Leadership Lessons from the Banking Upheaval

Great Leadership By Dan

Guest post from Jean-Marc Laouchez , Hay Group: “Banking is no longer somewhere that you go, it’s something that you do.” - Brett King, Banking 3.0. When was the last time you visited a bank branch? In Africa, some telecoms providers have bypassed traditional banks completely.

Bank of America: Yesterday and Today

Coaching Tip

Giannini, a son of Italian immigrants, founded the Bank of Italy in San Francisco with the vision that banks should serve more than the fortunate few. . Rushing into the shattered city, he managed to have $80,000 in gold loaded onto a horse cart covered with vegetables before fire consumed the bank building. Other banks' vaults would be too hot to open for weeks. The problem facing Bank of America is stunning, both on an economic and on a human scale. Banks.

SME banking: a specialist bank or integrated service within a retail/commercial bank?

Chartered Management Institute

I have attended the Africa SME Banking Conference in Johannesburg in early May, organised by the International Finance Corporation (IFC) – part of the World Bank. small business loan small business underwriting sme SME banking SME risk finance

Peer-to-Peer Small Business Loans Beat the Big Banks On Just About Every Count (& Not Just Because They’re The Only Ones Doing Any Real Lending).

Women on Business

There’s no question that the big banks & Wall Street are under Congressional and regulatory siege (or is it the other way around?). The reason, of course, is that if Washington is going to bailout the too-big-to-fail banks, then Washington needs to show everyone, from the “Occupy Wall Streeters” to the Tea Partiers, that it’s going to be calling the shots, all the way down Wall Street, to keep the bankers in line to prevent another financial fiasco. Guest post by Dan Azeroual.

How Banks Should Finance the Social Sector

Harvard Business Review

Most traditional financial intermediaries, like banks, are focused on short-term returns and deem unsecured lending to charities and social enterprises to be too risky. If financing is offered by a bank, the terms are often too onerous. Finance Social enterprise SRI

35 Under 35: Stephanie Niven (Javelin Capital)

First Friday Book Synopsis

Bob's blog entries 35 Under 35: Stephanie Niven Cleo Thompson From Water Polo to Emerging Markets Global Active Equity Team Goldman Sachs established Javelin Capital in 2009 Javelin Capital Management Today’s 35 Women Under 35 Marion King Oxford University The Gender Blog The Glass Hammer the importance of sponsorship Victor Pina VocaLink Young Professional of the Year at the Women in Banking and Finance (WIBF) 2011 Awards

Hammer 100

How Banks Can Compete Against an Army of Fintech Startups

Harvard Business Review

It’s been more than 25 years since Bill Gates dismissed retail banks as “dinosaurs,” but the statement may be as true today as it was then. Banking for small and medium-sized enterprises (SMEs) has been astonishingly unaffected by the rise of the Internet. To the extent that banks have digitized, they have focused on the most routine customer transactions, like online access to bank accounts and remote deposits. banks. Eastern Bank).

How Blockchain Applications Will Move Beyond Finance

Harvard Business Review

Visa and MasterCard are both exploring uses for similar technology to improve the way they process payments, while Ripple is lowering the cost of transactions between banks and other financial institutions through its global settlement network. Central banks are also actively exploring the opportunities and challenges a fiat-backed , digital currency would entail for monetary policy, taxation, and lending.

Money In The Bank Means Freedom To Choose

The Idolbuster

years ago, my wife and I spent two months examining the finances. Chapter 10: The People-First Life Part 2. To give you a preview of the post-idolatry world, I no longer worry about money. Ok, truth be told, I never really worried about money. I grew up poor, and have always felt that I could get by with less. But when I was making money, I sure spent a lot of it. Part of the reason I spent money was that I was stressed.

How Big Data Brings Marketing and Finance Together

Harvard Business Review

Rajamannar involved finance early. To spearhead analytic efforts, he assigned a finance person – who was already embedded in marketing – to create an ROI evaluation framework and integrated her deeper into the marketing function. Advertising Finance Marketing

Fintech Companies Could Give Billions of People More Banking Options

Harvard Business Review

Much has been made of the fact that a new breed of financial technology (or fintech) companies is unbundling banks in the developed world. Startups are attacking all of the components of the traditional bank value proposition (e.g., While their innovative products have been a boon to consumers in mature economies, the resulting efficiency and security benefits have largely bypassed the 2 billion consumers in the developing world who lack formal banking services altogether.

How the Great Recession Changed Banking

Harvard Business Review

Just over 10 years ago, French bank BNP Paribas froze U.S. There was a run on British bank Northern Rock. Over the next year, many banks fell. Investment bank Bear Stearns collapsed. The recession transformed investment banks and created a deep divide between banks that quickly remodeled their business and those that failed to move rapidly. We expect investment banks to embark on an even more fundamental makeover during the next decade.

