Tag: bank strategy

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G20 Finance Minister regulation changes will constrain new investment and require a strategy rethink

Colin Henderson

The G20 Finance Ministers meeting in London concluded some new principles for Bank supervision, that follows the predictable path we have been seeing. Here is a summary from BIS, and some additional analysis from Financial Times. The key points that will drive banks to seek additional efficiences to compensate, are raised capital and liquidity requirements. Another key one is #4, the countercyclical buffer; in other words during good times put money away for a rainy day. These changes in particular will constrain new investment in lending and in anything that does not drive higher profits. In any event this will … Continue reading G20 Finance Minister regulation changes will constrain new investment and require a strategy rethink

Innovation

You know its bad when … the government is more innovative than your Bank

Colin Henderson

This post from James following his first week at the DWP (Department of Works and Pensions, and hosts of direct.gov). DWP, is running an innovation experiment where they allow citizens to put their own applications on top of government data. Yes, that’s right: an API for the government.Show me a bank with API. You can’t, because there isn’t one. I have to go to a third party like Wesabe, who basically have to suck data out of banks without their permission, to get one. I think it is early days for what Direct.Gov is doing, but you can see the … Continue reading You know its bad when … the government is more innovative than your Bank

AI

Alfa follows a good internet media strategy | Russia

Colin Henderson

Daniel notes good practices in managmenent of a merger using web media. Alfa follows a good internet media strategy – covering its merger with Kazna | Retail Banking in Russia An absolute majority of posts at this blog deals with operational aspects of banks business – but recent coverage of Alfa-Bank and Severnaya Kazna merger gives good examples on how a Web-media strategy of a bank can be formulated to better suit the wavering clients of the banks, and convey a positive image of banks in merger. Continue reading Alfa follows a good internet media strategy | Russia

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BofA could eventually cut 10 pct of branches | SF Chronicle

Colin Henderson

This is a theme that is gathering steam. It is based on the reality that customers are using internet for their banking, and there is a high level of redundancy in offerring similar capabilities in physical locations. The counterbalance is of course the need to attract customers, new accounts and deposits which has traditionally been a branch activity. That balance is shifting now and the tension between those two opposing forces will be ineresting to watch, as banks exectute strategies and consider their cost base. BofA could eventually cut 10 pct of branches SF Chronicle Bank of America Corp. could … Continue reading BofA could eventually cut 10 pct of branches | SF Chronicle

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The Good, the Bad and the Ugly | which is your bank?

Colin Henderson

In this video commentary on the US Banks results they note that while large profits are announced, any parts of the business related to the US consumer consumer is flat. This includes all retail banking and credit cards. The only bright spots are the fee based revenue from the investment banking units, hence JP Morgan and Goldman Sachs results, although poor old Citi did not even make it there. One quarter does not make or break anything in banking in and of itself. However the predictions of Roubini and Baker linked below are playing out as expected, so which banks … Continue reading The Good, the Bad and the Ugly | which is your bank?

Payments1 Comment

A chat with Dave Birch | whirlwind review of changes in financial services

Colin Henderson

Today I had the pleasure of a chat with Dave while he visited Toronto on business. Inevitably the conversation weaved in and around banks, payments, and what is wrong with both. As we chatted it is evident there is much change going on in the world of financial services, and that change may or may not be as expected. It appears banks are not innovating much anywhere at the moment as predicted, while on the payments front there is a host of activity and very different activity in many parts of the world. This fits with my general theme of … Continue reading A chat with Dave Birch | whirlwind review of changes in financial services

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Are we finally seeing the demise of the bank branch

Colin Henderson

Finally we are seeing hints of what we all know is inevitable.  It has taken a long time and probably this latest economic crisis, but the long view on branches suggests a damatic shift with less of them. Slow but inexorable move to online banking Yet slowly but surely, the internet is starting to make its mark on the sector as more people move their banking online. Lloyds is to shut up to 400 branches as part of its integration of HBOS. Its rivals are likely to follow suit. A decade from now, the local branch could well be an … Continue reading Are we finally seeing the demise of the bank branch

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?