The Finanser's Week: 27th April – 3rd May 2015

Our biggest stories of the past week are ...

Why you should feel revulsion for the term ‘omnichannel’

A lot of folks are asking me whether I’m really saying that banks need to start all over again?  Is that really feasible, Chris?  How can you recommend that we tear down the house and rebuild it?  Well, there’s a lot of reasons I can say this, and believe it.

How to spot a fake Digital Bank

I just heard a presentation from a leading American bank on the need to be digital.  This bank claims to be a digital leader in the US and, from all the PR and headlines, you would believe they were.  Listening to their presentation, you might believe it too …

The jury’s still out on Apple Pay…

This is a blog from the Hotwire PR website, written by Camilla Ives.  It summarises my good friend John Chaplin’sPayments Innovation Jury Report report well.  The report has been produced annually for the past four years and John will be presenting this in person to the Financial Services Club in England (June) and Poland (July).  In the meantime, here’s the low down.

The Finanser interviews: Chris Larsen, CEO and cofounder, Ripple Labs

 Following on with our regular weekly interview the Finanser talks this week with Chris Larsen, CEO and co-founder of Ripple Labs.

If banking were a movie, which movie would it be?

So it’s late at night and we reach that point in the evening when one of the group pipes up: so let’s stop talking about us, but let’s talk about banking.  A big groan. If banking were a movie, what movie would it be?  

 

The major general news stories of the past week include … 

Once interest rates are on the move again, how fast will they rise? – The Independent
It is a huge question, not least for the next UK government: how fast will interest rates rise here and elsewhere in the developed world? For a start, the cost of funding will be a crucial element in the next government’s fiscal planning, for the faster rates go up the

Barclays takes extra £800m hit for forex – Financial Times
Pre-tax profits fall 26% to £1.34bn in first-quarter but investment banking rebounds

French IT firm Cap Gemini to buy U.S. rival IGATE for $4 billion – Reuters
PARIS (Reuters) – Cap Gemini SA , a French information technology services company, said it will buy U.S.-based rival IGATE Corp for $4 billion in a deal that would make North America into its biggest market and hand IGATE’s founders a $1 billion windfall.

Investors question Deutsche Bank’s overhaul – Reuters
FRANKFURT (Reuters) – Deutsche Bank’s biggest strategic overhaul under co-chief executives Anshu Jain and Juergen Fitschen got a thumbs down from investors on Monday who judged it too little too late.

End of the bank holiday? Almost 100 NatWest and Barclays branches to be open in end of 144-year tradition – The Telegraph
RBS says customers struggle to make it to branches during working hours, as it opens branches on a bank holiday for the first time

Deutsche Bank strategy met with scepticism – Financial Times
Lack of detail in German lender’s five-year vision leaves analysts puzzled

HSBC considering spinning off British retail bank: Sunday Times – Reuters
(Reuters) – HSBC , Europe’s biggest bank, is weighing plans to spin off its British retail bank in a 20 billion-pound ($30.37 billion) deal, the Sunday Times reported.

Lloyds takes £640m hit from TSB’s Spanish sale – The Telegraph
Bank due to report fall in profits as it registers IT losses from Banco Sabadell’s takeover of TSB

If Greece falls, no one wants their prints on the murder weapon – Reuters
BRUSSELS (Reuters) – “We’re going bust.” “No, you’re not.” “You’re strangling us.” “No we’re not.” “You owe us for World War Two.” “We gave already.”

The bizarre banking loophole that has opened up in Malta – The Guardian
Malta throws a spotlight on how secure our bank accounts really are – or aren’t

 

If you like the Finanser, check out our latest book: Digital Bank

 

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The Finanser's Week: 19th April 2015 – 26th April 2015

Our biggest stories of the past week are ...

Rip it up and start again …

I’m having so many conversations about so much stuff that my head is spinning these days.  Fintech, digital, transformation, change … it seems to be on the lips of everyone I meet.  Yet the one thing that stands out is that it’s not necessarily happening.

Digital channels are just lipstick on a pig

I just sat through a nice presentation from Cognizant President Prasad Chintamaneni at the CEB Summit in Boston and was pleased to see others referring to channels and front-end investments as sticking lipstick on a pig.  

The Finanser Interviews: Matthias Kröner, CEO, Fidor Bank

Following on with our regular weekly interview the Finanser talks this week with Matthias Kröner, CEO and founder of Fidor Bank, Germany. 

I didn’t say that banks are “too big to be disrupted” but “too regulated to be disrupted”

Quite often, with attribution, I let other websites cut and paste this blog onto their own.  American Banker did that recently but changed the title of the blog from  The reports of my bank’s death are greatly exaggerated to Like Airlines and Pharma, Banking’s Too Big to Disrupt*.  In so doing, the intent of the original became slightly distorted and has led to some interesting responses.  

What is Chris smoking? Of course, we’re being disrupted!

