Richard Kelly gives us sneak peak into the hidden world of Asian finance…
On May 30, 2012, Richard Kelly joins us in Copenhagen sharing key insights and learnings from the world of Asian banking. As the Managing Director of IDEO Asia Pacific, Richard brings with him a wealth of first hand knowledge and experience.
Richard will be joining the Finance Panel at 11:45, and will deliver his keynote speech at 13:30. Don’t miss out!
Bank of the Future: Asian Perspectives
The world is rebalancing to an Asian-centered world. Category change happens as a result of influences from outside. Asia is therefore the place to watch when it comes to determining how big the “financial services pie” will become, the kinds of values and behaviours that will create new opportunities for the industry as a whole, and re-thinking global finance for revenue growth, customer acquisition, and risk adjustment. Richard Kelly will share a provocation of what a next generation bank in Asia might look like, work like, and the implications for what a global next generation bank might look like.
A view from collectivist societies…
Drawing from our work across the Asian continent where the issue of relationship between people and money has arisen, we have identified one significant characteristic which we believe the next generation Asia bank could be built on – that of financial interdependence. Crucially, there does not seem to be a banking model in Asia that caters to this characteristic and it is therefore a brand new opportunity waiting to be explored and exploited.
In contrast to the West—where people’s relationship with money is individualistic and banking services are designed for financial independence—across Asia, we see financial interdependence where money flows readily and regularly between members of a network, be that a family, a clan, a community or a business circle.
For example, in Singapore, there is a tradition for children to give a proportion of their monthly income to their parents as a way of repaying the parents for all the sacrifices and investment the parents made bringing them up.
In India, financial transactions beyond immediate family within extended circles of friends and their families are common, often not involving any paperwork.
In Japan, we observed the workings of the neighbourhood loans systems which provides a trusted and intimate financial support networ, often not requiring the paperwork and security checks normally required by banks.
We think there is an opportunity for a new Network Bank which would cater to the needs and life goals of financially interdependent communities of people and businesses in Asia. And we believe it would have a number of benefits:
- Revenue growth
- Customer acquisition
- Risk adjusted cost of capital
Asia can teach the global financial world many lessons. There is an overall need to rethink banking for a new kind of bank to come into existence; a bank that enables people to bank together, one that strengthens networks by deepening connections between people and businesses through collective participation, and one that enables people to make the right decisions with their finances.
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