Business Models, Canada, Economy1 Comment

A new future based on a different revenue model is needed for banks

Colin Henderson

Something has been bothering me for some time, and now the planets are beginning to align.  One of the promises of Internet is a future which is more efficient.  This literally means less money changing hands to get things done.  hohoto.ca can occur with zero overt marketing costs, based on personal contribution of willing advocates.  Costs do not go to zero – it is not that simple – but costs are less than before by a considerable margin. The Spider and the Starfish touched on this point in 2006. “as industries become decentralised, overall profits decrease” My summary at that … Continue reading A new future based on a different revenue model is needed for banks

Economy, Uncategorized

Bank capital, economy, debt, and the true meaning of Jubilee

Colin Henderson

On the topic of Bank capital this chart embedded in Greenspans article shows just how much banks business model has evolved.  In economic terms this is the corollary to extreme business and personal debt. In the years following 1840 when bank capital was approaching 60%, as banks made loans, the borrower bought things that resulted in bank deposits which can then be lent again, and again.  The velocity of capital as it is know increased dramatically until 1940 and largely remained there – till now.  As banks re-capitalise the preachings of government to lend more is the ultimate paradox. Banks … Continue reading Bank capital, economy, debt, and the true meaning of Jubilee

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BofA apparently pressured by China

Colin Henderson

Fascinating high stakes pressure being exerted between Chinese government and Banks. BofA was ready to exercise its right to sell a part of its stake in the Chinese bank CCB but the Chinese government stepped in and suggested such a move would be detrimental to future BofA activities in China. BofA shelves $3bn plan to cut CCB stake | http://www.ft.com The share sale could have triggered a fall in CCB’s share price just as Beijing is trying to garner support for its largest banks and arrest a stock market slide. Foreign financial institutions, including Goldman Sachs, Dresdner Bank, Temasek and … Continue reading BofA apparently pressured by China

Uncategorized

SEC: The record

Colin Henderson

Interesting summary of the SEC’s record. SEC: The record | ft.com 2001 Enron The collapse of Enron exposed serious flaws in US regulation as authorities failed to notice that the company was concealing massive losses by using illegal off-balance sheet financing vehicles 2002 Sarbanes Oxley Act Many critics see this as a regulatory overreaction. Much criticism directed at section 404 requiring companies to produce a time-consuming “internal control report”. Widely blamed for deterring foreign companies from doing business in the US 2006 Credit Rating Agency Reform Act This act created a scheme for agencies to be treated as nationally recognised … Continue reading SEC: The record

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For the first time, the majority of Canadians (53 per cent) are now banking online

Colin Henderson

For the first time an absolute majority of Canadians use Online Banking – not just the usual percentage of those online. More importantly 35% identify online as their primary means of banking. For the first time, the majority of Canadians (53 per cent) are now banking online | Canadian Bankers Association # A majority of Canadians (53 per cent) report using online banking in the last year. # 35 per cent of Canadians today use the Internet as their main means of banking; more people now identify the Internet rather than ABMs (28 per cent) or in-person transaction (24 per … Continue reading For the first time, the majority of Canadians (53 per cent) are now banking online

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A hero for the information age | we are all William Tyndale

Colin Henderson

Further evidence in support of the changing times we face, and that they are nothing new – epochal change happens relatively often – just at periods far enough apart that we don’t remember. The Economist picks up on a ‘radical’ from …. A hero for the information age – Subversion, espionage and a man who gave his life to disseminate the Word | The Economist But the country’s masters face a dilemma: the very technology, communications and knowhow that are boosting national fortunes also threaten to undermine the old power structure. … not China today they say, but London in … Continue reading A hero for the information age | we are all William Tyndale

Uncategorized1 Comment

How Gamblers broke the banks | ft.com review

Colin Henderson

The banking crisis that began as a credit crisis at the beginning of 2007 has turned into something far larger and dramatic than even those with the direct predictions expected. The Financial Times has done a terrific job at keeping me up to date, and along with the Economist those newspapers are where much of the context for the events can be found.  Fortunately they both have excellent online versions, so context is also timely. How gamblers broke the banks | ft.com Journalism, so the adage goes, is the first draft of history. In 2008, the Financial Times had a … Continue reading How Gamblers broke the banks | ft.com review

Uncategorized6 Comments

GM financial analysis 2004 to 2008 | conclusion – bankrupt

Colin Henderson

As the on, off, on again fiasco continues in the US it is disturbing that few are looking at the facts of the matter relative to GM.  First of all, this is from their web site.  They have 16 separate brands, each with their own web site – and each with their own business unit, in effect competing with each other.  This is not a good sign but lets dissect the financials. The financial results of this company follow and lead to only one responsible conclusion.  They are bankrupt.  Their liabilities exceed assets by $60 bn as of Sept 2008.  … Continue reading GM financial analysis 2004 to 2008 | conclusion – bankrupt

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wifi is a requirement for conferences

Colin Henderson

This is something that bothers me about conferences – wifi. Recently Toronto Tech week was a city sponsored conference and there was no wifi. SwissCom Tries To Deflect Criticism Of Le Web Internet Failure Le Web, which paid €100,000 to Swisscom to ensure lightning fast Internet, had no Internet connectivity. Nothing for the audience, nothing for the stage, nothing in the press room. Ustream had 50% connectivity, and lost some great footage. Day 1 was a complete writeoff and I left mid day to work from my hotel. On day two there was some connectivity reported by a few people, … Continue reading wifi is a requirement for conferences

Innovation, Uncategorized6 Comments

Real Innovation | integration of online banking and Wesabe API

Colin Henderson

I am picturing heads exploding as I write this, so suspend worries about howto and let us just consider the possibilities and opportunity here. Jmes at infoonthego has written a script that brings the user friendly merchant he has in his wesabe account and pulled them into his Lloyds Bank statement. He replaces the generic names in Lloyds statement with his own understood names. Mashing up your Bank and Wesabe If I’ve gone to the effort of giving friendly names to merchants in Wesabe, can’t I get the benefits elsewhere as well? Wesabe have provided an API for well over … Continue reading Real Innovation | integration of online banking and Wesabe API