TO BANK OR NOT TO BANKThe future of banking. Locally and worldwide

2

In which way moves the consumer market?

What it the portrait of future customer?

Which innovations brings the telecommunication market?And which from them could affect us?

What are further cash reduction perspectives?

What threats are hidden in car & real estate market?

Could FMCG & HA totally moves online?

Ukrainian reality VS general world trends

“ Prediction is very difficult, especially if it’s about the future.

— Niels Bohr ”

| Future bankingWHERE TO GO…

3

Are we good enough in innovations in fact? Innovation or Invention?Where the difference?

“ Innovation – is an effort of making the Past better,

But an Invention – it the creation of Future instead!

— Me ”

| Future bankingINNOVATIONS VS INVENTIONS

4

INTROTHE FUTURE IS HERE…

5

01MONEY

That’s the end of the

cash as we know it

02PAYMENTS

Run, Forrest! Run!

03E-COMMERCE

Who is there?

04CONSUMER LOANS

Completely different

05MARKET TREATS

Where are we

growing?

06CHANELLS

To branch or not to

branch?

07CUSTOMER

Who is it?

08re:BANKING

Customer’s profile &

loyalty

09IT of not IT

Are we mobile?

10INTERNET OF THINGS

Bye-Bye www as we

know it

| AgendaWHAT WE WILL SEE TODAY

MONEYTHAT’S THE END OF THE CASH AS WE KNOW IT

SECTION 01

7| Cash trendsWHAT IF THEY GONE?

Cash share in Norway,

Sweden & GB

<5% 2020

Norway is planning to refuse from cash in 2020

<9%

Cash share average in EU

>30%

Cash share in Ukrainian’s

turnover

8

LESS ATM TRANSACTIONS

LESS SELF-SERVICE KIOSKS PAYMENTS

LESS CASHDESK PAYMENTS

LESS BRANCHES VISITING

a

b

c

d

| Cash treatsCASH REDUCING TURNOVER TREATS

PAYMENTSRUN, FORREST, FUN!

SECTION 02

10| Payments invention timelineHOW INNOVATIVE WE ARE

1950:

Diners

club

launched

1958:

AmEx first

plastic card

issued

1967:

Barclay’s

installed first

ATM

1972:

First plastic

card with

magnetic stripe

1979:

VISA

presented first

electronic POS

1992:

EMV chip

launched in

France

1996:

Cash-in

In ATMs is

available

2007:

NFC cards

issued

2011:

Goggle

launched

wallet

2014:

Apple Pay

2014:

HCE

Cloud-based

mobile

payments

11

“ ApplePay will forever change the way all of us buy things.

— Tim Cook ”

| Future bankingINNOVATIONS VS INVENTIONS

E-COMMERCEWHO IS THERE?

SECTION 03

13| TimelineHOW INNOVATIVE WE ARE

1994:

First internet-

shops

1995:

AMAZON

E-BAY

2000:

PayPal launched

14| E-commerce blue oceanPAYPAL WAS HERE!!!

Secured

payments

150 000 000 active accounts

15| TimelineHOW INNOVATIVE WE ARE

1994:

First internet-

shops

1995:

AMAZON

E-BAY

2000:

PayPal launched

2011:

VISA launched

wallet V.me

2014:

VISA launched

Visa checkout

CONSUMER LOANSCOMPLETELY DIFFERENT

SECTION 04

17| Stage 1THEY ARE COMING!!!

Peer-to-peer

lending

Peer-to-peer lending commonly abbreviated as P2PL is the practice

of lending money to unrelated individuals, or "peers", without

going through a traditional financial intermediary such as a bank or

other traditional financial institution. This lending takes place

online on peer-to-peer lending companies' websites using various

different lending platforms and credit checking tools.

18| Promising marketIT’S TIME TO ACT!

£1b

UK 2014P2p loans portfolio

$5b

USA 2014P2p loans portfolio

100%

Annual market growth

Free

Already works in Russia.Nothing in

Ukraine

19| Stage 2THEY DON’T NEED US ANYMORE!

Social

Lending 2

After acquiring banking (financial) license and testing wallet and

funds transfer services, Google and Apple will launch their own

lending platform based on customers social profile (traveling +

spending).

MARKET TREATSWHERE ARE WE GROWING?

SECTION 05

21

FMCG

Cars

HA

Real

estate

Fast moving consumer goods

Moves online

Real estate market

Rather rent than buy

Car market

Rather lease or rent than buy

Home appliance

Moves online

| Consumer & real estate marketMARKET TREATS

CHANNELSTO BRANCH OR NOT TO BRANCH

SECTION 06

23| Channels evolutionWHERE ARE YOU GOING?

BRANCH

Bank branch

Working hours

SELF-SERVICE

Bank branch

Anytime

ONLINE BANKING

Desktop computer

Anytime

MOBILE BANKING

Anywhere

Anytime

BRANCH MOBILEONLINESELF-SERVICE

24| Branches statisticLESS AND LESS

-30000

20000

70000

120000

170000

220000

2010 2011 2012 2013 2014

UKRAINE2010 – 21 9582011 – 20 906 2012 – 21 187 2013 – 20 935 2014 – 19 400

EUROPE2010 – 219 0852011 – 215 0002012 – 207 8002013 – 202 3002014 – 200 000

UA

EU -9%

-12%

25| Deutsche bank Q110BANK BRANCH OF THE FUTURE

CUSTOMERWHO IS IT?

