BANK 2.0 Keynote delivered to the TD CIO counsel in T

1. The 3 Phases of Customer Behaviour Disruption
THE BIG SHIFT

5. THE BIG SHIFT The 3 Phases of Customer Behaviour Disruption
1 Internet gives
Control & Choice

8. 300% $ Increase
Since Jan 09
x2
Online as % of
15% Retail Deposits
Market
Source: Reuters

9. “We’re living in a world of mouth
world...”
Gary Vaynerchuk

11. I trust my network more than I trust your brand...

15. THE BIG SHIFT The 3 Phases of Customer Behaviour Disruption
2
Mobility gives
Anywhere & Anytime

16. Mobility Usability

17. Take up of Bank of America Mobile (App Phone) Internet Banking
5000000
4000000
3000000
2000000
1000000
Aug-07Oct-07
Dec-07 Feb-08
Apr-08 Jun-08
Aug-08 Oct-08
Dec-08 Feb-09
Apr-09 Jun-09 Aug-09 Oct-09 0
Dec-09
Feb-10
Apr-10

18. 16

19. Slow Mobile App Involvement
• 8,012 FDIC Insured Institutions in the USA
As at Q1 2010
• Dedicated iPhone Apps: 257
• Specialized Mobile Websites:54
• Android or other: 28
4.2%*
source: iTunes/Apple Inc, NetBanker.com, Mobile Phone McGee
* With confidence error adjustment
Who does your head of mobile report to?

20. Behavioral Shift
97% own a computer
94% own a mobile phone
76% use Instant Messaging
15% of IM users are logged on 24/7
34% use websites as their primary source of
news
28% author a blog and 44% read blogs
49% download music using peer-to-peer file sharing
75% of college students have a Facebook account
60% own some type of portable music and/or video
device such as an iPod
Source: Heidi Przybyla "Obama's `Youth Mojo' Sparks Student Activism, Fueling Campaign", Bloomberg.com (May 7,2007)
Source: Generation Y, Business Week, February 15 1999

21. THE BIG SHIFT The 3 Phases of Customer Behaviour Disruption
3
MobilePayments gets us
Ubiquitous & Cashless

22. Who is in charge of phasing out cheques?

23. Source: Celent

25. Why don’t we give our customers mobile
phones instead of checking accounts?

26. How will I apply for a credit
card if there is no plastic?

30. Hot mortgage deals*
Citibank offset 6.5% 14 years
HSBC Fixed Rate 5.75% 18 years
Bank of America 5.65% 18 years
More deals
*Based on 30% deposit and
mean value of houses in street $765,452

31. THE BIG SHIFT
Point-of-Impact

34. Uses non-bank Card
Direct Mail Offer Client walks into More Direct Mail
2010
or Cash
“SPAM” store SPAM?
Lost Opportunity

36. iAd
1 Billion Ad impressions per day
(based on 100 Million units sold)

37. Data
Who?
When?
Why?
How?
Where?

39. THE BIG SHIFT
Breaking the silos

40. “The world is changing very fast.
Big will not beat small anymore...
it will be the fast beating the slow.”
Rupert Murdoch, 79

44. Leading UK Bank
£540mm £4.8mm
BRANCH WEB, SOCIAL & MOBILE
8% 43%
2010 Budget
2010 Transactions

45. Budgets reinforce silos

49. THE BIG SHIFT
It’s not about channel, it’s not about technology
Simplicity
Engagement

50. Out Now!
Follow me on Twitter: @brettking
Email me: bking@userstrategy.com