Blockchain has the potential to fundamentally change the banking system over the next 25 years. While banks initially adopted blockchain cautiously for efficiency gains, the technology may allow new players to disintermediate banks and reduce their market share. Blockchain implementations require consideration of business processes, legal/regulatory issues, and technology. It enables new types of transactions and economies that are not possible using traditional web technologies. Overall, blockchain poses both opportunities and threats for banks, who will need to innovate beyond efficiency to protect and grow their business in a new decentralized financial system.

1. Blockchain in Financial Services: Friend or Foe?
William Mougayar
Investor, Advisor, Board Member
Managing Partner, JM3 Capital
Author, The Business Blockchain
Founder, The Token Summit and WMX
@wmougayar
wmougayar@gmail.com
Zurich, 14 November 2018

2. Disclosures and Market Activities
• Book (10 languages)
• Token Summit
• Active blogging
• WMX Blockchain Index
• Tech Accelerators & VC
relationships
• Knowledge websites
• Strategic Advisory
• Boards & Foundations
• Startups Investments
• ICOs participation &
Advisory
• Regulatory interactions

3. ➔ Has the banking system
fundamentally changed in
the past 25 years?
© 2018 William Mougayar @wmougayar

4. Fact → At the end of 1999, only
20% of the US national banks were
offering Internet banking, although
they represented 90% of the
banking system.
© 2018 William Mougayar @wmougayar

5. In the mid-2000’s, FinTech attacked the banks,
and it was called “Un-bundling Banking” …
© 2018 William Mougayar @wmougayar
US
Source: CB Insights

6. In the mid-2000’s, FinTech attacked the banks,
and it was called “Un-bundling Banking”
© 2018 William Mougayar @wmougayar
Europe
Source: CB Insights

8. Banks are learning about the
blockchain faster than they did
with the Web, but their adoption
trends are timid and focused
more on efficiency gains, less on
true innovation potential.
© 2018 William Mougayar @wmougayar

9. © 2018 William Mougayar @wmougayar
Blockchain in Financial Services Evolution

10. Blockchain 1.0 vs. 2.0
Copying what we see
vs.
Inventing what we don’t see
© 2017 William Mougayar @wmougayar

11. OLD
NEW
NEW
OLD
NEW
NEW
COMPANIES
SCOPE
© 2018 William Mougayar @wmougayar
Segmentation of
Implementations
?
✔
1.0
2.0
B2B

12. Fact → Regulation vs. Innovation
© 2018 William Mougayar @wmougayar
UNREGULATED
ENVIRONMENTS
REGULATED
ENVIRONMENTS
i
i

13. Implementing the blockchain =
60% Business Process +
20% Legal and Regulatory +
20% Technology
© 2018 William Mougayar @wmougayar

14. 10 Things you Can Do on the Blockchain
that you Can’t on the Web
1. Send money from one person to another without traditional
intermediaries.
2. Be the sole owner of a digital good, digital collectible or a real asset’s
crypto proxy.
3. Earn money as a reward for work done (by a computer or human).
4. Be your own bank, and hold your own cryptocurrency.
5. Sell or buy something without any central co-ordinating authority.
6. Share unused computing or storage capacity and get paid for it.
7. Store content on a decentralized network that would never go down or
get censored.
8. Contribute to recording something on the blockchain.
9. Pay for a service or good using a cryptocurrency you earned.
10. Earn cryptocurrency for data you shared.

15. Selling the
Vision
Build-out
Installation
Deployment
Acceleration
Vision
Realization
2018-2020
2013-2015
2015-2016
2021+
2016-2018
2019-2021
Blockchain: The Evolution
We are here
© 2017 William Mougayar @wmougayar

16. © 2018 William Mougayar @wmougayar
Computation
Protocols
Data
Content
Storage Work
Rewards
EarningSpending
Sharing
Industry
Trade
Law
Finance
Nations
The Blockchain Economy

17. The stone age didn’t end for a
lack of stones.
© 2018 William Mougayar @wmougayar

18. ➔ Will the banking system
fundamentally change in
the next 25 years?
© 2018 William Mougayar @wmougayar

19. © 2018 William Mougayar @wmougayar
Friend Foe
Efficiency
Cost Savings
Bottom Line
New Players
Market Share
Top Line

20. THANK YOU
William Mougayar
Investor, Advisor, Board Member
Managing Partner, JM3 Capital
Author, The Business Blockchain
Founder, The Token Summit and WMX
@wmougayar
wmougayar@gmail.com
http://startupmanagement.org/blog