Tag: banking

AI

The Banking Stack: A Techno-Regulatory Framework for the Future of Finance

Colin Henderson

BCG The Banking Stack: A Techno-Regulatory Framework for the Future of Finance The financial landscape is rapidly evolving, with banks transforming into platforms offering services and integrating third-party solutions. This image of “The Banking Stack” highlights how financial institutions can leverage hashtag#APIs, digital public infrastructure, and interbank systems likehashtag#CBDCs to deliver seamless services to consumers, hashtag#SMEs, and corporates. Key Takeaways:1. Embedded hashtag#finance and third-party services are disrupting parts of the traditional hashtag#bank model.2. Banks can scale by outsourcing and insourcing key processes while leveraging financial infrastructure technology.3. Strategic partnerships can help banks offer new services like digital asset custody, health … Continue reading The Banking Stack: A Techno-Regulatory Framework for the Future of Finance

AI

Open Banking – a reality or not

Colin Henderson

Abstract: Arthur has developed here a modern contextual view of Open Banking and Open Finance. He begins with the right question “Open Banking – a reality or not”. However there are gaps worth exploring for inclusion in this summary. These gaps lie with Safety of Funds and Consumer preferences and motivation to adopt. Arthur BedelCo-Founder @ Connecting the dots in Payments… | Global Revenue at VGS | Board Member | FinTech Advisor | Ex-Pro Tennis PlayerLinkedin ——There remain unanswered questions in this evolving definition which are critical to the success of Open Banking. These gaps are in i. Platform Security … Continue reading Open Banking – a reality or not

AI

Delivering on the promise of AI in banking (Mckinsey)

Colin Henderson

Much has been written about the power of AI, including generative AI (gen AI), to transform banking. Beyond ushering in the next wave of automation, AI promises to make banks more intelligent, efficient, and better able to achieve stronger financial performance. About the authors While the buzz is undeniable, many banking C-suite leaders are increasingly asking questions about the realization of value in light of the headwinds facing the sector. Will AI live up to expectations? After initial experimentation, how can banks go from proof of concept to proof of value and truly reimagine and transform the enterprise using AI? How soon, if … Continue reading Delivering on the promise of AI in banking (Mckinsey)

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For the record – UK and US reports on the banking crisis

Colin Henderson

For the record.  Links to both the reports below.  Enjoy. A banking crisis is a terrible thing to waste Last week, the banking world was gripped by the findings of a probe into the financial crisis by a powerful US Senate committee and the interim report of Britain’s government-appointed Independent Commission on Banking, led by Sir John Vickers. Here are the reports: Vickers Independent Commission on Banking (UK) Interim Report (pdf) Levin US Senate Report (US) InterimReport110411.pdf Continue reading For the record – UK and US reports on the banking crisis

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The Role of Financial Services in the Economy

Colin Henderson

A debate ensues in UK and to some extent in France, on the issue whether the financial sector is an underpinning of the economy, or a destabilising factor to the economy. The debate is quickly moving to new taxes on transactions, but its unclear to me why that would solve either side of the debate, rather than merely be passed on to customers. City regulator seeks to deflate financial sector with global tax | FT … … a “swollen” financial sector paying excessive salaries has grown too big for society Continue reading The Role of Financial Services in the Economy

Economy

Plan for Sound Banking – Conservative White Paper | analysis

Colin Henderson

Here is more on the Tory plan for banking outlined in the attached White Paper [57 pages]. Politics aside, lets take a look at the merits of this proposal and how it aligns with the problems I have perceived within banking and that are exacerbated over the last 2 years. The core issues I have seen are these: banks have become high dividend paying conduits due to protective regulation and tight association with Central Banks the regulatory protection produced a ‘cannot fail’ mentality about banks’ and .. this in turn resulted in no perceived need for a strong capital base, … Continue reading Plan for Sound Banking – Conservative White Paper | analysis

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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?

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Bank wages and regulation are inter-related

Colin Henderson

This paper reviews financial services over the past century, and concludes that banking wages are generally less as an industry during periods of increased regulation. Cutting back financial capitalism is America’s big test | FT In recent research, Thomas Philippon of New York University’s Stern School of Business and Ariell Reshef of the University of Virginia conclude that the financial sector was a high-skill, high-wage industry between 1909 and 1933. It then went into relative decline until 1980, whereupon it again started to be a high-skill, high-wage sector.* They conclude that the prime cause was deregulation, which “unleashes creativity and … Continue reading Bank wages and regulation are inter-related