[Music]
[Music]
[Applause]
it works hello so two years ago
Financial Times had an article with the
headline is banking heading for its
Spotify moment in the Spotify moment
referring to the point in time when an
existing industry is just you know blown
away and completely replaced by
something new I truly believe that that
banking is heading for its fortified
moment I think it’s going to be one of
the biggest transformation that we’ll
see in a consumer industry in our
lifetime I think it’s going to have a
huge impact on individuals financials I
think it’s going to have a huge impact
on society and maybe more importantly I
also think it’s going to redefine our
relationship and how we interact with
our money so first of all let me tell
you I don’t think that banks are evil I
don’t think that bankers are evil people
I think there are players just trying to
play their best game given the set of
rules that they’ve been given and
ultimately of course those those rules
have been decided by us society so
there’s really no one to blame here so
just to give you a short description of
the state of the consumer banking market
and to meet consumer banking it would be
any type of services that you and me
users would be payments investment
mortgages loans etc it’s probably one of
the most illiquid market AI people very
very rarely switch banks or pick up new
financial products it’s I think that
switching costs can be mental ones it
could be physical ones as well as as
illegal once looking at the European
banking market most people have actually
inherited that bank
from their parents and I’m one of those
and people most people think that that
consumer finance or dealing with it it’s
complicated
it’s boring it’s time-consuming it’s not
it’s something that it’s not really
working for me I should spend more time
trying to figure out my pension
maybe I should remortgage but I just
don’t do it to give you one example then
why this is a problem if you walk in
today to a regular branch office with a
bank and say I have five hundred euros
that I would like to invest in the stock
market you’re likely to get the advice
that well I recommend you to put that
money in in the bank so mutual fund it’s
actively managed and it’s gonna cost you
roughly one and a half percent per year
in fees if you’re willing to invest
maybe two hundred the euros or something
more per month you don’t need to be a
rich kids this is for everyone by the
time you’re 80 you have spent half a
million euros in fees too much paying
the banks compared to if you would
choose in a passively managed index fund
instead I think this is amazing because
if you look at academic research it’s
crystal clear that we should all have
those active or the passive lis managed
index fund that are super cheap so
crystal clear secondly it’s a product
that is kind of standardized so it
doesn’t need to be a lot of research for
up for you to pick it up and it’s
distributed pretty much everywhere so
it’s easy to buy for everyone and
despite this a vast majority of all
consumers money invested on the stock
market is with those expensive actively
managed funds and of course that has a
huge impact on you I mean half a million
EUR that a lot of money that of course
have a great impact on society what if
that money could have spent be spent
elsewhere instead I think there are
three distinct reasons for why we ended
up where we are today one is that
the banks they owned the distribution
network virtually all financial products
have been distributed through the
physical branch network so obviously
very hard to compete for newcomers
secondly banks have had a monopoly on
viewing people’s finances and this is
absolutely necessary if you want to do
financial advisory to understand your
financial history and to understand your
financial presence and thirdly banks
have had a monopoly on transferring
money and that is kind of a magic setup
so banks are being the only one who see
well this guy has 500 or 5,000 euros
that she that’s just laying around on a
bank account my advice to you is that
you should invest it in one over the
banks own mutual funds and I’m the only
one who can do it for you transfer it
immediately and it’s done
well this is now all about to change
firstly get back to that one first
distribution is becoming increasingly
digital and online where everyone can
compete secondly and this might be the
most exciting part it’s called PSD to
boring and short for payment service
directive 2 which is a new EU
legislation that is just about to be
adopted and it forces every single
european bank to open up for you to take
your financial data all of it and view
it elsewhere into use in other services
and it forces every single bank to open
up for you to transfer money from that
bank from elsewhere you don’t need to
visit the branch or the bank’s own
mobile app which is obviously you know
huge difference so essentially what
we’re doing is that we are decoupling
your personal finance from the banks and
that has been jointed together forever
basically and what it does is that
you’re allowed to to go to go to
competing services instead so you bring
transparency to this more
yet we lower switching costs we increase
competition
and ultimately this legislation moves
tons of power from the banks to you as a
consumer now then
so we’re already see on the back of this
legislation new emerging services that
helps you interact with your money
completely new ways we see robe advisory
services that automatically rebalance as
your finances make sure you have the
cheapest funds available there services
that let you cherry pick the interest
accounts that has the best rate
throughout Europe or or services that a
real time that you remortgage should
that be a mortgage for you with better
