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.

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.

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.

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.

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

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.

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

Driving Digitization in Retail Banking

Strategy+Business

A call to arms for the digital executive

Banking on the cloud

McKinsey

Don Duet, global head of the technology division at Goldman Sachs, discusses the evolution of the firm’s digital strategy and its use of cloud infrastructure and technologies. Our Insights

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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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

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

Video 13

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

The digital reinvention of an Asian bank

McKinsey

The CEO of DBS says it’s not enough to apply digital “lipstick.”. Our Insights

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.

It’s Your Money But You Can’t Have It: EU Proposes Account Freezes to Halt Bank Runs

MishTalk

If there is a run on the bank, any bank in the EU, you better be among the first to get your money out. Although it’s your money, the EU wants to Freeze Accounts to Prevent Runs at Failing Banks. more…). Economics

Nonfinancial risk: A growing challenge for the bank

McKinsey

Managing these well will require big shifts in banks’ practices. With credit and market risks now under better control, the focus is shifting to nonfinancial risks. Our Insights

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

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

“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

Engaging customers: The evolution of Asia–Pacific digital banking

McKinsey

Consumers across the region are adopting digital banking. Our latest study finds banks must act quickly to take full advantage. Our Insights

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Merkel Says No Aid for Deutsche Bank; Depositor Bail-In Coming Up?

MishTalk

The €72 trillion (notional) derivatives mess known as Deutsche Bank remains under severe pressure. It’s market cap is $17.43 billion. … Continue reading → Economics

India Fears Run on Banks: Capital Controls and Withdrawal Limits to Continue

MishTalk

Indian banks are fearful of running out of cash as lines queue up to withdraw money. Bankers say they cannot cope with any sudden increase in demand, and warn against lifting cash withdrawal limits. more…). Economics

World Running out of Dollars Moans Deutsche Bank Economist

MishTalk

"There are not enough dollars around” says Deutsche Bank chief … Continue reading → EconomicsMercy. I just learned the world is short on dollars. "There

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.

Europe Fears Bail-Ins: Capital Flight Intensifies in Italy, France, Spain; Are German Banks Safe?

MishTalk

Possible Explanations Fear of losses elsewhere No demand for loans No creditworthy borrowers Capital impairment at banks Failure of ECB policy To encourage more lending, ECB president Mario Draghi cut the deposit rate for money parked at the ECB from -0.2% Can you trust Spanish banks?

Another Run on Greek Banks Begins; Get Out While You Still Can; Buy Gold

MishTalk

In November, Greeks withdrew €220 million from banks. Via translation from Libre Mercardo, please consider ECB Threatens to Unleash the ''Banking Yard'' The term "banking yard" is in reference to what happened to Cyprus depositors. The risk of bank runs in Greece is reactivated.

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.

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When Will Spanish Banking System Collapse?

MishTalk

The question on my mind today is "When will the Spanish banking system collapse?" The Spanish banking system passed a so-called "stress test" in 2012, but sovereign government bonds are are not included in the evaluation.

Bank of Japan Adopts Negative Interest Rates: Surprise, Surprise We Lied Again; Meaning of "Now"

MishTalk

Meaning of "Now" Eight days ago, the Bank of Japan governor Haruhiko Kuroda, said No Plan to Adopt Negative Rates Now. Negative Rates Announced Today we learn Bank of Japan Adopts Negative Interest Rates. The Bank of Japan has slashed interest rates to minus 0.1

How Digitized Customer Journeys Can Help Banks Win Hearts, Minds, and Profits

BCG

Banks have heard the digitization message, and they get it. While most have some degree of online and mobile banking presence, functionality is often scattershot and limited to the front end. Article Thursday, June 02, 2016.

Meet “Aida”, the Perfect Banker (and a Robot): End of Branch Banks Coming

MishTalk

Sweden’s biggest banks are on a mission to get rid of branch banks and all the branch bank employees too. That’s where “Aida” comes in. She’s available 24/7 and supposedly can handle all but your most complex needs. Your Banker, Aida Is Always In. more…). Economics

Diving Into Deutsche Bank’s “Passion to Perform” Balance Sheet

MishTalk

Deutsche Bank shares have collapsed to lows deep under crisis lows and collapse of Lehman in the Great Financial Crisis. … Continue reading → Economics

Don’t Worry, Deutsche Bank Only Down 16%

MishTalk

Deutsche Bank … Continue reading → EconomicsThe ECB will not allow a crash. That I can assure you. So please ignore the following Tweet.

Money Laundering Scandal at Australia’s Largest Bank Triggers Another Call for Ban of Cash

MishTalk

Ian Narev, the CEO of Commonwealth Bank of Australia (CBA), the nation’s largest bank is set to step down amid money laundering charges. Money laundering is big business in Australia because regulations do not cover lawyers, real estate agents, accountants, and CEOs ignoring warnings from police. Despite the obvious problem, it’s cash itself that gets the blame. more…). Economics

Is the ECB Bailing Out Italian Banks on the Sly?

MishTalk

Italian banks are trading at enormous discounts to book value. That implies you believe the book values of Italian banks … Continue reading → Economics

Atlas Crumbles Under Weight of Italian Banks

MishTalk

On April 12, in one of the easiest financial predictions in history, I challenged the notion that a €5 billion … Continue reading → Economics

When Banks Go Digital, Everyone Wins

Strategy+Business

Digitization will enhance the customer experience, and can save banks up to 30 percent

A digital crack in banking’s business model

McKinsey

Low-cost attackers are targeting customers in lucrative parts of the sector. Our Insights

Bank Holiday: Greek Banks and Stock Market Shut Until July 7; Capital Controls Imposed

MishTalk

Bank Holiday Speaking on live TV, Alexis Tsipras is saying that the Greek central bank has been forced to recommend a bank holiday and the introduction of capital controls. Tsipras also appeals for calm, and he insists that bank deposits are secure.