Our main stories this week include ...
From start-up to incumbent: the innovation cycle
I mentioned the Uber example of this cycle, which began as a start-up but, as it grew into an upstart, it started to be attacked by the incumbents. Then the regulators woke up and started to consider the implications of the insurance of drivers, the employment status of the drivers, the safety of the passengers, etc. Then the upstart becomes the incumbent as the regulator restricts its innovation risks to be more in line with the industry it has attacked. Eventually there is a new business model that has evolved the regulations thanks to the innovation, and this new business model has a new compliance structure that must also be adhered to.
The business model followed by traditional banks must change
There's been a lot of tweeting of a few lines in an interview that I gave recently in Spain for BBVA's innovation centre. As a result, I thought I would post the interview here and will reveal the line that gets all the tweets in the next week or so.
There seems to be a problem with your American Express card
I just read Bloomberg’s article about AMEX after spotting the cover story with the words: “Sorry, there seems to be a problem with your American Express card”. It’s a fascinating article, but a few choice highlights include the story of Costco who had been a key corporate partner for AMEX since 1999.
The Big Four British Banks: which one should you invest in?
We’re about to get the results of the Big Four UK banks Q3 earnings and each has different issues and challenges. I talked about some of the outlook in this area on CNBC yesterday, and thought it worth sharing my summary notes.
The most innovative solutions ...
I was invited to host the BAI Innovations Showcase last week, where 21 of the top solutions providers were invited to demonstrate their wares (soft and hard!). The audience voted throughout the afternoon for the firm they liked best and, lo and behold, the winner was: MX’s Helios & WideNet.
This week’s major news headlines include …
British trainee bankers at JP Morgan sacked after cheating at 'basic' maths test - The Telegraph
Nearly a dozen junior bankers, some of them British graduates, told to pay for their own flights home from New York after cheating discovery
Free banking here to stay and big lenders to remain intact, as watchdog rules in favour of status quo - The Telegraph
Exclusive: Competition and Markets Authority expected to decide that charging customers would not make them better off
Fat cat bankers encouraged to slim down with fitness gadgets at Barclays - The Telegraph
The giant bank has stuck a deal to offer its 140,000 employees discounts on the Fitbit tracker wristbands which monitor physical activity
A Deutsche Bank junior employee accidentally sent a hedge fund client $6 billion while their boss was on holiday - The Independent
The news of the incident comes as the German bank announced a major overhaul on Sunday under new CEO John Cryan
EU referendum: Bank of England governor Mark Carney poised to make Brexit intervention - City AM
EU referendum: Bank of England governor Mark Carney poised to make Brexit intervention
John Cryan makes a ruthless start at Deutsche Bank - The Telegraph
The cost-cutting new chief executive has made a positive impression on investors, but one new announcement will not be enough to change the bank overnight
Lloyd's chief tops LGBT power list - BBC
Inga Beale, the Lloyd's of London chief executive, tops an annual power list of the top 100 LGBT executives.
Deutsche Bank transfers $6 billion to a client by mistake: FT - Reuters
(Reuters) - Deutsche Bank AG erroneously paid $6 billion (3.9 billion pounds) to a U.S. hedge fund client after a junior trader processed the wrong figure, the Financial Times reported.
UK banks could be forced to hold £3.3bn under ringfencing plans - The Guardian
Bank of England warns RBS, HSBC, Lloyds, Barclays, Santander UK and Co-op Bank of possible impact of structural changes
Deutsche Bank in radical restructure - BBC
Deutsche Bank has announced a radical restructuring as part of a drive to restore its reputation and profitability.
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Chris M Skinner
Chris Skinner is best known as an independent commentator on the financial markets through his blog, TheFinanser.com, as author of the bestselling book Digital Bank, and Chair of the European networking forum the Financial Services Club. He has been voted one of the most influential people in banking by The Financial Brand (as well as one of the best blogs), a FinTech Titan (Next Bank), one of the Fintech Leaders you need to follow (City AM, Deluxe and Jax Finance), as well as one of the Top 40 most influential people in financial technology by the Wall Street Journal's Financial News. To learn more click here...
