The next financial crisis?
If banks don’t address the threats from new digital competitors appropriately, they could suffer the kind of blows not seen since the crisis of 2008, McKinsey says. Jim Marous, the co-publisher of The Financial Brand, believes the timeline for making decisions regarding the path banks choose going forward is shorter than most imagine, and the stakes are higher. Read his post here.
Why banks need APIs
Banks have two main advantages compared to tech giants, like Amazon or Alibaba: data and history with customers. But lenders have to start working harder on the open banking ecosystem, if they want to remain a foundational part of the future financial sector, according to Marten Nelson, co-founder of open banking platform company Token.
New entrant in the UK
European banking startup N26 will launch in the UK in the first half of 2018. Founded out of Berlin in 2013, N26 offers online-only bank accounts through mobile apps and the web. It now has more than 500,000 customers in 17 countries. It will compete with other digital banking startups already present on the UK market, such as Monzo and Starling Bank. More details here.
AI is about risk management
Banks need a single customer view to effectively apply AI to customer data, but most of these data is fragmented. This is why applying AI to risk is far easier, as it can be modelled, simulated and calculated, which is why renowned blogger Chris Skinner sees so many banks using AI for risk management.
