All articles by RBI editorial
RBI editorial
A business case for biometrics
Implementation by banks around the world remains relatively low, however.When the first edition of VRLs biometrics report was published in 2005 there were only a limited number of large-scale biometrics deployments in the financial services sector taking place, and a lack of published research by banks and payment schemes into these new technologies
Understanding the underbanked
Despite massive efforts by the US banking community to tap into the countrys vast number of underbanked consumers over the past decade think subprime, for instance there remain an awful lot of them. According to a major study by non-profit group the Center for Financial Services Innovation, there are 106 million underbanked and unbanked individuals in the US, around one in four of the population
A widening world of wealth
India, spurred by GDP growth of 7.9 percent and market capitalisation growth of 118 percent, saw the greatest increase in high net worth population growth, with the number of dollar millionaires rising by 22.7 percent over the course of the year to 123,000. The growing number of wealthy individuals in India, China and South America have helped fuel a 9.4 percent rise in high net worth wealth, which stood at a collective $40.7 trillion in 2007, according to the 12th annual World Wealth Report from Merrill Lynch and consultants Capgemini.
UniCredit looks to dominate CEE
UniCredit plans to have around 12,000 branches by the end of 2010, cutting some branches in Italy but opening 1,287 in Central and Eastern Europe (CEE) as it looks to exploit its now-dominant position across the CEE region. Over the course of the next two years, UniCredit wants to up branch numbers in CEE by an average of 36 percent to 4,846 outlets, with a particular focus on Turkey, Russia, Romania and Ukraine (upping branch numbers in these four by 60 percent) The group is also planning to have 50 percent of its 179,853 staff based in CEE markets, up from the 44 percent currently, reducing headcount in Italy, Germany and Austria by 9,000.
A return on equity of 490 percent
Too easy, believes the UKs Competition Commission, which has proposed radical reforms that could open up the PPI market to currently marginalised, alternative product providers All of the UKs leading retail banks could lose valuable income if steps to open up the countrys Payment Protection Insurance (PPI) market are pushed through
Subscribe to our Newsletter
Get industry leading news, data and analysis delivered to your inbox
Confident BBVA pushes into China
BBVA has paid 800 million ($1.24 billion) to double its stakes in two banking subsidiaries of Chinese conglomerate Citic Group, extending its exposure to Chinas fast-developing retail banking market to drive future earnings and hedge against possible downturns in its established Spanish and North American markets Spains second-largest banking group will now own 10 percent of China Citic Bank (CNCB), a retail and corporate lender with 485 branches, and 15 percent of Hong Kong-based Citic International Holdings (CIFH), a commercial financial services business which operates primarily outside mainland China It has a further two-year call option for an additional 5 percent of CNCB, a deal which would bring it near to the maximum 20 percent level foreign banks are allowed to own in Chinese banks.
Kaupthing Edge passes ?2 billion in deposits
Kaupthing Edge, a pan-European high-interest online savings player launched in the fourth quarter of 2007 by Icelands largest banking group, Kaupthing, has attracted more than 2 billion ($3.1 billion) in deposits less than seven months after its launch (see RBI 587)
Canada’s Big Six feel the crunch
Half-year and second-quarter figures from Canadas Big Six banking groups show that while domestic Canadian business remains relatively strong, US exposure is beginning to bite and bite hard Canadian Imperial Bank of Commerce (CIBC), the Canadian bank hardest hit by credit losses since the current crisis kicked off last year, announced results even more disappointing than analysts had dared to predict a net loss of C$1.11 billion ($1.11 billion) for the second quarter following writedowns of C$2.48 billion, compared to net income of C$807 million for the same period last year.
Scotiabank asks customers to Bank the Rest
Bank of Americas (BofA) hugely successful Keep the Change automatic savings programme, one of the most successful product launches of recent years (and winner of an RBI award in 2006), is fast becoming one of the most copied retail products in recent history Canadas Scotiabank is the latest to roll out its own scheme, Bank the Rest a first for the debit-card-dominated Canadian market Bank the Rest, which is being promoted by an integrated advertising campaign (see image), enables Scotiabanks existing and new customers using their debit cards for purchases to choose to round up the total purchase amount to the nearest C$1 or C$5, and have the difference deposited automatically into their Scotiabank high-interest savings account
Retail banking excellence
The shortlist for the 2008 Retail Banker International Awards has now been finalised In all, there are 15 categories and 75 nominees, with groups such as HSBC, BBVA, Chase, Wells Fargo and Bank of America nominated at least twice Winners will be announced in the next issue and at the RBI awards ceremony