This book is a practical guide to the evolving landscape of finance, highlighting how it’s changing our relationship with money and how financial technology, together with macroeconomic and societal change, is rewriting the story of how business is done in developing economies. Financial services companies are trying to become more customer focused, but struggling to help huge customer segments, particularly in developing economies. Alternative financial models and tools are emerging, which are being embraced by consumers and incumbents. In large parts of the developing world, alternative services are leapfrogging traditional finance, meaning more and more people have access to finance without ever needing a bank. Meanwhile, the barriers around financial services companies are crumbling, as they become more reliant on integration with new providers and alternative types of service. Financial products can no longer be viewed in isolation, but as part of a service landscape that supports how people do life. This means rethinking how our businesses are designed, motivated and organised, and letting go of the old ways of thinking about supply and demand. With practical steps businesses and, in particular, financial services organisations need to take to participate in a global service ecosystem, this book will be of interest to financial professionals who work in banking, financial technology, and development finance.
Table of Contents
Table of Contents
Preface: Level the field
1. Ecosystem vs Egosystem and Revolution vs Evolution
Dinosaurs and dynasties: the Financial Services Egosystem
If not banks, what?
The transition is beginning to happen
What’s next for financial services?
Evolution or Revolution?
2. What’s the point of banks?
What are banks for?
Banking services and emerging alternatives
3. The Death and Resurrection of capital markets
A Capital Markets Primer
The Death of Capital Markets - the paradigm shift after the next crash
Bringing it together
The Resurrection of Capital Markets - death of the dinosaurs and rise of the mammals
What’s next for capital markets?
4. New payments landscape
The Old World
The New World
Conclusion - Future (im)Perfect
5. Central bank digital currencies and cryptocurrencies
Central Banks and cryptocurrencies
Why would central banks issue cryptocurrencies?
Options for CBDC implementation
Global response to CBDCs
6. Shifting values in the connected economy
Work, money and utility
Doing it all
7. Leapfrogging banks in emerging markets
The unbanked and underbanked, and access to identity
What has this meant for real people in developing economies?
Alternative finance and banks
8. Alternative wealth - the cow in your pocket
Behaviours and things as money
New asset classes, new wealth
9. New standard models for Banking
Traditional banking: over-diversification and complexity
Challenger Banks: facing problems of maturity and experience
Ecosystem Banks: collaborative, customer-centric services
The evolution of banking infrastructure
The Ecosystem Bank – we’re part of how your business runs
Conclusion: the future looks horizontal
10. The Money revolution - recycling value to drive sustainability
Money going back into the system
11. Green Fintech
The SDGs and the UNEP Inquiry into the financial system we need
Fintech sustainability opportunities
Use cases for sustainable development Fintechs
12. SME Microfinance, Fractional Ownership and Crowdfunding
SMEs and communities
13. International sustainable investment
The Sustainable Development Goals and investment
Evolving perceptions of sustainable investment
Barriers to growth
UNEP, the G7, the G20 and Fintech
Emerging Fintech solutions
The future of sustainable investing
14. Services & Demand
Banking for vegetarians
15. Platform Consumers
Customer uptake and behaviour
Businesses in the platform age
16. Technology vs Solution
Technology as a product
So why is this a problem?
17. Career as microservices – reputation based skills validation
18. Plebocracy bias
Why is critical thinking so hard?
How do we identify authority figures?
What does this mean for our modern reputation systems?
The rise of plebocratic reputation systems
So what can we do about it?
19. New approaches to identity and authentication
Background to customer authentication and authorisation
Who’s the customer?
Borderless platforms and regulation
Evolving approaches to authentication
20. Contextualised Trust Solutions
The need for contextualised trust
The challenge of context
21. Service Consumers
Services and you
So what does this mean for financial services?
22. Service Alignment
But aren’t banks service aligned already?
What do we mean by Service?
What makes a service work?
What is Service Alignment?
No more empires
No more heroes
The banks are doing fine – why change?
So what does a service aligned organisation look like?
23. Case Managed and Core Standardised Capabilities
Case Managed, multi-skilled teams at the customer facing edge
Core Standardised, Capacity Managed Capabilities
24. Communities of Practice and Centres of Excellence
What is a Community of Practice?
Centres of Excellence
Community of Practice or Centre of Excellence?
25. Service Architecture
What is a Service?
Services, processes and capabilities
Service Model vs Capability Map
Services and Customer Journeys
Why is this useful?
Service Architecture and organisational structures
26. Decision Architecture
What is decision architecture?
Service aligned decision architecture
Decision architecture in the ecosystem