Table of Contents
Preface 13 Acknowledgements 16
PART ONE: Bank 2050
Chapter 1: Getting Back to First Principles 20
First principles design thinking 23
Applying first principles to banking 27
A bank that is always with you 32
Is it too late for the banks? 39
Feature: Ant Financial—The First Financial Firm for the Digital Age by Chris Skinner 44
The Alibaba stories 46
Ant Financial: Building a better China 58
Chapter 2: The Regulator’s Dilemma by Brett King and Jo Ann Barefoot 64
The risk of regulation that inhibits innovation 66
A flawed approach to fi nancial crime and KYC 72
The future form and function of regulation 82
Elements of reform 86
Feature: How Technology Reframes Identity by David Birch 93
PART TWO: Banking reimagined for a real-time world
Chapter 3: Embedded Banking 102
Friction isn’t valuable in the new world 104
New experiences don’t start in the branch 106
Advice, when and where you need it 109
Mixed reality and its impact on banking 114
Feature: Contextual Engagement and Money Moments by Duena Blomstrom 118
Are banking chatbots the future? 118
Chapter 4: From Products and Channels to Experiences 124
The new “network” and “distribution” paradigms 124
Bye-bye products, hello experiences 131
The Bank 4.0 organisation chart looks very different 140
Onboarding and relationship selling in the new world 151
Feature: Future Vision: Your Personal Voice-Based AI Banker by Brian Roemmele 156
Chapter 5: DLT, Blockchain, Alt-Currencies and Distributed Ecosystems 160
Emerging digital currencies 161
Bitcoin and cryptocurrencies on a surge 166
The structural implications of DLT 176
PART THREE: Why FinTech companies are proving banks aren’t necessary
Chapter 6: FinTech and TechFin: Friend or Foe? 185
“For me? Two servers” 189
Where the new players are dominating 191
Partner, acquire or mimic? 199
Killing FinTech partnerships—the barriers to cooperation 204
If you can’t beat them, join them 209
Feature: Why Banks Should Care About FinTech by Spiros Margaris 212
Feature: The Speed Advantage by Michael Jordan 214
Chapter 7: The Role of AI in Banking 219
Deep learning: How computers mimic the human brain 225
Robo-advisors, robo-everything 230
A bank account that is smarter than your bank 233
Where automation will strike first 242
Redefining the role of humans in banking 245
Chapter 8: The Universal Experience 252
The expectations of the post-millennial consumer 253
The new brokers and intermediaries 261
Ubiquitous banking 267
Feature: Going Beyond Digital Banking by Jim Marous 269
Going beyond digital banking basics 270
Amazon model provides a guide for banking 271
Feature: Digitise to Lead: Transforming Emirates NBD by Suvo Sarkar 278
PART FOUR: Which banks survive, which don’t
Chapter 9: Adapt or Die 286
Key survival techniques 295
Survival starts at the top 306
Chapter 10: Conclusion: The Roadmap to Bank 4.0 311
Technology first, banking second 315
Experience not products 323
The Bank 4.0 roadmap 333
Conclusion 333
Glossary 337
About Brett King 344