A talk being given at the AMPlify festival in Sydney looking at some possible implications of external trends on financial products. Drawing on combination of future agenda material and additional discussions within and around the financial sector, the focus is on the key emerging shifts across sectors and their potential implications for financial products. After a decade of largely digitising existing processes, right now a host of start ups and large company innovations are looking to use digital to change the experience. Three big external shifts driving change are the redefinition of wealth away from traditional investments, new ageing lifestyles and their different need states and increasing customer / consumer led control and influence. The five associated implications for financial products covered in the talk are: pervasive mobile as the default platform for all; the shift from owning to renting products and the associated financial changes that underpin the end of loans and less need for saving;

1. Emerging
Shi+s
for
Money
and
Wealth
4
June
2013
|
Tim
Jones
|
AMPlify
Sydney

2. As
change
accelerates
in
an
increasingly
connected
world,
more
companies
are
looking
further
ahead
to
be9er
understand
emerging
opportuni:es
and
challenges
Context

3. Organisa:ons
increasingly
want
to
iden:fy
and
understand
both
the
an:cipated
and
unexpected
changes
so
that
they
can
be
be9er
prepared
for
the
future
Context

4. The
Future
Agenda
is
the
world’s
largest
open
foresight
program
that
looks
at
the
big
issues
for
2020
so
that
organisa:ons
can
be9er
focus
and
s:mulate
innova:on

5. From
the
first
program,
we
highlighted
52
insights
that
many
organisa:ons
are
now
using
to
s:mulate
thinking,
challenge
exis:ng
perspec:ves
and
drive
strategic
innova:on
52
Key
Foresights

6. Key
Shi+s
and
Implica:ons
for
Money
and
Wealth

7. The
current
landscape
for
financial
products
shows
that,
aGer
a
decade
of
largely
digi:zing
exis:ng
processes,
new
proposi:ons
are
making
more
of
online
and
mobile
poten:al
Current
Landscape

8. Access
not
Owning
Dynamic
Pricing
Longitudinal
Products
AlternaBve
Currencies
Pervasive
Mobile
New
Ageing
RedefiniBon
of
Wealth
Customer
Control
The
Emerging
Landscape?

9. New
Ageing
RedefiniBon
of
Wealth
Customer
Control
The
Emerging
Landscape?

10. An
increasingly
imbalanced
global
popula:on
is
being
driven
both
by
most
of
us
living
longer
and
steadily
decreasing
fer:lity
rates
across
many
regions
of
the
world
New
Ageing
Living
Longer
and
Decreasing
Fer:lity

11. At
the
same
:me,
the
stereotypical
lifecycle
has
changed:
ageing
now
includes
many
new
life
stages
New
Ageing
Life
Stages
Source: Aging2.0 / AARP / Innovate50

12. Driven
by
a
collapse
in
trust
of
banks
and
a
lack
of
services
that
meet
new
needs,
individuals
are
re-­‐examining
what
is
meant
by
wealth
–
trusted
storage
vehicles
beyond
cash
are
on
the
rise
• Art,
wine
and
collectables
Passion
Investments
• Gold
and
own
property
Tangible
Assets
• EducaBon
and
health
The
Family
Network
Redefini:on
of
Wealth
Trusted
Wealth
PlaSorms

13. Over
the
past
decade
some
views
of
the
best
returns
have
been
challenged
as
higher
wealth
crea:on
investment
has
shiGed
to
align
with
be9er
performing
assets
Redefini:on
of
Wealth
10
Year
Growth
to
Q3
2012
Classic
Cars
395%
Rare
Coins
248%
Stamps
216%
Fine
Art
199%
Fine
Wine
166%
Gold
434%
Hong
Kong
Property
221%
Sao
Paulo
Property
211%
Paris
Property
117%
London
Property
103%
Sydney
Property
34%
S&P
500
70%
MSCI
World
Index
66%
FTSE
100
53%
ASX
200
47%

