dawn_over_a_new_world_by_freelancah

The open banking framework  was published this week by the open banking working group. Here I share my 10 most salient take outs in 10 slides. Before we start, I think they have done a tremendous job. It’s an excellent document,  the proposals are bold, well presented and discussed. The work is definitely not over, but it’s indeed promising and it should have a material impact on legislations like PSD2. I do think that they are on the right path to meet their mission statement: Unlocking the potential of open banking to improve competition, efficiency and stimulate innovation Here are my key takeouts in 10 slides:   1 -Data, API, Security 2 –  A 3 party model 3 – Data: portable, explicit consent and specific usage 4 – A rich variety of data sets 5- Data sets: more granular details 6 – Example: 6  potential propositions enabled by…

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Today, PayM published their statistical update running to the end of 2015. I have listed my key take outs below. PayM growth has slowed down substantially We can see that the rate of growth of registered users has decreased in 2015. There have been 139k less registrations in Q2 2015 vs Q2 2014, i.e 18% less registrations  (see graph below)   17% of mobile banking users are registered to PayM? As of end of 2015 the Paym registrations stand as just above 3M: So is that big or small? Let’s do some rough maths. I think there must be circa 18M mobile active banking users in the UK. Hence that means that ~17% of UK mobile banking users have signed up to Paym. That’s not bad really within a 2.5 years period.   Average transactions value down by 11% Average transaction value…

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Challenger banks landscape in 2015 Highlights Are the big 5 becoming too big to compete? Why choose a challenger in 2015   These pictures are an extract of the KPMG challenger banking reports published in May 2015:.   Few questions to ponder in 2016: Will  better technology infrastructures enable 2016 challenger banks to provide customers with compelling new propositions that will give them a truly differentiating proposition? What will be the impact on existing challengers banks of the launch of the new wave of tech powered challenger banks What will be the C/I ratio of the tech powered challengers? 50%? 40%? 30? Can it give them a compelling competitive advantage against other banks?  

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I thought I would share these 3 graphs to provide a better understanding as to how Facebook users have evolved in relation to the devices they use to access the service. It’s in reaction of a number of graphs that in my view albeit accurate gave the misleading impression that Facebook desktop users had disappeared. I believe this to be important as albeit mobile is crucially important, one shouldn’t neglect desktop as it remains a key part of most customers digital mix. Thoughts and comments are welcome. If you find this of interest please do like and share this post. These are based on Facebook official earning slides: http://investor.fb.com/results.cfm Here we go:

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Part 2 – Why challenger banks need to be 100 times better than incumbents In my previous article I attempted to reframe the “Fintech debate” into one centred around its goal (competition) rather than its means (Innovation, Fintecth, etc.). In this piece I would like to offer a framework to discuss what an overall banking proposition is and why one will be better than another. This will lead me to argue that a challenger will have to be 100 times better than an incumbent to challenge at scale. What is a bank made of? First I would like to propose a simple model that will give us a framework to discuss the competitive advantages of different retail banking propositions. Let’s consider a retail bank to be made up of 4 core blocks: A block that makes it profitable and ensure it…

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Forget about Fintechs and Innovation, they aren’t the point – Part 1: It’s all about competition This is the first instalment of a few articles to share my perspective on innovation, retail banking, Fintechs and competition. If you see some value in my perspective please do let me know. As they say on youtube “like it, share it, comment on it!” In this first piece I would like to challenge the usual narrative around Fintech discussions. I would like more focus on the end goal and whether it’s achieved (i.e. winning the competition war) rather than the means (Innovation, Fintech, etc). That will set the scene for my second piece around how we should evaluate emerging banking propositions. It’s a question of competition That’s a fairly simple point, but I think one that is far too often forgotten. All the discussions around…

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What disruptive banking might really look like… So far, not much disruption… There is much talk about disruption and challenger banks. But there is currently little evidence of anything disruptive in the pipeline. Obviously, most haven’t even got their banking licenses yet and haven’t launched, hence it is hard to provide a final opinion on the matter. And by its very nature disruption tends to take industries by surprise. But judging challenger banks by what they promise to offer and solely on publicly available information, none bar one, promises anything that qualifies as being disruptive proposition-wise. None seem to plan to offer anything truly different from what existing banks provide. For most, based on their current PR, positioning and promises, they  sound very similar to what established banks are doing or are in the process of doing. Why does being disruptive matter for challenger banks?…