Let’s take for granted that the following will come into being:
Digitalization will bring the cost structures of the banking industry down by greater than 2X
The centre of growth and opportunities will shift to Asia while the centre of capital and innovation in the short term remains weighed in the favour of the “developed” markets.
The implication of 1 is:
A dynamic market place will emerge where product value chain will be competitively bid for
It will be profitable to reimagine and fine grain current customer segmentation in financial, behavioural and knowledge terms
The implication of 2 (for this conversation) is:
First, a population 1.5 times the size of US population (conservatively speaking) is going to come through to financial security and a third to half its size into mass affluence
A majority of them with digital identities
Secondly, Innovation and capital will move eastwards and subsequently leapfrog
Digital and country scale urbanization are a match made in FinTech heaven but FinTech needs to choose between two realities
Marketplaces serving their respective customer groups where the customer come and partake:
The market place remains constant and the customers come and go
An intelligent bank driven advice guides the customer through this process centred around PFM tooling
The customer gets the best value for money
Now imagine an Augmented Intelligent Personal Advisor (AIPA). This is the customer’s tool on her mobile:
AIPA’s goal will be to focus on financial security and wealth creation
Add value system characteristics into this
Customer groups will become value system communities (with similar AIPA models
Suddenly the market place looks like planets around the AIPA sun. Very different and with the promise of prosperity.
Let’s think about what an AIPA world looks like.