All right, now let's talk about bank 3.0. Well, what is a bank for majority of the people right now? This is not an office or the group of people nicely dressed and full of expertise. For the majority of people, the bank is this. This is a mobile phone. Well, clearly a smart phone that is connected to the Internet. The vast majority of people never think about the things that we've talked about in the past three and a half weeks. So, who are these people, what is their profile? Well, these people, first of all, live in the internet. It's not the case when they use it, like I do for example, but they just live there. If these people are not connected, most often, their life is interrupted. Well, not physically, but they can do little if anything. So, these people Live in the Internet. And that is all, A bank. For you, I'll put it like this. And this is, I'll use another marker, a mobile bank. In the meaning that it's in the mobile phone. Now in all that, there's also the fact they output it like customer profile. So we know that these people live in the Internet. Not only that. With the explosive development of the social media, we can say that these people trust the crowd. Well, I will tell you more. They trust the crowd much more than they trust experts, and we will talk about that in greater detail in just a few minutes. And these people value convenience a great deal. What does that mean? That when you use your phone, you prefer not to care about what's going around us. You just pass the folder over the terminal, and that's it. So what happens to a bank? How does a bank make money? What the bank does, you don't care. Now, the important thing is that if a bank persists in providing service as it used to, namely sends you an email or even calls you when it may be not convenient for you and asks you to come into the bank's office. When you open an account, requires a physical signature, and then also forces you to show up in the bank office every now and then, then these people are no longer willing to be customers of such a bank. They prefer a bank that does everything online, the bank that never disturbs them, the bank that communicates with them in the way they like. So, for example, the bank doesn’t call them, but the bank sends them a message on Facebook, or let's say an SMS on the phone, say if you works about that whim, which is also important. So the bank should observe these trends, otherwise, the bank becomes outdated and loses market share to other banks or other providers of payment services. Those are not only, and not primarily banks right now, and they just e-cap the customer base from them. Now, the important thing is that the number of people who use this Internet in the form of a living Internet is growing. So new generations. These people are born and raised in this atmosphere. So, people like me who belong to the older generation, although we do use the Internet quite intensively, but we were born without that. We use that as a tool, but it would be an exaggeration to say that we're living in that. We do some other things too, but we are sort of getting behind, and we are replaced by the new young people. And if a bank thinks about the future, it must observe these trends, otherwise it just lose it's business. Now, at the same time when the bank observes these trends, the bank's goal, as you know, is not only and not primarily to provide these services, liquidities. So the bank must make money, it's a business. So the bank should reach their clients. Reach the customer, And offer value. You can say, well, this is something very generic. Yes it is, but now, the way this is done and the products that you offer, they are sort of different. So how do you reach the client? Like I said, you communicate in the way that is really convenient for this customer. Now oftentimes, for example, you are in a store. And on your smartphone, you are studying the product, so you are about to buy it, but then you seek advice from your friends on Facebook. And then at this moment, the bank observes that somehow and sends you a message. Would you like to get a loan? Which is on much better terms than a credit card, and it's kind of nice. Or you're in the airport, you're about to go on a vacation. And this very moment, the bank sends you a message saying, would you like to have a pre-approved insurance for this journey? So oftentimes, you can see that the bank communicates with you on a personal level, which is always appreciated by the people but even more now. You can say, well, how can that be done? Well, first of all, everyone uses a mobile, everyone is online, so that can be traced. And with the use of digestion of the big data, which is a huge trend right now, maybe the bank will be able to communicate with you very personally and very directly very soon. Because you can say, well for now, it's not quite realistic maybe, but it can take not dozens of years but a year, because social media did not exist 15 years ago. And they have completely changed the world and the profile of the people with respect to what we are talking about. Now, so you can see that thing number one is personalization, and the other thing is convenience. At the same time, we have to realize that here, when the bank, let's say, says that I'll give you a pre-approved loan, we know that when loans are provided, then we are back to the issue of monitoring. And the issue of monitoring does look a little bit outdated right now. But now, most agencies, not only banks, [INAUDIBLE] and governments, they can say a lot about you by studying your profile on your Facebook. And not just in greater detail. Because people show themselves, and they show who they are, and what they are, and let's say how solvent they are in using signals, and these signals are on their social media profiles. Therefore, we can say that social media are becoming an important tool of [INAUDIBLE]. So putting social media here. Like this. Now, at the same time, it all seems like we're great, so people love this. Like pre-approved loans, they don't care about anything. The bank always sort of tries to catch up with them. So this is a bank problem. We are fine. We now must be chased by competing banks that offer us great terms, that don't require anything from us, so these people do their business and then do their job. They don't bother us. Well, isn't that great for a customer? Well, it is. The problem, though, is that we will see in the next episode that the bank should make profits on that, and it cannot do that in the standard, let's say, old way. For example, if you charge a significant commission on something, then people say, well, I'll go to another provider with payment services who goes without or with a very low commission. And therefore, the bank loses this source of revenue. So, we can see that, that does create a huge challenge for a bank because the bank should preserve it's customer base and should make money. But at the same time, it provides some special incentives for us, for you, for me, for the customers of these banks. We sort of get used to the fact that we are offered, I would describe it a little bit, but something like a free lunch. So we don't care about anything, and we get everything. Well, doesn't that sound familiar? Every time when you can see the sky into the story, you can say, well, maybe something here is not quite right. Maybe we are talking about some special incentives, and we are provocated to engage in actions that can be exposed harmful for a bank. Well, indeed this is the case, but we will not go deeper in that because the overall in the standing of crowd behavior in the social media right now is not quite realized in detail. It's not quantifiable, but we see that the flavor is the same. In the next episode, we will see to what extent this social media monitoring is fine and to what extent it should be added with something that is a little bit more outdated.
