West Monroe (September 9)
“Legacy banks are at an inflection point.” Today, banks ”are no longer just competing with each other, but rather a sprawling field of fintechs, embedded finance players, and tech firms—all of which are delivering faster, cheaper, and more intuitive financial services. The field is fragmented, but the pattern is clear: customers now expect their bank to act like a digital platform, not just a financial service provider.”
Tags: Cheaper, Competing, Customers, Digital platform, Embedded finance, Faster, Financial services, Fintechs, Fragmented, Inflection point, Intuitive, Legacy banks, Tech firms
Investment Week (August 15)
“In the wake of political pushback and shifting corporate priorities, diversity, equity and inclusion (DEI) in financial services has found itself at a crossroads…. Public commitments have dampened, budgets are under scrutiny, and sceptics question whether the industry’s progress is unravelling.” Especially in the United States, a growing number of firms are “scaling back or abandoning DEI initiatives altogether.” However, UK industry leaders believe “the narrative of decline does not tell the full story. While some organisations are quieter in their public statements, there remains evidence that internal commitment remains firm.”
Tags: Abandoning, Budgets, Commitment, Corporate priorities, Crossroads, Dampened, DEI initiatives, Financial services, Political pushback, Public commitments, Scaling back, Sceptics, Scrutiny, U.S., UK, Unravelling
The Guardian (April 3)
“The world is fast approaching temperature levels where insurers will no longer be able to offer cover for many climate risks.” Günther Thallinger, a member of the board of Allianz SE, warned “that without insurance, which is already being pulled in some places, many other financial services become unviable, from mortgages to investments.” The climate crisis could “destroy capitalism…with the vast cost of extreme weather impacts leaving the financial sector unable to operate.”
Tags: Allianz, Capitalism, Climate risks, Cost, Cover, Crisis, Destroy, Extreme weather, Financial services, Insurance, Insurers, Investments, Mortgages, Temperature, Thallinger, Unviable, World
WARC (May 29)
“The digital revolution in India is creating a level playing field for Indians across class and gender divisions, as financial services become more accessible because of the country’s digital footprint, lower data costs, and the rise in online payments.” Not only is digital transformation leading to “positive change throughout the financial system,” it is providing “strong impetus for social betterment and inclusiveness.”
Tags: Accessible, Class, Data costs, Digital revolution, Financial services, Gender, Inclusiveness, India, Online payments, Positive change, Social betterment
New York Times (September 9)
“The crypto revolution is bringing financial services to the unbanked, but not without risks.” The crypto “market is expanding quickly — in all sorts of directions,” giving rise to new “Shadow Banks.” Crypto customers “can earn much higher interest rates than at traditional banks, and they can borrow money, using crypto as collateral, often with no credit checks,” but the potential dangers include hacks, fraud, and the lack of FDIC protection for deposits.
Tags: Borrow, Collateral, Credit checks, Crypto, Financial services, Fraud, Hacks, Interest rates, Revolution, Risks, Shadow banks, Unbanked
Reuters (October 4)
Though Ireland still expects negative impacts from Brexit, the country is busy making lemonade with what otherwise might just be lemons. “Ireland’s central bank has seen a surge in financial services firms seeking to set up or extend their operations in Ireland as a result of Brexit and is processing over 100 applications.” So far, Barclays, Legal & General Investment Management and Standard Life Aberdeen are among the companies who have chosen Dublin as a post-Brexit base.”
Tags: Applications, Barclays, Brexit, Central bank, Dublin, Financial services, Ireland, Legal & General, Negative impacts, Standard Life Aberdeen, Surge
Barron’s (March 7)
“Today, in response to a campaign by sustainable investors Arjuna Capital and Walden Asset Management, American Express (AXP) became the seventh financial-services company since Jan. 15 to agree to take steps to publish and close the pay gap between male and female employees. The others are Citigroup (C), Bank of America (BAC), Wells Fargo (WFC), Bank of New York Mellon (BK), Mastercard (MA), and JPMorgan Chase (JPM).”
Tags: American Express, Arjuna Capital, Bank of America, Bank of New York Mellon, Campaign, Citigroup, Financial services, JPMorgan Chase, Mastercard, Pay gap, Sustainable investors, Walden Asset Management, Wells Fargo
Newsweek (February 8)
“A hard “Brexit could threaten 30,000 jobs in London’s world-class finance sector,” according to a recent report, if the firms “lose their ‘passport’ to operate across the EU.” Of course, nobody will really know until Brexit transpires, but the same study suggests “17 percent of all U.K. banking assets might be on the move as a result of Brexit” and the U.K.’s share of the European financial services market could contract from the current 90% to around 60%.
Economist (January 5, 2011)
The EU and Financial Services Authority (FSA) announced guidelines governing bonuses for the financial service sector. The Economist is not impressed, characterizing the guidelines “as remarkable and unhealthy regulation.” The Economist laments that “bad bonus rules are worse than bad bonuses” and may have unintended consequences that increase, rather than decrease, risk.
Tags: Bonuses, EU, Financial services, FSA
