Moroku Newsletters

Moroku Newsletters



September 2019

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Hi there,

It’s finally Spring time here down under, just as our friends in the northern hemisphere are contemplating the romance of Autumn.

But no matter the season, your trusted source of content continues. We cover Moroku’s positioning in the banking software value chain, a primer on cognitive biases in money management from our CEO Colin Weir, and a few other great reading materials we found interesting – particularly on Gen Z. We hope you enjoy!

Moroku has been highlighted in this fascinating piece written by the fintech strategists at aperture.

Bank software systems have moved from branch-banking of the 1980s to  internet banking, but the architecture didn’t change much.

We are now witnessing a new wave of banking – the open, real-time, networked banking, what we at Moroku like to call this lifestyle banking – and as such the banking software is undergoing a structural change, reconfiguring around the demands of the digital economy. In sync with this, the value is now accruing to a new layer of systems, which provide intelligence and engagement – like Moroku!

To quote from the article, in banking software the advantage is moving from having the best application to having the most value-added ecosystem around that application (app store) to helping customers make smarter decisions (system of intelligence) to helping the whole ecosystem perform better (a system of network intelligence).

Ultimately, the banking market is undergoing a digital upgrade with new, networked business models emerging, and the most successful banking technology companies will be those that align themselves with — and enable — this change.

Moroku – a system of intelligence for networked banking models

Ten cognitive biases around money management

Until recently, dealing with money always carried an aura of gravity and the expectation of uncompromised rationality.

The problem is: that is not how people behave in day-to-day life. As banking customers, people tend to have a range of habits that banks never intently tried to understand before.

That’s until the challenger banks arrived. Once the playing field broadened, innovative banking products started seeping through customers’ lives. From micropayments, to cost-sharing, to saving money and financial planning, the game has changed.

To design habit-shaping banking products that marry business growth with customer needs, we turned to behavioural psychology. The reason is simple, although often unacknowledged in the old paradigm: money is a deeply emotional topic.

Research focused on people’s decision-making process around money reveals many blind spots that impact not only personal financial stability, but also influence the entire ecosystem. Once understood they can be used set up guard rails, built from game mechanics, to guide customers to be on track. They also demonstrate that multiple player types exist and therefore that there are multiple tracks.

In this blog written by our CEO, Colin Weir (the first of two parts), we look at ten mental biases around money and how they shape interactions with money, banking products/services, and financial institutions in general. In part two which we will publish later this month, we will look at how banks can help their customers to overcome these biases to improve their financial wellbeing.

Read article -Ten mental biases around money
Sharing is caring. In this section, we share with you some of the best content we’ve enjoyed over the last few weeks here at Moroku.

The subtle art of (not) understanding Gen Z

An excellent in-depth look from Cayetana Hurtado of Balderton Capital at Generation Z.

To quote, “the true digital natives and hypercognitive generation, representing 2.4bn people (32% of the world’s population) and holding $44bn+ in buying power”.

Some common traits

  • Empowered and entrepreneurial, though realistic
  • Ambitious and willing to make things better
  • Strong sense of responsibility, ethics, and sustainability
  • More financially driven and conscious
  • Used to instant gratification
  • Short attention span
  • Seeking unique experiences
  • Authentic
  • Online identity

Moroku has been perfecting customer acquisition strategies for this demographic for many years – happy to help your bank to understand this space.

Gen Z: digital natives

  • Marcel van Oost, an independent fintech strategist covering mainly the challenger banking space, has started a series of articles about Gen Z’s relationship with money. More specifically: pocket money. Deemed “not profitable enough” by traditional financial institutions, the “pocket money market” has a massive potential for scale – the reasons? – primarily, because parents want to teach their children financial literacy and responsibility, argues Marcel.
  • So it seems that after signing up the millennial market through effective viral loops, the neobanks are now tackling the Gen Z market, acquiring them via their parents.

Through GameSystem and ChoreScout, Moroku is already working with both large banks and challenger banks to enable the new type of engagement required to attract and retain this customer demographic.

When does a bank become a tech company?

  • An interesting article from Sandeep Kumar Sood, following up on a recent piece from Ben Thompson where he looked to create a framework that helps defining what a tech company is. In short, to be a tech company depends on how much of your business model is governed by software’s unique characteristics (1/ Software creates ecosystems; 2/ Software has zero marginal costs; 3/ Software improves over time; 4/ Software offers infinite leverage; 5/ Software enables zero transaction costs), and how much of it is limited by real-world factors.
  • Sandeep takes Ben’s work further and applies the same framework to banks: what does it take for banks to be… well, tech companies? Worth the read!

Mobile gaming is a $68.5 billion global business, and investors are buying in

  • Interesting article from Techcrunch on the mobile gaming industry. If investments into the mobile gaming space continue at this current pace, the amount invested during 2018-19 will be higher than the eight previous years combined. It’s predicted that in 2019, 2.4 billion people will play mobile games around the world — that’s almost one-third of the global population — with the average age of a mobile gamer is 36.3 (compared with 27.7 in 2014. From casual games to the recent rise of the wildly popular hyper-casual genre of games that are quick to download, easy to play and lend themselves to being played in short sessions throughout the day, games are played by almost every demographic stratum of society.
  • It’s no surprise that the game space is getting increased attention and investment, not just from investors within the industry, but more recently from traditional financial markets and even governments. The evolution of investment in the gaming space is indicative of the stratospheric growth, massive revenue, strong user engagement and extensive demographic and geographic reach of mobile gaming.
  • With the global games industry projected to be worth a quarter of a trillion dollars by 2023, it comes as no surprise that the diverse players globally have finally realized its true potential and have embraced the gaming ecosystem as a whole.

While gaming, and particularly mobile gaming, is eating the world, there are still more conservative industries in which gamification is still a somewhat stigmatized concept. And one of those industries is, well, banking. Our mission here at Moroku is to change that perception, and we do that by working closely with bankers to explain the value behind using game-design principles to enable lifestyle products, underpinned by behavioural science.

Happy to help.

If empowering your customers financially is or could be a cornerstone of your digital value proposition, we’re just a small fire and a blanket away.

Team Moroku