SXSW 2012 - Creating a Mobile Wallet Worth Having - Omar Green

Creating A Mobile Wallet Worth Having

Omar Green director, strategic mobile initiatives

@madfu @intuitinc

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WHO I WORK FOR

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Transforming 50M Lives

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prep & file my taxes

manage my finances

get paid

intuit mobile apps address real problems

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WHY WE CARE ABOUT THIS PROBLEM

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income levels remain flat for the majority of americans

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while everything grows more expensive

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working americans are forced to do more with less

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SOLUTION IN SEARCH OF… Perhaps We’re Defining The Problem Incorrectly…

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how can mobile add value to payments?

•  accelerate the transaction –  translates to spending my money faster

•  simplify coupon & improving targeting –  enabling brands to spam me better

•  close the proverbial “marketing loop” –  no idea what this is

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the anonymity of cash

in china, System D is estimated at $1.47 trillion

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a wallet “stuck” in a phone

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In the broadest sense, CONTEXT represents the circumstances around which a user expresses behavior, captured digitally. It can encompass geo-spatial, temporal, emotional, cognitive, and other domains, so long as the domain lends itself to electronic monitoring and data capture.

defined

re-defining…with CONTEXT

the question becomes:

how can mobility add value within the context of a financial transaction?

we need to understand the context 16

early learnings

outcomes

• CDI & FMHs were invaluable, but the data was incomplete

•  customers had a hard time describing something they hadn’t experienced yet

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break down flows to see context

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mobile $$$ txns =

+

+

journey thru context to solution

Groking the Human Component

Agents, Models, & Counterfactuals

The Wallet Worth Having

Groking the Existing Flow

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GROKING THE HUMAN COMPONENT

$$$ and J

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first principles – abraham maslow

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mo

ne

y + m

aslo

w

history tells us money impacts every aspect of human existence…

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mo

ne

y + m

aslo

w

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the hedonic treadmill

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easterlin paradox

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contrary theory

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kahneman/deaton

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mo

ne

y + m

ob

ile +

m

aslo

w

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GROKING THE HUMAN COMPONENT

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kahneman

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stanovich & west

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the science: we have 2 minds

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the science: we have 2 minds

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System 1 unconscious, intuition, effortless

pattern recognition, emotional, decisive

the science: we have 2 minds

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System 2 conscious reasoning, effortful,

slow & deliberate, rule-following indecisive

the science: we have 2 minds

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System 1 leveraged when we spend

the science: we have 2 minds

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System 2 leveraged when we use almost all

financial tools

hypothesis: we use the wrong mind

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scientific theory goes farther

we might be biologically predisposed to be incapable of making

rational decisions about money, especially when we are spending

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learnings -- $$$ J

•  the way we think effects the way we think about money, and therefore, financial happiness

•  current financial software isn’t designed to help us where we might need help most – in System 1 activities

•  $$$ J must become a part of the tools we build

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journey thru context to solution

Groking the Human Component

Agents, Models, & Counterfactuals

The Wallet Worth Having

Groking the Existing Flow

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AGENTS, MODELS & COUNTERFACTUALS

Agent Logic

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how we build: today

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what if my need EXCEEDS my capability?

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remember this picture?

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what if the nail were instead a long screw?

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this tool is insufficient

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how we build: evolved

Capability

Need

Agent

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the agent: raw capability

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AGENTS, MODELS & COUNTERFACTUALS

Models

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Actually this is more like it

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Or this…

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53 …we can learn something here…

MiJac

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colony capital

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outcomes

•  hardcore analysis – by experts

•  heavy lifting – financial models to predict future income from assets

•  the conclusion – MiJac needs an alternative behavior: GO BACK TO WORK

•  bailout – Colony Capital rolls the loans over, becoming MiJac’s creditor & MiJac goes back to work

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it happened again…

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AGENTS, MODELS & COUNTERFACTUALS

Geek Eureka – A Perfect Model?

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a shield against adversity…

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…a weapon against threats…

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…everything you learn, captured…

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RE-DEFINED

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what if a mobile wallet was an ACTIVE PARTICIPANT in securing successful financial outcomes, and in doing so increased

the likelihood of financial happiness?

AGENTS, MODELS & COUNTERFACTUALS

Counterfactual Testing

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AGENTS, MODELS & COUNTERFACTUALS

The Shared Financial Object

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the outcome

•  leveraging “agent logic” and financial modeling, mobile wallets could become an active participant in helping to secure positive financial outcomes

•  such a wallet would enable consumers and software to experiment with possible financial outcomes and offer alternatives – “counterfactual testing”

•  if these alternatives and outcomes could be shared securely, users could learn from one another, increasing the likelihood of financial happiness

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journey thru context to solution

Groking the Human Component

Agents, Models, & Counterfactuals

The Wallet Worth Having

Groking the Existing Flow

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WALLET WORTH HAVING

10 facets, broken down into 3 buckets: •  Enable Transactions •  Improve Skillz •  Build Happiness

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10 facets, 3 buckets

•  Enable Transactions –  Pay for Stuff –  Get Paid –  The Loyalty Billfold &

Virtual Accounting –  Move Value Around

•  Improve Your Skillz –  Money Genius –  My Flows –  Rainy Days & Restful

Nights

•  Build Happiness –  Mogul Engine –  Outside the Box

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ENABLE TRANSACTIONS

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Pay Fo

r Stuff

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Ge

t Paid

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Loya

lty Billfold

&

Virtu

al A

cc

ou

ntin

g

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Mo

ve V

alu

e A

rou

nd

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IMPROVE YOUR SKILLZ

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Mo

ne

y Ge

niu

s

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My Flo

ws

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Ra

iny D

ays &

R

estfu

l Nig

hts

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Guess what?...it’s on a tablet

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BUILD HAPPINESS

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Mo

gu

l Eng

ine

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Ou

tside

the

Box

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A Final Word

“We become what we behold.  We shape our tools, and then afterwards, our tools shape us.”

- Marshall McLuhan

Thanks!