Preface 13 Acknowledgements 16 PART ONE: Bank 2050 Chapter 1: Getting Back to First Principles 20 First principles design thinking 23 Applying first principles to banking 27 A bank that is always with you 32 Is it too late for the banks? 39 Feature: Ant Financial—The First Financial Firm for the Digital Age by Chris Skinner 44 The Alibaba stories 46 Ant Financial: Building a better China 58 Chapter 2: The Regulator’s Dilemma by Brett King and Jo Ann Barefoot 64 The risk of regulation that inhibits innovation 66 A flawed approach to fi nancial crime and KYC 72 The future form and function of regulation 82 Elements of reform 86 Feature: How Technology Reframes Identity by David Birch 93 PART TWO: Banking reimagined for a real-time world Chapter 3: Embedded Banking 102 Friction isn’t valuable in the new world 104 New experiences don’t start in the branch 106 Advice, when and where you need it 109 Mixed reality and its impact on banking 114 Feature: Contextual Engagement and Money Moments by Duena Blomstrom 118 Are banking chatbots the future? 118 Chapter 4: From Products and Channels to Experiences 124 The new “network” and “distribution” paradigms 124 Bye-bye products, hello experiences 131 The Bank 4.0 organisation chart looks very different 140 Onboarding and relationship selling in the new world 151 Feature: Future Vision: Your Personal Voice-Based AI Banker by Brian Roemmele 156 Chapter 5: DLT, Blockchain, Alt-Currencies and Distributed Ecosystems 160 Emerging digital currencies 161 Bitcoin and cryptocurrencies on a surge 166 The structural implications of DLT 176 PART THREE: Why FinTech companies are proving banks aren’t necessary Chapter 6: FinTech and TechFin: Friend or Foe? 185 “For me? Two servers” 189 Where the new players are dominating 191 Partner, acquire or mimic? 199 Killing FinTech partnerships—the barriers to cooperation 204 If you can’t beat them, join them 209 Feature: Why Banks Should Care About FinTech by Spiros Margaris 212 Feature: The Speed Advantage by Michael Jordan 214 Chapter 7: The Role of AI in Banking 219 Deep learning: How computers mimic the human brain 225 Robo-advisors, robo-everything 230 A bank account that is smarter than your bank 233 Where automation will strike first 242 Redefining the role of humans in banking 245 Chapter 8: The Universal Experience 252 The expectations of the post-millennial consumer 253 The new brokers and intermediaries 261 Ubiquitous banking 267 Feature: Going Beyond Digital Banking by Jim Marous 269 Going beyond digital banking basics 270 Amazon model provides a guide for banking 271 Feature: Digitise to Lead: Transforming Emirates NBD by Suvo Sarkar 278 PART FOUR: Which banks survive, which don’t Chapter 9: Adapt or Die 286 Key survival techniques 295 Survival starts at the top 306 Chapter 10: Conclusion: The Roadmap to Bank 4.0 311 Technology first, banking second 315 Experience not products 323 The Bank 4.0 roadmap 333 Conclusion 333 Glossary 337 About Brett King 344