Business Models

HSBC lay the law down with local business units

Colin Henderson

HSBC are doing what Citi have failed at to date. They are forcing local business units to adopt the central standard. For the life of me, I cannot tell why global Banks or any Bank with multiple business units for that matter, do not lay the law down and do the same thing. Finextra: HSBC talks up IT integration initiative The bank’s One HSBC initiative aims to establish a common technology platform across business units and regions. HSBC says the programme aims to “re-engineer the company so that wherever possible we use global systems”. This is expected to drive down … Continue reading HSBC lay the law down with local business units

Payments

Canadian government intervention on Interchange and the impact on rewards

Colin Henderson

Had an interesting conversation today with an executive of a Credit Card issuer. The topic (one of many) was interchange in Canada. Apparently there is discussion about government regulation on interchange, as we have seen in Australia, and beginning in the US. My facts are limited here, but something to watch for is the unintended impact. This quote from an earlier post referred back to the Globe and Mails comment that interchange essentially funded rewards programmes. Interchange and how it is the next new problem for consumers in Canada « CommunityLend blog Banks take in an “interchange” fee, which is … Continue reading Canadian government intervention on Interchange and the impact on rewards

Payments3 Comments

How can your Bank help with the other 95% of a customers mindshare relative to their money

Colin Henderson

After the previous post, thought I’d check out Andera, the service provider for those online account openings. The graphic below from their site is the classic view to which all Banks with an integrated multi channel strategy aspire … ie almost every Bank. Andera Corporate Web Site The Andera platform offers financial institutions an end-to-end solution for online account opening and funding. The Andera platform is accessible everywhere – to tellers, call center representatives, Website visitors, and more – on an on-demand, as-needed basis. It got me thinking about whats missing in the picture. This picture [sorry Andera] is what … Continue reading How can your Bank help with the other 95% of a customers mindshare relative to their money

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What is the difference between a payments oriented view and a traditional account oriented view?

Colin Henderson

In a timely post while the payments meme is developed, Jim at netbanker discusses two new offerrings that go some way to take a payment oriented view for the customer. Frost Bank Momentum Account Combines Reward Checking and Personal Financial Management (NetBanker) The Innovations Besides the DIY APY gimmick, the new account is noteworthy because it incorporates goal-oriented savings and transaction tracking into the interface. Users can allocate funds to one or more savings goals and setup automated transfers to the savings sub-accounts. The interface also includes budget categorization features using the folders metaphor. And the usual charting and graphing … Continue reading What is the difference between a payments oriented view and a traditional account oriented view?

Payments

Its a Wonderful Life, but not for Banks and payments

Colin Henderson

The payments theme is developing, and getting resonance. Somehow, three related posts from others mashed together in a perfect concoction of elements, suggesting one view forward for smart folks keen to disrupt financial services. Guillaume says Guillaume’s blog » Blog Archive » A bank’s payment strategy in 3 words: Convenience, Convenience, Convenience But at the same time, Bart Decrem, CEO of Tapulous, a social app company for the iPhone, was saying in the background: “Ease-of-use, Ease-of-use, Ease-of-use”, in other words: convenience drives customer value and their willingness to pay. And Chris, who has been on fire lately, speaks about the … Continue reading Its a Wonderful Life, but not for Banks and payments

Business Models1 Comment

“Addicted to consumption” | where does that leave Banks

Colin Henderson

Umair writes some great stuff, but this post is a classic, and a keeper.  “We’re addicted to consumption”, and “Do we need razors with ten blades – or a single blade that never dulls?” are classic quotes that reverberate.  The key backdrop in this piece [for me] is the comment on the financial system. America’s Addiction and the New Economics of Strategy – Umair Haque Let’s re-examine the house of cards that is the global financial system. Emerging markets seek export-led growth: they undervalue their currencies, so their exports are more competitive purely in terms of price. That’s essentially a subsidy … Continue reading “Addicted to consumption” | where does that leave Banks

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“Banks define themselves in terms of commodity products” | stealingshare.com

Colin Henderson

Well stated conclusion on this study of US Bank brands. This particular quote resonates: Banks currently define themselves and their brand in terms of commodity products and expect customers to switch banks so that they can have “all the things they currently get from their current bank.” The piece is full of memorable quotes, and goes on to say What banks need is a new brand promise, one that is a reflection of who the target audience is when they use that bank and is positioned against the competition. The problem now is that the players in the market say … Continue reading “Banks define themselves in terms of commodity products” | stealingshare.com

Payments1 Comment

Payments – the impossible dream for Banks?

Colin Henderson

Payments have been bandied around as the next big thing at Banks, and several large Banks have appointed Payments Heads.  Summary:  The payments person is embedded in the technology side of the business, and is restricted to viewing their mnadate from that perspective.  I have been studying reports from Deloitte in their financial services research area.  The theme in this quote is agonisingly true about most things in Banks, and certainly in payments. At most banks, payments processes are separated and siloed by product—credit cards, debit cards, checks, ACH transactions, and wire transfers are each supported by independent databases and … Continue reading Payments – the impossible dream for Banks?

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World Bank promotes mobile banking in Maldives

Colin Henderson

The Maldives are getting mobile banking as a solution to offer banking to a country spread over 250 islands in the Indian Ocean. They were badly hit by the 2004 Tsunami, and many who had no access to or trust in a Banks, lost their savings which were kept in a tin under the bed. The new system is funded by the World Bank, and offered through Dhiraagu, the Government owned telcom. BBC NEWS | South Asia | Mobile banking boosts Maldives As the mobile network on the islands does not support text messaging, the system works through phone calls … Continue reading World Bank promotes mobile banking in Maldives