Healthy Money

Preface xi

Introduction xv

Chapter 1 Nature of the Challenge 1

1.1 Three Mutually Reinforcing Transformations 1

1.2 Banking in the Post-Bank World 18

1.3 Case Studies – Digital-Only Exemplars 27

1.4 Overview of the Three Transformations 31

1.5 Putting it All Together 57

1.6 Appendix: Are You a “2030 Probable Winner”? 62

Chapter 2 The Changing Landscape 67

2.1 Overview: Key Forces Reshaping the Sector 67

2.2 Modern Financial Lives: Four Archetypes to Consider 70

2.3 Waves of Digitization: The Era of Digital Engagement 82

2.4 Technology Trends: Impact of Artificial Intelligence, Digital Assets and New Devices 90

Chapter 3 The Customer Transformation: From Balance Sheet-driven Products to Financial Health-driven Services and Support 95

3.1 Rethinking the Chief Customer Officer 96

3.2 Rethinking Financial Health 104

3.3 Theme 1: Enable Day-to-Day Household Financial Management 109

3.4 Theme 2: Empower Exchange 124

3.5 Theme 3: Facilitate Customers’ Financial Networks 132

3.6 Theme 4: Unblock Accumulation and Decumulation 136

3.7 Theme 5: Put Customers in Control of their Money, Relationships and Data 162

3.8 Rethinking Customer Digital Engagement 166

Chapter 4 The Architecture Transformation: From Accounts-based Architecture to Customer’s Graphs, Events and Smart Contracts 171

4.1 Prisoners of the Architecture 172

4.2 Theme 1: Loose Coupling 180

4.3 Theme 2: Customer Graphs and Event Histories 183

4.4 Theme 3: Configurable Products 200

4.5 Theme 4: Context-Specific Experiences 202

4.6 Theme 5: Real-Time Settlement and Accounts 204

4.7 Summary: The Healthy Money Architectural Layers 205

Chapter 5 The Leadership Transformation From a Customer Inertia Mindset to a Customer Engagement and Renovation Mindset 209

5.1 Drivers of Incumbency Inertia 210

5.2 New Realities, New Mindsets 213

5.3 Theme 1: Perpetually Reassert the Headroom of Unmet Customer Needs 217

5.4 Theme 2: Ruthlessly Focus on the Multiplier Effects 219

5.5 Theme 3: Synchronize the Short Term and the Long Term 222

5.6 Theme 4: Reset the Language to Reflect the Economics of Technology 224

5.7 Theme 5: Define Revolution Internally, and Evolution Externally 226

5.8 Putting It All Together 228

Acknowledgements 241

About the Author 243

Index 245