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September 04, 2013

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Bill Cook

I agree with your views Chris. This is fundfamental change which many large banks have attemoted to resist due to it taking them out of their comfort zone. They can't resist. It is global, continually developing and banks and other FS organisations require a massive change in culture and attitude if they are not to lose out to those who can adapt and/or have created new business models!

Tim

It amazes me that banks, or any industry, doesn't recognise that this is a fundamental shift in power from corporate to consumer. Mobile is the last step in the digital revolution, taking digital into the real world. This will change the value proposition for every industry, the only question is how. More importantly it heralds a shift from the incremental, analytical to the experimental, evolutionary approach. From a world based on knowns to one based on the unknown. It is the businesses that can adapt to this 'lean startup' approach that will be tomorrow's leaders.

I suspect that today's banks won't be able to adapt, and they will become utility providers to tomorrow's, consumer focused, financial service providers.

Simon Taylor

Mobile doesn't have to be a fundamental change right this second, but the implications of the networked consumer do.

My former colleagues view mobile app as "another channel". Every 5 or so years, another channel comes along, and it gets a further subset of functionality to reduce the branch impact. The "snack, lunch, dinner" paradigm.

My personal view is it's this type of thinking that ruined Kodak, Blackberry and potentially Microsoft. The core business is profitable, topline is negative but not much more than the market, and bottom line is healthy.

If your product is broken, customer sentiment through the floor, and account switching is about to get easier than ever. That's a recipe for a slow decline followed by a sharp trip into being obsolete.

Banks have been great gatekeepers of financial services, but I honestly think that trend is starting to be reversed. By innovative incumbents much more than disruptor's, but also market factors like selling off assets to shore up balance sheets (Northern Rock / Virgin).

I agree with Tim, I think we'll see a "wholesale / retail" split in the way the Telco sector in the UK did in the early 2000s. Either banks will open up, or the regulator will break them up.

"Agency Banks" are already a strong source of revenue in corporate banking....

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