Just to finish off my contention that banking is not being disrupted, just evolved or adapted if you prefer, it’s worth a thought about what would it take to cause a disruption.

 

The major general news stories of the past week include … 

Metro Bank may grow into more than just a mosquito – The Independent
Outlook Another company that has made deft use of PR stunts and branding is Metro Bank, but I’m not about to throw any bricks in its direction. It was a bit hard to take seriously when it launched, what with the gaudy merchandise and the free dog biscuits on offer

Credit Suisse’s new boss Tidjane Thiam dealt tough hand as bank reveals capital fall – The Telegraph
Decline in capital ratio at Swiss bank takes shine off profits and raises prospect of fund-raising early into new chief executive’s tenure

What happened during the Flash Crash? – The Telegraph
A British day trader has been arrested after allegedly sparking a stock market collapse that wiped billions off some of the world’s biggest companies. Here is what happened on Thursday May 6, 2010

The biggest US-EU free trade agreement in history is advancing – in secret – The Independent
Secret negotiations between the US and EU for a the biggest bilateral trade agreement ever negotiated resume on April 20 in New York. The talks are attracting increasing criticism as activists guess at the proposals while politicians keep the details behind closed doors.

HSBC chairman warns Britain’s biggest bank could leave for Asia as taxes bite – The Telegraph
Douglas Flint, the chairman of the UK’s largest lender, has said that HSBC could soon consider a move away from its London base

Metro Bank plots £1bn London float next year – The Telegraph
Challenger bank is looking to list after holding talks with the London Stock Exchange

Wonga set to post loss amid clampdown on payday lenders – The Telegraph
Wonga, the controversial payday lender, will announce it has fallen into the red, while an industry-wide crackdown on short-term lenders threatens its recovery

Britain’s bank tax jump threatens to push HSBC, StanChart to new home – Reuters
LONDON (Reuters) – HSBC and Standard Chartered are looking at the viability of quitting London for a new home in Asia because a big jump in a tax on UK banks makes staying in Britain increasingly painful.

How Santander’s affordability tests are forcing rates rises – and arrears – The Telegraph
The bank is making some borrowers pay its high SVR at a time when mortgage rates are at historic lows, and complaints are mounting

Deutsche Bank prepares to spin off Postbank – Financial Times
Strategic review set to unwind €6bn deal done during financial crisis

 

If you like the Finanser,  check out our latest book: Digital Bank

 

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The Finanser's Week: 13th April 2015 – 19th April 2015

Our biggest stories of the past week are …

What keeps Jamie Dimon awake at night? (clue: Fintech)

I’ve written a lot about incumbents versus startups lately and noted with interest that Jamie Dimon’s annual letter to JPMorgan shareholders picks up on this theme (not as a direct result I’m sure?).  He talks about “hundreds of startups with a lot of brains and money working on various alternatives to traditional banking” and that “the ones you read about most are in the lending business, whereby the firms can lend to individuals and small businesses very quickly and — these entities believe — effectively by using Big Data to enhance credit underwriting.”

Data personalisation strikes to the heart of bank disruption

I’ve heard a lot of talk this morning about Big Data at a conference here in Barcelona, and had a realisation half way through.  The conversation was all about the move from mass markets and customer segmentation to the market of one and peer-to-peer personalisation.  In other words the deep data mining demanded by Don Peppers and Martha Rogers in 1:1 marketing in the 1990s is finally here.  It took twenty years, but here it is.  Yet this is the heart of the debate about digital disruption, fintech startups and bank responses. 

Bank Fintech worries are obvious … solutions are not as clear

I just finished presenting on Digital Bank strategies and Fintech, and was asked a wide range of questions:

  • How do we transform our legacy structures?
  • What is the biggest obstacle to becoming a digital bank
  • You mention partnerships but all cooperative structures failed in the past, how can we succeed in the future?
  • Can you show us someone who is doing this right and making it work?
  • What should a bank do when we have millions of customers who trust us?

Banks without a digital core will fail

Building on the discussion of data being key to disruption, I often use the phrase ‘digital core’ in this context.  Therefore, I was intrigued when someone asked for a definition of a ‘digital core’ and one of the replies was there isn’t a core anymore. 

My favourite 419 scam email: Bernie Madoff needs my help

I get a lot of spam and scam email most of which is deleted but, as it’s Friday, I thought y’all might appreciate the phish that follows … 

—–Original Message—–
From: Benard Madoff [mailto:midoffnyc@madoff.com] 
Sent: 08 April 2015 13:54
To: me
Subject: Help me Make a difference

 

The major general news stories of the past week include …  

Death of cashback: which credit card perks will be kept? – The Telegraph
EU rules mean banks now make less money from credit cards and may limit perks. Our tables show which banks are cutting back

If a bank seems too big to fine the fine needs to be bigger – The Independent
Outlook It’s one ring-fence that no one in the City, in theory at least, objects to. One of the lessons from the Lehman Brothers’ collapse was that financial institutions need to keep clients’ money strictly segregated from their own funds.

