#Marie #Floyd, Senior Vice President and #Head of #Digital Consumer #Experience at #Wells #Fargo, is set to #speak at #Bank #Innovation 2017. Floyd is responsible for customer insight and digital applications at the San Francisco-based bank, an area that includes the company’s web applications as well as the content andRead More
Bank Innovation
Online and mobile #usage is soaring at #Fifth #Third. More than 60% of all transactions are currently made through #digital channels, the company said during its fourth-quarter earnings call on Tuesday. “[That’s] compared to 30% just a few years ago,” said Chief Executive Greg Carmichael. “Overall, we have seen a 29%Read More
Bank Innovation
Online and mobile #usage is soaring at #Fifth #Third. More than 60% of all transactions are currently made through #digital channels, the company said during its fourth-quarter earnings call on Tuesday. “[That’s] compared to 30% just a few years ago,” said Chief Executive Greg Carmichael. “Overall, we have seen a 29%Read More
Bank Innovation
Edward “EJ” Achtner, #Bank of America‘s #Head of #Digital Banking – Strategy, Platforms, #Innovation, and Partnerships, has joined the Bank Innovation 2017 speaker faculty. Achtner leads Bank of America’s Digital Banking Practice, responsible for the development and deployment of digital solutions for the Charlotte, N.C.-based bank. Achtner also manages theRead More
Bank Innovation
You might as well call them e-Bank of America and #Wells Fargo #Digital Bank. Both #BofA and Wells, the No. 2 and No. 3 ranked #banks in the U.S., respectively, today for the first time released #usage numbers for their digital banking operations, and they are eyepopping. BofA got 112Read More
Bank Innovation
Shopping is set to change in the #digital age, and it goes way beyond waiting 46 seconds for your EMV transaction to go through. #Amazon has new stores without #checkout counters or lines. And #Diebold Nixdorf has a whole set of new toys it will introduce at the National RetailRead More
Bank Innovation
E-commerce giant #Amazon has just announced ‘#Digital Day’— exactly like the company’s famed Prime Day, which achieved its best numbers this year, except for entirely digital products like e-books, music, and #mobile games. The company’s Amazon Echo smart device for the home remains out of stock for the time being.Read More
Bank Innovation
#Robo-advisors, wealth management algorithms typically offered at low costs and with little human interaction, are gaining stream. Globally, wealth managers were responsible for US$ 74 trillion in assets under management (AUM) in 2014. BI Intelligence predicts that robo-advisors will manage around 10% of total global AUM by 2020. This equates to around US$ 8 trillion in robo-advisors AUM.
Robo-advisors are a class of #financial adviser that provides financial advice or portfolio management online with minimal human interaction. Much of the focus has been on portfolio management and most of these platform use algorithms such as Modern portfolio theory.
Today, popular platforms include US-based Wealthfront and Betterment, UK-based Nutmeg, Australian Stockspot, German Vaamo, among others. In Switzerland we have Truewealth, Glarner KB, Swissquote and some new platforms which are going live soon.
A research conducted by BI Intelligence found that consumers across all classes are receptive to robo-advisors, including the wealthy. 49% of this group would consider investing some of their assets using a robo-#advisor.
With robo-advisory on the rise, the wealth management industry is undergoing significant disruption.
According to Deloitte, robo-advisors hold some distinct advantages and are disrupting the industry in the following ways:
– The lower fees have broadened the market for advice to include the majority chunk of untapped wealth. More mass-market consumers can now afford advice.
&8211; Robo-advisory is more appealing to the new generation of wealth, which seeks more control, who is digitally savvy, and demands greater availability.
&8211; With large wealth management firms investing heavily in big data and advanced analytics, robo-advisory can become even more personalized and specific over time.
&8211; Many wealth management firms have already begun incorporating robo-advice capabilities within their existing advisory offerings to create hybrid models.
&8211; #Technology has lowered barriers to entry for new firms to break into wealth management. This has brought new levels of competition and innovation to the industry.
After the strong growth of the robo-advisory approach in recent years, promoted by numerous startups worldwide as well as a sizeable number of early adopting wealth managers, a new “sub-species” has emerged: the hybrid human-robo advisor.
According to MyPrivateBanking’s report &8220;Hybrid Robos: how combining human and automated wealth advice delivers superior results and gains market share,&8221; these platforms combine computerized recommendations with on-demand advice from a human being.
They use technology to standardize and cut costs on the information-gathering side of the job.
