How can we rethink banking?

How can we rethink

banking?

Question # 1

What is the purpose?

Main purpose of banks

1. Keep money safe for customers.2. Offer customers interest on deposits, helping to protect against money

losing value against inflation.3. Lend money to firms, customers and homebuyers.4. Offer financial advice and related financial services such as insurance.

http://www.economicshelp.org/blog/glossary/banks/http://www.sparknotes.com/economics/macro/banking/section1.rhtml

One of the purposes of the fintech revolution is

financial inclusion – providing financial services to the underbanked segments in both mature and emerging markets.

https://hernaes.wordpress.com/2015/08/30/the-end-of-irans-nuclear-winter-in-financial-services/

Amalgamated Bank is committed to strengthening the communities in which we do business.

https://www.amalgamatedbank.com/community-impact

HSBC helps people fulfil their hopes and dreams and realise their ambitions.

http://www.hsbc.com/about-hsbc/our-purpose

Further inspiration

http://www.slideshare.net/frankcalberg/what-is-the-company-purpose

Question # 2

How can banks help people to trust?

Trust is essential in enticing consumers to first try and then adopt a new technology, especially when the technology is linked to their monetary decisions and financial security.

http://dupress.com/articles/mpayments-mobile-POS-system-in-retail/

Transparency in the reporting of

financial and non-financial information is fundamental in creating trust.

http://www.transparency.org/whatwedo/publication/incentivising_integrity_in_banks

Research shows that the most robust reason why people would lose trust in banks relates to large bonuses.

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2373084

Fixing the culture will require creating a compensation system that better aligns or balances shareholders’ interests and the broader society’s interests with the individual’s interests.

http://www.bloomberg.com/news/2010-11-08/morgan-stanley-s-gorman-says-hero-culture-needs-to-change-to-limit-risks.html

Mr. James Gorman

CEO, Morgan Stanley

A Community Bank branch is a locally owned and operated company which functions as a franchise of Bendigo and Adelaide Bank. Usually around 300-500 local shareholders own the franchise company under their own shareholder one-vote constitution.

Our biggest challenge was an internal one: None of our people had ever contemplated

our customers as being formal partners in our business.

Robert Johanson,

Chairman.

http://sharedvalue.org/groups/bank-helps-local-communities-%E2%80%93-profitably

Only by truly caring about the customer’s interests can you build up a trustful relationship.

Research shows that working directly with money may undermine those benevolence-driven actions and decisions.

https://hbr.org/2015/03/why-our-trust-in-banks-hasnt-been-restored

http://novemberlearning.com/an-interview-with-michael-wesch-part-2-of-3/

At HSBC, empathy is the most important skill.

What percentage of leaders in the financial institution, you work for or are a customer at, are men / women?

http://time.com/3851826/financial-reform/

Further inspiration

http://www.slideshare.net/frankcalberg/trust-50508257http://www.slideshare.net/frankcalberg/questions-to-discover-your-valueshttp://www.slideshare.net/frankcalberg/how-are-people-paid-for-what-they-dohttp://www.slideshare.net/frankcalberg/differences-between-women-and-men

Question # 3

How can banksuse social media to

communicate more openly?

Among the digital opportunities for European

banks are integration with social media.

http://www.mckinsey.com/Insights/Business_Technology/The_rise_of_the_digital_bank

Banks’ web 2.0 communication gap

http://www.strategyand.pwc.com/media/uploads/Strategyand-Web-2.0-Banking.pdf

Il est essentiel de garder à l'esprit que les réseaux sociaux sont avant tout une connexion entre personnes.

http://www.economiematin.fr/news-reseau-social-banque-presence-internet-visibilite

People, who work for banks, could write blogs - enabling discussions of specific economic developments, new services, or the latest research of interest to target customers.

http://www.strategy-business.com/article/11202?pg=all

Sourceshttps://www.blogger.com/https://www.facebook.com/https://www.linkedin.com/https://medium.com/https://wordpress.com/

Further inspiration

http://www.slideshare.net/frankcalberg/11-advantages-of-using-a-blog-for-teaching

Question # 4

How can banks involvemore external people?

A key challenge for senior managers in banks will be sensitively reallocating the savings from automation

to the talent needed to forge digital businesses.

http://www.mckinsey.com/insights/strategy/strategic_principles_for_competing_in_the_digital_age

Banks increasingly realize that to succeed with digital,they must adopt the habits and culture of digitally native companies.

Examples Opening up the banks’ application programming interfaces. Pursuing agile development. Hosting hackathons to foster intensive digital collaboration.

http://www.mckinsey.com/insights/financial_services/Strategic_choices_for_banks_in_the_digital_age

When designing / developing new products, for example mobile payment products, it will be particularly important to engage younger consumers (ages 18–34), who are more smartphone-savvy.

They can, for example, beta test product prototypes.

http://dupress.com/articles/mpayments-mobile-POS-system-in-retail/

One of the most effective way to be helpful to customers is by mobilizing a large number of third parties who have

complementary products and services that can help the customer get more value from your own products and services.

http://edgeperspectives.typepad.com/edge_perspectives/2015/03/disruption-by-trusted-advisors.html

Further inspiration

http://www.slideshare.net/frankcalberg/crowdfunding-35835254

Question # 5

What are some examples of mobile payment services?

Sourceshttps://www.dwolla.com/https://www.google.com/wallet/https://www.izettle.com/https://www.klickex.com/https://www.moven.com/http://muume.com/https://www.paypal.com/https://www.pesapal.com/https://www.simple.com/https://squareup.com/https://transferwise.com/https://venmo.com/

Comparison of payment services

http://www.parksquare.com/uploads/insights/TheFutureofFinance_Part_3_03-13-15.pdf

http://www.tawipay.com/

Indian Bank ICICI enables people to transfer money to anyone in India

who has a Twitter account.

http://www.icicibank.com/Personal-Banking/insta-banking/internet-banking/twitter-banking/index.page

Besides allowing in-app payments, retailers can also use http://www.wechat.com/ for offline in-store payments through WeChat Pay’s QR code scanning feature.

http://dupress.com/articles/mpayments-mobile-POS-system-in-retail/

More than a billion people in emerging and developing markets have cell phones but no bank accounts.

http://mckinseyonsociety.com/downloads/reports/Economic-Development/Mobile-money-Getting%20to-scale-in-emerging-markets.pdf

Sensors can further enhance mobile payment solutions. With the consumer’s permission, a mobile wallet could auto-detect the sensors in a retailer’s network environment when the consumer enters a store, immediately syncing with the retailer’s network to activate proximity marketing and discounting, loyalty and rewards programs, and digital checkout, payment, and billing processes.

http://dupress.com/articles/mpayments-mobile-POS-system-in-retail/

# 1: ConvenienceReduces the need for customers and merchants to carry cash.

# 2 EfficiencyReduces the cash management costs for businesses and financial institutions.

# 3: TraceabilityEnables a greater degree of visibility into the flow of money for financial institutions and regulators, facilitating taxation, transparency, and information gathering.

# 4: ProtectionProtects customers and merchants from fraud and theft by documenting transaction records and reducing the need to hold cash.

4 benefits of electronic transactions

http://www3.weforum.org/docs/WEF_The_future__of_financial_services.pdf