14. Across
mul:ple
sectors
we
can
see
ever-­‐increasing
mass
personalisa:on
ac:vi:es
to
give
the
customer
more
informa:on
and
apparent
control
of
key
product
a9ributes
Customer
Control
Apparent
Personaliza:on

15. Access
not
Owning
Dynamic
Pricing
Longitudinal
Products
AlternaBve
Currencies
Pervasive
Mobile
New
Ageing
RedefiniBon
of
Wealth
Customer
Control
The
Emerging
Landscape
–
Product
Implica:ons

16. In
an
unexpected
loca:on,
M-­‐Pesa
has
proven
that
money
transfer
via
mobile
is
viable
at
the
bo9om
of
the
pyramid
and
momentum
is
now
building
to
a
wider
porSolio
and
reach
Pervasive
Mobile
Mobile
Transfer

17. Tesco’s
South
Korean
HomePlus
has
been
grabbing
innova:on
headlines
with
its
mobile-­‐based
virtual
home
shopping
success
on
Seoul
metro
sta:ons
Remote
Retail
Pervasive
Mobile

18. Being
tracked
by
your
mobile
is
accelerated
by
successful
loca:on-­‐based
services
and
retailers
take
advantage
of
aggregated
data
and
mobile
analy:cs
to
tailor
experiences
Pervasive
Mobile
Tailored
Retail
Experiences

19. In
several
areas
we
can
see
rising
sustainability
impera:ves
and
increasing
cost
of
ownership
shiG
the
balance
from
ownership
to
access
and
we
prefer
to
rent
than
buy
Access
Not
Owning
Lease
Everything

20. As
norms
change
across
sectors
and
within
supply
chains,
more
items
will
be
rented
not
bought
–
loans
are
replaced
by
leasing
agreements
and
the
underlying
b2b
financial
rela:onships
shiG
Access
Not
Owning
Lease
Everything

21. Leading-­‐edge
analy:cs
technologies
are
rapidly
migra:ng
from
military
to
commercial
applica:ons
and
providing
unique
real
:me
views
of
changing
sen:ments
across
plaSorms
Dynamic
Pricing
Real
Time
Analy:cs

22. Some
see
that
analy:cs
can
be
used
to
dynamically
change
experiences
and
pricing
to
both
reflect
real-­‐:me
changes
in
consumer
a`tudes
to
value
as
well
as
nudging
behaviours
Dynamic
Pricing
Real
Time
Analy:cs

23. Others
believe
that
intergenera:onal
mortgages
will
lead
to
a
migra:on
into
life-­‐long
longitudinal
financial
rela:onships
built
around
a
single
personalised
product
Longitudinal
Products
Living
on
Saved
Wealth
Building
Wealth
Student
Loan
Savings
and
Investments
Mortgage
Pension
and
Assurance
Insurance
Managing
Debt
Single
Longitudinal
Financial
Product
Age
20
30
40
50
60
70
80
90
Loans

24. Around
the
world
several
different
organiza:ons
are
making
strong
moves
into
taking
a
share
of
online
and
offline
payments
through
alterna:ve
currencies
and
trusted
plaSorms
Virtual
Transac:ons
Alterna:ve
Currencies

25. Decreased
trust
in
ins:tu:ons
may
broaden
the
adop:on
of
new
universal
stores
of
value
controlled
by
a
few
key
global
consumer
brands
but
used
by
many
Alterna:ve
Currencies
Global
Standards

26. Access
not
Owning
Dynamic
Pricing
Longitudinal
Products
AlternaBve
Currencies
Pervasive
Mobile
New
Ageing
RedefiniBon
of
Wealth
Customer
Control
The
Emerging
Landscape

27. Future Agenda
84 Brook Street
London
W1K 5EH
+44 203 0088 141
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tim.jones@futureagenda.org
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world’s
leading
open
foresight
program