Global Corporate Banking 2016: The Next-Generation Corporate Bank

BCG

Corporate banking is a tough business. In fact, BCG’s most recent Corporate Banking Performance Benchmarking survey—of 300 corporate banking divisions around the world serving the small, midmarket, and large business segments—found a dramatic split between the best and the rest.

Looming Banking Crisis?

MishTalk

Below is a transcript excerpting the main parts of the first section of the interview on the problems in the European banking system and what measures might be taken if push were to come to shove.

Consulting or Banking

Tom Spencer

This post provides you with a high level comparison of management consulting and investment banking. Investment banks help companies raise money for various purposes including investment, acquisitions, and provision of working capital. (Source: Google Images).

Banking on Digital Simplicity

BCG

Despite a tentative financial recovery, the retail-banking industry faces unrelenting, disruptive challenges. Banks that hope to prevail must urgently pursue digital simplicity. BCG Banking Pools data shows that global retail-banking revenues rose 3% in 2015, to nearly $1.6

Building the corporate bank of the future

McKinsey

Corporate banks have delivered steady returns but face daunting challenges. To succeed in the coming years, they need to find another gear. Insights on Financial Services

Bank of America Tests Peopleless Banks

MishTalk

Banks do need those services of course, but do those services have to be in every location? Tellers, cashiers, loan officers: Who needs em? Will video teleconferencing suffice? more…). Economics

Data sharing and open banking

McKinsey

The potential benefits of open banking include improved customer experience, new revenue streams, and a sustainable service model for underserved markets. Our Insights

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The transformative power of automation in banking

McKinsey

A second wave of automation in banking will increase capacity and free employees to focus on higher-value projects. To capture the opportunity, banks must take a strategic, rather than tactical, approach. Our Insights

Wholesale Transaction Banking: Leveraging “Fin” and “Tech”

BCG

Although B2B does not grab as many headlines as C2B, significant pain points still exist for banks’ corporate customers, and the opportunity to solve problems and deliver value is sizable. Article Monday, September 26, 2016.

Bitcoin, Digital Currency and The Future of Banking

Tom Spencer

When news broke in late October that some of London’s largest banks were investing in Bitcoin , cryptocurrencies in general got another boost. Bitcoin itself was created by technologists and programmers with a deep-seated mistrust of central banks themselves.

African retail banking’s next growth frontier

McKinsey

The region’s winners are likely to emphasize a few key themes—such as going digital first or making banking leaner and simpler. Revenue could pick up significantly in the next five years. Insights on Financial Services

For US banks: A time for transformation

McKinsey

To achieve robust performance and meet market expectations, US banks will need to embark on ambitious and holistic transformations. Insights on Financial Services

Visual Capitalist: Great Infographics

Consultants Mind

Learning Banking Infographics money visual capitalistConsultants are very visual people, because our clients are. Executives like to seem complex ideas and data simplified, so it is easy to understand and act upon. Clients pay to see simplicity. Simplicity is difficult to do well. Infographics are fun.

Fintechs May Be Corporate Banks’ Best “Frenemies”

BCG

For all the angst over the disruptive impact of financial technology providers, the smart money in corporate banking sees fintechs as strategic allies, not enemies. Over the past decade, the fintech market has become a hotbed of customer-centric banking innovation.

Reaching Asia’s digital banking customers

McKinsey

Asia’s banking customers are migrating to digital channels in force. The challenge for the region’s banks is to deliver superior digital experiences before competitors do. Insights on Financial Services

Central Bank Hubris Bubbles to the Surface

MishTalk

Albert Edwards at Society General commented today on Central Bank Hubris, deflation, and the flattening of the US yield curve. Here are some email snips. more…). Economics

As Cryptocurrencies Rise, Who Needs Banks?

Harvard Business

This confusion originates in the fact that for older forms of money — gold or bank notes — there is no distinction between the “what” and the “how”; you simply pay by handing dollar bills or gold coins to the seller. We’ve already seen this sort of change in the developing world, where not everyone has access to a bank account. This made traditional banks in the U.S. filo/Getty Images.

PSD2: Taking advantage of open-banking disruption

McKinsey

But to win, banks will need to capture this disruption and turn it to their advantage. Europe’s second Payment Services Directive opens attractive opportunities for established payments organizations. Our Insights

Retail Banks at the Crossroad

BCG

Nearly eight years after the financial crisis, the performance of many retail banks is still disappointing investors and financial markets, particularly in Europe. In fact, retail banks have to reinvent themselves. Article Tuesday, June 21, 2016.

Applying stress tests beyond banking

McKinsey

The technique can provide important insights to many companies operating under uncertainty. Our Insights

Deutsche Bank Received Special Treatment by ECB in Stress Tests, Bank of England Complains

MishTalk

Under ECB stress test rules, bank asset sales must be booked (not just expected to close) to count. Numerous EU banks had asset sales pending but the ECB ignored its own rules in just one case: Deutsche Bank. more…). Economics

Project Midas: "Bad Bank" for "Bad Banks"

MishTalk

I seriously do not understand this "Bad Bank" concept. If for some reason you disagree, please note that Spain now needs a "Bad Bank" for "Bad Banks". Via translation from El Economista, please consider Another bad bank? The government is considering transferring the debt of insolvent banking business to a fund The Government is considering the possibility of creating a fund or financial vehicle to which banks could transfer the debt of insolvent companies in crisis.

