Tag: wells fargo

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?

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Bank of America Needs $33.9 Billion | NYT

Colin Henderson

As predicted yesterday, the amount of capital the banks need is far in excess of the amounts they were negotiating. This news just in from the NYT confirms what had to be the case.  If we do the math based on project bad debts, it had to be in the $20bn + range for the big banks.  Similar results will apply to Wells, Citi,  PNC and others in the group of 19.  Watch out for the stock market tomorrow.  Reality bites. Bank of America Needs $33.9 Billion, U.S. Determines The government has determined that Bank of America will need $33.9 … Continue reading Bank of America Needs $33.9 Billion | NYT

Innovation, Open Finance, Open Source Banking3 Comments

All banks have the same strategy | what happened to the Starbucks strategy?

Colin Henderson

It was refreshing to read this piece, and takes us exactly where innovation in financial services ought to be going – the new (old) grand ideas. Starbucks should start banking | FT What if Starbucks opened an online-only retail bank offering competitive deposit rates and a modest range of loans and mortgages? It could do that by partnering with a finance company such as ING, which has the appropriate banking licences. All it would need to do is install ATM machines in its outlets, which would involve investing some money but would allow it to get more out of its … Continue reading All banks have the same strategy | what happened to the Starbucks strategy?

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The flaw in the House Financial Services hearings \ misalignment on the paradigm

Colin Henderson

The hearings are going on this morning in Washington. After my rant about Wells Fargo yesterday, it is clear to me that apparently ill timed newspaper ad on the weekend was in fact timed to coincide with these hearings. I still think it was ill timed though. Listening to the introduction today from Barney Frank, Chairman and the commentary on CNN, the general view is that Banks are receiving money, using it for perks and not working on “getting the economy back to working again”. On the other hand the banks are listing off how they are increasing lending, keeping … Continue reading The flaw in the House Financial Services hearings \ misalignment on the paradigm

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Wells Fargo loses touch with reality

Colin Henderson

The impression that Bank CEO’s live in the stratosphere came from a source I never would have expected today.  Wells Fargo had an ad campaign on the weekend. “The Value of Team Member Recognition,” included a message from the company’s CEO John Stumpf who wrote “many media stories on this subject have been deliberately misleading. These one-sided stories lead you to believe every employee recognition event is a junket, a boondoggle, a waste, or that it’s for highly paid executives. Nonsense!” I have been unequivocally positive and supportive of Wells for years, but this ad campaign has to be the … Continue reading Wells Fargo loses touch with reality

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Wells offers welcome surprise to the markets with their results

Colin Henderson

 Wells Fargo offerred a welcome surprise to the market today, by not succumbing to another round of subprime losses as many other Banks are experiencing.  I can imagine Wells will be popular with vendors and research companies now, unlike some of the others who are sufferring. The timing was good, as traders sought to cover short positions, in anticipapation of the SEC ruling that those must all be reported now.  ft.com  Wells Fargo cheer lifts banks  While earnings have declined at Wells Fargo for three straight quarters, the bank has stayed profitable amid the turmoil for much of the banking industry. … Continue reading Wells offers welcome surprise to the markets with their results