Superbank

Banks. Giant buildings. She acts unshakable and confident. You run into one every once in a while.

Hand on heart. When was the last time you were in a bank? At the same time, you were only there because IT couldn't be done in the app, right?

I had an e-bank account. The first online banking in Central Europe. It was great, I didn't have to go to the bank. I haven't used internet banking for a long time. I use bank in a mobile app.

From giant buildings and polished vaults, banks have become one of the many icons on our mobiles. And within the icons there is innovation.

The European PSD2 directive made it mandatory for banks to open up using APIs to others. Some did it more, others less. Multibanking has emerged, which is actually uninteresting.

Controlling multiple accounts from one bank... when the app operator prefers their bank... and for the other banks you just need to view the account status... not interesting. It's useless. ČSOB preferred to close its multibanking operations a year ago.

Poor bank. People are not interested in multibanking! It's a shock.

I mean, except not at all. Disinterest is logical. Banks have no incentive to be interested in multibanking. They just want you to be with them. People are not interested in half-hearted solution. That way we can tick off multibanking as a functionality and move forward. No one wanted it, except for the United States.

You know CURVES? Unlike multibanking, this multicard has a lot of uses! It is a card in which you have additional cards. Thanks to it, you can transfer payment from one card to another if you are mistaken. Plus, it has reasonable exchange rates.

So let's consider one possible potential future. I'm not a bank strategist. I see the world from the outside. So maybe completely wrong. There are definitely barriers that block this notion of mine. Otherwise, we would have My superbank.

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Superbank

What need do I have as a user in case of normal operations? Checking my finances. The best conditions for savings or loans. Enough trust in the institution where I have money. So, today trust the icon on the phone.

In the future, there will be an app where we will create all our accounts. The orderlies. Loans. AND She will handle them for us. Is there a better interest somewhere? Shoot the money there. Does this bank have a cheaper international payment fee? Let's send it through her. We'll probably have to confirm it in the beginning... then not even that anymore. Let's call it workspace Superbank.

In the first phase, we will Superbank Indicate in which bank we have the money deposited. To promote their own credibility. Then not even that anymore.

In the beginning, we will have to give a bunch of approvals. We will also conclude contracts in banks where we are not yet. Then not even that anymore. In the future, this will happen completely automatically. Over regulated banking infrastructure.

Working with finance is a commodity. There's no reason we shouldn't treat her that way in the future.

Let's say you believe me and this future seems real to you. No one knows when that will happen. At the same time, we know it's going to happen. In a capitalist environment My superbank just someone will do it as soon as possible. Because it's going to be damn lucrative. At the same time, the author of the app will rather not be a bank.

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What strategic game can Czech banks play?

Some of those strategic moves are fairly evil. That's the way it is. No one is forcing you into them.

1 ️ ⃣ We will not do anything. We will continue to build the brand and attract clients just as we do today. If it comes Superbank, we become part of the infrastructure. When we find out, we'll be paralyzed for a while. Then we begin optimize operation. We will radically reduce spending. We will cut prices. We will become a supplier to a bank supermarket. White-labeled in the future. It won't be much fun... at the same time... someone has to do it.

2 ️ ⃣ Ecosystem strategy — we will be TEN innovator. We will create an app that integrates other banks. We will create an optimization mechanism for users' money. We mark ourselves My superbank...

It has a catch. The ecosystem will make our business results worse! We will lose deposits when we transfer clients' money elsewhere than to us. We're going to lose loans. In the short term, it will be against the interest of the board, shareholders, management, absolutely everyone! In the long term, we will have a bigger market than ever before.

The ecosystem game goes directly against the current business model of banks. It radically reduces the chance of the current banks embarking on it. Quarterly reporting to shareholders is crap. Inertia is powerful. I would bet on Revolut for myself in Europe, for example.

3 ️ ⃣ Lobbying -- we will lobby in every way to put the brakes on the innovator. I don't know what all the legislatively prevents the creation of Superbanks... something will definitely be there, otherwise we would have My superbank in a cell phone. We're going to strengthen it. Our friend will be FUD (fear, uncertainty, doubt). And good relations with legislative bodies. After all, you don't give a startup the keys to your own money, Mrs. Nováková! After all, you will not allow the theft of the wealth of the whole nation, Mr Parliamentarian!

4 ️ ⃣ Fast follower — we see that an ecosystem app is coming up based on our orientation in the situation. So we're going to put a bunch of resources into it to be ready. When an innovator releases his My superbankOurs will be out in a month. Maybe with a different brand than today. With a giant marketing campaign. We roll over the innovator communicatively. This is not going to be done on its own and it requires great strategic thinking and consistency across the bank's leadership. Investing tens or hundreds of millions and then waiting is no fun.

5 ️ ⃣ Slowing down the innovator — we see that an ecosystem app is approaching based on our orientation in the situation. We contact the innovator. Let's say it's a startup. We take the founders to an expensive dinner. We order work from him, for which we pay extremely well. We promise him mountains of mines. We'll go golfing with him. And in parallel, we will develop our own ecosystem app. We pay the innovator well for the ordered services and then stop answering the phones.

6 ️ ⃣ Acquisition of an innovator — we see that an ecosystem app is coming up based on our orientation in the situation. We contact the innovator. Let's show you a demo. We'll buy it. In whole or in part. Especially fast. Then we ideally let him do his job. It's ours, so everything's fine. We bought a future. This could have happened, by the way... we just don't know about it. The bank is now playing 4 ️ ku.

7 ️ ⃣ Alliance Bank — part of the banks will form an alliance and develop My superbank together. Then it enters the market with it and rolls out those banks that are not in the alliance. This is perhaps the most difficult option, because we need to overcome the inertia of all future participants in the alliance.

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And we could move on. There are a number of strategic moves.

Superbank offsite clears part of the financial advice market. It is logical that financial-advisory groups and ordinary banks will not flock to it. It goes exactly against their business model. Superbank will have a beautiful counterpoint.

At the same time, it's clear that something is stopping startups from making this stuff. It's not as technologically difficult... at least as an MVP. Where's the problem? I don't understand banking. I understand mapping. From the outside, I estimate the real state of API banks, permission from the CNB or legislation. Or all together.

Superbank is one of the possible futures of banking. The situation can develop in a variety of ways based on (non) the actions of the individual actors. And their orientation in the situation. Do you discuss your future in the company like this? About the future of your industry? It can help Strategic thinking.

“I believe in maximum flexibility, so I reserve the right to change my position on any subject when the external environment relating to any topic changes too. “
‍-- Henry Singleton

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We were intrigued

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Reading for the weekend

Mass Disabling Event Denial

Covid is over. We beat him. At the same time, the numbers of disabled and chronically ill are skyrocketing. 🚀

Have a nice time

Jan Razec

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