Barclays discovers the value of its depositors – The Independent
Outlook Speaking of the cost of doing business, Barclays has announced that it will pay £7 a month to its loyal current account customers from next week. It’s quite a U-turn. Not long ago both Barclays’ chief executive, Antony Jenkins, and its chairman, Sir David Walker, were mooting imposing charges

Stop bashing bankers? Not just yet, thanks to Clydesdale – The Independent
Outlook Just when you thought banker bashing might finally come to an end, another hideous toad crawls out from under a rock to stir the public’s justified indignation yet again.

Clydesdale Bank fined £21m after doctoring PPI evidence – The Telegraph
Scottish bank failed to give appropriate compensation to as many as 93,100 customers and provided regulators with false information

In Odd European Twist, Banks Owe Borrowers – Wall Street Journal
Subzero rates have put some lenders in an inconceivable position: paying interest to those who have borrowed money from them

Scrapping non-dom tax status would hit bank chiefs – The Telegraph
Bank of England governor and top UK bankers would be hit by Labour plans to abolish non-dom status

Junior trader made to eat 8 burgers in humiliating City initiation ceremony – The Telegraph
Video shows 23-year-old man surrounded by colleagues at Marex Spectron, an international commodities broker, who raucously goad him on to complete the challenge

A new catalyst for positive change across the banking industry – The Telegraph
Millions rely on the banking system every day and 500,000 UK jobs depend on it

‘Dull work, flat pay and lousy colleagues’ – Financial Times
Global survey uncovers deep frustrations at heart of financial services industry        

 

If you like the Finanser, buy Chris Skinner’s latest book: Digital Bank

 

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The Finanser's Week: 6th April 2015 – 12th April 2015

Our biggest stories of the past week are …

The reports of my bank’s death are greatly exaggerated

There are a number of debates that pop-up regularly including the war on cash, the end of the branch and the death of banking.  The last one I haven’t blogged about much because it’s irrelevant, but I’ll blog about it today as there are two camps of thought: incumbents and new entrants; and today’s blog is inspired by exactly this argument between Michal Panowicz of mBank (an incumbent) and Brett King of Moven (a new entrant) on twitter.

It’s not the end of banking as we know it, but …

I’m intrigued by how often I hear the line: “banks are stuck in the past”.  Most upstarts and startups are saying that banks have their heads up their rears, aren’t focused upon the future, don’t think out of the box, cannot change, blah blah blah.  Do they really believe this?  Apparently yes.  Such arrogance is impressive and is the reason why so many new companies are entering the industry to change it.  The question is: will they?   My answer is: a little.

Why Fintech Banks Will Rule The World

Whilst debating whether new fintech startups would eat the banker’s lunch yesterday, I stumbled across a really interesting read by Philippe Gelis, co-founder and CEO of FX firm Kantox.  It was so good that I asked Philippe if I could put it on the blog and he kindly agreed.  Read and enjoy …

As the Bitcoin Foundation fails, banks wake up

I’ve blogged before about how bitcoin will become institutionalised, that you cannot have money without government, why it needs a Foundation and how a Wild West structure for value exchange will fail.  It’s certainly moving in that direction after the latest revelations about the Bitcoin Foundation, alongside the equally revealing announcements that banks are incorporating the blockchain.  Here’s the latest.

 

The major general news stories of the past week include …  

Atom Bank raising £75m before launch – City AM
Atom Bank is raising £75m from investors as it prepares to gain its full licence and launch this year. The Durham-based challenger bank plans to be the first fully digital lender, operating predominantly via mobile apps.

How secure are new payment technologies? – Financial Times
Latest developments increase safety — but can also pose risks

Gangsters flood Italian banks with €500 notes known as ‘Bin Ladens’ because they are notorious, but rarely sighted – The Independent
The €500 note, the Euro-gangster’s favourite form of money, is behind an unprecedented wave of money laundering in Italy, officials warn.

Bank systems creak under weight of digital transactions – Financial Times
Pressure is mounting on the archaic technology systems that underpin some of the largest banks as they roll out online and mobile services to compete in the digital age.

