Top 10 Retail Banking Trends and Predictions for 2015
Jim Marous gives an all-encompassing view on what leaders in financial services say we should expect in 2015.
"This year’s list includes an advancement on some of the trends we have seen in previous years, with new trends and predictions in the areas of digital delivery, mobile, customer experience, payments, innovation, operations, security and product design. How any institution responds to these trends may differ by organization, but none should be ignored."
Big Changes in Snarketingville
Ron Shevlin tells the history of Snarketing 2.0 and announces his column will be moving to The Financial Brand.
"Blogging life has been good here at Snarketing 2.0. Named #1 blog for financial services marketers by The Financial Brand in 2013. Listed as one of the 25 best marketing blogs by Radius in 2014. Good stuff. Very proud of that. Come the new year, however, there will be some big changes here in Snarketingville. Starting January 5, 2015, Snarketing 2.0 will become a column on The Financial Brand. Snarketing 2.0 will no longer be a standalone blog."
We also covered Shevlin's news here.
Lawsky to Banks: Speed Up Payments Innovation — Or Else
American Banker's Ian McKendry reports on criticism from Benjamin Lawsky, New York's top financial regulator, about banks' sluggish innovations on payments.
"He compared banks' approach to former movie rental giant Blockbuster, which went bankrupt after it failed to innovate and was disintermediated by companies like Netflix."
The rise of passive investing. And the demise of investment managers?
Edmund Cohen of Capco (a financial services company in the UK) shows how passive funds clearly deliver better results and how that likely means investment managers are in trouble.
"Investment in passive funds has grown from £17 billion in 2004 to £80.6 billion today, boosted by regulation and the global recession. Compared to the 1% fee charged by active investment managers, passive funds charges are often around 0.2% and can be as low as 0.07%. As passive Exchange Traded Funds (ETFs) and unit trusts grow, outflows from active funds and inflows into passive funds are likely to follow. How will traditional investment managers survive?"
Banks Must Make Digital Push as Rivals Gain: McKinsey
Bloomberg's Michael J. Moore on a stark report from McKinsey.
"Some banks need to think of themselves as data companies and may need to spin off back-office units that perform tasks such as collateral management and price verification, the New York-based consulting firm said in an annual review of the banking industry. The move toward digitization “accelerated markedly” in the past year, McKinsey said."