How have the many new FinTechs proven themselves in the market after the financial crisis and what is the relationship between established banks and the new financial technology companies? FINANCE magazine, in collaboration with ING Bank and CMS, a tax and legal consulting firm, has carried out a study on this subject – with the result that a change in thinking seems to be in the offing. 

Many of the new financial technologies were once introduced to the market with the basic idea and intention of renewing the financial sector. FinTechs can often offer customers more...

Digital transformation is happening across different industries, and banking is one that is steadily capitalising on the phenomenon. Incorporating digital systems in banking operations has allowed institutions to interact on a different level with their customers. As they immerse themselves further into the digital world, banks are forced to come up with products that cater to those demands. It is how mobile and online banking came to exist. Optimising digital processes allows banks to be more reliable, cost-effective and available to customers when needed. However, digitisation is not easy...

Fintech has been the centre of hype in the recent past with most of their focus being what traditional banks are doing wrong. This has been the reason why fintechs have continued to attract gigantic investment, with $31 billion being injected into the sector last year. However, the truth is that many banks are still doing many things the right way, and fintech startups can learn from them. Here are some areas where fintech’s prerequisites and banks’ expertise connect: 

Dealing proactively with the law 

Compliance with financial regulations can be...

The City of London has suffered another blow to its post-Brexit arrangements as the EU rejected its proposal of a trade deal for the financial services industry. Britain’s looming exit from the bloc in 2019 has London financiers working to retain the relationship that the capital has with the rest of Europe. In the proposal to the EU, the City of London laid out a plan of letting Britain conduct cross-border trade as long as both parties would stick to international standards. 

No Agreement

However, officials from the Commission did not accept the proposal, which...

Payment Services Directive II (PSD2) arrived in Europe on 13 January 2018, after two years of planning. The idea behind EU having this regulation is to open access to services and data to third-party service providers, a privilege which was initially limited to banks only. Banks will permit financial service providers to access their clients’ accounts via an Application Program Interface (APIs). 

What is the Effect of PSD2 on Banks and Customers?

With non-bank payments service providers expected to have access to bank APIs, the customers are undoubtedly the biggest...

Since the turn of the millennium, hacking incidents in various economic sectors have been on the rise. Today, the impact of these cyber crimes is being felt by the whole economic ecosystem, and it is feared that these hackers will catalyse the next global financial crisis. 

Industries targeted

In the recent past, the banking industry has been a major target for hackers. While at it, these cybercriminals access bank records and alter the customers’ bank balances. This has been supported by Mark Boleat, the head of policy for the City of London. He believes...

The disagreement between bankers, finance ministers, and the Basel Committee which regulates banks, continues. 

Basel III is the post-financial crisis regulatory framework which forces banks to hold much higher levels of capital, to ensure that they can maintain liquidity in the event of another crisis. Disgruntled bankers insist that the Committee’s latest proposals amount to “Basel IV”. The Committee denies this and describes what it is doing as simply a “recalibration” of Basel III.

France and the USA oppose further circumscriptions

Whether this...

Despite the initial post Brexit fears that bankers would start fleeing the United Kingdom, London has steadfastly remained the planet's financial epicenter. This is the finding of a survey carried out by the GFCI (Global Financial Centres Index) which ranked nearly eight dozen cities around the globe. London beat out Hong Kong, Singapore, and New York to claim the top spot. 

Trump's Isolationism

In fact, the GFCI survey found that London had actually increased its lead over the world's next most vital financial center according to the survey, New York City. A 24...

Experts say that, although the last financial crisis ended in June 2009, the economy is still recovering and many pundits fear that the world could be facing a double-dip recession. So, what lessons can we learn from the big crash of 10 years ago? Financial regulation may have increased but have the core issues been addressed?
 

What lessons can be learned?

When levels of debt increased and loans and credit were being handed out like sweets, house prices suddenly started going into reverse. This has been a recurring pattern during past financial crises through history and one that...

By using innovative digital platforms to provide fast and accessible financial services, Fintechs have provided a challenge to the established financial institutions. Consumers increasingly expect to be able to manage their finances wherever they are. Although the main players in the financial world have recognised this demand, old legacy IT systems and entrenched business practices place them at a disadvantage in an area that develops rapidly. Fintechs provide services such as loan approvals within minutes and cheaper international money movements, core banking procedures.

Consumer...