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March 22, 2011


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Jacqui Taylor

Great piece as ever Chris.

I have read your blog regularly since we met at Sibos last year and you always give the landscape view, which I believe lots of the industry watchers appreciate and understand. Despite your efforts, what has been missing from the banks is action, and the lack of understanding that the landscape is changing without them.

From someone who delivered innovative change in a matter of months and not years within one of our financial institutions, I know it can be done. There are just not enough people doing it.

Your piece today reminded me that when this is all over, which is likely to be within the next two years, you will have documented and commented on the transformation of banking as it has happened. As the David Starkey of our industry, I look forward to reading the book!


Barry Nolan

No question that 'advertising revenues' are an enormous opportunity for Issuers - especially the opportunity to replace lost 'interchange revenue' post Durbin. Comfortably, at a meager 5% CTR/CPA annual basis, this would translate into $52 NET revenue per cardholder.

Asides from obvious Issuer inertia, the key challenge is in the term 'advertising' - it has an instant consumer 'recoil'. The key to achieving an advertising profit pool is a monetization model that in fact enhances the user's experience. Some of the very best in web2.0 achieve this:

*Google Adwords draw up to 8% click-thru rates because they’re search relevant
*foursquare rewards enhance the check-in experience/motivation
*groupon group buying dynamics means I gain greater savings
*mint recommendations means mint makes money when I save money

So if advertising/offers/rewards/whatever, especially if they have a high degree of serendipity, are UX enhancing, then its a gold mine, and a fascinating frontier to explore.

Jeremy Kidd

I'm with @Jacqui. First of all, spot on with your review of Chris. I can see him sitting back in a comfy chair in the corner of a bar in the City and smugly telling a roomfull of sad bankers "I told you so". I also agree with your observations of the banks. Granted, it is their job to be careful and risk averse, but we've been in the limbo of everyone waiting for someone else to make the first move for far too long. Somebody's eventually going to have the guts to make a disruptive play in this space and if one of the big banks don't do it soon, PayPal will become a bank and start causing some trouble... Oh wait, they already have http://www.businessweek.com/technology/content/jun2007/tc20070614_606853.htm Oh wait again, that story is 3+ years old. What the heck is everybody waiting for?

Chris Skinner

Thanks for the comments and Jacqui, Jeremy ... you are too kind :)

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