Saving Banks from the Bankers

Harvard Business Review

An interview with Sallie Krawcheck , former president of Bank of America Global Wealth & Investment Management and author of the article Four Ways to Fix Banks. Boards Finance Risk managementDownload this podcast. A written transcript will be available by July 5.

Banks’ New Competitors: Starbucks, Google, and Alibaba

Harvard Business Review

This represents a major challenge to the banking sector where, in developed markets, growth and profitability are still at about half of pre-crisis levels. As banks recover from the downturn, non-banks are taking advantage by proceeding aggressively with digital innovations and capturing more and more of the banking value chain. Accenture estimates that competition from non-banks could erode one-third of traditional bank revenues by 2020.

Is #MeToo Backlash Hurting Women’s Opportunities in Finance?

Harvard Business Review

When my mother graduated from college in 1972, she interviewed at an investment bank where a manager told her that for certain positions, women were interviewed but never hired. As someone who works in finance and is currently a student in the executive MBA program at the Wharton School, I’ve heard men say that they’re less likely to hire or associate with women as a result of the intensity of MeToo. Cláudio Policarpo/EyeEm/Getty Images.

The End of Banks as We Know Them?

Harvard Business Review

Last week my father received a phone call from the branch director of his long-standing bank to offer him a new product. Millions of people have lost confidence in banks. But the dissatisfaction and disappointment with our banks runs deeper. Finance Global business

How to Finance the Scale-Up of Your Company

Harvard Business Review

Fortunately for Szaky, he had already laid the groundwork of financing from suppliers, equity investors and others to allow them to double sales in two months. Most entrepreneurial ventures, whether they are startups, spinoffs, or smaller companies which have been around for awhile, haven’t given enough thought or planning to financing for rapid scale-up. Use multiple sources of finance. This saved us hundreds of thousands of dollars in financing.

Mobile Phones Promise to Bring Banking to the World’s Poorest

Harvard Business Review

For populations living so far off the economic grid that traditional banks have never considered them as a source of new business, the availability of mobile technology is lifting the bane of cash dependency and opening a door to the mainstream of the global economy. laura schneider FOR HBR.

Finance Can Be a Noble Profession (Yes, Really)

Harvard Business Review

When I ask students graduating from Harvard Business School what they’re doing next, I often get some version of “I’m going into finance but…” Then they quickly explain that finance is just a way station on the route to nobler goals. Recently, I asked a few students how people react to their choice to go into finance, and I was greeted with nervous laughter. How will the crisis of problematic loans in Italian banks be resolved?

Josh Lerner: An interview by Bob Morris

First Friday Book Synopsis

Schiff Professor of Investment Banking at Harvard Business School, with a joint appointment in the Finance and the Entrepreneurial Management Units. Josh Lerner is the Jacob H. He graduated from Yale College and Harvard’s Economics Department. Much of his research focuses on the structure and role of venture capital and private equity organizations. He also [.].

How Banking Analysts’ Biases Benefit Everyone Except Investors

Harvard Business Review

To answer this question we studied Wall Street analysts that provide earnings forecasts for banks and other types of financial institutions or non-finance companies (‘banking analysts’). Moreover, bank executives appear to profit from the analysts’ bias.

Rethinking the Bank Branch in a Digital World

Harvard Business Review

More US bank branches closed in 2013 than ever before. More than 85% of retail banking transactions are now digital. The bank branch is “going south,” mobile-banking entrepreneur Brett King said to CNBC. So are we witnessing the death throes of brick-and-mortar retail banking? Will banking soon be like the business of selling recorded music—almost all done online? Banking isn’t like selling records or music CDs. Finance Internet Retail

High Frequency Trading and Finance’s Race to Irrelevance

Harvard Business Review

But those fractions of cents would otherwise most likely be accruing to the big banks instead of these new, smaller HFT firms. They represent the logical extension of a topic that’s captured the attention of a lot of great business minds for some time: the ongoing battle between those who view companies through the lens of building something, and those that view it through the lens of finance. Economy Finance

Why Our Trust in Banks Hasn’t Been Restored

Harvard Business Review

Since the financial crisis of 2008, a major question has been how banks can restore the trust of their clients. To address this concern, banks have been hiring an increasing number of compliance officers.

The End of Banks as We Know Them?

Harvard Business Review

Last week my father received a phone call from the branch director of his long-standing bank to offer him a new product. Millions of people have lost confidence in banks. But the dissatisfaction and disappointment with our banks runs deeper. The last bank in my hometown closed a year ago. Another casualty of cost cutting, it simply closed its doors — even though local people and businesses that had used that bank all their lives still relied upon it.

When High-Return Bank Businesses Go Bad

Harvard Business Review

Institutional banking businesses — including trading operations — typically don't have high barriers to entry. financial institution has pulled back or failed, there has almost always been a European bank or a Japanese bank or some other player willing to take over its trading operations or enter the market in its place. Corporate governance has to be one of them, and, in banking, regulation falls not far behind. Boards Finance Risk management

Part 1 of the How to Establish a Financial Relationship with a.

