Posts Tagged ‘Jim Bruene’
Online Banker Report has just issued its latest and the topic is future based look at the next 10 years for online banking and mobile banking.
Every year Jim and the team put together a review piece for the space the past year, and with predictions on usage patters for the next ten years. It is a must read for online banking professional in my view.
The latest Online Banking Report: 2010 to 2019 Online & Mobile Banking Forecast is now available. The report includes our latest 10-year online banking and bill pay forecast. For the third year in a row, the forecast was bumped up a few percentage points to reflect a more robust outlook for adoption, thanks primarily to mobile banking. For example, we now project 73 million U.S. households banking and/or paying bills by online or via mobile in 2013 (note 1).
The report also includes a revised 10-year forecast for U.S. peer-to-peer lending. After experiencing a 30% decline in 2009, we expect healthy growth next year with a record amount of loan originations.
I looked back at the December 2005 version. Back then 2009 was estimated to come in at 57 million – 63 million users. The result for 2009 was 57 million. In general the predictions are pragmatic and Conservative. For a prediction to come within the range 5 years later is pretty good in my book.
On to the new report. The usage levels will continue to grow although at a slower pace in total numbers, but a broader usage pattern across services and products. There is lots of detail on this topic that you will need the 36 page report to assess for yourself.
There is the update to the history section indicating the timing of new offerings and those who produced them. The meat of the report lies in the ‘Best of 2009" which goes over the top innovations of the year in detail with lots of graphs, screen grabs and statistics. Mobile features highly but a few other surprises in there too.
This is a theme that is gathering steam. It is based on the reality that customers are using internet for their banking, and there is a high level of redundancy in offerring similar capabilities in physical locations. The counterbalance is of course the need to attract customers, new accounts and deposits which has traditionally been a branch activity.
That balance is shifting now and the tension between those two opposing forces will be ineresting to watch, as banks exectute strategies and consider their cost base.
BofA could eventually cut 10 pct of branches SF Chronicle
Bank of America Corp. could eventually shrink its 6,100-branch network by about 10 percent as consumers utilize other methods of banking, a company spokesman said Tuesday.
The move would be a pullback from the bank’s two-decade expansion, most recently under Lewis’ command, which expanded the bank from coast to coast.
[update] A quick look at Online Banking Report reminded me of an attribution I should have made, of Jims far sighted report in 2006. In that report he rightly took a 40 year view. Which Chairman at a bank is taking a 40 year view today ?
Online Banking Report: The Demise of the Branch (April 2006), for more on the long-term trends in the mix of branch and alternative delivery.
Looking forward to following FinovateStartup tomorrow. While the big banks languish in the worry about their balance sheets, and the losses they still have to recognise, it will be refreshing to see examples of the future of financial services.
FinovateStartup will return to San Francisco on April 28, 2009 with an innovative new format that mixes fast-paced demos (no slides allowed!) from handpicked innovators with networking sessions featuring the largest group of financial technology startups ever assembled in one place.
I am an unabashed avid follower of Online Banking Report, and the latest “Online & Mobile Banking Forecast” continues the classic of Jims annual output.
The focus of online banking and mobile is one key attribute of this years focus. In fact having the iphone on the front page is illustrative of the outside the box thinking.
This year in particular is when all Banks ought be thinking of ways to innovate and get outside the box.
Clearly it is no longer business as usual, and will not be for some time.
Gathering deposits is essential to future success, but that will come one customer at a time – the classic conundrum of acquisition cost remains if banks choose to use old ways to acquire.
A key component of customer acquisition is customer retention, and the thrity six pages here are one way to structure your plans to retain the customers you have. Bank of America and Wells Fargo are doing that – what about your bank? As word gets out, such innovations will drive acquisition too.
The report follows the usual style with first a summary of innovation to date. What makes this intersting is that enough years and innovations have gone by that the history lesson in itself is fascinating, and awe inspiring if one thinks of the things that your bank did not implement. The sheer volume of facts in Jims reports are worth the price – no-where else is this level of detail available in one place.
Then there is a review of 2008 innovations and here it hits close to home for banks. In the top innovations for 2008, there are only four banks mentioned (Wells Fargo, Bank of America, PNC and Zion). Thats four out of eight thousand eligible! For the top ten in 2008 there is one bank makes it.
The breadth and depth of the innovations covered is quite astounding, and to see them laid out in one place is refreshing showing that the possibility to innovate is there for the taking.
Finally there are the honourable mentions of 2008. This is a fact filled detailed view of the current state of online and mobile and this one in particular frankly ought to be required reading for every banker. Well done Jim and the team.