UK launch of digital bank Fidor hamstrung by payments providers – The Telegraph
Innovative German lender Fidor Bank’s UK launch has been delayed by difficulties gaining access to the country’s payments system infrastructure

Stupid errors in spreadsheets could lead to Britain’s next corporate disaster – The Telegraph
Large firms have failed to learn lessons from Enron, which was brought down by spreadsheet inaccuracies

IdeaBank offers in-car deposit box – Financial Times
Mobile bank targeted at small businesses that rely on cash transactions

Cyber risk the most serious threat to business, says Lloyd’s chief – The Telegraph
Lloyd’s of London is receiving more enquiries for protection against costly cyber attacks

Labour is being far too reticent: it didn’t cause the global financial crisis and Coalition austerity policies have stalled the recovery – The Independent
My old Bank of England colleague Tony Yates – soon to be Professor of Economics at the University of Birmingham – has an interesting post about electoral politics on his blog, longandvariable. He notes that the Coalition claims credit for the extraordinary job-creation – which he argues almost certainly had

Banks ‘pay 60%’ of profit in penalties – BBC
Britain’s largest banks have paid 60% of their profits since 2011 in fines and repayments to customers, according to a report by accountants KPMG

 

If you like the Finanser, check out our latest book: Digital Bank

 

The Financial Services Club is sponsored by:

Invest Northern Ireland 

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The Finanser's Week: 23rd March 2015 – 5th April 2015

Our biggest stories of the past week are …

Why bitcoin will be bigger than the internet

“In Spanish, we have a saying that when a genius points at the moon, a fool looks at the finger. I find that happens a lot with bitcoin.” —Wences Casares

The Finanser Interviews: Roberto Ferrari, General Manager of CheBanca!

Following our regular series of interviews, we turn this week to talk with Roberto Ferrari, the General Manager of CheBanca! and Board Member of Mediobanca Innovation Services.

To say “banks are failing to grasp the mobile opportunity” is like saying “Apple is failing to grasp the technology opportunity”

At last week’s Payments International conference, Dave Birch and I engaged in a fun Oxford style debate entitled: This House Believes That Banks Are Failing To Grasp The Mobile Opportunity.  Unfortunately Dave got to propose the motion – we both said afterwards we could have argued either way – and, purely because a lot of bankers were in the room, he lost the motion.  I opposed it and, purely for the record, thought I’d share my notes, for what they are.

Does anyone really need a mobile wallet?

Reflecting on another conversation at last week’s conference, there were lots of discussions about why the mobile wallet wars were lost.  No one’s won the mobile wallet war yet, not even Apple, but it is there to be won.  In fact I wondered why it took a firm like Apple to take up the mantra and aim for this crown – not forgetting WeChat, Alipay and others – and realised it’s because no one has yet worked out what a mobile wallet is for.

Corporate bankers … do you need to wake up?

So I’m talking with a group of corporate bankers and the conversation goes into the normal alleyway.  This alleyway is the one that says: “we are corporate bankers and will not be disrupted”.  The conversation goes something like:

Corporate bankers …buy some extra pillows

So I blast the corporate banking world for being slow to change and believing their customers won’t change … and maybe they’re right.  After chairing a panel of large corporates including Jaeger, Virgin Media, Illy and Hotel Booker BV, the view seemed to be that banks were doing a good enough job and that corporates aren’t looking for innovation or new technology capabilities from their bank partners but other things. 

Where is the Uber of banking?

The smartphone revolution has radically restructured every industry from booking a trip (TripAdvisor), a room (Airbnb) or a taxi (Uber), but where’s the Uber of banking? There isn’t one yet and consumers will soon defect to new players unless high street banks wake up.

The billion dollar fraud and how deep learning might avoid it

Banks are being hacked all the time.  According to various statistics, banks get over a million cyberattacks a year, and protecting the bank from breach is getting harder and harder.  This was well illustrated by the Kapersky report of a cybercrime group in February gaining access to over $1 billion in two years by targeting over 100 banks in 30 countries. 

 

The major general news stories of the past week include … 

Monitise founder Lukies moves on – Financial Times
Shares plunge as mobile money group decides to go it alone after rejecting offers

Bank of England rapped over payments system failure – The Independent
The Bank of England has been criticised by an independent investigation over its handling of a breakdown of its electronic payments system last October, which disrupted a “significant” number of house purchase transactions and created “considerable inconvenience” for ordinary households and companies.
The world’s next credit crunch could make 2008 look like a hiccup – The Telegraph
Is this why central bankers are so scared of raising interest rates?

Sell Commonwealth Bank and buy this stock instead – Sydney Morning Herald
Commonwealth Bank’s share price has more than doubled since the Global Financial Crisis and price-to-book ratios for the big four are at the top end of their historical averages.

Deutsche Bank ‘Horribly Undercapitalized’: Regulator – Here is the City
A top U.S. banking regulator called Deutsche Bank’s capital levels “horrible” and said it is the worst on a list of global banks based on one measurement of leverage ratios.

Challenger bank Shawbrook fetches £725m valuation on IPO – The Telegraph
Shawbrook Bank is the latest start-up bank to float on the London Stock Exchange and is widely thought to be the last listing until after the election

Banks must ‘raise their game’ to win back public trust – The Telegraph
Chairman of the body tasked with improving standards in the financial sector says trust has been ‘badly damaged’ as she unveils new board

Western banks axed 59,000 jobs last year, more cuts to come in Europe – Reuters
LONDON (Reuters) – Top European and U.S. banks axed 59,000 jobs last year as they restructured and cut costs, with headcount expected to shrink further in Europe as bosses strive to improve profitability that has been hit hard by tougher regulation.

