Category: Business Models

Business Models, Innovation

The Enterprise of the Future in Financial Services | Five traits

Colin Henderson

Here is another study on the characteristics of financial services required to survive.  IBM is always thoughtful and this one is no exception.  They entitled the piece as applying to Financial Markets, but I have interpreted this to apply to Financial Services, generally, and not just say money markets.  Since they spoke to 1,000 CEO’s I think that assumption is reasonable. The enterprise of the future in the financial markets industry | IBM What will the financial markets enterprise of the future look like? To answer that question, IBM spoke with more than 1,000 CEOs from around the world. These … Continue reading The Enterprise of the Future in Financial Services | Five traits

Business Models

The essence of banking | Howard Davies – LSE

Colin Henderson

Sir Howard Davies, director of the London School of Economics sums up banking perfectly. New banking rules; tread carefully Banks engage in maturity transformation, turning sight deposits [which can be immediately withdrawn without penalty] into long-term loans. This confidence trick depends on just that – confidence. Depositors must believe their money is safe, even if they are dimly aware that if they all wanted to take it out the cash would not be there. The impossibility of creating this illusion is managed through the interbank money market.  Everything is fine so long as people continue to place their hard earned … Continue reading The essence of banking | Howard Davies – LSE

Business Models3 Comments

Paulson, Bernanke Push New Proposal to Cleanse Balance Sheets | huh!!

Colin Henderson

In a remarkable event that we will need to reflect on tomorrow, the Feds are going to remove bad investments from Banks Balance Sheets and take on the risk?  Am I reading this correctly?  That is tantamount to nationalisation of Banks.  More tomorrow. Bloomberg Sept. 19 (Bloomberg) — U.S. Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben S. Bernanke proposed moving troubled assets from the balance sheets of American financial companies into a new institution. Congressional leaders who met with Paulson and Bernanke late yesterday in Washington said they aim to pass legislation soon. The initiative, which may also … Continue reading Paulson, Bernanke Push New Proposal to Cleanse Balance Sheets | huh!!

Business Models3 Comments

Banks have to understand the ‘cloud’ and solve their security concerns

Colin Henderson

The latest report from PEW offers Banks something to think about.  The reality of cloud computing already exists, with a clear majority of internet users taking advantage of the convenience of cloud computing. PEW – Use of Cloud Computing Applications and Services Some 69% of online Americans use webmail services, store data online, or use software programs such as word processing applications whose functionality is located on the web. Online users who take advantage of cloud applications say they like the convenience of having access to data and applications from any Web-connected device. However, their message to providers of such … Continue reading Banks have to understand the ‘cloud’ and solve their security concerns

Business Models, Innovation, Social Lending3 Comments

Platform vs market logic, applied to P2P Lending

Colin Henderson

Back from vacation, and thinking about all kinds of stuff.  Long post on Social Capital coming, but meantime, and kind of related <in my mind> Umair does a nice job of discussing the merits of platforms and markets.  It is an important distinction, and his final quote here explains what caught my eye. What Apple Knows That Facebook Doesn’t – Umair Haque This conclusion also helps us answer another critical question on the minds of today’s investors, entrepreneurs, and would-be revolutionaries: when will today’s crop of startups start making serious cash? The answer: when they shift from platform logic to … Continue reading Platform vs market logic, applied to P2P Lending

Business Models

HSBC lay the law down with local business units

Colin Henderson

HSBC are doing what Citi have failed at to date. They are forcing local business units to adopt the central standard. For the life of me, I cannot tell why global Banks or any Bank with multiple business units for that matter, do not lay the law down and do the same thing. Finextra: HSBC talks up IT integration initiative The bank’s One HSBC initiative aims to establish a common technology platform across business units and regions. HSBC says the programme aims to “re-engineer the company so that wherever possible we use global systems”. This is expected to drive down … Continue reading HSBC lay the law down with local business units

Business Models1 Comment

“Addicted to consumption” | where does that leave Banks

Colin Henderson

Umair writes some great stuff, but this post is a classic, and a keeper.  “We’re addicted to consumption”, and “Do we need razors with ten blades – or a single blade that never dulls?” are classic quotes that reverberate.  The key backdrop in this piece [for me] is the comment on the financial system. America’s Addiction and the New Economics of Strategy – Umair Haque Let’s re-examine the house of cards that is the global financial system. Emerging markets seek export-led growth: they undervalue their currencies, so their exports are more competitive purely in terms of price. That’s essentially a subsidy … Continue reading “Addicted to consumption” | where does that leave Banks

Business Models, Open Finance, Open Source Banking4 Comments

A complete stranger told me … | The power of wesabe

Colin Henderson

A sobering and powerful post on the power of social media for financial services. [hat tip mmpartee] Such advice is interesting. At first glance one might ask whether it is serious. On the other hand would this not at least make a person sit up and take note. And what if others chimed in and the average response was that the advice was correct? If we consider the development of Linux, where people participate and improve the system because they want to. Such selfless assistance is natural and a proven model. Cogent Thoughts » Blog Archive » Social Media vs. … Continue reading A complete stranger told me … | The power of wesabe

Business Models, Canada3 Comments

RBC p2p | an update

Colin Henderson

RBC have had their student blog up for a few months now, and thought I would check back in. About RBC p2p – Everything students need to know about money Ever notice that bank commercials tend to have a lot of grey haired people waxing poetic about retirement? Or suits conferring with more suits about leveraging assets? This isn’t for those people. The posts are smart and well written. Its difficult to know how much review occurs before posting but the result is a good collection of posts varying from speaker reviews, cultural events, to basic budgetting. The main quibble … Continue reading RBC p2p | an update

Business Models, sub prime

LIBOR and why it matters | risk that any bank could face a run on its deposits

Colin Henderson

There is a fascinating, though apparently esoteric debate going on in Banking circles. It is worth understanding the high level points though because it actually matters to bank employees, vendors, and bank customers. Libor (London Interbank Offerred Rate) is set daily, and represents the rate that banks will lend money to each other on the money market. It is one means of managing liquidity for Banks. Lately this rate has been much higher than expected and than historic rates. The going assumption was that Banks were afraid to lend to each other since the credit crisis due to inadequate risk … Continue reading LIBOR and why it matters | risk that any bank could face a run on its deposits