Michael Liquornik’s Post

Standard Bank continues to dominate market share of SA’s R11-trillion banking sector, with data indicating new digital-led lenders have a lot of road to cover to dent the dominance of the country’s top four banks. Data from the SA Reserve Bank shows the country’s banking sector had R5.1-trillion in advances at end-2023 and deposits of R5.7-trillion

How do households and small and medium-sized enterprises access credit? They may choose to obtain a loan from a bank, or they may opt for private credit and go with a non-bank retail lender, either a traditional one with physical branches or a digital lender such as fintechs and big techs. While non-bank lenders complement the credit granting activities of banks, they can also pose a range of risks due to the nature of their funding structures and the scale of their activities. But, in contrast to banks, there is no international standard to ascertain if and when prudential requirements should apply to them. In the absence of global standards, they are subject to a patchwork of distinct regulatory approaches and institutional arrangements that vary considerably across countries. In the latest FSI Insights, Johannes Ehrentraud and Raihan Zamil, in collaboration with Elisabeth Noble (EBA) and Ségolène Mure (Bank of France) examine a range of regulatory regimes applicable to non-bank retail lenders and propose a holistic policy approach to enhance their effectiveness. A more comprehensive approach may help authorities to safeguard the financial system’s “spare tyre”, while giving non-bank lenders enough flexibility to continue supporting un(der)served consumers and SMEs. #FinancialStabilityInstitute https://lnkd.in/eYznBxKC

🏦 Banks have conducted business with nonbanks “badly” over the past year, the head of the Office of the Comptroller of the Currency has said. 📱 The digitalisation of lending has allowed fintechs to offer their customers payments and deposit-taking services. Some refer to this as banking-as-a-service, as these firms cannot fully perform such offerings independently and must partner with banks. ❓ Michael J. Hsu, the acting head of the US regulator, told the #FTLive Global Banking Summit that one of his chief concerns was the manner in which regulated entities partner up with nonbank financial institutions. 💬 “This genie cannot be put back in the bottle,” he told the conference in London. “You’ve got lots of nonbanks who can offer essentially banking services. “The question is, how do you do that [in a way] that maximises and maintains trust? To me, this is the critical question. We have seen arrangements over the past year where that was done badly. 🫵 “It was done in such a way that when things break, it was unclear who was responsible for [the] money. If you’re in an environment where everyone’s pointing at each other, that is not going to [work].” ✍ Story by John Crowley. Read more below. https://lnkd.in/eyeQiNh6 FT Live #GlobalBankingSummit #Banking #NBFIs #NonBanks

When selecting a Canadian bank, consider factors like account fees, interest rates, and service accessibility. Compare options based on your needs—such as checking, savings, or investment accounts. Look for banks with convenient branch and ATM locations, as well as robust online and mobile banking platforms. Check for special offers like sign-up bonuses or low fees for newcomers. Consider the bank’s customer service reputation and whether it provides products suited to your long-term financial goals. #cwrvisa #canadianbank #lifeincanada #newcomers

Bank lending in Europe is expected to pick up speed from next year, exceeding pre-pandemic growth levels. ⬆ The is positive news for the banking sector following two years of minimal growth. 👉 Read the full predictions here. #FinancialServices #Banking https://ey.smh.re/3c1U

Neobanks have struggled to capture deposits. Most bank deposits in the UK still sit outside the three big neobanks, with the big four legacy banks capturing the lion’s share. In recent times, discussions have taken place on the topic of whether deposits are necessary for lending or not. Yet, without exploring this discourse in depth at this time, from an analyst perspective, attracting a strong deposit base establishes a credible basis for a bank to operate. A bank’s success in attracting deposits can be compared to that of competitors - whether they be legacy or neobanks (see picture below👇) I recently shared a few updates with comparisons of the amount of customer accounts (https://lnkd.in/dH2SwCtt & https://lnkd.in/d7rSd25W). Here is a comparison of deposits. I highly recommend reading the complete deep dive source article by Matt Jones for more interesting info on this topic: https://lnkd.in/dN9NGTp5 Find this helpful? [ 𝗿𝗲𝗽𝗼𝘀𝘁 ] Anything to add about this subject? [𝗶𝗻𝘃𝗶𝘁𝗲𝗱 𝘁𝗼 𝗰𝗼𝗺𝗺𝗲𝗻𝘁] Nice story, Marcel. Next! [ 𝗹𝗶𝗸𝗲 ] 

Bank lending in Europe is expected to pick up speed from next year, exceeding pre-pandemic growth levels. ⬆ The is positive news for the banking sector following two years of minimal growth. 👉 Read the full predictions here. #FinancialServices #Banking https://ey.smh.re/3bQ4

Discover how #realtimepayments are reshaping the world’s top markets and what U.K. #banks can do to join the revolution. Find out why now is the time for banks, #fintechs and #paymentserviceproviders to get ready for NPA, the new #payments platform. Don’t miss the insights in this report: https://aciw.co/3UVQdOy

Discover how #realtimepayments are reshaping the world’s top markets and what U.K. #banks can do to join the revolution. Find out why now is the time for banks, #fintechs and #paymentserviceproviders to get ready for NPA, the new #payments platform. Don’t miss the insights in this report: https://aciw.co/4cCGV0z

🔍Are Private Banks Still Relevant in Today’s Financial Landscape?🔍 The Financial Times raised a critical question about the relevance of traditional private banks in our rapidly evolving financial world. At P3, we’ve been reflecting on this topic and have drawn some important takeaways that align with our commitment to exceptional service and innovation. Here are our Takeaways: - Balancing Tradition with Innovation: Many private banks struggle to integrate digital advancements while preserving their traditional personal touch. 📲 - Rising Client Expectations: Today’s clients seek more than prestige; they demand modern, efficient, and transparent financial services. 🌐 - Competitive Pressures: The rise of fintechs and alternative wealth managers is reshaping the market, challenging traditional banks to rethink their value propositions. 🔄 As an Electronic Money Institution, P3's goal is simple: to seamlessly blend personalised service with leading technology, ensuring we not only meet but exceed our clients’ expectations. We stay committed to our ethos of trust, efficiency, and transparency—constantly listening, researching, and adapting to make a real impact. 🔗 Read the full article: https://on.ft.com/4dxyhjC How do you see the future of private banking? 💬 #Privat3Money #FinancialInnovation #ClientExpectations #DigitalFuture #BecauseItDoesMatter #PaymentsWithP3