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Taking the helm: why asset management bosses are getting the top jobs
September 1, 2018 | Financial Times | by Owen Walker.

The journey to the top of a global finance company is straightforward if recent hires are anything to go by: simply take over the asset management division, launch profitable products, open up new markets and wait for the chief executive role to become available.
asset_management  finance  financial_services  investment_management  leaders  money_management 
september 2018 by jerryking
BlackRock co-founder warns on complacency over Chinese tech
Owen Walker in Davos 2 HOURS AGO

“Apple was not in the music industry, Google was not in the mobile phone industry and Amazon was not in the groceries business — until they were,” he said. “Tech companies are going to enter the financial services market in a very, very aggressive way.” 

Ant Financial’s sprawling portfolio of businesses includes one of the world’s biggest credit scoring systems, a bank, an insurer and a lending platform for small businesses. It was reported last week by the FT and other news organisations that Ant Financial is seeking to raise at least $9bn in its latest private fundraising ahead of an initial public offering....“You have to expect there will be a threat from [Chinese] technology companies to financial services,” ....“But I would say Amazon is equally a threat to doing that.” 
BlackRock  Ant_Financial  complacency  threats  disruption  Alibaba  asset_management  financial_services 
april 2018 by jerryking
Banking and finance have vacuumed up the talent
March 25, 2018 | Financial Times | Andrew Hill YESTERDAY.
"Unlike most people I actually enjoy manufacturing,” James Dyson says, “[but] I genuinely believe that the British middle class despises it, largely thanks to Charles Dickens’ Hard Times and William Blake’s ‘dark satanic mills’.”

The UK designer of vacuum cleaners and hand-dryers enjoys railing against national “cultural disdain for factories”......A more plausible reason why innovative juices are channelled away from manufacturing could be the sucking sound from the City of London. The rewards of banking and finance still vacuum up talented graduates......Even when the bubble was at full stretch in 2007, the percentage of engineering graduates who moved into finance and insurance within three years of leaving higher education did not top 5 per cent. Lately, the figure has dropped to 3.4 per cent. A Dyson-pleasing 25.5 per cent now go into manufacturing — not enough to cover a projected annual shortfall of 20,000 engineers in the UK, but still respectable.

It was the sheer success and smug complacency of Victorian manufacturers that made them a target for Dickens. As Sir James goes from strength to strength, he should be careful what he wishes for. He has set up a Dyson Institute to train a generation of engineers.
financial_services  engineering  talent  entrepreneur  war_for_talent  finance  manufacturers  James_Dyson 
march 2018 by jerryking
Next Up for Amazon: Checking Accounts - WSJ
By Emily Glazer, Liz Hoffman and Laura Stevens
Updated March 5, 2018
financial_services  Amazon  JPMorgan_Chase  e-commerce 
march 2018 by jerryking
Don't be daft, London is still a world-class city -
August 28, 2017 | The Globe and Mail| by Marcus Gee.

Are London's glory years coming to an end? Don't bet on it. In fact, its recent troubles may turn out to be no more than a blip in its dazzling rise......Despite the sixties upswing symbolized by Twiggy, Carnaby Street and the Beatles, London was a city in decline. Crime was on the rise. Many Londoners were fleeing to the suburbs or leaving the country altogether. The city's population fell by two million between 1939 and 1979, reports Tom Dyckhoff in his recent book The Age of Spectacle. From 1961 to 1971 alone, London lost 600,000 residents. Jobs fled, too, as the docks declined and manufacturers left for greener pastures......then something unexpected and quite wonderful began to happen. Middle-class people attracted to the charm of the old began to move into beat-up parts of the city. Boutiques started popping up in rundown districts such as Covent Garden. A wave of financial deregulation made London a hub for banking and other financial services, creating hundreds of thousands of jobs and drawing people from Europe and around the world. Governments started investing in the city again. The Tube network was expanded and refurbished. The glorious St. Pancras Station, once threatened with demolition, was made over as a glistening portal for rail travellers. Foreign money flooded in.

