Smarter analytics for banks

McKinsey

Banks have a strong foundation in using data. New research reveals how they can get even more from their analytics investments. Insights on Financial Services

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).

Is AI the Solution for the Banking Sector? (Part I: Problems)

Tom Spencer

The financial services industry has seen drastic technology-driven change over the past few years, and digital has fundamentally reshaped consumer behaviour in banking. However, customer expectations are high and it is difficult for banks to decide which technologies to focus on.

Is AI the Solution for the Banking Sector? (Part 2: Solution)

Tom Spencer

Before we dive into why AI is the solution for the banking sector, let’s first explore what big tech companies have in common, how many of them have grown successfully, and what banks can learn. Usage of AI in the Banking Sector. AI / Big Data AI banking

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.

Management Consulting versus Investment Banking

Management Consulted

The cons of investment banking – the long hours, the repetitive and unengaging nature of the work, the lack of non-finance exit opportunities – mattered far more to me than a 6-figure salary. Investment banks, on the other hand, have a more competitive, hierarchical setup.

Managing a customer-experience transformation in banking

McKinsey

As banks rush to transform their customer experience, it’s easy to trip up. Here’s how to execute a step change that moves ahead of competitors. Insights on Financial Services

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

Ralph Hamers on Disrupting the Banking Industry

BCG

The bank’s stated purpose: “Empowering people to stay a step ahead in life and in business.” To this end, ING aims to simplify the banking experience, making its services fast, easy, and accessible. Video Tuesday, September 20, 2016.

Ten lessons for launching a greenfield digital banking business

McKinsey

For some incumbent banks, the launch of a digital-only business can help meet customer needs and defend against fintechs. Insights on Financial Services

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

Six digital growth strategies for banks

McKinsey

Banks that know where to look can find new sources of untapped value. Digital Insights

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.

European Private Banking in 2018: Running for scale

McKinsey

Favorable market returns helped to build up Western European private banking profit pools in 2017, but banks need to assert more control over their profit growth. Insights on Financial Services

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.

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

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.

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

A bank branch for the digital age

McKinsey

Far from rendering the bank branch obsolete, digital technology holds the key to the branch of the future. Insights on Financial Services

Open banking’s next wave: Perspectives from three fintech CEOs

McKinsey

The CEOs of Ping Identity, Plaid, and Tink share their views on the prospects for open banking and the pressing need for players to develop a data and customer strategy.

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

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.

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

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

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

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.

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

Agile 63

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.

Applying stress tests beyond banking

McKinsey

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

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.

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

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

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.

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

What is return on equity (ROE)?

Consultants Mind

In simplest terms, … Continue reading → Learning Banking Consulting Finance Management consultingROE (return on equity) is one of the key formulas that most MBAs (yes, including Marketers) remember learning on their path to financial literacy. It is often the best FIRST place to start for financial statement analysis.

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"?

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.

Payment disputes in banking: A pathway to deeper customer relationships

McKinsey

Transforming the dispute-resolution process can provide banks with an opportunity to solidify bonds with their customers while driving down costs. Insights on Financial Services

Battle of The Central Banks: China Declares ICOs Illegal

Tom Spencer

As September dawned last week, six more major banks joined a UBS-led effort to create … Continue reading "Battle of The Central Banks: China Declares ICOs Illegal". As I have been writing in this space of late, the days of the Wild West for cryptocurrency are absolutely at an end. The writing has been on the wall all summer. The latest news to hammer the point home?