banks and non bank entities
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Banks and non Bank Entities. August 6, 2010. Cooperation / Coopetition. A presentation by: Vivek Nayak COO Avenues India Pvt. Ltd. Role of Banks?. Provide good banking services Make money by moving money Bank the unbanked …. ABCDs. Can technology help? How far should a Bank go to grow?. - PowerPoint PPT PresentationTRANSCRIPT
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Banks and non Bank EntitiesCooperation / Coopetition
A presentation by:
Vivek NayakCOO
Avenues India Pvt. Ltd.
August 6, 2010
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Role of Banks?
• Provide good banking services
• Make money by moving money
• Bank the unbanked …. ABCDs.
• Can technology help?
• How far should a Bank go to grow?
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Stick to the knitting…
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Show me the money!
• How to look for new revenue models?– Look outside and partner innovators– Create successful business models through
partnership!
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Cooperate
• Non Bank Services Company (NBSC)– Identifies Market Gaps– Creates Innovative Solutions– Helps Banks maximize synergies– Opens up new revenue streams
3Ms – “Money Moving Machines” for the banks
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How to swing new business
Aggressive new bank
Hotel Group
Current BankRelationship
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3Ms in action
Aggressive new bank
Innovative newsolution from
3M Co. Avenues
Hotel Group
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• Complete hotel room booking engine with an online payment gateway attached.
• Room inventory distribution tools connects to multiple Global Distribution Systems and IDS.
Hotel Group
Circle of InfluenceWithout ResAvenue
Local Markets
Travel Associates
Returning customers
Hotel Group
Circle of InfluenceAfter ResAvenue
Customers from across the globe
World Wide Travel Agents
Returning customers
Global Corporate Entities
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Opportunity for the new bank
• Bank deepens the relationship with hotel by providing other banking services: – salary accounts, overdraft, loans, etc
Aggressive new bank
Hotel Group
All Global PG funds settled in hotel’s account in new bank
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Step Two: More Revenue Generation
Aggressive new bank
Millions of bank customers usingInternet Banking and Debit Cards
Hotel Group
Negotiates special deals from Hotel Group and offers to its customers
Customers book rooms and pay through their bank accounts
Debits customer’s account in the bank and pays hotel’s account in the same bank
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• Banks move funds from left pocket to right pocket• Earn a percentage of value of funds moved as revenue
%
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`win-win’ for all
Hotel Group
Aggressive new bank
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Side effects• New customers will want to open an account in
the bank that offers extra value adds
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Broadening the Scope
More solutions = more value for the bank customer = more movement of money = more revenue for the banks
• This is just one company, Avenues. • There are 100s of other such small companies creating innovative new solutions.• There are many other sectors where opportunities lie:
• Events, Entertainment, Sports, Bills, Insurance, Govt.
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Cooperation or Competition?
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Example of the dangers
MOBILE VAS
COMPANIES
Gets just 15% of Revenue
Receives dues after 6 months
Transparency on numbers?
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Cooperation or Coopetition?
• Understand the role of each part• Maintain balance in revenue share• Nurture the spirit of innovation• Preserve mutual respect & work
together.
“If we are together, nothing is impossible. If we are divided, all will fail.”
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Thank you