SECTION 07

27| Theory of generationsX, Y, Z

1965 - 1980

(34-49 years old)

1981 - 1990.

(24-33 years old)

1991-2000

(14-23 years old)

X

Y

Z

28

Mistrust to banks

Online shopping& payments

Social networking

Late marriage & kids

Mobility

No deposits but ready to borrow

Online booking& travelling

Self-determination problems

Freedom

Lack of time

| ZWHO iZ IT?

re:BANKINGCUSTOMER’S LOYALITY

SECTION 08

IT or not ITARE WE MOBILE?

SECTION 09

31

IS A WEB-SITE ENOUGH TO SAY: WE ARE ONLINE?

DO WE NEED A SMARTPHONE APP TO BE MOBILE?

WHAT IS THE DIFFERENCE BETWEEN BRING ONLINE AND BEING MOBILE?

WHO NEEDS IT?

a

b

c

d

| Ask yourselfJUST A PAIR OF OLD SILLY QUESTIONS

32

MobilityInstant cash, instant loan, instant money transfer

Online financial services (Forex, Securities trading etc)

GamificationGive me a reason to log in

LoyaltyGive me more, than I’m expecting from you

SimplicityDon’t make my life harder. Make it ease.

25%

25%

25%

25%

| To be mobileWHAT THEY EXPECT FROM US?

INTERNET OF THINGSBUY-BUY WWW AS WE KNOW IT

SECTION 10

34

3

2

1Within next 5 to 10 years (till 2020)

classical www as we know it today

will disappear

All important and useful

information for users will be

collected and classified

| Our future forecastBELIEVE IT OR NOT

Content and apps will be delivered

to users via shops through

platform-providers

35

APPLEHardware

Software

AppStore

Communication

GOOGLEHardware

Software

AppStore

Google+ (social net)

MICROSOFTHardware

Sofrware

AppStore

FACEBOOK

Cross-platform software

AppStore

Social net

| Our future forecastCONTENT AND APPS MARKET

AMAZON

YAHOO

LOCAL’S???

36

EPILOGUETHE FUTURE IS HERE…

37| The future is hereWITH US OR WITHOUT…

My dear, here we must run as fast as we

can, just to stay in place. And if you wish to

go anywhere you must run twice as fast as

that.

— Lewis Carroll, Alice in Wonderland

“

”

38

БИОМЕТРИЧЕСКАЯ ИДЕНТИФИКАЦИЯ

ПАСПОРТНЫЙ КОНТРОЛЬ БЕЗ ВИЗ

И ДОКУМЕНТОВ

ГЕО-ТАРГЕТИРОВАННАЯ

РЕКЛАМА

| The future is hereTHINK DIFFERENT

ОПЛАТА БЕЗ КАРТОЧКИ И ДАЖЕ

ТЕЛЕФОНА

ПЕРСОНАЛЬНЫЙ ПРОФИЛЬ

ПОКУПАТЕЛЯ В МАГАЗИНЕ

ПЕРСОНАЛЬНЫЕ УСЛУГИ И

ПРЕДЛОЖЕНИЯ

ВСТРОЕННЫЙ ЧИП ДЛЯ

ИДЕНТИФИКАЦИИ ЛИЧНОСТИ

ПОКУПКА ПРОДУКТОВ

ПИТАНИЯ ОНЛАЙН

39

THANKS FOR COMING

“ The best way to predict the future – is to create it.

— Abraham Lincoln ”

| The future is hereCREATE IT!

40| Thanks for comingAND KEEP IN TOUCH WITH US

AddressPINbank

6, Moskovsky prospekt

Ukraine, Kiev, 04073

Phone & FaxDirect Line: +380 44 593 6006

info@pinbank.ua

www.PINbank.ua

Social MediaFacebook.com/PINbank.UA

41

Мобильный банкинг для смартфоновhttp://www.deloitte.com/assets/Dcom-Russia/Local%20Assets/Documents/FSI_services/Mobile_banking_web.pdf

Отделение Deutsche Bank q110https://www.db.com/medien/en/content/q110.htm

ТОП-20 рыночных ниш с наибольшими перспективами заработка в ближайшие 5–10 летhttp://inventure.com.ua/news/world/20_rynochnyh_nish_v_kotoryh_mozhno_zarabotat_v_blizhajshie_510_let

Peer 2 peer lendinghttp://www.ibtimes.co.uk/p2p-lending-uk-market-doubles-six-months-1458792

Как Apple и Facebook намерены перепредумать деньгиhttp://www.lookatme.ru/mag/live/inspiration-lists/208171-money

Мастеркард запускает биометрическую оплатуhttp://futurebanking.ru/post/2650

It-индустрия убивает банки. Но захочет ли она их заменить?http://www.pcweek.ua/themes/detail.php?ID=146926&THEME_ID=13962

АНАЛИТИКИ pwc ПРЕДСКАЗЫВАЮТ СМЕРТЬ БАНКОВhttp://bzo.gidulyan.com/analitiki-pwc-predskazyvayut-smert-bankov/

Переносной банкингhttp://bzo.gidulyan.com/wearable-banking-perenosnoj-banking-na-stadii-podema-video/

| Read it laterJUST TO KNOW

42

http://www.mobilepaymentstoday.com/

http://rebanking.ru/

http://futurebanking.ru/

http://techcrunch.com/

http://www.engadget.com/

http://online.wsj.com/news/technology

| Keep it nearMORNING COFFEE FOR YOUR BRAINS