Esta fué la presentación de Ron Shevlin en el Next Bank Madrid del pasado 25 de Junio 2013. Ron Shevlin es Senior Analyst de Aite Group y Autor del blog Snarketing2.0.

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The Future of Retail Banking
Ron Shevlin
Senior Analyst
Next Bank Madrid
June 2013

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“We’re one
Bad Axe Bank.”
Bad Axe Bank
“If you want to get rich,
there’s Little Hope for you.”
Bank of Little Hope
“UBS. So we BS. It’s only
fair.”
UBS

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Theme
A new competitive dynamic
in retail banking is emerging

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Agenda
• What’s driving change?
• What is the future of retail banking?
• What does this mean for banks?

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-­‐2%
3%
8%
13%
18%
1994 1996 1998 2000 2002 2004 2006 2008 2010
Source: Federal Reserve Bank
US bank return on equity

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Spanish bank ROE
Source: European Banking Federation
2007
1.1%
2011
0.2%

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Non-interest income % of assets
Source: “The Impact of Strengthened Basel III Banking
Regulation on Lending Spreads,” Chun, Kim, Ko
2007
1.0%
2011
0.4%
Sample=670 banks in 16 developed countries, including 25 Spanish
banks

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The future of retail banking

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The future of retail banking
• NeoChecking: The new type of product
• Mobile shopping: The new points of interaction
• Performance: The new competitive dynamic

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The growth of prepaid
Source: MasterCard

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The Debanked
Mainstream consumers who
willingly opt out of the
traditional banking system

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NeoChecking accounts
• Mobile-first design

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NeoChecking accounts
• Mobile-first design
• Point-of-decision input/feedback

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Digital receipt
provides real-time
feedback to
consumers on their
purchase along with
contextual
transaction insights.
Spend tracking
tracks how fast
consumers spend
month-to-date
compared to
historical spending
patterns.

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NeoChecking accounts
• Mobile-first design
• Point-of-decision input/feedback
• Dynamic account structure

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The new points of interaction

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JIMMY CHOO
$400
Can I afford it?
How should I pay?
Can I get an offer?
What did others pay?

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The new point of interaction
PurchaseIdentification
of need
Old point of
interaction
New point of
interaction
Google’s point
of interaction

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Theme
A new competitive dynamic
in retail banking is emerging

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Performance: New competitive dynamic
1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2025
Location
Rates
Performance

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• Monthly fees
Costs Benefits
• Penalties
• Service fees
• Interest earned
• Rewards redeemed
• Savings generated
TBO: Total Benefits of Ownership

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The performance hierarchy
Oversight
Insight
Foresight
• Where did it go?
• How did I do?
• What should I do?
• What do I have?
PFM

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Theme
A new competitive dynamic
in retail banking is emerging

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What it means
• Branches
– Low (not high) transaction automation
• Pricing
– Alignment of price and value
• Revenue
– Googlification of sources

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The future of retail banking
• NeoChecking: The new type of product
• Mobile shopping: The new points of interaction
• Performance: The new competitive dynamic

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@rshevlin
“The
secret
to
crea,ng
strong
rela,onships
is
honesty
and
fair
dealing.”
“If
you
can
fake
those,
you
have
it
made.”
—
Groucho
Marx

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Aite: Partner, Counterpart
Aite Group (eye-tay) is an independent research and
advisory firm focused on business, technology and
regulatory issues and their impact on the financial
services industry.
Ron Shevlin
rshevlin@aitegroup.com
www.aitegroup.com
Twitter: @rshevlin
Blog: Snarketing2dot0.com