Banking is undergoing the fastest change it's ever seen. Might the banks, like the telcos before them, become dumb pipes as they're dis-intermediated from their customers by the arrival of new, leaner, digitally native companies? Often the retort of telcos to the dumb pipes remark is that they'll become smart pipes but what if the pipes are under attack too? The last few years has seen the arrival of a slew of VC backed startups competing for core business with the banks. Beyond this, might the core infrastructure of the banking sector be at risk with the arrival of technologies like cryptocurrencies and the blockchain?

1. @Jameshaycock AdaptiveLab.com
BYE BYE BANKS?
Will banks be the next
dumb pipes?
#byebyebanks

2. Adaptive Lab is a
product and service
design company.
|ByeByeBanks2
We partner with companies to solve
problems through design, rapidly
prototype solutions, validate with
target users and develop digital
products using agile and lean
methods.

3. | Banks as dump pipes3
75% of the
S&P 500 will
be replaced
by 2027
75yrs
1937
15yrs
2012
Lifespan of S&P 500 Companies

4. | Banks as dump pipes4
Changing
behaviours

5. | Banks as dump pipes5
Changing
technology

6. | Banks as dump pipes6
Changing
competitors

7. | Banks as dump pipes7
What is a dumb pipes

8. | Banks as dump pipes8
Dumb pipes are networks used to
transfer data with little control over
the services or experience that the
data drives

10. | Banks as dump pipes10

11. | Banks as dump pipes
50 450m $100bn

12. | Banks as dump pipes12
“It’s fine, we still own the pipes,
we can be a smart pipe!”

16. | Banks as dump pipes16
Might banks be the next
dumb pipes?

17. | Banks as dump pipes17
See all your accounts
in one place
Your money
brought to life
Make sense
of your spending

18. | Banks as dump pipes18

19. | Banks as dump pipes19

20. | Banks as dump pipes20
Limited to non-
transactional tasks
(but, can build high
engagement)
Your balance today
1010.00

21. | Banks as dump pipes21
The drive towards dumb pipedom is
currently slowed by a data and
permissions barrier

22. | Banks as dump pipes22
Manual and
clunky
Phase one: Gone

23. | Banks as dump pipes23
Automated
but one way
Phase two: Here

24. | Banks as dump pipes24
Automated and
fully featured
Phase three: Coming

25. | Banks as dump pipes25

26. | Banks as dump pipes26
The banks will launch
their own transactional APIs

27. | Banks as dump pipes
Connect
Connect with this application
Access and control
account information
Access balance
and transactions
Add payees and
manage payments
27

28. | Banks as dump pipes28
core banking
activities
3rd party app
ecosystem
The need to visit
bank properties is
lowered

29. | Banks as dump pipes29
“It’s fine, we still own the pipes,
we can be a smart pipe!”

30. | Banks as dump pipes30

31. | Banks as dump pipes31
1. ITS SIMPLE, JUST
TAKING 5 MINS
2. WE TAKE CARE OF ALL
YOUR DIRECT DEBITS
3. SIGN UP BONUS: £150
Hey Jenny,
Based on your spending
activity and existing
products, we think you’d
be better off switching.
See my options
and read reviews
SWITCHING OFFER

32. | Banks as dump pipes32
“It’s fine, we still own the pipes,
we can be a smart pipe!”

33. | Banks as dump pipes33

34. | Banks as dump pipes34

35. | Banks as dump pipes35

36. | Banks as dump pipes36
If you don’t rethink, someone
else will disrupt.

37. | Banks as dump pipes37
Deny and do nothing
Option one

38. | Banks as dump pipes38
1
Risk
2
Breadth of
products
3
Brand
& trust
4
Capital

39. | Banks as dump pipes39
Accept and get on doing
something
Option two

40. | Banks as dump pipes40
Be a smart platform rather
than a smart pipe

41. | Banks as dump pipes41
Work with great (and
different!) people

42. | Banks as dump pipes42
Decrease your release cycle,
increasing change frequency

43. | Banks as dump pipes
Experiment more
1092 1976546

44. | Banks as dump pipes44
Threat for incumbents…
huge opportunity for disruptors…

45. | Banks as dump pipes45
cross-pollination
Think about…

46. | Banks as dump pipes46
what could create a regular habit
Think about…

47. | Banks as dump pipes47
user goals and your purpose
Think about…

48. | Banks as dump pipes48
existing behaviours and journeys
what can you remove or improve?
Think about…

49. | Banks as dump pipes49
Good night and good luck!
Follow “Bye Bye Banks?”
A curation of articles about new players and
innovation from the incumbents.
flip.it/VkZRG
@jameshaycock james@adaptivelab.com
Sign up to Wunderkammer
A fortnightly newsletter with 8-10 curious and
stimulating links.
bitly.com/receive-curiosities