This is an update to other presentations and consolidates most of the case studies on the website thefinanser.com. This presentation is embedded in this blog entry: http://bit.ly/NEYx0, as well as being used in part for a webinar on 1st June 2009 which can be heard / watched here: http://bit.ly/1qf2NF

1. Chris Skinner
www.thefinanser.com

2. the future of global
banking

4. SEPA
€50m
http://www.amazon.co.uk/Future-Banking-Globalised-Skinner-
Chronicles/dp/047051034X/ref=sr_1_1?ie=UTF8&s=books&qid=1214062513&sr=8-1

6. MiFID
<50
http://www.amazon.co.uk/Future-Investing-Europes-Markets-
after/dp/0470510382/ref=pd_sim_b_6

8. http://thefinanser.co.uk/fsclub/2009/02/the-new-eu-regulator-and-liquidity-risk.html

11. http://thefinanser.co.uk/fsclub/2009/03/robobank-no-human-hands-needed.html

12. http://thefinanser.co.uk/fsclub/2009/03/jibun-bank-the-mobile-only-bank.html

14. “Asia has around 600,000 villages and maybe 600 to 700 million
unbanked people there. If you want to get to that mass,
technology is the only thing that works.
“Today, in a bank like ICICI Bank, you have less than 15% of
transactions taking place within a branch. Five years back, 95% of
the transactions took place within a branch. So you have an idea
of what happens when the technology touches the unusual.
“If I look at cost per transaction, it is about a tenth of a western
bank. That is entirely because we could leapfrog a generation of
technology.”
K V Kamath, CEO, October 2006

16. http://thefinanser.co.uk/fsclub/2009/04/africas-mobile-revolution.html

18. http://thefinanser.co.uk/fsclub/2009/04/creating-a-bank-that-rocks.html

19. http://thefinanser.co.uk/fsclub/2008/07/bbva-the-
first.html

22. http://thefinanser.co.uk/fsclub/2009/06/a-spanish-first-social-banking.html

23. “We can move into a new country with credit cards with an
investment of $1-$2 million, mainly on marketing, because we
don’t have to build all that infrastructure. We can move into a
country with full service banking for under $10 million, which is a
fraction of our competitors. We just open a building and sell,
because everything is delivered through the network.”
Ken Harvey, CTSO
http://thefinanser.co.uk/fsclub/2008/12/-hsbc-banking-on-the-network.html

24. the future

27. ©Chris Skinner +44 790 586 2270 chris.skinner@fsclub.co.uk

31. the critical point

32. The times, they are changing
1959 1969 1979
2009
1989 1999

33. $800,000
1999
Meetings Mailing
40 UK 10,000 people
8 Ireland Twice weekly
6 CEE
$300,000
$150,000
Brochures
Newsletter
10,000+
1,000 people daily
Annual update
Text only Website
$100,000 Non-interactive $150,000
Custom-build
$100,000
33

34. $160,000
2009
Meetings Mailing
40 UK 10,000 people
8 Ireland Twice weekly
6 CEE
Free
$150,000
Brochures
Newsletter
10,000+
1,000 people daily
Annual update
Multimedia Website
Non-interactive Gone
$149
Custom-build
$10,000
34

35. 1975

36. 2000

37. 2010

42. European Order Book Volumes
Value of Equity trading, March 2009
Exchange / MTF Order Book Trades Order Book Turnover (EUR m)
1 London Stock Exchange 17,279,867 123,650.0
2 Euronext 15,365,479 116,839.0
3 Deutsche Borse 8,118,311 95,835.8
4 Spanish Exchange (BME) 2,832,093 60,682.8
5 Chi-X Europe 10,554,888 57,168.5
6 Borsa Italiana 6,227,802 45,937.2
7 SWX Europe 2,875,388 45,495.4
8 NASDAQ OMX Nordic 4,802,676 43,150.6
9 Turquoise 3,309,508 22,567.8
10 Oslo Bors 1,240,279 11,397.7
11 BATS Europe 1,760,985 8,277.7
12 SIX Swiss Exchange 462,090 2,802.3
13 Wiener Borse 440,927 2,781.6
14 Warsaw Stock Exchange 1,200,689 2,545.6
15 Athens Exchange 669,246 2,228.3
Figures sourced from FESE

43. In a Best Price Routing world
Potential Market Share Changes Under Best Price Routing
20%
18%
Potential market share change%
16%
14%
12%
10%
8%
6%
4%
2%
0%
-2% M TFs Eurone xt LSE Deutsche Borse
-4%
-6%
-8%
Nov-08 Dec-08 Jan-09 Feb-09
Under best price routing, research shows that there would be a significant shift in liquidity and market
share to the new MTFs, while the incumbent exchanges would lose market share.
Source: Equiduct Orange LFA

44. Do Don’t
Build customer confidence
Anger the customer
Cut costs
Cut for the sake of cutting
Focus upon operational efficiency
Ignore new business models
Reduce branch overheads / branches
Stop innovating
Invest in mobility services

45. Further Reading
Blog Index (from April 2009)
http://thefinanser.co.uk/fsclub/the-week/
A Directory of Social Finance
http://thefinanser.co.uk/fsclub/2009/04/a-directory-of-social-finance.html
The Future of Banking: in a Globalised World
http://www.amazon.co.uk/Future-Banking-Globalised-Skinner-
Chronicles/dp/047051034X/ref=pd_bxgy_b_img_b
The Financial Services Club Library (members only)

46. www.thefinanser.com