A further 13 global banks have joined the initiative to explore uses of the blockchain for financial services that was announced two weeks ago. Barclays, BBVA, CBA, Credit Suisse, JPMorgan, State Street, Royal Bank of Scotland and UBS joined forces with financial innovation start-up R3CEV in mid-September to create global standards for the use of distributed ledger technology in financial markets. They have now been joined by Bank of America, Bank of New York Mellon, Mitsubishi UFJ Financial Group, Citi, Commerzbank, Deutsche Bank, HSBC, Morgan Stanley, National Australia Bank, Royal Bank of Canada, SEB, Société Générale and Toronto-Dominion Bank.
Liability for card fraud in the US is set to shift from tomorrow as retailers that haven't upgraded their systems to accept EMV-compliant chip-based cards will assume risks for fraudulent credit and debit card transactions that were previously absorbed by banks.
Fintech start-ups entering financial services are poised to take over the customer relationship and sales opportunities from traditional banks, according to a McKinsey report. The report says banks could lose up to 60 percent of their retail profits to new entrants within the next ten years as it found consumer finance to be the most vulnerable of traditional banks' business lines.
"The changes to come over the next 10 years will be less visible than the global financial crisis or the bursting of the dot-com bubble — and yet their impact on banking's economics and even fundamental business models will be much more substantial," McKinsey said in its 2015 annual review of global banking.
Australia's fourth-largest lender by assets, ANZ, is to open a branch in Myanmar tomorrow after receiving final regulatory approval. ANZ was one of nine lenders that received preliminary regulatory approval to operate in Myanmar earlier this year. The licences stipulate a one-branch-per-bank limitation.
From 2016, China UnionPay cardholders will only be able to withdraw up to 100,000 yuan ($15,734) in overseas cash each year as regulators in China seek to curb capital outflow and money laundering activities.
In other news from China, growth in credit cards issued by Chinese banks slowed in the first half of the year due to a combination of a saturated market in the country's larger cities and online competition, according to a report by consumer finance information provider Rong360.com Inc.
The report is based on first-half earnings reports from China's 12 largest banks and showed that only three lenders posted accelerated growth of credit cards issued, with the nine others reporting a slowdown.
In Nigeria, the Association of Senior Staff of Banks Insurance and Financial Institutions (ASSBIFI) has asked the federal government to caution banks about setting unreasonable targets and the ongoing casualisation and outsourcing of staff if a banking industry crisis is to be avoided.
ASSBIFI's president, Comrade Sunday Salako, said unreasonable targets, outsourcing and casualisation in the sector is unprofessional and satanic, according to AllAfrica.
Canadian banks have been ranked as the soundest in the world by the World Economic Forum for the eighth year in a row. Canada's banking sector was ranked No. 1 in the Global Competitiveness Report released yesterday in Geneva. Finland's system was ranked second and Australia's third. In all, 140 countries were surveyed.
UK banks and building societies are targeting the interest paid on children's savings accounts, according to an investigation by Money Mail. The investigation revealed that 100,000 young savers face rate cuts with the most savage being TSB's decision to cut payouts on its easy-access Young Saver from three percent to one percent.
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