While big banks and institutional investors spent years trying to bend blockchain for use in traditional finance, they missed out on the boom in crypto prices and the income from decentralized finance. Now, alarmed by stretched valuations and zero yields in conventional markets, they just want in. The race is on to build a sturdy infrastructure to support the stream of old money into new digital assets that could become a flood.
Digital identities are evolving fast as lenders, tech firms and governments roll out platforms to make it easier to shop, invest and constantly prove who you are. Banks – still trusted despite myriad scandals and crises – are at the heart of this process: a situation that is unlikely to change.
With venture capital flooding in, the world’s biggest neobanks are more confident than ever. They still face serious questions about their long-term profitability and regulators are certainly paying them more attention, but amid the upheaval of Covid-19, freedom from legacy infrastructure has proved even more important than ever. The incumbents are rightly worried.
The worst pandemic in a century, an event which has changed our whole way of life, appears to have dealt only a glancing blow to global banking. Good risk management certainly played a role; but, crucially, government support bailed out customers before they impacted bank balance sheets. Is there bad news to come when those policies go back to normal?
This time last year, Euromoney recognized progress at Deutsche Bank as the best transformation story of 2020. Twelve months on, the German lender might be getting its act together at last. Can it sustain its recovery?
More focus on keeping a client happy than keeping the bank solvent; a risk management department that wasn’t tough enough and enabled bad practice; a willful reduction in margin; and two co-heads who each believed the other ran the relevant business. The report into Credit Suisse’s Archegos debacle makes grim reading.
As fintechs approach 10% of the banking and payments universe, the pioneer venture investor and founder of Capital One says banks must learn to partner with them or begin to lose ground.
August 20, 2021
Ajmal Ahmady, governor of Da Afghanistan Bank, Afghanistan’s central bank, gives Euromoney the inside story on his escape from the stricken country.
August 24, 2021
With one of the earliest fintechs now offering bitcoin, it seems that established finance is taking over crypto. Or could it be the other way around?
August 30, 2021
A joint venture between the Asia-heavy bank and a Chinese supply chain tech player aims to make trade finance an alternative asset class with digital efficiency.