British Airways says some frequent flyer accounts hacked – Reuters
LONDON (Reuters) – British Airways said on Sunday tens of thousands of its frequent flyer accounts had been hacked and that it had frozen those affected to sort the problem out.

Nationwide defies banks’ branch closures with major cash injection – The Telegraph
Mutual expected to spend around £300m over five years on upgrading physical outlet

 

If you like the Finanser,  check out our latest book: Digital Bank

 

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The Finanser's Week: 16th March 2015 – 22nd March 2015

Our biggest stories of the past week are …

Do you work for a monkey tree organisation?

I’m often asked about how to implement a digital bank?  What are the top tips?  My response is that every company is different, with no two banks the same.  Some are evolutionary and try to tinker with the current company structure; some are revolutionary, like mBank, and radically reorganise the current structure; whilst some are transformational, like BNP Paribas and Hello!, where the only way to create the new structure is through the launch of a new bank.

It’s about behaviours, not technology

So I visit a tradeshow last week focused upon the future of payments, and everyone is presenting their latest mobile apps and designs.  “That’s not the future of money”, I fume silently at the back.  Then we had a mention of bitcoin and my ears pricked up.  Oh, it’s a bitcoin mobile app.

The Finanser Interviews: Jon Matonis, Crypocurrency Economist

Bitcoin still stirs up a huge debate about where it will go in the future; will it become institutionalised; what is the blockchain going to do to banking; and more.  In order to clarify the debate, we interviewed Jon Matonis, a renowned expert on bitcoin and cryptocurrencies, to find out what is the truth.

Will Facebook and Apple Pay kill Visa and MasterCard?

So Facebook announced clarification of plans to rollout Facebook Pay, an easy way to pay friends through Facebook using your debit card.

Why the mobile ecosystem just became easy

I had a good chat about the mobile financial ecosystem today.  Maybe a good example of that ecosystem is represented below:

Mobile Financial Ecosysmte

What this portrays is that it’s complicated.  There’s a lot of players doing a lot of things and the bank has to herd cats to make it work.

  

The major general news stories of the past week include … 

George Osborne risks stand-off with City after unprecedented Budget tax raid on banks – The Telegraph
Increase to bank levy and other taxes on sector mean measures announced in the last six months will raise more than £9bn in next parliament

Bitcoin: Government to regulate cryptocurrency to avoid money laundering, says Treasury – The Independent
The Government is to regulate bitcoin exchanges to stop their use as money laundering hubs, the Treasury said today.

You can now use Facebook to send money to your friends – The Telegraph
Facebook to roll out feature that will let its users send money to each other via its Messenger mobile app

Lloyds pledge for investors after Spanish bank’s £1.7bn bid for TSB – Daily Mail
Lloyds has promised to compensate thousands of investors who bought shares in TSB when it floated on the stockmarket, if the challenger bank is snapped up by Spanish suitor Banco Sabadell before June 25.

HSBC closing Britons’ Jersey accounts – BBC
HSBC closes all accounts on Jersey belonging to customers living in the UK and is among UK lenders carrying out identity checks on thousands of their customers on the Channel Islands.

Rise of Turkish Islamic banks chimes with Erdogan’s ideals – Reuters
ISTANBUL (Reuters) – Selling fruit from a cart in a working-class neighborhood of Istanbul hasn’t made Mehmet rich, but he’s adamant his modest savings won’t ever see the inside of a bank.

Aldermore: How the bank formed in the depths of the crisis found success – The Telegraph
Interview: In 2008, Phillip Monks was out of a job and decided to start his own bank. Today, it is worth over £650m

Deutsche Bank ‘Horribly Undercapitalized’: Regulator – Here is the City
A top U.S. banking regulator called Deutsche Bank’s capital levels “horrible” and said it is the worst on a list of global banks based on one measurement of leverage ratios.

‘After 50 years, Lloyds is selling me to another bank’ – The Telegraph
Lloyds is splitting off 600 branches into a separate bank called TSB. Customers are going too – and they’re not happy.

Co-op saved, but banks face shake-up in pivotal week – The Independent
The Co-operative Bank will this week announce a plan to fill a £1.5bn hole in its finances, just as the Parliamentary Commission on Banking Standards recommends new powers to break up struggling banks.        

 

If you like the Finanser, buy Chris Skinner’s latest book: Digital Bank

 

The Financial Services Club is sponsored by:

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For details of sponsorship email us.

 

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The Finanser's Week: 9th March 2015 – 15th March 2015

Our biggest stories of the past week are …

Are we going through a Kodak/Nokia moment in banking?

A brainstorming session with a group of banks raised this question: are we going through a Kodak moment in banking?  Are we seeing a Nokia change?  Will banks miss the tipping point and die from the reformation of the internet, or will we respond and change in time?