with better better interest so what
we’ll see we see switching costs go down
go down go down and it’s going to be
easier and easier for people for
everyone to make smart financial
decisions and I think that the Spotify
moment in banking will be when you have
a service where you can just turn on
that autopilot so instead of just
optimizing with Rob advisory your
investments you have a service that
optimize your entire finances make sure
you always have the best interest rate
the best credit card the best mortgage
or the best investment portfolio where
money is starting to just work for you I
think that’s going to be
transformational so what will happen to
the banks done well I think there are
great banks that out there the problem
today is not that that there’s a lack of
good products the problem historic has
been that it’s been a disaster when
matching these great products with the
consumers that needs them and I think
it’s been a horrible time to be a banker
for the past few decades just imagine
trying to build new innovative services
cheaper ones smarter ones and you get no
new customers because people inherit
their banks so kind of the only thing
you can do was to sit
wait and hope for your customers to get
children and that they becomes customer
one day it must have been so boring and
frustrating so obviously now when when
we have a more liquid market or yet in
the future best tanks will have all the
customer that they will deserve I think
also that in order to compete for your
attention
banks has traditionally had you know
exact same offering for everyone every
bank looked the same and they I have the
same product as my mother every product
looked the same for everyone between 18
and 80 can you see any other consumer
market where that’s the case so we’re
going to see the emergence of new niche
banks instead I think here we’re going
to have the apple of banks and the good
job banks it’s gonna probably cost ten
times as much and as a regular Bank
service but we have chosen them we’ll
say that’s a lifestyle product that I
want that I’m still happy about having
and I think here down there you’re gonna
have like super cheap DIY banks you’ll
have to do everything on your own
but at very very low cost and then
you’re gonna have everything in between
so obviously the good banks are going to
be winners in this bad banks huge losers
society and as us as individuals will of
course financially benefit from it but I
think maybe the most important change is
that the moment that that sporty for a
moment when we turn on the autopilot I
think we’re going to go from that that
that feeling that finances is not really
working for me that people describe as
like financial anxiety to a state maybe
we can describe as financial happiness
and I think that’s the financial future
that I hope for all of us thank you
[Applause]
[Music]
[Applause]
it works hello so two years ago
Financial Times had an article with the
headline is banking heading for its
Spotify moment in the Spotify moment
referring to the point in time when an
existing industry is just you know blown
away and completely replaced by
something new I truly believe that that
banking is heading for its fortified
moment I think it’s going to be one of
the biggest transformation that we’ll
see in a consumer industry in our
lifetime I think it’s going to have a
huge impact on individuals financials I
think it’s going to have a huge impact
on society and maybe more importantly I
also think it’s going to redefine our
relationship and how we interact with
our money so first of all let me tell
you I don’t think that banks are evil I
don’t think that bankers are evil people
I think there are players just trying to
play their best game given the set of
rules that they’ve been given and
ultimately of course those those rules
have been decided by us society so
there’s really no one to blame here so
just to give you a short description of
the state of the consumer banking market
and to meet consumer banking it would be
any type of services that you and me
users would be payments investment
mortgages loans etc it’s probably one of
the most illiquid market AI people very
very rarely switch banks or pick up new
financial products it’s I think that
switching costs can be mental ones it
could be physical ones as well as as
illegal once looking at the European
banking market most people have actually
inherited that bank
from their parents and I’m one of those
and people most people think that that
consumer finance or dealing with it it’s
complicated
it’s boring it’s time-consuming it’s not
it’s something that it’s not really
working for me I should spend more time
trying to figure out my pension
maybe I should remortgage but I just
don’t do it to give you one example then
why this is a problem if you walk in
today to a regular branch office with a
bank and say I have five hundred euros
that I would like to invest in the stock
market you’re likely to get the advice
that well I recommend you to put that
money in in the bank so mutual fund it’s
actively managed and it’s gonna cost you
roughly one and a half percent per year
in fees if you’re willing to invest
maybe two hundred the euros or something
more per month you don’t need to be a
rich kids this is for everyone by the
time you’re 80 you have spent half a
million euros in fees too much paying
the banks compared to if you would
choose in a passively managed index fund
instead I think this is amazing because
if you look at academic research it’s
crystal clear that we should all have
those active or the passive lis managed
index fund that are super cheap so
crystal clear secondly it’s a product
that is kind of standardized so it
doesn’t need to be a lot of research for
up for you to pick it up and it’s