The past 20 years have transformed London from the decaying capital of a clapped-out postimperial power to a humming world city where Land Rovers roam the avenues, tourists flock to ride the London Eye and Russian oligarchs build swimming pools under their Georgian townhouses......Prime Minister Theresa May [is attempting] to come up with a coherent plan to do the impossible: keep the advantages of belonging to the EU without actually being a member......The city still boasts many advantages. Not least of them is the fact that it is, well, London.

As its former mayor (now Secretary of State for Foreign and Commonwealth Affairs) Boris Johnson puts it in his book The Spirit of London, the city is a global brand. Its pull is magnetic, its resilience famous. "It is plainly a city that can come back from almost anything – massacre, fire, plague, blitz."

There are practical reasons to bet on London, too. As much as Londoners complain about it, the public transportation system in the birthplace of the subway is a wonder. Looking to the future, the city is bulking up with the huge Crossrail project, designed to link the city's east and west.
Marcus_Gee  world-class  London  Brexit  decline  '70s  deregulation  revitalization  cities  books  financial_services 
august 2017 by jerryking
As Black-Owned Banks Withdraw, Community Sounds Alarm - WSJ
By Sharon Nunn
Aug. 6, 2017

The number of black-owned banks operating in the U.S. has been dropping steadily for the past 15 years and fell to 23 this year, the lowest level in recent history, according to the Federal Deposit Insurance Corp. That has left many African-American communities short of access to capital and traditional financial services, according to some banking experts....The 2008 recession hit the black banking sector especially hard, and if the current rate of closures of about two a year, as well as the industry-wide reluctance or inability to start banks, continues, black-owned banks could disappear entirely within the next eight to 12 years. The trend is worrisome to some analysts who argue fewer banks serving low-income, minority groups could expand “financial deserts”—communities with few or no banking institutions—and increase the likelihood that black and Hispanic communities could become susceptible to redlining, a discriminatory practice that excludes poorer minority areas from financial services....... [black-owned community banks were] the first bank some African-Americans had access to, making it a symbol of black enterprise and economic development, .......A survey of entrepreneurs by the U.S. Census Bureau in 2014 found that 47% of black business owners had gotten got the full amount of funding requested from banks, credit unions or other financial institutions, compared with 76% of whites.

That survey also showed fear of rejection was the top reason cited by black business owners who chose not to seek needed capital at all.
black-owned  banks  African-Americans  trends  decline  FDIC  financial_services  redlining  low-income  community_banks 
august 2017 by jerryking
Canada's big banks are no angels, but have any laws been broken? - The Globe and Mail
BARRIE MCKENNA
OTTAWA — The Globe and Mail
Published Friday, Mar. 17, 2017

Media reports high-pressure sales tactics at Toronto-Dominion Bank and other Canadian financial institutions. Stories of tellers signing up customers to high-fee accounts and credit cards without their knowledge. Loan officers pushing clients to take on lines of credit they don’t want or need. And financial advisers selling unsuitable mutual funds to vulnerable investors. Sleazy behaviour, if true. Perhaps even illegal. The Financial Consumer Agency of Canada this week warned banks to behave and launched a review of their consent and disclosure practices. .......The big banks are no angels. But what’s happening here looks a lot more like a labour-relations feud than a financial scandal. Employees are rebelling against a cutthroat sales culture that has permeated the once-staid retail operations of the big banks.

The workplace environment at TD and other major banks may well be toxic for many employees, who feel unduly stressed about meeting aggressive sales goals.
Canada  banks  Bay_Street  financial_services  toxic_behaviors  predatory_practices  regulators  organizational_culture  workplaces  disclosure  complaints  consent  consumer_protection  sleaze  Barrie_McKenna 
march 2017 by jerryking
Fintech Fictions, Fallacies, and Fantasies
July 20, 2015 | Subscribe to The Financial Brand for Free

A Snarketing post by Ron Shevlin

There’s No Debate

Towards the end of the Great Debate (referenced at the beginning of this post), I suggested that the question at hand–Who would rule banking: fintech or banks?–was the wrong question to ask. There is no one or the other. Banks need fintech, fintech needs banks. And banks become fintech, as fintech become banks.

