eTrading is transformational, and it’s insightful to see how key metrics can radically change once a firm embraces electronic trading and starts to migrate from a high touch (voice/branch) model to a low touch electronic trading paradigm. Today’s report on Paddy Power in the Daily Telegraph is an interesting case in point.
They may not be at the sophisticated (or glamorous) end of the spectrum, nevertheless Paddy Power – the bookie, has embraced online mobile trading (betting) in a big way, and the metrics are really impressive.
With over 81% of operating profits now comes from online operations. Their online ‘Punters’ (note they don’t call them clients), have transformed the business from just over 2% of the traditional betting shop (bricks and mortar) market, to 30% of tomorrow’s mobile and tablet market. Average stake per online punter is only €15.33 (compared to €15.99 in shops), with over 300,000 of their 833,000 online customers now bet via a mobile phone or tablet computer.
A large numbers of banks still execute small transactions, and payments at branch level, and they too could benefit from the efficiencies of a fully automated, low touch, highly scalable model, to enable them to grow their business.