digital banking: the next 10 years - ncpcu - home presentation_2019.04.11.pdfapr 11, 2019 ·...
TRANSCRIPT
Making financial institutions digital.
W W W . N A R M I T E C H . C O M
Digital Banking: The Next 10 Years
Who Am I?
N A R M I T E C H . C O M
Nikhi co-founded Narmi after serving as the former CEO and CTO of the nation’s largest student-run financial institution at Georgetown University.
Nikhil Lakhanpal
Co-Founder
Narmi: A Digital Platform That Puts You At The Top
N A R M I T E C H . C O M
Online Banking
MobileBanking
Digital Account Opening
AdminPortal
FinTech Marketplace Banking API
RESTful
Sandbox Environment Included
Read / Write
OAuth 2.0 Protocol
N A R M I T E C H . C O M
Some of Narmi’s Customers
SETTING THE STAGE
Shift In Banking’s Purpose
N A R M I T E C H . C O M
Transactional → Emotional
Transactional Emotional‒ Check a balance
‒ Make a transfer
‒ View a statement
‒ Deposit a check
‒ Call a branch
‒ Understand financial story
‒ Save money
‒ Budget better
‒ Resolve financial problems
Mobile Banking App Functionality of Top 25 U.S. Banks
N A R M I T E C H . C O M
S o u r c e : J . P . M o r g a n E q u i t y R e s e a r c h
What Has Empowered This Change to be Successful?
N A R M I T E C H . C O M
1
2 Cheaper
Shift away from humans (automation)
3 Mobile-first
Who Is Leading This Change?
N A R M I T E C H . C O M
“Banking” Is Broadly Defined – Who Will Bring It All Together?
N A R M I T E C H . C O M
Who Cares?
N A R M I T E C H . C O M
Financial institutions run the risk of missing
an entire generation of users that
increasingly exhibit mobile and web only
behavior, place emphasis on user experience
over depth of functionality, and expect more
automation over manual process.
SETTING THE STAGE
What’s Happening?
N A R M I T E C H . C O M
1
2 By comparison, the number of financial institutions offering functionality mirroring financial technology companies is very small
FinTech companies – regardless of vertical – are converging towards traditional banking products
Examples
N A R M I T E C H . C O M
Examples
N A R M I T E C H . C O M
Examples
N A R M I T E C H . C O M
Examples
N A R M I T E C H . C O M
Examples
N A R M I T E C H . C O M
Examples
N A R M I T E C H . C O M
Other Verticals Moving Into Banking
N A R M I T E C H . C O M
― Brokerage― Automatic savings― Bill negotiation― Personal financial management― Financial aggregation― Crypto― Marketplace lending― AI-Driven insurance
ROBINHOOD & THE BROKERAGE INDUSTRY CASE STUDY
Another Example
N A R M I T E C H . C O M
Another Example
N A R M I T E C H . C O M
Recent News
N A R M I T E C H . C O M
What Brokerage Was
N A R M I T E C H . C O M
1
2 Manual service (call center, retail locations)
Heavy transactional pricing model (pay per trade)
3 Antiquated software
What Happened
N A R M I T E C H . C O M
It was reported in May 2018 that Robinhood, a
commission-free stock trading company, had
over 4 million accounts approved to trade
compared to the online brokerage E-Trade’s 3.7
million accounts. This statistic is even more
impressive considering Robinhood accomplished
this in less than 5 years.
GOLDMAN SACH MARCUS CASE STUDY
Goldman Sachs Case Study: A New Threat
N A R M I T E C H . C O M
‒ Consumer focused
‒ “We created Marcus to help people achieve financial well-being.”
‒ $20 billion+ of deposits
‒ $3 billion of loans
Simplicity is Winning
N A R M I T E C H . C O M
2
Products
How We Are Trained To Buy
N A R M I T E C H . C O M
95
Questions
513
Questions
247
Questions
84
Questions
204
Questions
1,143
Questions
CONCLUSION
Why It Is Ours to Lose!
N A R M I T E C H . C O M
The agility and innovation of FinTech companies
are undeniable advantages, though the most
formidable are those of Financial Institutions: the
ability to facilitate money movement, flexible
lending practices, the foundation to power deep
banking needs and government backing
Five Pillars To Success
N A R M I T E C H . C O M
1
2 Focus on money movement
Offer highest value-add financial services
3 Open accounts quickly
4 Design-first mindset
5 Automate as much as possible
