Banking

Banks were early adopters of digital advances, but being frontrunners in financial technology has created unique challenges for banks, especially as agile fintechs flood the field, equipped with innovation without legacy infrastructure. Will banks be consigned to the backfield, or can they exploit their enviable assets to best advantage?

Following the global financial crisis, regulators focused on ensuring that banks had access to enough liquidity to cover demands for wholesale funding. But another concern threatening banks’ stability is their requirement to draw down existing business credit lines, which in the immediate aftermath of the pandemic led to cuts in new corporate lending, investment and growth.

The world of banking and financial services has changed vastly in recent years. Even before the pandemic, the space had been increasingly catalysed by a wave of rapid digitalisation that has served to expand the number and variety of products available across the market.

The past two years have seen many ups and downs in banking, but one major “up” story is that of Nordea. As CEO Frank Vang-Jensen explains, Nordea turned things around by centring its operations on its customers and following an ambitious new three-pronged business plan. Nordea’s example can help other banks get back on track to success.

Turkey is a strategically important country, acting as a bridge between Europe and Asia. ICBC Turkey, a subsidiary of China’s ICBC conglomerate, has been a crucial financial link between the two countries over the six years since its inception, helping fulfil China’s ambitious Belt and Road Initiative and driving prosperity in the region.

When a bank merger happens, it’s not just two financial institutions that are joining together — it’s two sets of customers. Understandably, the customers of acquired banks can feel a lot of uncertainty about the future of their financial services, and these doubts can lead to increased customer attrition.

The word ‘unprecedented’ may have become a cliché when describing the COVID-19 pandemic. But for the banking industry, the effects of the pandemic were indeed unprecedented, with employees working remotely, branches limiting access to the public, and a growing need for digital capabilities.

Over the last few years, there has been a fundamental shift towards more sustainable habits across societies. From cutting back on plastic to using public transport more, to choosing brands that use sustainable materials, the momentum is moving in the right direction. But this is just the proverbial tip of the iceberg. Ultimately, consumers and businesses need to be able to do more.

For Afghanistan, August 2021 was a pivotal month, with the extremist Taliban seizing government control. This regime change has shaken the country to its core, including its banking system, which, according to some, is on the verge of collapse. What are the prospects for the country’s banks to gain secure footing on the road to recovery?

Italy’s Banca Monte dei Paschi claims the title of the world’s oldest bank, but not for much longer. In recent years, hammered by bad debts, MPS has survived only with sizable aid from the government and will soon be absorbed by UniCredit, assuming the latter bank’s conditions are met. This union will create Italy’s new banking behemoth.