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Why The Current Approach To Digital Banking Is Unsustainable

Posted by Mark Vipond on Tue, Jul 21, 2015 @ 10:07 AM

The promise of lower fixed costs and better efficiency ratios that heralded the introduction of online banking was based on the belief that the Internet could be used to create a self-service environment that would reduce the staffing and technology requirements. In fact, adoption of online banking took longer than expected, and consumers did not abandon the other channels they used to access the services and products offered by their financial institutions.

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Topics: Apple, digital banking, money movement, user experience, devices, Amazon-like

The Real Threat To Financial Institutions In The Digital Age

Posted by Michael Carter on Tue, Mar 10, 2015 @ 06:03 AM

Christoffer O. Hernæs is executive VP of strategy, innovation and analysis at Sparebank 1 Group, Norway’s second-largest financial institution. His thoughts were recently published in TechCrunch and are second to none I have read when it comes to explaining what financial institutions should fear most about the digital age. 

Here’s the breaking news he offers about that fear: IT HAS NOTHING TO DO WITH TECH COMPANIES WANTING TO BE BANKS. Mr. Hernæs explains, “The cost and complexity of running a bank is not compatible with the fundamental business model of tech companies, and meeting the capital requirements, compliance and overhead associated with running a bank is perhaps best left to the banks.”

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Topics: banks, financial services, Apple, core business, Google, tech companies

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