Category: Open Source Banking

Innovation, Open Finance, Open Source Banking3 Comments

All banks have the same strategy | what happened to the Starbucks strategy?

Colin Henderson

It was refreshing to read this piece, and takes us exactly where innovation in financial services ought to be going – the new (old) grand ideas. Starbucks should start banking | FT What if Starbucks opened an online-only retail bank offering competitive deposit rates and a modest range of loans and mortgages? It could do that by partnering with a finance company such as ING, which has the appropriate banking licences. All it would need to do is install ATM machines in its outlets, which would involve investing some money but would allow it to get more out of its … Continue reading All banks have the same strategy | what happened to the Starbucks strategy?

Business Models, Open Finance, Open Source Banking, P2P Lending, Social Lending4 Comments

Comment on “Beyond the age of leverage: new banks must arise” | Niall Ferguson

Colin Henderson

Niall Ferguson nails the ultimate irony in the world today.  Every government is set on increasing debt as a means to solve the current crisis, however the reality is that they are potentially sending good money after bad, and not addressing the core issue. (emphasis mine) Beyond the age of leverage: new banks must arise | ft.com Call it the Great Repression. The reality being repressed is that the western world is suffering a crisis of excessive indebtedness. Many governments are too highly leveraged, as are many corporations. More importantly, households are groaning under unprecedented debt burdens. Worst of all … Continue reading Comment on “Beyond the age of leverage: new banks must arise” | Niall Ferguson

Open Source Banking3 Comments

Banks | time to be afraid

Colin Henderson

Mint has officially joined my list of top disruptive services in financial services. Till now, I only had one. These statistics below from TechCrunch suggest staggering and unique opportunities, data sharing potential, and the opportunity for shared user generated advice. The other disruptive service for similar reasons, is Wesabe. Mint Adds Support For Mortgage And Loan Tracking further expanded its services by introducing support for mortgage and loan tracking. Users will now be able to keep tabs on their loans from over 1,000 supported institutions….. Mint has seen extremely quick growth since its launch at TechCrunch 40, and is now … Continue reading Banks | time to be afraid

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

Open Source Banking, P2P Lending, Self Service, unbanked1 Comment

How much about the approach to Branchless Banking is driven by incorrect assumptions?

Colin Henderson

Johan picked up on my post about mobile loans, but interestingly pointed to an Economist article in November entitled A bank in every pocket? Mobiles bankieren in die EU. « – was einer so denkt – Bis jetzt hatte ich gedacht, dass das eine afrikanische Tradition wäre. Ich finde das ganz spannend. Translated:Until now, I had thought that this would be an African tradition.  I find this very exciting. I have covered the African mobile phone market, and this article builds on what is happening there.  These “branchless” schemes typically allow customers to deposit and withdraw cash through a mobile … Continue reading How much about the approach to Branchless Banking is driven by incorrect assumptions?

Open Source Banking, Social Lending5 Comments

“Credit crisis has given social lending a friendly pat on the back” | Economist

Colin Henderson

Brief but succint article on social lending summarises the interesting fork in the financial services road that is beginning to highlight the new model and why it has the potential to offer a legitimate alternative to traditional financial services.  Peer-to-peer lending | Crunchless credit | Economist.com Why aren’t social lenders raising their rates? One reason is that, unlike banks, they are not facing higher funding costs caused by the seizure in money markets. Another clue lies in that word “social”. Mr Advani, whose business is designed to facilitate loans by family and friends, points out that parents tend not to … Continue reading “Credit crisis has given social lending a friendly pat on the back” | Economist

Open Source Banking, US2 Comments

BofA dips toe in web 2.0 water | needs help

Colin Henderson

BofA are very conservative about this kind of thing, so its a big deal that they are at least trying something now.  Customer Reviews: Online Banking from Bank of America Write a Review Tell us what you think about Online Banking by signing in to Online Banking to submit a review. Look for the link on your Accounts Overview screen or in the Customer Service area. Results so far are mixed on two fronts; presentation:  the display is horrible …  think email, or Google Reader in terms of laying it out.  There are 1,500 entries, yet you can only see … Continue reading BofA dips toe in web 2.0 water | needs help

Innovation, Open Source Banking, Profitability1 Comment

BMO first in laying the groundwork to mitigate against sub prime

Colin Henderson

I  have been awaiting specifics on how the sub prime crisis would impact Canada specifically, and these stories at noted by ‘Canadian Banks’ indicate BMO is one of the first out of the gate with significant balance sheet restructuring in advance of rumoured impacts from the US situation.  The restructuring involved a 6% boost in Assets and liabilities, using new wholesale and commercial deposits to repurchase its own Asset Backed Commercial Paper.  Translation …  the articles speculate this is in anticipation of significant writedowns in the 4th quarter. Who is next ?  Watching and waiting for RBC, CIBC, Scotia information. … Continue reading BMO first in laying the groundwork to mitigate against sub prime

Open Source Banking, Profitability6 Comments

“The Upside of Down” | some thoughts on Banking

Colin Henderson

Over the last couple of weeks I have been reading ‘The Upside of Down‘, authored by Thomas Homer-Dixon. Its not often that a book makes an impact on how I think about things, but this book did. Generally I think of myself as a pragmatist, and no I have not suddenly joined the Al Gore fan club. Thomas carefully develops the case that there are some seismic changes occurring in the world (meaning the whole world) that when they occur simultaneously will produce cataclysmic change in the world. My intention is not to rationalise the book … you can do … Continue reading “The Upside of Down” | some thoughts on Banking

Open Source Banking

[2.6.22.12.18] an example of the incredible power of Open Source

Colin Henderson

I have been running Linux for 6 months on my Thinkpad, and very happy with it.  I had my first example of what could have been, something of a crisis last night. Every 6 months Xubuntu Linux upgrades, and thats October. Last night a fairly significant upgrade popped up involving the part of the core with the name of 2.6.22.12.18, so I carried on as normal, and installed.  Then the crisis … wireless and some fonts were not working.  But this is Linux … so I rebooted to the earlier version. [Linux always keeps the last two versions available in … Continue reading [2.6.22.12.18] an example of the incredible power of Open Source