Fintechs want to inject themselves between banks and their customers in the most profitable areas. Most will fail but others will chip away and the banks must respond, while the regulators keep a close watch.
Tag Archives | banks
Round 5 of the Royal Commission focused on superannuation. Conflicts of interest, trustee responsibilities and delays in meeting the legal obligation to transfer default clients to MySuper products featured.
Australian retail customers typically still pay a hefty fee on FX transactions at the airport or through the banks. Fintech solutions are more competitive, and global banks are also offering multi-currency accounts.
There’s a fundamental difference between banking and wealth management: bankers have no fiduciary obligation to their clients. It’s difficult for bankers to own fund managers and financial advice and fully accept the difference.
The bank bill/OIS swap rate may seen arcane but if it stays at current elevated levels, it may increase rates for borrowers in the same way as an increase in cash rates by the Reserve Bank.
NAB’s latest announcement shows we are at a critical turning point with technology replacing jobs, and Australia lacks the political will to drive innovation and avoid declining living standards.
Leaving a term deposit to rollover automatically at the end of each term will almost certainly guarantee a worse return than if you read the rollover letter and do some research instead.
Lower profits and dividends? Lower deposit rates? Higher home loan rates? Higher fees? Lower bank salaries and bonuses? Dumping or an increase? Where will the cost of the bank levy go?
History indicates that Australian house prices are more likely to flatline than collapse. The main problem is likely to be in high-rise construction, with banks exposed to highly-leveraged buyers and developers.
Pointing the crystal ball to 2017, what’s the outlook for residential property and which sectors of the sharemarket offer the most potential? There are new opportunities to buy some quality companies at reasonable prices.
Although many people regard FinTechs as threats to banks and large incumbents, most of the new kids on the block see the value in forming beneficial relationships and cooperating rather than competing.
The fiduciary duty of banks, while not legislated, is implied by their central role in the economy. Bank deposits are accepted as ‘money’, and public confidence in banks is fundamental to a functioning economy.
The latest research report by Roy Morgan shows banks have a poor track record in selling superannuation services to their existing retail banking customer base and it may represent a significant opportunity.
Professor Bird and Dr Gray highlight the dominance of the financial sector in Australia’s economy in their submission to the Financial System Inquiry and question whether bigger is necessarily better.
One-third of Australia’s top 30 companies are financial institutions, much higher than other comparable countries. In the interests of our future economic growth, it will need to change.