distributed pretty much everywhere so
it’s easy to buy for everyone and
despite this a vast majority of all
consumers money invested on the stock
market is with those expensive actively
managed funds and of course that has a
huge impact on you I mean half a million
EUR that a lot of money that of course
have a great impact on society what if
that money could have spent be spent
elsewhere instead I think there are
three distinct reasons for why we ended
up where we are today one is that
the banks they owned the distribution
network virtually all financial products
have been distributed through the
physical branch network so obviously
very hard to compete for newcomers
secondly banks have had a monopoly on
viewing people’s finances and this is
absolutely necessary if you want to do
financial advisory to understand your
financial history and to understand your
financial presence and thirdly banks
have had a monopoly on transferring
money and that is kind of a magic setup
so banks are being the only one who see
well this guy has 500 or 5,000 euros
that she that’s just laying around on a
bank account my advice to you is that
you should invest it in one over the
banks own mutual funds and I’m the only
one who can do it for you transfer it
immediately and it’s done
well this is now all about to change
firstly get back to that one first
distribution is becoming increasingly
digital and online where everyone can
compete secondly and this might be the
most exciting part it’s called PSD to
boring and short for payment service
directive 2 which is a new EU
legislation that is just about to be
adopted and it forces every single
european bank to open up for you to take
your financial data all of it and view
it elsewhere into use in other services
and it forces every single bank to open
up for you to transfer money from that
bank from elsewhere you don’t need to
visit the branch or the bank’s own
mobile app which is obviously you know
huge difference so essentially what
we’re doing is that we are decoupling
your personal finance from the banks and
that has been jointed together forever
basically and what it does is that
you’re allowed to to go to go to
competing services instead so you bring
transparency to this more
yet we lower switching costs we increase
competition
and ultimately this legislation moves
tons of power from the banks to you as a
consumer now then
so we’re already see on the back of this
legislation new emerging services that
helps you interact with your money
completely new ways we see robe advisory
services that automatically rebalance as
your finances make sure you have the
cheapest funds available there services
that let you cherry pick the interest
accounts that has the best rate
throughout Europe or or services that a
real time that you remortgage should
that be a mortgage for you with better
with better better interest so what
we’ll see we see switching costs go down
go down go down and it’s going to be
easier and easier for people for
everyone to make smart financial
decisions and I think that the Spotify
moment in banking will be when you have
a service where you can just turn on
that autopilot so instead of just
optimizing with Rob advisory your
investments you have a service that
optimize your entire finances make sure
you always have the best interest rate
the best credit card the best mortgage
or the best investment portfolio where
money is starting to just work for you I
think that’s going to be
transformational so what will happen to
the banks done well I think there are
great banks that out there the problem
today is not that that there’s a lack of
good products the problem historic has
been that it’s been a disaster when
matching these great products with the
consumers that needs them and I think
it’s been a horrible time to be a banker
for the past few decades just imagine
trying to build new innovative services
cheaper ones smarter ones and you get no
new customers because people inherit
their banks so kind of the only thing
you can do was to sit
wait and hope for your customers to get
children and that they becomes customer
one day it must have been so boring and
frustrating so obviously now when when
we have a more liquid market or yet in
the future best tanks will have all the
customer that they will deserve I think
also that in order to compete for your
attention
banks has traditionally had you know
exact same offering for everyone every
bank looked the same and they I have the
same product as my mother every product
looked the same for everyone between 18
and 80 can you see any other consumer
market where that’s the case so we’re
going to see the emergence of new niche
banks instead I think here we’re going
to have the apple of banks and the good
job banks it’s gonna probably cost ten
times as much and as a regular Bank
service but we have chosen them we’ll
say that’s a lifestyle product that I
want that I’m still happy about having
and I think here down there you’re gonna
have like super cheap DIY banks you’ll
have to do everything on your own
but at very very low cost and then
you’re gonna have everything in between
so obviously the good banks are going to
be winners in this bad banks huge losers
society and as us as individuals will of
course financially benefit from it but I
think maybe the most important change is
that the moment that that sporty for a
moment when we turn on the autopilot I
think we’re going to go from that that
that feeling that finances is not really
working for me that people describe as
like financial anxiety to a state maybe
we can describe as financial happiness
and I think that’s the financial future
that I hope for all of us thank you
[Applause]
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