Category: Finance

The banking industry is facing unprecedented challenges and opportunities in the digital age. Consumers are increasingly demanding seamless, personalized, and convenient banking experiences across multiple channels and devices. At the same time, new entrants such as fintechs, e-commerce platforms, and tech giants are disrupting the traditional banking landscape with innovative solutions and services. To remain relevant and competitive, banks need to rethink their existing business models and transform into comprehensive…

The European Union (EU) is preparing to reveal its plans for a wholesale central bank digital currency (CBDC) that would be used by financial institutions to settle securities and foreign exchange transactions. The governor of France’s central bank, François Villeroy de Galhau, said on Tuesday that the details of the initiative would be published in the coming weeks and that experiments would be carried out next year. What is a…

Central bank digital currencies (CBDCs) are often touted as a means to achieve financial inclusion for the unbanked and underbanked populations. However, a recent paper by the Bank of Canada reveals that the reality is more complex and challenging than it seems. What are CBDCs and why do they matter? CBDCs are digital versions of fiat currencies that are issued and backed by central banks. Unlike cryptocurrencies such as Bitcoin,…

Community banks and credit unions are partnering with fintechs to revive their personal lending business. By using digital platforms, they can offer unsecured loans to their customers faster and more efficiently. They can also compete with online lenders that provide point-of-sale financing to consumers. The Challenge of Unsecured Lending for Community Banks Unsecured personal loans are loans that do not require any collateral from the borrower. They are typically used…

Egyptians who want to save or invest in foreign currency can open a US dollar account in some of the local banks. This service allows customers to deposit foreign transfers, purchase certificates of deposits, or make deposits in foreign currency. Here are some of the benefits and requirements of opening a US dollar account in Egypt’s banks. Benefits of opening a US dollar account Opening a US dollar account can…

Banking-as-a-service (BaaS) is a model that allows banks and fintechs to offer regulated banking capabilities through application programming interfaces (APIs). BaaS can help banks generate new revenue streams, expand their customer base, and enhance their digital capabilities. However, BaaS also poses significant challenges and risks, such as regulatory compliance, operational complexity, and competitive pressure. In this article, we will explore what banks need to do to succeed in the next…

Online banks attract more customers with innovative services Internet-only banks in South Korea have outperformed the country’s top five legacy lenders in labor productivity in the first half of the year, generating larger profits per capita, data showed Monday. Even though commercial banks have made efforts to enhance productivity by reducing staff during the same period, their profit per employee still lagged behind those of internet-only banks. According to management…

The Bank for International Settlements (BIS) and the central banks of France, Singapore and Switzerland have successfully completed a novel experiment on cross-border payments using wholesale central bank digital currencies (wCBDCs). The project, dubbed Project Mariana, tested the feasibility and efficiency of using wCBDCs for cross-border trading and settlement between financial institutions, using new decentralized finance (DeFi) technology concepts on a public blockchain. What are wCBDCs and why are they…

India’s banking sector is undergoing a major transformation as new players enter the market and challenge the dominance of the traditional banks. Among them are the small finance banks (SFBs), which are niche institutions that cater to the financial needs of the underserved segments of the society, such as farmers, low-income households, small businesses and unorganised sectors. However, these SFBs are facing a prickly problem of survival and growth amid…

The banking industry is undergoing a major transformation as customers demand more personalised and convenient services. Fintechs, or financial technology companies, are emerging as key players in this changing landscape, offering innovative solutions that cater to the needs and preferences of the digital-savvy consumers. However, fintechs are not only competitors, but also potential partners for banks. According to a recent report by Temenos, a leading banking software provider, banks must…