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.

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

Trending Sources

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

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

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How Blockchain Is Changing Finance

Harvard Business Review

Money, equities, bonds, titles, deeds, contracts, and virtually all other kinds of assets can be moved and stored securely, privately, and from peer to peer, because trust is established not by powerful intermediaries like banks and governments, but by network consensus, cryptography, collaboration, and clever code. Santander, a European bank, put the potential savings at $20 billion a year. Is this the end of banking as we know it?

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).

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

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.

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.

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.

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.

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

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.

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.

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.

Research: Hiring Chief Risk Officers Led Banks to Take on Even More Risk

Harvard Business Review

banks exploded in the years leading up to the 2008 financial crisis, with disastrous consequences for American firms, markets, and households. But why did banks get in so deep with derivatives, particularly after Washington tried to crack down on risk with new laws and regulations in the early 2000s? In a recent study, published in the American Sociological Review , we trace the growth in bank risk taking to a surprising culprit: the rise of the chief risk officer (CRO).

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.

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.

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 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.

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

Women Entrepreneurs, Funding, and the Economy

Women on Business

Twenty five years ago it was rare to see a business owned solely by a women, banks would not lend to women unless they had a husband, father, brother, or other male cosigner with them. Today banks and society have come a long way, but the economy is killing everyone and women are fighting to keep or acquire their funding. Banks recognize the ability for these businesses to create jobs and stimulate the economy.

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.

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

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

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.

M&A Without Buying the Company

N2Growth Blog

Other companies are in need of cash and are willing to sell certain contracts as a financing vehicle. Likewise, the special assets and real estate owned groups within banks and financial institutions have a dearth of property that they are trying to liquidate.

Too Big to Manage: JP Morgan and the Mega Banks

Harvard Business Review

Many other major financial institutions — Bank of America , Citigroup, HSBC, Barclay’s, Wells Fargo, UBS, etc. The immediate news coverage is focused on the size of financial penalties for the institutions, on the potential civil or criminal culpability of bank officials and on the reputational harm to both the bank and its senior officers. Whether its example will have preventative impact on other mega-banks is, of course, also unknown.

Capital vs. Influence

N2Growth Blog

Financing - M&A Capital vs. Influence Mike Myatt N2growth Private Equity venture capitalBy Mike Myatt , Chief Strategy Officer, N2growth . I have watched entrepreneurs and executives initially trivialize the value of influence in a capital transaction, only to regret it down the road.

Grab the Money!

Women on Business

Tap your community bank. Your community bank has a vested interest in your success and unlike major banks they can’t afford to ignore small business. Community banks also have a unique perspective because most of them are small businesses as well; this common thread gives them the ability to understand your cash flow. So why are community banks the new hot spot? Look for a community bank that specializes in your field.

Britain's Banking Reforms Are So Old Economy

Harvard Business Review

Britain's Independent Banking Commission came out with its final report and recommendations for reforming the U.K. banking system this morning. retail banking competitor; and. It's not hard to see why: Ring-fencing retail banking and prioritizing depositors can easily be presented as protecting innocent voters from the wiles of unscrupulous bankers. Consider retail banking. Banks are the not only potential suppliers of retail or other financial services.

Raising Capital Through Angel Investors

Women on Business

Many businesses today that would have traditionally sought after bank financing are turning to other solutions. Can this money come from traditional financing? Finance Strategy Women Business Owners angel investor Entrepreneur money small business capital startups

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Why Bank Bailouts Haven't Led to Jobs

Harvard Business Review

It was largely believed that the recession was caused by reckless banks and a crisis in confidence. Congress was convinced that they must stabilize the economy by infusing big banks with capital. Almost three years later, many banks have repaid the loan (and have also posted record profits), yet by all accounts it appears as if we are sliding back into a recession. The banks took the money, invested it, earned a large return for themselves, and then repaid the government.

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How to Succeed With Limited Resources

Let's Grow Leaders

Only 28% had access to bank loans/lines of credit, 18% were funded by private investors, and 3.5% The finance crowd speaks and entirely different language than sales or IT. You don’t have enough time, enough resources, or budget– or maybe you lack all three.

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

Use Data to Fix the Small Business Lending Gap

Harvard Business Review

In the past, a community bank would have a relationship with the businesses on Main Street, and when it came time for a loan, there would be a wealth of informal information to augment the loan application. Finance Access to credit is a key constraint for entrepreneurs.

The Data Says Climate Change Could Cost Investors Trillions

Harvard Business Review

And the numbers these banks and academics are coming up with certainly help stir the souls (or wallets) of the investor community. Economy Sustainability Finance & Accounting Digital Article

Dinosaurs, Big Consulting Firms and Disruptive Innovation

N2Growth Blog

The same trend of disruptive innovation is now happening in global banking with the “invention” of complex derivatives, CDCs and other profit-generating products being aggressively pitched to customers. By John R. Childress.

How To Move a Team From Forming to High Performing in < 48 Hours

Let's Grow Leaders

They weren’t afraid to say what they were good at, “Oh, when I worked for the World Bank, I used to work on this kind of stuff all the time, let me lead the analysis.” Our MBA Orientation committee debated whether was this too much pressure.

Team 87

Can Lending Technology Revive America???s Small Businesses?

Harvard Business Review

Factors ranging from weak demand to bank consolidation have combined to hobble many small businesses  and if these factors arent addressed, they could continue to impede U.S. And as we describe in a recent HBS Working Paper , gaps remain in traditional bank credit supply.