One of the trickiest circumstances for banks and credit unions during the pandemic was how to get high speed internet...
European banking profits are at risk from digitization according to a McKinsey report; the report, "A Brave New World for Global Banking", says European banks have $35 billion, or 31%, of profit at risk from digitization; fee-based products for traditional banks versus online banks is the main factor for profit; McKinsey says banks must enhance their business models, provide competitive digital tools and data analytic platforms; also suggests that banks partner with financial companies across the industry to reduce and share innovation costs; the McKinsey report also says banks will need to streamline their information technology structures and be more proactive in their regulatory strategies. Source
Kristin Lemkau, chief marketing officer at JPMorgan, says the bank has limited its web ads to 5,000 from 400,000 in an effort to improve the quality of ad displays; marketers have taken a programmatic advertising approach which features ads across the web based on browsing habits versus investment in individual sites; the new limitations for JPMorgan use a more customized white listing approach and are also the result of fewer ads on YouTube following recent issues. Source
In Austin last week American Banker hosted their annual Digital Banking Conference where banks of all sizes gathered to discuss...
Source reports on the operational costs associated with loans and how automation and artificial intelligence (AI) can help reduce those costs; automation can now replace manual processes such as credit checks, data consolidation, onboarding, loan documentation, know your customer and more; robotics and AI are also assisting in risk analysis for SMEs; additionally, machine learning solutions have also been evolving to evaluate thousands of data points from various sources; as these solutions evolve, banks too will need to integrate greater automation to stay competitive. Source
In Europe, slowing venture capital investment in fintech has caused increased reliance from the industry on traditional banks; as Brexit concerns have affected the fintech industry, traditional banks have increased their investment with more corporate and strategic participation in venture capital deals in Europe for the third quarter of 2016; over the last five quarters significant large bank investors in fintech have included Citigroup Inc., Banco Santander SA and Goldman Sachs Group Inc.; as the European market evolves with a number of regional factors continuing to affect both fintech companies and banks it is likely that more banking partnerships and fintech acquisitions will occur. Source
Since the financial crisis mergers and acquisitions by banks has reduced substantially. This has been a global trend that may...
While there have been many false starts, the market for P2P payments is finally taking off in this country; two-thirds of...
The UK Competition and Markets Authority (CMA) has released new rules for banking business lenders regarding APR transparency and pricing; the CMA has confirmed that P2P lenders will be exempt from its new banking rules; despite the exemption, it is likely that the new rules will cause more P2P lenders to provide greater APR transparency in order to maintain market competitiveness. Source