In many ways, fintech is a–or the–path to reinvention for many banks. This is why a Capital One acquires design firms, or a BBVA acquires a Simple. It’s not simply to acquire the technology, and certainly not to “usurp the threat of FinTech by co-opting it.” It’s to inject new thinking and new capabilities into the company.
fin-tech  myths  fantasies  financial_services  banks  symbiosis  large_companies  new_thinking  start_ups  capabilities  Fortune_500  brands  Capital_One  design  Simple  BBVA 
march 2017 by jerryking
Steven Mnuchin’s Defining Moment: Seizing Opportunity From the Financial Crisis - WSJ
By RACHEL LOUISE ENSIGN, ANUPREETA DAS and REBECCA BALLHAUS
Updated Dec. 1, 2016.

Federal officials expected to suffer as much as $8 billion in losses from IndyMac. That left regulators looking for someone to take over the bank and mitigate the damage. Speed was essential, since the FDIC was bracing for a wave of additional bank failures.

Mr. Mnuchin assembled an all-star cast drawn from his years on Wall Street, including Mr. Soros, hedge-fund manager John Paulson, billionaire Michael Dell’s investment firm and several former Goldman executives, including J. Christopher Flowers. They signed up on the basis that Mr. Mnuchin would personally run the bank, according to people familiar with the matter.

By now, he knew that few bidders would be willing to buy all the failed bank’s assets. And he knew he was taking a giant risk.

At the end of 2008, Mr. Mnuchin persuaded the FDIC to sell IndyMac for about $1.5 billion. The deal included IndyMac branches, deposits and assets. The FDIC also agreed to protect the buyers from the most severe losses for years. That loss-sharing arrangement turned out to be a master stroke.
turnarounds  financial_services  Steven_Mnuchin  Goldman_Sachs  opportunistic  Carpe_diem  economic_downturn  vulture_investing  kairos  seminal_moments  rainmaking  defining_moments 
december 2016 by jerryking
Heavyweight investors launch new hybrid fund for fintech startups - The Globe and Mail
JACQUELINE NELSON
The Globe and Mail
Published Monday, Oct. 17, 2016

A new investment fund with big-name backers is on the hunt for entrepreneurs and startups that can shake up the financial services industry.

The investment group, called Portag3 Ventures, has Paul Desmarais III in its corner as executive chairman, and former CEO of Horizons ETF Management (Canada) Inc. Adam Felesky running daily operations. Capital comes from three firms controlled by the Desmarais family: Power Financial Corp., asset-manager IGM Financial Inc. and insurer Great-West Lifeco Inc.....Portag3’s push to attract the country’s best entrepreneurs in insurance, personal finance and wealth and asset management comes as more financial services firms delve into fintech investing, both internally and through acquiring and investing in startups. Banks and insurers in particular have been adding staff and innovation labs to prevent so-called disruptors from shaking up their operations....Portag3 plans to focus on businesses that are consumer facing, rather than on back-office technology. And ideally, the businesses will grow to have international reach.
start_ups  fin-tech  investors  Canadian  Portag3  consumer_facing  venture_capital  Paul_Desmarais  financial_services 
october 2016 by jerryking
At BlackRock, a Wall Street Rock Star’s $5 Trillion Comeback - The New York Times
SEPT. 15, 2016 | NYT | By LANDON THOMAS Jr.

(1) Laurence Fink: “If you think you know everything about our business, you are kidding yourself,” he said. “The biggest question we have to answer is: ‘Are we developing the right leaders?’” “Are you,” he asked, “prepared to be one of those leaders?”

(2) BlackRock was thriving because of its focus on low-risk, low-cost funds and the all-seeing wonders of Aladdin. BlackRock sees the future of finance as being rules-based, data-driven, systematic investment styles such as exchange-traded funds, which track a variety of stock and bond indexes or adhere to a set of financial rules. Fink believes that his algorithmic driven style will, over time, grow faster than the costlier “active investing” model in which individuals, not algorithms, make stock, bond and asset allocation decisions.

