Category: Innovation

Economy, Innovation

Bank deposits – the hidden risk associated with government guaranteed deposits

Colin Henderson

The focus on bank financial strength is generally on the lending side of the business and the potential for bad debts.  Here is another view, and something that drives some banks to make ever riskier loans to produce enough revenue to pay for their deposits. For Banks, Wads of Cash and Loads of Trouble | NY Times The 79 banks that have failed in the United States over the last two years had an average load of brokered deposits four times the national norm … But the hot money also came with a high cost. To lure the money from … Continue reading Bank deposits – the hidden risk associated with government guaranteed deposits

Innovation, Payments

DOCOMO to Launch Mobile Remittance Service

Colin Henderson

Banks continue to be challenged by disintermediation from telco’s and here is another example, this time in Japan.  The service will launch 21st July, and allow sending up to $200 with only the payee’s phone number being required. An interesting tweak is the ability to have the money deposited with DOCOMO under the guise of a credit to your account, however this is deposit taking by another name. DOCOMO to launch mobile payments service Customers of DOCOMO’s i-mode™ mobile Internet service on the FOMA™ 3G network will be able to remit up to 20,000 yen (about 208 U.S. dollars) per … Continue reading DOCOMO to Launch Mobile Remittance Service

Innovation

ETRADE have released a new Online Advisor service

Colin Henderson

ETRADE have released a new Online Advisor service, and let me take a look at a demo on the US site to review. It walks the user through a set of relevant questions that source and validate the users investment needs, then produces an asset allocation model at the end.  For the self service type who wish to move beyond gut feel, and assess one portfolio or their entire portfolio, this tool is a useful addition.  Its the kind of thing that is worth an afternoon, and taking the time to properly assess the approach you would wish to take. … Continue reading ETRADE have released a new Online Advisor service

Innovation

Skygrid introduces web based real time financial news platform with | [beta invites]

Colin Henderson

The folks at Skygrid have a beta financial news site that is focussed on financial news, real time.  It has been written up by Scoble and Techrunch so that was enough to pique my interest further when I was introduced to the service. To be clear it is probably not for everyone.  It is however useful for those who follow the markets closely and daily providing various filters for different news sources, including web, blogs, and EDGAR.  The interface is work in progress, and be sure to turn off the ‘bubbles’ so you can see what you are doing.  This … Continue reading Skygrid introduces web based real time financial news platform with | [beta invites]

Innovation

BBVA pays staff to take 5 years off

Colin Henderson

A very unusual and novel cost cutting measure from BBVA, the Spanish bank.  The 70% cost reduction, with a guaranteed pool of employees after the period is up is certainly a new approach. Can’t help but think there will be unintended consequences after the 5 years are up, built certainly the immediate consequences will be more palatable than normal layoffs, which generate acrimony, as well as an expense one time charge.  This approach will drive accountants nuts. It will allow the bank to make future hiring plans, and attrition management with some knowledge of the future. Bank pays staff to … Continue reading BBVA pays staff to take 5 years off

Innovation

Where will the innovation come from in financial services?

Colin Henderson

A central question for financial services is this:  “Where will the innovation come from in financial services?” I read this piece from Dave over at Digital Money Forum, and it highlights a central problem that traditional financial services falls into. The 50 year plan : Digital Money forum That sounds like the Greek restaurant will have to give a British cardholder a couple of pages of A4 and make sure that the customers reads them before they punch in their PIN. Anyway, the point is that for banks, the PSD comes at an interesting time when transaction banking is becoming … Continue reading Where will the innovation come from in financial services?

Innovation

FinovateStartup Apr 2009 videos now up

Colin Henderson

A great source for reviewing the latest innovations in financial services. The Latest and Greatest FinovateStartup is the only event exclusively designed to showcase the innovative work of financial technology startups. With a unique format designed to foster great conversations and new ideas, this is truly THE event for people running and interested in financial and banking technology startups. Interested in participating in FinovateStartup next year? Please email Eric Mattson at eric@netbanker.com. Continue reading FinovateStartup Apr 2009 videos now up

Innovation

Wesabe introduces a redesigned site with enhanced features

Colin Henderson

Wesabe have introduced a redesigned site.  It appears to be more than a surface change with nice use of interactive ‘hover’ features with personalised information inside the hover.  The menu is simplified, yet takes you to everything required, including ‘Connections’ that includes iphone and twitter connections. Its clean, bright, and worth checking out. wesabe Wesabe Site Redesign If you haven’t logged in to Wesabe lately, you’re in for quite a surprise. We’ve redesigned every single page of the site and have been getting some rave reviews about our new look! Continue reading Wesabe introduces a redesigned site with enhanced features

Economy, Innovation

The Aftermath of Financial Crises | study

Colin Henderson

A short and useful paper offerring some points that help to frame the next few years for strategic planning purposes.  This to be read of course in the context of politicians preaching ‘road to recovery’ which leaves the uninformed with the view that we will get over this blip and back to normal. I prefer to think of this as a shift that will profoundly change things for the next few years, with some good and some not so good elements in that shift.  It may be good that the banking industry will be shaken up, and out of that … Continue reading The Aftermath of Financial Crises | study

Innovation

New bank based on three principles | ally from GMAC

Colin Henderson

Interesting to see some new and potentially innovative banking news come out finally.  Here is a new offerring from GMAC that is essentially a direct bank with a nice simple value proposition.  The offerring is deposit based. Oddly enough, when I went to ingdirect to compare rates, I could not even locate the rates on a site that has become very complex somehow. Ally Bank may have a winner in focussing on their three principles that will resonate with most consumers, and it is backed by the reputation of GMAC. allybank.com “The brand is founded on three principles: Talking straight, … Continue reading New bank based on three principles | ally from GMAC