The report found that pure robo-advisors (completely automated without personal service added on) have seen their growth slowing down as the market matures. Notably, Betterment&8217;s growth rate for AUM has remained at the same place it was a year ago.
This is due to clients “starting to realize that what they’re getting from many providers is little more than a passive portfolio that they can easily build on their own without the robo middleman,” the report says.
MyPrivateBanking estimates that hybrid robo-advisors will grow to a size of US$ 3,700 billion assets worldwide by 2020. By 2025, the total market size will further increase to US$ 16,300 billion. This number constitutes just over 10% of the total investable wealth in 2025. By comparison, pure robo-advisors will have a market share of 1.6% of the total global wealth at that stage.
&8220;Hybrid robo solutions are a dynamic and also unstable new phase in the wealth management industry&8217;s transformation,&8221; the report says. &8220;We expect 2016 to be a year of significant developments.&8221;
So far, notable hybrid robo-advisors include Vanguard, Personal Capital, Rebalance IRA and AssetBuilder.
The post The Role Of The New Advisor In The Digital Financial World appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.
The Commercial #Bank of #Dubai (CBD), announced late in November that it is launching “CBD Now”, Dubai’s #first #digital-only bank. They aim to target millennials and digitally connected customers early in 2017.
Peter Baltussen, CEO of Commercial Bank of Dubai said, “The launch of CBD Now during 2016 UAE’s innovation week is a timely example of how CBD supports the vision of the UAE government to develop innovation and drive client happiness.”
Digital-only Banking allows customers to totally change how they manage their finances. They can now use smart #technology to fulfil all their banking needs. CBD will offer customers a technologically smart, and seamless mobile bank, personalised to enable them to perform all their usual financial services from anywhere via their smartphone. So whether it’s managing your current accounts, savings accounts or credit cards that you need, this new development will serve you well.
This news comes hot on the heels of Emirates NBD’s announcement in June that they would be investing Dh500million (US$ 136million) in digital banking systems. Mindful of the fact that the bank is losing its appeal with Millennials, this move is aimed squarely at younger customers.The bank’s Chief Executive, Mr Shayne Nelson said, “We are making a commitment to the future with our digital transformation plan.”
The move into digital banking, globally, has seen huge benefits for #banks and customers. For customers there is a huge improvement in convenience and speed of service, whereas these systems also make cost savings for the banks. There are approximately 800 million customers now using mobile banking systems worldwide. This number is expected to increase to over 1.9billion by the year 2019, according to a report by the auditing company KPMG.
The UAE has a young and affluent population, which is driving the move to digitisation. According to a recent Google study, its 9.2 million population has the highest penetration of smartphone use in the world, at about 70 per cent. Traditionally here, cash has always been king, with credit cards often shunned by young affluent people. However, the ease of use of digital banking is starting to capture the imagination.
EY GCC Digital Banking Report 2015 found that half the banks they surveyed have budgeted between US$ 5 million and US$ 20 million for digital initiatives. These included automation, channels, customer journeys and new technologies etc. Furthermore they found that many of the larger banks were demonstrably willing to spend even more. Possible even more exciting was the fact that banks saw this as a rebirth, rather than an incremental approach to modernisation. Digital-first, a Sharia-compliant retail bank in Saudi Arabia, more than demonstrated this.
The island kingdom of Bahrain is also moving swiftly to keep up. A number of state bodies including the Central Bank of Bahrain (CBB) are involved in looking at ways in which to develop its #fintech sector. Areas of interest are: Islamic finance, in which in which Bahrain has strong global standing; crowdfunding; payment services; online wealth management service (#robo-advisors); and #blockchain.
Moving forward, CBD Now Co-founders programme being #launched in the near future involves enabling pioneering customers to provide input into building the bank of their dreams. Murray Sims, General Manager Personal Banking Group at Commercial Bank of Dubai, said, “We believe our customers have a lot of know-how when it comes to banking services. Customers can assist during the piloting phase to influence product development and refinements before rolling out the brand to the public.”
Things are really hotting up in the digital banking sector within the Emirates.
The post First Digital Bank Launched in Dubai appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.
#Visa and #Mastercard may compete strenuously for business, but today they’re announcing a collaboration in the mobile wallet sphere. The two companies issued simultaneous announcements today describing how Masterpass and Visa Checkout can just get along. In case you&8217;re wondering how the annoucements compare in their treatment of their competitors, we&8217;ve reproduced theRead More
Bank Innovation
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