Banking

While central banks worldwide are tightening the reins on soaring inflation, Japan is moving against the trend with an expansionary monetary policy, maintaining low interest rates and buying government bonds to keep yields low, resulting in the yen reaching troughs not seen in a couple of decades. Many question the wisdom of this approach.

Banks have proved indispensable in enabling recovery from COVID-19. Multilateral development banks are assigned the specific mission of providing finance to developing countries. Have they followed through on their mandate and sufficiently helped vulnerable populations pull through the crisis and meet especially their health objectives?

Climate change has become a top concern in public and private sectors, and financial institutions are not immune. Increasingly, regulators require banks to provide detailed risk disclosures specifically related to climate exposures. Financial institutions have been falling short of full transparency, so they still have some work to do.

Apple is best known for computers and smartphones, not banking. Why then did it recently acquire UK-based Credit Kudos, an open-banking fintech firm specialising in credit scores? The reasons are under debate, with explanations ranging from the tech giant’s launch of Apple Card in the UK to bringing a range of financial services in-house.

International Banker is joined by Mr. Olivier Calloud, Chief Executive Officer of Piguet Galland, to discuss the bank’s strategy, maintaining high levels of customer service during the pandemic and future objectives.

A bank can never have too much computing power. The financial industry is regarding quantum computing, which promises to outperform classic computing by gargantuan strides, with keen interest. Although obstacles and risks stand in the way of immediate full adoption, quantum computing is an integral part of the industry’s impending future.

Mergers in the banking industry are steadily making their way back to pre-pandemic levels. In fact, according to a yearly mergers and acquisitions (M&A) survey by Bank Director, nearly half of financial executives say that their bank would make an acquisition in 2022, though recent instabilities in the markets may impact this going forward.

The face of the UK banking landscape has been shifting and evolving for decades. Virgin Money landed on UK high streets in 1995, claiming ‘we are not like other banks’, and just 15 years later – as most traditional banks were announcing rafts of branch closures – Metro Bank launched with a huge statement, opening a flagship branch on High Holborn.

COVID-19 delivered a blow to the health of human beings and the well-being of businesses—but not banks. While the last major financial upheaval stemmed from the financial sector, resilient banks have led the way out of the abyss this time. Much of the credit is due to the stringent banking regulations implemented after the last crisis.

On the face of it, junior bankers seem well compensated, at least financially. But surveys and testimonies tell a different story about a toxic work culture that demands around-the-clock commitment, sometimes with tragic results—a culture that pandemic-driven work-from-home models have only worsened. Is a needed culture change imminent?