US2 Comments

U.S. Gives Banks Urgent Warning to Solve Crisis

Colin Henderson

The US Banking system is undergoing a crisis moment, driven largely by the Lehman Brothers being effectively bankrupt.  They have not needed to borrow from the Fed since March, but have the ability to do so if required.  It appears some customers have left, but not a run on the Bank just yet.  Nonetheless this is a crisis. US gives Banks a warning As Lehman Brothers teetered Friday evening, Federal Reserve officials summoned the heads of major Wall Street firms to a meeting in lower Manhattan and insisted they rescue of the stricken investment bank and develop plans to stabilize … Continue reading U.S. Gives Banks Urgent Warning to Solve Crisis

VRM5 Comments

Retailers have improved the online shopping experience as far as they can

Colin Henderson

Once in a while Doc Searls comes up with a classic statement, and this is one of those [emphasis mine].  The buyer’s envelope, please In the meantime, consider this thesis: Amazon and other excellent online retailers have improved the online shopping experience as far as a retailer can. Yes, there is always room for improvement, but there is only so much improvement you can carry out only on the sell side, even if you’re equipping buyers to do a better and better job. At a certain point the improvements need to happen on the buy side. You need better buyers, … Continue reading Retailers have improved the online shopping experience as far as they can

Payments

Payments, interchange, competition and … … Credit Unions?

Colin Henderson

I sense there are big changes afoot in the payments industry in Canada.  Translated that could mean changes in pricing, which in turn would mean changes for consumers.  Those changes might be positive or negative, but either way are enormously significant for Banks.  Interac seeks shift to for-profit status Mr. O’Connell fears Interac risks falling behind as the industry rapidly innovates. There are already products, such as MasterCard’s “tap & go” PayPass, that he would like Interac to be keeping up with. “The payments market is evolving every day,” he said. “It’s not just the U.S.-based credit card companies. You … Continue reading Payments, interchange, competition and … … Credit Unions?

Japan

Mitsubishi UFJ Financial Group is expanding its involvement in the consumer finance business

Colin Henderson

Tokyo Mitsubishi UFJ from Japan, and one of the worlds largest Banks follows on the recent purchase of Union Bank of California, with an increased stake in the Acom group, who have US $18 billions in personal loans. In this volatile market banks with strength and capacity are taking advantage of the times.  MUFG raises stake in Japanese moneylenderMitsubishi UFJ Financial Group is expanding its involvement in the consumer finance business by paying Y152.6bn ($1.4bn) to raise its stake in Acom, Japan’s biggest moneylender. Japan’s largest banking group said Monday it would launch a tender offer for shares in Acom … Continue reading Mitsubishi UFJ Financial Group is expanding its involvement in the consumer finance business

Canada

Credit crunch fallout will cast a long shadow | RBC

Colin Henderson

IN the clearest indication yet of the depth of the credit crunch and how it will impact Canadians, Nixon of RBC speaks about the impacts on consumers.  Credit crunch fallout will cast a long shadow The consensus of the big brains? The credit market is stabilizing, finally. But the after-effects of the Great Debt Squeeze will linger. (And by the way, they’ll probably hit your wallet, if they haven’t already.) No one was more pointed about this than Mr. Nixon, who called it the most severe financial crisis since the Great Depression and used the word “bubble” to describe the … Continue reading Credit crunch fallout will cast a long shadow | RBC

AI1 Comment

Faith-based finance; intro to Islamic Sharia Finance | The Economist

Colin Henderson

The Economist has a few articles including this one that is an excellent primer on Islamic finance. The whys and wherefores of Islamic finance THE modern history of Islamic finance is often dated to the 1970s, with the launch of Islamic banks in Saudi Arabia and the United Arab Emirates. But its roots stretch back 14 centuries. Islamic finance rests on the application of Islamic law, or sharia, whose primary sources are the Koran and the sayings of the Prophet Muhammad. Sharia emphasises justice and partnership. In the world of finance that translates into a ban on speculation (or gharar) … Continue reading Faith-based finance; intro to Islamic Sharia Finance | The Economist

Innovation, Japan

KDDI Announces Launch of Jibun Bank

Colin Henderson

Bank of Tokyo Mitsubishi UFJ and KDDI (5th largest bank in the world, and a telephone company) announce a new bank focussed on telephone and internet access only.  Both from Japan, this is an interesting model, that levers the strength of world class companies in their respective fields. KDDI Announces Launch of Jibun Bank Customer Services Jibun Bank Corporation is pleased to announce that it has today started accepting applications from customers for new accounts and has launched full customer services via mobile phones (au, NTT DoCoMo, and Softbank Mobile), the Internet (PCs), and the telephone (IVR/operator). At the same … Continue reading KDDI Announces Launch of Jibun Bank

Innovation7 Comments

Mr Banker – Where is the Chrome in your strategy?

Colin Henderson

Umair always asks the big questions, and this is no exception.  What struck me about Chrome is how it disrupts Microsoft’s entire business model by promoting a browser designed for the application web – MS weak point.  But that’s not half the story. How to Chrome Your Industry Imagine what would happen if GM and Ford collaborated to invest in the components and architecture of a better public transport network — and then licensed it for free to cities, states, and countries. Imagine what would happen if pharma players directly invested in better hospitals and clinics — instead of in … Continue reading Mr Banker – Where is the Chrome in your strategy?

AI3 Comments

Google’s legal counsel exhibit good internet practice and responsiveness

Colin Henderson

What an good example of responsiveness and openness from Google’s legal counsel.  Chrome is their new browser that was released 2nd Sept, and here on 4th Sept they are updating the terms of service in response to users. The Official Google Blog Whenever we release a product in beta as we just did with Google Chrome, we can always count on our users to come up with ways to improve it. This week’s example: several eagle-eyed users and bloggers have expressed concern that Section 11 of Google Chrome’s terms of service attempts to give us rights to any user-generated content … Continue reading Google’s legal counsel exhibit good internet practice and responsiveness

AI2 Comments

The power of internet, and drivers of change

Colin Henderson

Internet has flattened old hierarchies, made information freely available, and eliminated distance. This is a revolutionary driver of customer expectations, and customer buying methods. It has also had the impact of opening previously closed kimono’s and exposed old style advertising for what it is … management of peoples opinions. Internet has allowed people to form their own opinions, and act on them.  That empowerment is fundamental to many changes we see now. One market driver is therefore ‘customer empowerment’. Another driver, comes from the way customers are continually required to manage their own affairs, at the ATM, the pin pad, … Continue reading The power of internet, and drivers of change