Becoming a digital bank

McKinsey

Chief technology officer Mike Murphy discusses Standard Bank’s shift to agile software development and how it has helped improve service delivery and internal processes. Our Insights

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European Banking System on Verge of Collapse; Market Votes “No Confidence” in Italian Bank Rescue

MishTalk

European bank shares are down for the second day following a last minute bailout package aimed at Italian banks one … Continue reading → Economics

IFRS 9: A silent revolution in banks’ business models

McKinsey

Banks have addressed the technical requirements of the new rules, but what about their significant strategic implications? Here’s how to prepare. Our Insights

Transforming a bank by becoming digital to the core

McKinsey

Understanding what it takes to act like a tech company requires a few key breakthroughs, as this interview with the CIO for DBS Bank highlights. Insights on Financial Services

Deutsche Bank Chief Economist: “Europe is Seriously Ill”, Banks Need €150 Billion Bailout

MishTalk

David Folkerts-Landau, chief economist at Deutsche Bank, says “Europe is Seriously Ill”, and EU banks need a €150 billion bailout … Continue reading → Economics

Number of Banks and Percentage of Problem Banks Over Time

MishTalk

Most understand the "too big to fail" banks have gotten bigger and bigger over time as they swallow up smaller banks bit by bit. Here is the concept in picture form courtesy of reader Tim Wallace. Click on any chart for sharper image.

Banking's Biggest Hurdle: Its Own Strategy

Strategy+Business

Between 2008 and 2014, higher revenue growth correlated with a more focused strategy correlated with higher revenue growth for banks. Banks seeking to thrive in the future should act accordingly Analysis of the 2007 crisis aftermath shows that financial-services institutions with a clear "way to play" and capabilities to match were better at weathering the storm.

Global Risk 2017: Staying the Course in Banking

BCG

BCG’s seventh annual study of global risk management in banking explores the industry’s rising level of economic profit, the ever-evolving and intensifying regulatory climate, and the steps that senior executives must take to stay the course in highly challenging times.

Analytics in banking: Time to realize the value

McKinsey

By establishing analytics as a true business discipline, banks can grasp the enormous potential. Our Insights

Plotting the Number of Banks: Is the Goal One "TBTF" Bank?

MishTalk

Reader Tim Wallace sent in a spreadsheet on the total number of banks. click on chart for sharper image Whatever happened to the idea that something needs to be done about "Too Big to Fail Banks"?

Deutsche Bank: What the Hell is Going On?

MishTalk

Deutsche banks shares are plunging again in morning European tradings. Deutsche Bank shares today set yet another record low in price. The Telegraph reports Deutsche Bank rout deepens: Shares plunge below €10 for first time ever. It’s 4:13 AM in Chicago, but Germany is seven hours ahead making it 11:13 AM in Germany. What is going on? more…). Economics

“10-Year Treasury Yields Headed to Zero Percent” Saxo Bank CIO

MishTalk

In his latest Email article, Steen Jakobsen, Saxo Bank Chief economist and CIO has a bold prediction about interest rates. With nearly everyone, even Janet Yellen at the Fed, predicting wage-induced inflation, Jakobsen makes a bold call in the opposite direction. more…). Economics

Will Industry Stacks Be the New Blueprint for Banking?

BCG

Digital technologies are reshaping the banking industry at an unprecedented rate, generating waves of fresh opportunity and potential peril for traditional banks. The traditional value chains of banking incumbents show signs of fragmenting. Perspective Thursday, June 16, 2016.

An efficient operating model for US regional banks

McKinsey

To break out of a performance rut, US regional banks must fundamentally redesign and simplify their operating models. Our Insights

A consumer-centric approach to retail banking sales

McKinsey

Scrutiny of retail banking sales practices is at a high pitch—banking leaders should also see this as an opportunity to reset and strengthen relationships with their customers. Our Insights

Retail Bank Operational and Digital Leaders Reap the Rewards

BCG

BCG’s Retail-Banking Excellence benchmarking study (REBEX) profiles the operational and digital practices and performance of 20 of the world’s leading retail banks, a group of 40 institutions chosen for their size and the strength of their capabilities. Article Tuesday, May 10, 2016.

Customers Steer Digital Trends Driving Retail Bank Transformation

BCG

The return of economic growth to many of the world's markets, albeit at different rates, should help to boost the overall outlook for retail banking. Article Tuesday, May 10, 2016.

Building a digital-banking business

McKinsey

Banks have been using digital technologies to help transform various areas of their business. There’s an even bigger opportunity—go all digital. Our Insights