Women on Business

It's Time to Judge Bank Performance Differently

Harvard Business Review

Despite the new regulatory regime, big banks continue to suffer from significant governance challenges. Boards have limited time to wade through the substantial complexity of the banks' businesses. This poses significant risks not just to banks but potentially to the entire economy during the next downturn. Bank executives' performance is typically evaluated in large part on the basis of earnings. Net interest income is a fundamental part of banking.

Case Study: Can an Ethical Bank Support Guns and Fracking?

Harvard Business Review

As the founder and president of a new ethical bank focused on environmental sustainability, Jay McGuane realized that he and his board needed to set guidelines about which loans to approve and which to reject on “values” grounds. In his eagerness to start running the business, he’d put the issue off, but the bank was already confronting two problematic requests, one involving fracking and another concerning guns. That’s why we’re part of the Global Alliance for Banking on Values.

Peanut- Finance: Swaps as Strategy

Harvard Business Review

This peanut-finance system, which turned the peanuts into food for hospital patients, seems quaint, like tales from 19th century America of rural doctors taking chickens for treating chicken pox. I've often wondered why bank-retailer relationships that involve a bank counter in a grocery store do not also involve a rack of convenience purchases or kiosks for grocery ordering inside bank branches.

Why Are Some Sectors (Ahem, Finance) So Scandal-Plagued?

Harvard Business Review

This escalation illustrates a significant change: highly expensive scandals across business sectors , not just in single companies, and this is reflected in the January 7th agreement by major banks to pay $8.5 Other banks are considering whether to join the agreement (e.g.

The Problem with the Profit Motive in Finance

Harvard Business Review

A few of the bullet points: • Banks insured by the Federal Deposit Insurance Corporation have $1.5 trillion in capital — the highest capital levels in the history of American banking. • banks have increased Tier 1 capital — the core measure of a bank's financial strength from a regulator's point of view — by nearly 50 percent over the last four years. Investment banks used to all be partnerships. Compensation Ethics Finance

As European Banks Retreat from the World Stage, China Is Stepping Up

Harvard Business Review

It has been 10 years since the global financial crisis, and the fall-out continues in the industry that was at its epicenter: banking. There has been a truly dramatic retrenchment from foreign markets, making banking a rare case of an industry becoming less, rather than more, global. Stung by a series of risky foreign adventures that came back to bite them, most large global banks in Europe and the United States have retreated from foreign operations.

Can One Bank's Leasing Program Boost the Economy?

Harvard Business Review

Bank of America recently rolled out a "Mortgage-to-Lease" program to help financially struggling homeowners. Instead of foreclosing on delinquent mortgagees, BOA will now allow them to transfer ownership to the bank, have all mortgage debt forgiven, and rent their home for up to three years at the market rate. After purchasing a home, knowing that banks won't foreclose, buyers have less of an incentive to be financially responsible. Finance

Price 12

Kettering Award - Thank You

Chris Brady

Growing up, I can remember always having a big, green plastic dog bank standing in the corner of my bedroom.

"Living Wills" for Banks Sound Good, But Would They Work?

Harvard Business Review

Paul Tucker, Deputy Governor of the Bank of England, and the person leading the Financial Stability Board's recovery and resolution work programme, believes that banks have "nowhere to hide" in the post-crisis era and must face navigate stress in the future without relying on Government support. It is clear that individual governments can no longer afford to bail out banks, while creditors are no longer willing to offer cheap debt to highly leveraged banks.

Grading Britain's Independent Banking Commission Report

Harvard Business Review

Britain's Independent Banking Commission came out with an interim report Monday that identified the broad outline of the country's future banking regulation. The report's findings had been the subject of a fair amount of media speculation, fanned by reports that two of Britain's biggest Banks, HSBC and Barclays, would decamp (respectively) to Hong Kong and New York. As long as a collapsed bank could cover retail depositors, the government could stay on the sidelines.

The 5 Easiest Ways to Build Business Credit

Women on Business

Not only does it make your personal finances vulnerable, but business credit is a much more powerful tool professionally than personal credit. 2- Get a business bank account – Banks prefer to provide a business line of credit to a company that has a positive financial track record. To apply for business credit, you will usually need a business bank account that is at least 2 years old. As such, you should open a business bank account as soon as possible.

Using Games to Get a Handle on Bank Risk

Harvard Business Review

Bank marketing materials focus on the dreams, anxieties and goals of consumers. Most audits and regulations of banks are focused on certifying the integrity of data and controls. The truly critical issue, though, is the integrity of banks' assumptions about consumer behavior. A better understanding of the drivers of behavior is needed for both banks and consumers to understand risk, and for the financial system to provide timely and targeted interventions.

China’s New Development Bank Is a Wake-Up Call for Washington

Harvard Business Review

But in past weeks, it seems that the movie in Asia has been on fast-forward around global development and financing. led World Bank ($2223.2 billion of subscribed capital) or the Asian Development Bank ($162.8 This new bank raises many questions.