In Canada Banks have traditionally refused to accept the mortgage broker market and advertised “special offer” interest rates that could be 1.25% over the actual market. This practice has been changing of late, and the driver is internet.  While other countries such as UK and US have rate aggregator sites, Canada has been a stubborn holdout in not having such sites.  This has been driven by the banks oligopoly refusal to advertise in such sites. Banks Try More Up-front Pricing Moreover, the advent of rate comparison sites are making consumers increasingly jaded towards lenders who post 3.99% when the real … Continue reading Another subtle shift in banking being driven by internet–better mortgage rates

The promise of Personal Financial Manager tools (PFM) for banks has been long predicted but slower to be adopted by customers.  This has been a natural outcome because most if not all banks have taken the route of purchasing or partnering with software suppliers.  The result has generally been as highlighted in this American Banker piece that PFM exists in a separate tab within online banking.  With most customers used to going straight to bill payment or transfers it is only natural that the PFM tab will get less use.  Regions bank have introduced charts from their PFM offering that … Continue reading The challenge for PFM lies in seamless integration with OLB

The internet is a weird thing in some respects. I did not know Aaron but I understand who he is.  Above all he is very young and at 26 he Larry writes here about someone he knows.  Prosecutor as bully  Since his arrest in January, 2011, I have known more about the events that began this spiral than I have wanted to know. Aaron consulted me as a friend and lawyer. He shared with me what went down and why, and I worked with him to get help. When my obligations to Harvard created a conflict that made it impossible … Continue reading Aaron Swartz is dead

The world of securities regulation is scary.  One the face of it, it is designed to protect investors from scurrilous propositions from companies.  In reality it is so caught up in the weeds that the obvious is lost.  This stock was being pumped when the obvious was clear. Take this latest one in Canada.  Poseidon promised “Poseidon has established a unique service offering”.  Poseidon’s meltdown continues after ‘significant’ writedown warning The stunning meltdown of Poseidon Concepts Corp. continued on Thursday after the company warned it could take “significant” writedowns as it struggles to collect payments from customers. Poseidon also shook … Continue reading Poseidon Concepts Corp meltdown is a sad reflection on the securities industry

I have been following the success of Monitise since meeting the folks in 2008 at a London conference.  It is exciting to see BMO working with them now, and I expect their mobile offerring to perk up significantly. BMO Bank of Montreal and Monitise to Partner on Mobile Money Solutions for BMO Customers MONTREAL and LONDON–(Marketwire – Dec 19, 2012) – BMO Bank of Montreal and Monitise plc (LSE: MONI) today announced they have entered an alliance to develop new Mobile Money services, using Monitise’s market-leading technology platform that encompasses mobile banking, payment and commerce services. The alliance will allow … Continue reading BMO and Monitise ink a partnership

The hatred felt for banks and British banks in particular is coming home to roost in many ways.  The latest which was telegraphed in the Independent Commission on Banking report provides direct government support to P2P lenders. The Rothschild investment in Zopa the other day now makes sense! Peer-to-peer lending welcomes endorsement | ft.com Vince Cable will pledge £55m of the £100m earmarked for small business finance topeer-to-peer lenders, splitting the money between the providers Funding Circle, Zopa, Boost and Credit Asset Management. Continue reading P2P is on a roll in the UK with business and government support

I find this move by the US Fed quite flabbergasting.  It is admirable to link political policy to increase employment and reduce unemployment.  However the US Fed is pledging low interest rates against both and inflation target, and an unemployment target. It begs the obvious question.  What happens when inflation goes over 2.5% and unemployment remains over 6.5%.  The inflation target says increase interest rates, but that is confounded by the requirement of the unemployment rate to retain low interest rates. Fed links rates to US unemployment | ft.com The US Federal Reserve will keep interest rates at close to … Continue reading US Fed move to target unemployment places policy in an impossible situation

This news is great news for Zopa, but it is also particularly poignant to see an old name bastion of finance invest in the internet driven UK peer-to-peer lending company Zopa.  Congrats to Giles and the entire Zopa team! Rothschild buys into peer-to-peer lending | FT.com RIT Capital Partners, Lord Rothschild’s London-listed investment trust, bought into Zopa in the expectation that it will eat into a business traditionally dominated by banks. Continue reading Rothschild family invest in Zopa peer-to-peer lender