UK Financial Inclusion Report Recommends 22 Things For 2020 (Some For Banks)

Yesterday the UK’s Financial Inclusion Commission published their report on Financial Inclusion for the UK.  The Financial Inclusion Commission is an independent body of experts and parliamentarians who came together to put financial inclusion back on the political agenda ahead of the 2015 General

The Finanser interviews: René Frijters, Founder and CEO of Knab Bank (Aegon’s digital first bank)

Following on with our regular weekly interview the Finanser talks this week with René Frijters, Founder and CEO of the Dutch digital bank Knab.  Knab is the digital first bank funded by Aegon.  In Aegon’s latest results summary, there are some interesting comments.

How will banks differentiate in the future?

I was asked this question today and, after thinking about it a while, I think banks are moving towards being lifestyle choices rather than payments processors. 

After the glitch, RBS closes GTS (or how a global bank becomes a national one)

I was surprised to see friend of the Financial Services Club Carole Berndt leave Royal Bank of Scotland (RBS) for Australian shores in January (actually Hong Kong with ANZ).  Even though she’s an Aussie, the surprise was that Carole had only moved to RBS to shake up their Global Transaction Services (GTS) business the year before, having been specifically poached from Bank of America Merrill Lynch for the role.  Something was up and the radar wondered what?

 

The major general news stories of the past week include … 

Federal Reserve rejects Santander and Deutsche Bank capital plans – The Telegraph
Fed highlights problems in governance, internal controls and risk assessment in both banks

The ‘death’ of British investment banks is nothing of the sort – The Telegraph
UK firms seem to binge and starve more than their international peers. Some do die. But others survive and reinvent themselves. The industry endures

Aldermore shares leap as bank gets float away at second attempt – The Telegraph
Challenger bank hands hundreds of staff bonuses of up to £1,000 after £650m IPO

Apple Watch: Wall Street and the City react – The Independent
Apple unveiled its most anticipated product in years yesterday – the Apple Watch.

Is Bitcoin Africa’s unlikely saviour? – BBC
Could Bitcoin be Africa’s migrant workers’ saviour?

Barclays ‘misleading shareholders’ – BBC
A leading pension body has called for Sir John Sunderland, chair of Barclays’ pay review committee, to resign.

Eurozone not viable, says fund boss – BBC
The eurozone is not viable in its current form, one of the UK’s most successful fund managers has warned.

After years of scandal, finally a ‘civilised’ bank – The Independent
A banking challenger for small and medium-sized business customers is aiming to raise £10m in funding ahead of a launch this year. 

Banks most at risk from Brexit, report says – Financial Times
Trade surplus means financial sector less able to strike a deal

Challenger bank Secure Trust makes business lending push – The Telegraph
Launch of bank’s asset finance division adds to growing use of secured SME loans

 

If you like the Finanser, check out our latest book: Digital Bank

 

The Financial Services Club is sponsored by:

Invest Northern Ireland 

For details of sponsorship email us.

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The Finanser's Week: 9th March 2015 – 15th March 2015

Our biggest stories of the past week are …

Are we going through a Kodak/Nokia moment in banking?

A brainstorming session with a group of banks raised this question: are we going through a Kodak moment in banking?  Are we seeing a Nokia change?  Will banks miss the tipping point and die from the reformation of the internet, or will we respond and change in time?

UK Financial Inclusion Report Recommends 22 Things For 2020 (Some For Banks)

Yesterday the UK’s Financial Inclusion Commission published their report on Financial Inclusion for the UK.  The Financial Inclusion Commission is an independent body of experts and parliamentarians who came together to put financial inclusion back on the political agenda ahead of the 2015 General

The Finanser interviews: René Frijters, Founder and CEO of Knab Bank (Aegon’s digital first bank)

Following on with our regular weekly interview the Finanser talks this week with René Frijters, Founder and CEO of the Dutch digital bank Knab.  Knab is the digital first bank funded by Aegon.  In Aegon’s latest results summary, there are some interesting comments.

How will banks differentiate in the future?

I was asked this question today and, after thinking about it a while, I think banks are moving towards being lifestyle choices rather than payments processors. 

After the glitch, RBS closes GTS (or how a global bank becomes a national one)

I was surprised to see friend of the Financial Services Club Carole Berndt leave Royal Bank of Scotland (RBS) for Australian shores in January (actually Hong Kong with ANZ).  Even though she’s an Aussie, the surprise was that Carole had only moved to RBS to shake up their Global Transaction Services (GTS) business the year before, having been specifically poached from Bank of America Merrill Lynch for the role.  Something was up and the radar wondered what?

