Economy

Worries about government debt load in Japan

Colin Henderson

Following on the testimony from US Bernanke today, similar moves in Japan, the next largest world economy (for the moment), to reduce debt which remains at a world leading high. Japan’s long-term public debt, which is already the largest of any industrialized nation, is projected to reach 168 percent of GDP at the end of March 2010, according to the ministry. … Concerning when to achieve a surplus in the primary balance, many members of the Aso-chaired panel believe it may take about 10 years, based on the latest economic growth and revenue projections, according to government officials.At the next … Continue reading Worries about government debt load in Japan

Economy, US5 Comments

Bernanke is concerned about budget deficits

Colin Henderson

Fed Chairman Bernanke picks his words carefully here as the US treads that line between economic recovery and much higher interest rates which would produce other unintended consequences such as stifling growth, currency value shifts or inflation. Bernanke calls for action on deficits | FT Ben Bernanke on Wednesday called on Congress to take action now to bring down long term US budget deficits, warning that the bond market was concerned about rising US government debt. The Federal Reserve chairman said the recent increases in bond yields “appear to reflect concern about large federal deficits” as well as improved optimism … Continue reading Bernanke is concerned about budget deficits

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?

Payments

Fiserv try to kick start mobile banking with Mobile Money FastTrack

Colin Henderson

Mobile still gets more attention from Vendors than it does from many banks and this continues to surprise me.  Certainly the large banks have uptake in their mobile offerrings, but it is not stellar growth.  Tower Group recently noted the economic crisis could change that. Meantime here is another excellent offerring from Fiserv that appears to be geared to help banks get over that hurdle by making the integration of mobile transactional banking and payments easier and faster to implement. Fiserv Brookfield Wis., June 1, 2009Fiserv, Inc. (NASDAQ: FISV), the leading global provider of financial services technology solutions, today introduced … Continue reading Fiserv try to kick start mobile banking with Mobile Money FastTrack

Economy, US1 Comment

No consumer driven economy in US | Geithner in China

Colin Henderson

Some important messages within Geithners speech in China today that paint a very different next few years compared to the last 10, and as the ‘G2’ move to manage a transition the American economy into one that is very different, yet stable.  And all this to be managed against the backdrop of  the fear of eventual inflation, which would devalue foreign holdings in US T-Bills, something China is acutely aware of. These macro factors will play a large role in US banks and credit unions strategy design for the next 5 years. no consumer purchase driven economy in US – … Continue reading No consumer driven economy in US | Geithner in China

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

Canada, Economy

Countries that are least affected by the Economic Crisis

Colin Henderson

An interesting survey of business reaction to the crisis, and which countries are least impacted.  Full ranking follows the map.  This explains a lot in terms of peoples reactions. Time will tell if this reaction remains constant, and what were the contributors to and rivers of this reaction. Countries that are Least Affected by Recession | digital inspiration The data is based on the results of a business confidence survey that was done on international business people of 24 nations to identify which countries they believe are surviving the crisis the best. Researched by Nobuyo Henderson Continue reading Countries that are least affected by the Economic Crisis

Uncategorized

California is in trouble – hard to imagine what that means

Colin Henderson

Could we see the state of California go under … ? California – a nightmare vision of the future | FT The Californian budget crisis is so severe that all public employees are having to take pay cuts. Public-health services are under serious threat, and there is talk of pushing Aids patients and the terminally-ill out onto the streets. It has proved impossible to raise taxes any further and the bond markets are in revolt. California is looking to Washington for help. But with the federal government running budget deficits of 12% of GDP, and the federal debt pushing up … Continue reading California is in trouble – hard to imagine what that means

US

Cyberpsace Policy Review | WhiteHouse.gov

Colin Henderson

The President released the following much anticipated document today.  Item #10 is of particular interest to me.  This aspect has grains of what I happen to think embody the next step in internet beyond where we are. Cyberspace Policy Review | White House 10. Build a cybersecurity-based identity management vision and strategy that addresses privacy and civil liberties interests, leveraging privacy-enhancing technologies for the Nation. … … And this … The Administration should assist international financial institutions, such as the World Bank and the International Monetary Fund, with the necessary information, tools, and expertise and encourage their use of best … Continue reading Cyberpsace Policy Review | WhiteHouse.gov

UK2 Comments

“Northern Rock risk revealed in 2004” | FT

Colin Henderson

It appears the weakness in the UK banks that showed first when the crisis hit, were foretold 5 years ago in a BoE simulation. Northern Rock risk revealed in 2004 | FT Banking regulators identified Northern Rock as the weak link in Britain’s banking system during secret “war games” held as long ago as 2004, the Financial Times has learned. The risk simulation planning, conducted by the Financial Services Authority, the Bank of England and the Treasury, made clear the systemic risks posed by Northern Rock’s business model, and its domino effect on HBOS, then the UK’s largest mortgage lender. Continue reading “Northern Rock risk revealed in 2004” | FT