Space opera, beyond finance edition. Cut-Loose-Issues-Paper-Response. Treasury - Written Evidence. Written evidence submitted by Cut Loose 1. Cut Loose welcomes this inquiry as an important further contribution to the debate on the future shape of the banking industry. 2. Cut Loose supports measures to increase prudential competition including the removal of barriers to entry and expansion of the market. 3. 4. 5. 6. 7. 8. . — (a) The new bank is slow to request the customers direct debit and standing order details from the original bank; — (b) The original bank is slow to send the information to the new bank; and — (c) The service providers are slow to update their records in a timely fashion to avoid charges being requested from the old account. 9. . — (a) The customer is at risk of having a problem with a Direct Credit receipt if the remitter is slow to change their records. 10. .
— (a) the customer, — (b) the original bank, — (c) the new bank, — (d) the customer's service providers who bill the customer using a direct debit, and 11. 12. 13. 14. 15. 16. Therefore 17. 18. 19. 20. January 2011. Green Dot Bank: Finally Wal-Mart gets to Play « FinVentures. 16 Jan 2012 GDOT Bank - Federal Reserve Authorization GDOT bought Bonneville Bancorp for $15.7M + $14M Capital Infusion on 8 Dec 2011.
Bonneville was a Utah licensed state bank and a Fed member (regulated by Fed). This is a very significant deal for several reasons: Sets a new regulatory guidepost in the creation of “national” bank with a pre-paid focus. This is a brilliant move by the Fed, and by GDOT. I joined Citi in 2006 with the mandate to grow the retail business without growing the number of branches. What are the core product innovations? Combining a GPR card with retailer brand and distribution (WMT). Banking is a network business.. the GDOT opportunity is to build the network quickly through key retailers (as physical distribution).
Today, MSBs are restricted in both offering interest on accounts and the length of time they can hold a balance (escheatment). What to look for: Like this: Like Loading... Where is Wal-Mart when we need it? The role of the finance industry is to produce, trade, and settle financial contracts that can be used to pool funds, share risks, transfer resources, produce information, and provide incentives. Financial intermediaries are compensated for providing these services. The sum of all profits and wages paid to financial intermediaries represents the cost of financial intermediation. I measure this cost from 1870 to 2010, as a share of GDP, and find large historical variations, shown in Figure 1 (with the various data sources, see Philippon 2011 for details). The cost of intermediation grows from 2% to 6% from 1870 to 1930.
It shrinks to less than 4% in 1950, grows slowly to 5% in 1980, and then increases rapidly to almost 9% in 2010. The pattern remains the same if finance is measured as a share of services, and if net financial exports are excluded. Figure 1. Then comes the issue of measuring the output of the financial sector. Figure 2. Figure 3. Figure 4. The contrast is striking. What Will 2012 Bring for the Banking Industry? — Banking.com.
Future of banking - Fais tourner! Digital Banking Gets Personal The digitization of banking, via apps and APIs, will lead to mass personalization. BYCHRIS SKINNERNov 29, 2011 | 0 Comments A bank is a digital business and, as a digital business, can be broken down into pure bits and bytes. More than that, a bank can be seen as three digital businesses in one: a manufacturer of products; a processor of transactions; and a retailer of services. In this context, the digitization of banking becomes more interesting at a strategic level. First, the products have been deconstructed. This component-based bank demands that every bank capability be put into a basic widget form, or object form if you prefer, and then offered to customers to put together as they see fit.
Moving onto processing, we build upon the app-based product view and begin to consider processes as open source code. Mr.
Process ==> API. Retail ==> Mobile.