Speed Matters

The Conspiracy of a
Generation

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mike.jagdeo@gmail.com

TL;DL(isten) III

@attractfunding on Twitter

TL;DL(isten) III

@attractfunding on Twitter

TL;DL(isten) III
We must target Millennial
Pragmatists or watch our Personal and
Commercial Banking business evaporate
in the next 5-7 years
Given the Millennials strong ties to
Google & Apple, were in a fight for our
lives.
This effort must be demonstrably
backed by the CEO or inevitably fail.
(Geoffrey Moore, Crossing the Chasm)
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Speed Matters
The Conspiracy of a
Generation

@attractfunding on Twitter

mike.jagdeo@gmail.com

Table of Contents
1. Importance of the Smart Wallet
2. Profitable Innovation via Pragmatists
3. Millennials Pragmatists are your #1
Concern
4. Banking Habits of MPs
5. Were Running Out Of Time
6. Speed Matters
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How Important is the RBC Smart

Wallet? II
As a first step, many banks should adopt a
mobile first philosophy, in which
products and processes are completely
redesigned for mobile, after which they are
translated to Internet and branches.
While preserving the equity in their brand,
they should reposition and rebrand the
bank to appeal to millennials and
compete effectively in the digital era
McKinsey Global Banking Annual Review 2015

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How Important is the RBC Smart

Wallet? II
[The Bank CEO] first needs to build a
vision
based on the premise that they will
never see
the customer face-to-faceonly deal
through
screens and make no margin on their
loans.
Chris Skinner, Top 40 Global Fintech Influencer, WSJ
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Millennials Are Your #1 Concern III

Millennials (18-34) outnumber Baby
Boomers (Pew Research, 04.25.16)
Millennials, the children of the digital
age, are the next wave of banking
customers. (McKinsey Global Banking Annual Review 2015)
Millennials are the agent of change in
shifting behaviors. (The Future of Finance, Goldman
Sachs)

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Millennials Are Your #1 Concern III

@attractfunding on Twitter

Millennials Are Your #1 Concern III

@attractfunding on Twitter

Millennials Are Your #1 Concern

Millennials (18-34) outnumber Baby
Boomers (Pew Research, 04.25.16)
Millennials, the children of the digital
age, are the next wave of banking
customers. (McKinsey Global Banking Annual Review 2015)
Millennials are the agent of change in
shifting behaviors. (The Future of Finance, Goldman
Sachs)

@attractfunding on Twitter

Innovation Monetization via Pragmatists

(Moore, Crossing the Chasm [Recent work with Cisco Sybase Akami Rackspace McAfee
Cognizant etc.])

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Millennials Are Your #1 Concern

The point of greatest peril in the development of a
high-tech market lies in making the transition from
an early market dominated by a few visionary
customers to a mainstream market dominated
by a large block of customers who are
predominantly pragmatists in orientation. The
gap between these two markets, heretofore
ignored, is in fact so significant as to warrant being
called a chasm, and crossing this chasm must
be the primary focus of any long-term
CROSSING THE CHASM high-tech marketing
plan. A successful crossing is how high-tech
fortunes are made; failure in the attempt is how
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they are lost.

Millennial Pragmatists (MPs) Are Your #1

Concern

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Table of Contents
1. Innovation Monetization via
Pragmatists
2. Millennials Pragmatists are your #1
Concern
3. Banking Habits of MPs
4. Were Running Out Of Time
5. Speed Matters

@attractfunding on Twitter

What Are Pragmatists?

Unlike Innovators and Early Adopters,
Pragmatists consume technology to
solve a problem, NOT to consume
technology itself
(Options & Opportunities, Forging Lasting Banking Relationships with
Millennials, FICO)

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The Banking Habits of MPs

Five times more likely than those over age
50 to close all accounts with their primary
bank.
They are three times more likely to open a
new account with another bank.
Significantly more likely to transact with
their bank through mobile app.
Have more products at their primary banks
than other cohorts
(Options & Opportunities, Forging Lasting Banking Relationships with Millennials, FICO)

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Table of Contents
1. Innovation Monetization via
Pragmatists
2. Millennials Pragmatists are your #1
Concern
3. Banking Habits of MPs
4. Were Running Out Of Time
5. Speed Matters

@attractfunding on Twitter

Were Running Out Of Time II

A generation of consumers is learning that
there are banking services from nonbank
providers whether that's PayPal or Venmo to
move money, or alternative lenders like
Lending Club. These are the same consumers
who will be opening businesses and who will
be running the companies of the future. Don't
you think there is collateral damage to the
industry as this generation takes the reins? The Great Rebundling of Financial Services
(Bradley Leimer, Head of Innovation, Santander Bank for American Banker)

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Were Running Out Of Time

II
32 percent of Millennials are likely to use a
mobile wallet service like Apple Pay or
Google Wallet in the next 12 months
American Millennials will step up use of
non-traditional banking services this year
56 percent of younger Millennials (18-24)
report that they are already using or very
likely to use alternative payment services
like Venmo and PayPal.
FICO Survey: American Millennials Will Step Up Use of Non-Traditional Banking Services This
Year

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Table of Contents
1. Innovation Monetization via
Pragmatists
2. Millennials Pragmatists are your #1
Concern
3. Banking Habits of MPs
4. Were Running Out Of Time
5. Speed Matters

@attractfunding on Twitter

Speed Matters II
Instagram hit 12M users in 12
months (now 400M)Speed
Matters.Mobile experiences fill gaps
while we wait. No one wants to wait
while they wait. Mike Kriegman, Instagram Founder (UX Designer
+ Developer)

FB and IG are now the two most

important mobile advertising
platforms in existence (Sandberg, COO FB, Jan 26
2016)
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Speed Matters II
A 1-second delay in page response can
result in a 7% reduction in conversions (Gomez
| Akamai | Kissmetrics)

Mobile apps that take longer than 5

seconds to load results in 19%
abandonment (Gomez | Akamai | Kissmetrics)
Negative digital experiences with both
online and mobile had a much bigger
negative impact on Millennials than on
other age groups. (Options & Opportunities, Forging Lasting Banking
Relationships with Millennials, FICO)

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