 

The major general news stories of the past week include … 

Federal Reserve rejects Santander and Deutsche Bank capital plans – The Telegraph
Fed highlights problems in governance, internal controls and risk assessment in both banks

The ‘death’ of British investment banks is nothing of the sort – The Telegraph
UK firms seem to binge and starve more than their international peers. Some do die. But others survive and reinvent themselves. The industry endures

Aldermore shares leap as bank gets float away at second attempt – The Telegraph
Challenger bank hands hundreds of staff bonuses of up to £1,000 after £650m IPO

Apple Watch: Wall Street and the City react – The Independent
Apple unveiled its most anticipated product in years yesterday – the Apple Watch.

Is Bitcoin Africa’s unlikely saviour? – BBC
Could Bitcoin be Africa’s migrant workers’ saviour?

Barclays ‘misleading shareholders’ – BBC
A leading pension body has called for Sir John Sunderland, chair of Barclays’ pay review committee, to resign.

Eurozone not viable, says fund boss – BBC
The eurozone is not viable in its current form, one of the UK’s most successful fund managers has warned.

After years of scandal, finally a ‘civilised’ bank – The Independent
A banking challenger for small and medium-sized business customers is aiming to raise £10m in funding ahead of a launch this year. 

Banks most at risk from Brexit, report says – Financial Times
Trade surplus means financial sector less able to strike a deal

Challenger bank Secure Trust makes business lending push – The Telegraph
Launch of bank’s asset finance division adds to growing use of secured SME loans

 

If you like the Finanser, check out our latest book: Digital Bank

 

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The Finanser's Week: 2nd March 2015 – 8th March 2015

Our biggest stories of the past week are …

Is the Fintech bubble about to burst?

I recently recorded a video for Meniga to show at their conference in London for Next Bank Europe.  We had to do this as I was in New York on the day of the conference, and the organisers wanted me to present so badly they agreed to come to my house to do record my presentation. A bit unusual but, there you go.

Crime-as-a-Service: pay-as-you-blow with #bitcoin

So I’ve talked about Banking-as-a-Service for some time, but what about Crime-as-a-Service?  It does exist on a pay-as-you-blow basis.  Europol were one of the first to note this trend, in a report published late last year (from ITPro):

The Finanser Interviews: Soner Canko, CEO of BKM, Turkey

Following on with our regular weekly interview, the Finanser talks this week with Soner Canko, CEO or BKM (Bankalararası Kart Merkezi), the ACH for Turkey. BKM was established in 1990 as a partnership of public and private banks. Today, all the banks that issue a card and own a POS are members of BKM.  The ACH is notable for being a key promoter of contactless payments and, more recently, launching its own mobile payments wallet for the banks to leverage to their clientele.

You ain’t seen nuthin’ yet

I hosted a dinner the other night, talking about how technology has changed banking.  We had a great conversation and I wrote down 26 points from the 14 contributions made in the opening round robin.  These points are summarised below and may be summed up by one word: change. Things are changing fast and, as one person stated (bearing in mind Chatham House Rule), if you think things are changing a lot today, you ain’t seen nothing yet! 

Is there a digital divide in banking?

So I’m just going to close off the branch debate (this time around, it comes up often) by talking a moment about demographics.  In my gut, I hate the use of demographics as, when it comes to digital, I prefer psychographics.  As a baby boomer, I feel more like a digital native, having grown up in the technology industry as my career, than a digital immigrant but, according to demographics, I’m an immigrant.

 

The major general news stories of the past week include … 

The UK won a key victory in Europe that goes to the heart of the EU’s future – The Telegraph
The ECB’s proposals threatened to exacerbate the divide between those EU members that are inside the eurozone and those on the outside

Andrea Leadsom: ‘I was a little stern, but he paid up and we’ve recovered £1.3bn’ – The Independent
Right, says Andrea Leadsom, let’s get straight to the point: “I want the taxpayer to know four things about what we are doing to restore trust in banking.

RBS cutting up to 14,000 investment banking jobs by 2019 – Fortune
The move, reported by Financial Times, comes as the struggling U.K. bank backs away from its investment banking business.

Rothschild did employ banker who squandered von Schonau fortune – The Independent
The exclusive Swiss private bank Rothschild did employ the aristocratic financial adviser who lost a Novartis pharmaceuticals heiress $44m of her inheritance through disastrous investments, new court filings allege.

Barclays’ 30-year attempt at taking on Wall Street is coming to an end – The Telegraph
The rise, fall, rebirth and final decline of Barclays’ investment bank is a tragic tale. It means that US and Chinese banks will eventually dominate the sector

Growing number of Britons switching bank accounts – Money Market
The number of Britons switching bank accounts grew by 12 per cent to 1.16 million in 2014, marking progress in the government’s push to boost competition, the Payments Council said.

Co-op Bank executive leaves in latest high-profile exit – The Telegraph
Chief operating officer Bob Rickert departs bank after less than 18 months

Data thieves raid TalkTalk customers’ bank accounts – Daily Mail
Thousands at mercy of fraudsters after addresses and phone numbers were stolen from firm’s computers

Lloyds v RBS – two banks with different problems and very different results – Guardian
The contrast between bailed-out Lloyds Banking Group and Royal Bank of Scotland was thrown into sharp focus as the former paid out its first dividend since the banking crisis (and handed its boss an £11.5m pay deal) while the latter reported its seventh consecutive year of losses (and its boss waived his bonus).

