All articles by Duygu Tavan
Duygu Tavan
The case for social media engagement
Proponents of social media have long argued that too many banks have failed to grasp the significance of social media for their customer relationship management Ron Shevlin, senior analyst at the consultants Aite Group, tells RBI how banks can exploit the potential of social media to their business advantage. It is widely agreed among research consultancies and analysts that social media is more than just a marketing tool; rather, it is a way of communicating with customers.
Commonwealth Bank of Australia launches free online account
Commonwealth Bank of Australia has launched a free online savings account that offers a bonus interest rate to customers who regularly increase their balance. The launch of the GoalSaver account is a sign that Australian banks continue to battle for customer deposits. Customers who increase their account balance by at least A$200 per and make no more than one withdrawal within a calendar month will receive a 6% bonus rate.
South Korea’s financial watchdog suspends six savings banks
The South Korean Financial Services Commission (FSC) has suspended the countrys largest savings bank by assets and one of its affiliates after they failed to meet regulatory capital requirements. The suspension of Busan Savings Bank, which has assets of KRW3.74tr ($3.36m), and its affiliate Daejeon Mutual Savings Bank ,follows that of Samwha Mutual Savings Bank in January. All three banks have failed to meet regulatory capital requirement levels as South Korea’s banks continue to suffer from toxic loan books following excessive financing in the real estate market during the property boom pre-2008.
SocGen’s FY10 group net income up 7.5%
France-based Societe Generale (SocGen) has posted strong full year group net income of 3.9bn, compared to 678m in the prior fiscal. SocGens domestic retail banking division posted net income of 1.2bn for the twelve months to 31 December, a 22.4% rise from a year ago. In France, the number of customers at the banks three banking franchises (SocGen, Credit du Nord and Boursorama) grew by 3.9% in 2010 to 10.7m.
First Bank of Nigeria targets unbanked with biometric ATM service
FBNs group head, eBsuiness, Chuma Ezirin, said that the launch of the biometric ATM was part of the banks strategy to bolster customer data protection and counterfeit fraud. FBN has rolled out the service at one of its branches in Nigeria’s capital Lagos, but said that it will extend the service to other branches.
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DBS Bank group profits up 28%
Singapore-based DBS has posted full-year net income for the twelve months to 31 December of S$2.65bn ($2.1bn), up 28% from year-end 2009. The rise of 28% in full-year net income excluded a one-off impairment charge of DBS Banks Hong Kong operations of S$1.02bn for full-year 2010.
Central Bank of Nigeria approves e-payment card for Nigeria’s unbanked
The Central Bank of Nigeria (CBN) has approved the launch of an e-payment card specifically for the countrys unbanked sector. The Freedom Card will enable the countrys unbanked to remit money via ATMs and point of sales, withdraw cash and make electronic transactions without having a bank account. The Freedom Card, developed by 3Line Cash Management (3Line CM), is to be rolled out towards the end of February in Nigerias capital Lagos.
South Korea’s ailing savings banks to tap into emergency funds from other financial sectors
The South Korean government is to consolidate individual emergency funds set up by the countrys commercial, investment and savings banks, insurers and brokerages to insure against potential bankruptcy of savings banks. The Financial Services Commission (FSC) announced that it wants to generate KRW20tr ($17.9bn) for the consolidated fund to prepare for potential market instability and avoid excessive deposit withdrawal.
Akbank FY10 profits up 10.5%
Turkey-based Akbank has kicked off the Turkish reporting season with a 10.5% increase in net income for fiscal 2010 to TRY3bn ($1.9bn). Total loans increased by 29.4% in the twelve months to 31 December to TRY57.3bn.
Brazilian investment bank BTG Pactual to offer retail services through Banco PanAmericano
Brazilian investment bank BTG Pactual is to offer retail banking services through Banco PanAmericano after acquiringits total shares for BR450m (268.5m). The acquisition of 100% shares in Banco PanAmericano, a retail bank,assigns BTG Pactual a 37.64% in the retail bank and creates a fourth business segment for BTG Pactual.