AI4 Comments

Instant small loans via text message

Colin Henderson

The EU is displaying innovation in many ways, and this one really struck me.  They are standardising credit across the EU, but the mention of this new instant loan via text intrigued me. Consumer loans market opens to competition The new legislation covers loans from €200 to €75 000. It does not cover mortgages and charge cards. The lower limit was set to cover quick loans made by mobile phone text messages. This practice, which means money can be transferred to the borrower within 15 minutes, is on the rise and is particularly popular in Sweden and Estonia. Continue reading Instant small loans via text message

Uncategorized

Compliance costs are growing significantly faster than net income | Deloitte

Colin Henderson

The good news is that Banks have an enormous opportunity. The bad news is that the first steps to grasp that opportunity have yet to be taken. One important reason for escalating costs is that many financial institutions have not taken advantage of the overlapping elements of the requirements they face, such as Sarbanes-Oxley, Basel, and the USA PATRIOT Act. …… many financial institutions have replicated compliance practices in individual lines of business, which has resulted in similar processes, procedures, and requests for information being multiplied across the enterprise. This is an surprising report for me. I have witnessed what … Continue reading Compliance costs are growing significantly faster than net income | Deloitte

Uncategorized

Compliance costs are growing significantly faster than net income

Colin Henderson

The good news is that Banks have an enormous opportunity. The bad news is that the first steps to grasp that opportunity have yet to be taken. One important reason for escalating costs is that many financial institutions have not taken advantage of the overlapping elements of the requirements they face, such as Sarbanes-Oxley, Basel, and the USA PATRIOT Act. …… many financial institutions have replicated compliance practices in individual lines of business, which has resulted in similar processes, procedures, and requests for information being multiplied across the enterprise. This is an astonishing report for me. I have witnessed what … Continue reading Compliance costs are growing significantly faster than net income

subprime

Canadian firms report borrowing has become even tougher

Colin Henderson

In the first report I have seen, Reuters notes that the credit market in Canada is tightening as we predicted a few months ago.  This is a result of the US Sub Prime crisis, and the participation by Canadian Banks. More firms face growing demand pressure | Canada | Reuters Sixty percent of firms said credit conditions had stayed the same in the fourth quarter compared to the previous quarter but 32 percent said borrowing had become even tougher. A shift toward tighter credit was first noted in the third quarter, a reflection of the global credit crunch that began … Continue reading Canadian firms report borrowing has become even tougher

sub prime

More on global investment in Banks and funds

Colin Henderson

Some numbers to back up the last post on the globalisation of Banks and funds from Asian investment.  Not that its good or bad … just something that is changing in the financial world.  In fact it is probably a good thing, because there is nothing like financial implications to drive rational decision making, and the increased global aspect brings different politics to bear. Citigroup and Merrill Lynch asking for more foreign cash | FP Passport Bloomberg notes, “Banks and securities firms in the U.S. and Europe have turned to Asian and Middle Eastern governments for about $34 billion to … Continue reading More on global investment in Banks and funds

subprime

Sub Prime crisis drives increased globalisation into Asia, of worlds Banks

Colin Henderson

An interesting fallout of the sub prime crisis is the sale of substantial stakes in Western Banks to Asian interests.  There have been a few to China, and here UBS is selling 9% to Singapore Government. BBC NEWS | Business | Sub-prime woes continue for UBS The bank wants shareholder support to sell a 9% stake to the Singapore government, and 1.5% to another buyer In related news, the Chinese economy is expected to cushion the what is now being described as the worlds slump. BBC NEWS | Business | China boom ‘cushions world slump’ Global economic growth will slow … Continue reading Sub Prime crisis drives increased globalisation into Asia, of worlds Banks

AI1 Comment

Message for old marketers – watch Obama

Colin Henderson

Obama has produced something here, that goes way beyond a better stump speech.  A a doubling of voter turnout, with 57% under 30.  Under 30 is the tough group to get out to political votes. There has to be something to Obama’s approach of targeting internet early. How Obama Became The Man To Beat, CBSNews.com Reports: Barack Obama Is On The Verge Of Becoming The Clear Democratic Frontrunner. How Did He Do It? – CBS News Obama campaign, unlike the Clinton campaign, aggressively targeted new voters – and they responded. “The astounding thing that really made the difference is the … Continue reading Message for old marketers – watch Obama

Profitability, subprime

“A recession as almost a given but differed over how severe it will be”

Colin Henderson

Economists are such cowards.  They have now moved from denial of a recession, to one of how much of a recession.  Calculated Risk: Recession Predictions Many analysts gathered at the American Economic Association’s two-day annual meeting spoke of a recession as almost a given but differed over how severe it will be. Continue reading “A recession as almost a given but differed over how severe it will be”

Profitability

Commercial real estate | another future predictor

Colin Henderson

Traditional Bank problems have arisen from commercial real estate.  In 2007 the story was all about residential real estate. However the commercial real estate market cannot be ignored, and the situation in London shows rents predicted to drop 5% this year.  The graph shows that the volume of property under construction that is unlet is huge. Commercial property | Dominoes on the skyline | Economist.com Relevance to Bankwatch:The consequence of future commercial real estate problems drives into business profitability, and the sheer size of the transactions, will impact Banks’. Continue reading Commercial real estate | another future predictor

AI1 Comment

“Obama Surges, Online And Off” | TechCrunch

Colin Henderson

Its way to early for predictions, and my point is not politics.  With that disclaimer, something I am watching is how Obama embraced internet early. Edwards tried but if was fake.  Clinton I would imagine has ‘people’ who do ‘that’. Couple that with how the pundits and polls got Iowa wrong.  We could be observing the thin edge of a real change that traditional measurements are [again] missing. Obama Surges, Online And Off Senator Obama soundly beat Senator Clinton in the Iowa Caucuses last week. And he maintains an impressive lead in most online statistics as well. He has 212,000 … Continue reading “Obama Surges, Online And Off” | TechCrunch