steady Shift Toward Digital Media
200
Digital
+ 18%
150 14
141.3 16.3 27.2 32.1
18.9 22.9
125.1
116.8 114 113.6 112.4
100
50
Analogue
0 - 4.5%
2008 2009 2010 2011 2012 2013
Analogue Print Digital Media
* US Statistical Abstract, CAGR

4. Result of Transition from a Single Channel to a Multichannel Strategy
Increased Online Sales 78
Increased Profitability 59
Increased Customer Satisfaction 52
Increased Offline Sales 36
No Impact 3
0 20 40 60 80
* Forrester Consulting, 2011

5. Perceived Branch Convenience Doesn’t Translate Into Actual Visits
2 1 2 1
10
12 15
17 19
35
35 36
36
41
29 34
26 29
23
14
19 22 20
16
8
Overall National Regional Community Credit Union
Rarely or Never 3-4 Times a Year Monthly Weekly Daily
* Chadwick Martin Bailey, February 2012, Consumer Survey

6. Utilization and Interest in Digital Banking Channels
90
83 82 80
79 79 79 78 79
67.5
68 65
45 51 51
42
22.5 31
13
0 9
Check Balance Manage Account Transfer Funds Pay a Bill Research Products Receive Account Alert Customer Support Apply for a Loan
Use Digital Channels Interest in Digital Channel
*Cisco IBSG, “Winning Strategies for Omnichannel Banking” Report, June 1012

7. Trust in Banks Has Eroded Since the Financial Meltdown
70
52.5
35
17.5
0
2007 2008 2009 2010 2011 2012
USA UK
* Edelman, Jan 2012, annual Study

8. Mobile Banking Now Vital to Customer Acquisition
19
18.2 18.3
An Increase of 63% over the last 10 Quarters 16.9
17.6
14.25
14.2
13.5
12.8
12
11.6
11.2 11
9.5
4.75
0
Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013
Percent of Consumers Selecting Mobile banking as a “must have” feature
* FindABetterBank.com, Jan 2013, Survey

9. Consumer Expect More from Mobile Banking Than They’re Getting
Notes about account updates and irregular activity 54
Making a Payment on a Loan or a Bill 51
Automatic Notifications of Low Balances 46
Transferring Money to Other Outside Accounts 44
Depositing a Check with My Mobile Device 43
Automated Bill Reminder 41
Other 17
0 15 30 45 60
* Varolli Corporation, Dec 2012

10. Consumer Expect More from Mobile Banking Than They’re Getting
Pay Bills 39%
Use Phone as ID 39%
Organise / Track Rewards 38%
Receive Offers Based on Location 38%
View Multiple Account Information 38%
Calendar to Track Spending 37%
Make Online Purchases 37%
Receive Offers Based on Buying Patterns 36%
Make In-Store Purchases 33%
Access / Control Child’s Account 27%
0 0.1 0.2 0.3 0.4
* Raddon Finanicial Group, National Online Consumer Researcg, Autum 2012

11. The Demographics of Mobile Bankers
18 - 29 43.5% 16.8% 22.4%
30 - 44 35.7% 24.7% 27%
45 - 59 14.7% 30.2% 26.9%
60 + 6.1% 28.4% 23.7%
0 0.9
Yes No Total
* US Federal Reserve, Consumer and Mobile Financial Services Report, Jul 2012

12. In-Branch 5yr Change In- 5yr Change In-
Customer Activity Direct Preference
Preference Branch Direct
Open an Account 75% 16% -11% +8%
Buy Products 65% 22% -13% +9%
Resolve an Issue 36% 49% -17% +11%
Transfer Funds 19% 60% -26% +29%
Check Balance 6% 68% -16% +28%
Research Products 16% 70% -28% +28%
* Novantas Study of Customer Activity, Jan 2011

13. Product Purchasing by Channels 2010 v 2015
Current Accounts 84% 9% 53% 43%
Savings Account 77% 16% 38% 59%
Investments 78% 11% 58% 28%
Mortgages 80% 4% 72% 10%
Consumer Finance Production 73% 12% 32% 47%
0 0.375 0.75 1.125 1.5 0 0.375 0.75 1.125 1.5
Branches Agents / Brokers
Call Centres Direct Channels * EFMA Online Survey Across 150+ Euro Banks

14. Preference for Retail Banking Products Online, by Market
7%
8%
35%
10%
Credit Card
Time Deposit
New Account 11%
Share Investment
General Insurance
ForEx 29%
Bonds, Trusts and Mutual Funds
Personal Loan
Fixed Income * HSBC and Standard Chartered Survey 2007-09

15. Top 5 Banks and Credit Unions Have Highest Mobile Penetration
70%
Percent of all Online Respondents
52.5%
40%
35% 30%
63% 61%
56%
53%
20%
41% 35%
17.5%
24% 25%
10% 20% 18%
0% 0%
Have Smart Phone or Tablet Bank via Smart Phone or Tablet
Total Top 5 Bank Regional Bank Community Bank Credit Union

16. Who is Anders?
Anders Sorman-Nilsson (LLB MBA) is the founder of Thinque - a strategy think tank that helps
executives and leaders convert disruptive questions into proactive, future strategies.
As an Australian-Swedish futurist and innovation strategist he has helped executives and
leaders on 4 continents map, prepare for, and strategise for both foreseeable and unpredictable
futures. Since founding Thinque in 2005, he has worked with and spoken to clients like Xerox,
Apple, Johnson & Johnson, Cisco, Eli Lilly, SAP, IBM, ABN Amro Bank, Commonwealth Bank,
McCann Erickson and BAE Systems, across diverse cultural and geographic contexts.
Anders is an active member of TEDGlobal (Oxford 2009 / Edinburgh 2011), has keynoted at
TEDx, guest lectured at University of Technology Sydney Business School, and Anders is on the
prestigious 2013 Million Dollar Roundtable roster. He is a member of the University of Sydney
Global Executive MBA cohort, and has completed executive education at Stanford University and
the Indian Institute of Management, Bangalore.

17. Enquire now www.anderssorman-nilsson.com

18. Testimonials
“There are those special moments when the right ideas and the right people collide to make magic. This is
one of those times. I want to say a HUGE THANK YOU for all your work to make the Senior Director
Conference both an engaging experience, and a catalyst for change.”
CMO Asia, Fortune 500, Pharmaceutical Industry
“Anders provided an engaging and energetic presentation of real and relevant information to the business
that could be used in all areas across the business both now and moving into the future.“
Head of Regional Portfolio Management Asia, Fortune 500, FMCG
“Anders' presentation style and fresh content were an excellent and inspirational start to our Summit. It
resulted in only positive feedback from the audience. Anders is very professional and a brilliant thinker and
communicator!”
Management Consultant, Fortune 1000, Banking Industry