This article gives a high level forecast of the likely implications of PSD2 and Open Banking on UK Banks. (For an introduction to the API technology underneath these rules click here). Our central forecasts are;
• Credit card monolines and the credit card divisions of banks will suffer income hits as retailers promote lower cost PSD2/ Open Banking payment mechanisms.
• In the three to five year timetable retailers will take market share of consumer lending from banks unless banks act.
Some banks will flourish because they will exploit their knowledge and understanding of API’s to work with retailers and become partners rather than the enemy.
OverviewThink of API’s as;Doorways where what goes in and out of the ‘doorway’ is very, very predictable and widely publicised, andDoorways which are open to anyone with the right key, andWhich come in “pairs” like doors at either end of a windowless...read more
There has been much talk about Blockchain as a means to “tokenise” illiquid assets and so make them easier to trade by ordinary people. HBW has researched this idea versus the alternatives using Gold as the asset type to be tokenised. HBW is unconvinced it is viable yet.read more
This article explains what the risk is and what Banks can do about it.read more
The latest fraud of choice for criminals is growing fast and sadly the banking industry is going to fail to curb it in 2019. Howbankswork explains why;read more
There is no peace for the wicked! Much as big UK banks would like to focus on digital transformation and customers, products and services, the icy hand of past failings will continue to use a large proportion of the IT, Operations and change resources for the next few...read more
GDPR is a sprawling regulation and buried within it are three key IT challenges which if approached in the right manner will not only create GDPR compliance, but will also generate value for the bank.read more
With the Banking sector undergoing major transformations, MIS is more pivotal than ever to use data effectively and improve processes.read more
What will stop CDFIs filling the gap left by the withdrawal of payday lenders?read more
Governments all over Europe are trying to restrict Banks from Proprietary Trading with legislation. What is this trading thing and why and how did banks get involved in it if it is so bad?read more