Banker bashing wins votes but real culprits go unpunished – The Telegraph
British banks are an easy target for politicians but are these attacks puting the entire financial services industry at risk?

 

If you like the Finanser,  check out our latest book: Digital Bank

 

The Financial Services Club is sponsored by:

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For details of sponsorship email us.

Powered by WPeMatico

The Finanser's Week: 2nd March 2015 – 8th March 2015

Our biggest stories of the past week are …

Is the Fintech bubble about to burst?

I recently recorded a video for Meniga to show at their conference in London for Next Bank Europe.  We had to do this as I was in New York on the day of the conference, and the organisers wanted me to present so badly they agreed to come to my house to do record my presentation. A bit unusual but, there you go.

Crime-as-a-Service: pay-as-you-blow with #bitcoin

So I’ve talked about Banking-as-a-Service for some time, but what about Crime-as-a-Service?  It does exist on a pay-as-you-blow basis.  Europol were one of the first to note this trend, in a report published late last year (from ITPro):

The Finanser Interviews: Soner Canko, CEO of BKM, Turkey

Following on with our regular weekly interview, the Finanser talks this week with Soner Canko, CEO or BKM (Bankalararası Kart Merkezi), the ACH for Turkey. BKM was established in 1990 as a partnership of public and private banks. Today, all the banks that issue a card and own a POS are members of BKM.  The ACH is notable for being a key promoter of contactless payments and, more recently, launching its own mobile payments wallet for the banks to leverage to their clientele.

You ain’t seen nuthin’ yet

I hosted a dinner the other night, talking about how technology has changed banking.  We had a great conversation and I wrote down 26 points from the 14 contributions made in the opening round robin.  These points are summarised below and may be summed up by one word: change. Things are changing fast and, as one person stated (bearing in mind Chatham House Rule), if you think things are changing a lot today, you ain’t seen nothing yet! 

Is there a digital divide in banking?

So I’m just going to close off the branch debate (this time around, it comes up often) by talking a moment about demographics.  In my gut, I hate the use of demographics as, when it comes to digital, I prefer psychographics.  As a baby boomer, I feel more like a digital native, having grown up in the technology industry as my career, than a digital immigrant but, according to demographics, I’m an immigrant.

 

The major general news stories of the past week include … 

The UK won a key victory in Europe that goes to the heart of the EU’s future – The Telegraph
The ECB’s proposals threatened to exacerbate the divide between those EU members that are inside the eurozone and those on the outside

Andrea Leadsom: ‘I was a little stern, but he paid up and we’ve recovered £1.3bn’ – The Independent
Right, says Andrea Leadsom, let’s get straight to the point: “I want the taxpayer to know four things about what we are doing to restore trust in banking.

RBS cutting up to 14,000 investment banking jobs by 2019 – Fortune
The move, reported by Financial Times, comes as the struggling U.K. bank backs away from its investment banking business.

Rothschild did employ banker who squandered von Schonau fortune – The Independent
The exclusive Swiss private bank Rothschild did employ the aristocratic financial adviser who lost a Novartis pharmaceuticals heiress $44m of her inheritance through disastrous investments, new court filings allege.

Barclays’ 30-year attempt at taking on Wall Street is coming to an end – The Telegraph
The rise, fall, rebirth and final decline of Barclays’ investment bank is a tragic tale. It means that US and Chinese banks will eventually dominate the sector

Growing number of Britons switching bank accounts – Money Market
The number of Britons switching bank accounts grew by 12 per cent to 1.16 million in 2014, marking progress in the government’s push to boost competition, the Payments Council said.

Co-op Bank executive leaves in latest high-profile exit – The Telegraph
Chief operating officer Bob Rickert departs bank after less than 18 months

Data thieves raid TalkTalk customers’ bank accounts – Daily Mail
Thousands at mercy of fraudsters after addresses and phone numbers were stolen from firm’s computers

Lloyds v RBS – two banks with different problems and very different results – Guardian
The contrast between bailed-out Lloyds Banking Group and Royal Bank of Scotland was thrown into sharp focus as the former paid out its first dividend since the banking crisis (and handed its boss an £11.5m pay deal) while the latter reported its seventh consecutive year of losses (and its boss waived his bonus).

Banker bashing wins votes but real culprits go unpunished – The Telegraph
British banks are an easy target for politicians but are these attacks puting the entire financial services industry at risk?

 

If you like the Finanser,  check out our latest book: Digital Bank

 

The Financial Services Club is sponsored by:

 VocaLink_rgb_250x120

For details of sponsorship email us.

Powered by WPeMatico