Most money management firms highlight their investment returns first, and risk controls second. BlackRock has taken a reverse approach: It believes that risk analysis, such as gauging how a security will trade if interest rates go up or down, improves investment results.

(3) BlackRock, along with central banks, sovereign wealth funds — have become the new arbiters of "flow.“ It is not about the flow of securities anymore, it is about the flow of information and indications of interest.”

(4) Asset Liability and Debt and Derivatives Investment Network (Aladdin), is BlackRock's big data-mining, risk-mitigation platform/framework. Aladdin is a network of code, trades, chat, algorithms and predictive models that on any given day can highlight vulnerabilities and opportunities connected to the trillions that BlackRock firm tracks — including the portion which belongs to outside firms that pay BlackRock a fee to have access to the platform. Aladdin stress-tests how securities will respond to certain situations (e.g. a sudden rise in interest rates or what happens in the event of a political surprise, like Donald J. Trump being elected president.)

In San Francisco, a team of equity analysts deploys data analysis to study the language that CEOs use during an earnings call. Unusually bearish this quarter, compared with last? If so, maybe the stock is a sell. “We have more information than anyone,” Mr. Fink said.
systematic_approaches  ETFs  Wall_Street  BlackRock  Laurence_Fink  asset_management  traders  complacency  future  finance  Aladdin  risk-management  financiers  financial_services  central_banks  money_management  information_flows  volatility  economic_downturn  liquidity  bonds  platforms  frameworks  stress-tests  monitoring  CEOs  succession  risk-analysis  leadership  order_management_system  sovereign_wealth_funds  market_intelligence  intentionality  data_mining  collective_intelligence  risk-mitigation  rules-based  risks  asset_values  scaling  scenario-planning  databases 
september 2016 by jerryking
Hedge Funds Are the New Venture Firms - The New York Times
By ALEXANDRA STEVENSONAPRIL 6, 2016
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fin-tech  financial_services  hedge_funds  venture_capital 
april 2016 by jerryking
Goldman’s Tech Chief Pushes the Bank to Be More Open, Like Him - The New York Times
APRIL 1, 2016 | NYT | By NATHANIEL POPPER.

Today Goldman is trying to change not only that public image, but also some of the central tenets of its culture, like the secrecy and reliance on back-room dealings. The firm’s chief executive, Lloyd C. Blankfein, has said he wants Goldman to be thought of as a tech company — putting it in direct competition for talent with the Googles and Facebooks of the world. No one is more central to these efforts than Mr. Chavez.

Mr. Chavez, who was promoted just over two years ago to oversee the firm’s 9,000 or so computer engineers — nearly a third of the staff — is pushing the 147-year-old firm to, among other things, share more of its data and software with clients. His centerpiece project, Marquee, gives clients access to sophisticated trading data previously available only by phoning a Goldman employee.....Mr. Chavez represents broad pressures across the financial industry. The 2008 economic crisis and the regulations that followed it are forcing banks to become less opaque and more technologically savvy and efficient. This has shifted the center of power in the business away from the trading desks, where it was before the crisis, and toward the programmers and engineers — until recently dismissed as the geeks in the back office....Mr. Chavez says that if efforts like his are successful, clients will see “a very different configuration of the financial services industry than the one we have now.” Goldman will still have the chief product of a bank — money to lend and invest — but he thinks that the ways in which customers get access to that money will rely more on software and less on the bankers who traditionally delivered Goldman’s services.
CIOs  Wall_Street  Goldman_Sachs  Hispanics  transparency  financial_services  Martin_Chavez  war_for_talent  digital_savvy 
april 2016 by jerryking
Zen and the art of banking - Western Alumni
 Alumni Gazette  Winter 2016
Zen and the art of banking

by David Scott
alumni  Ivey  banking  financial_services  motorcycles  CEOs 
february 2016 by jerryking
ETF pioneer Som Seif isn’t afraid of the competition - The Globe and Mail
CLARE O'HARA
TORONTO The Globe and Mail Last updated: Friday, Jan. 08, 2016

Education: Bachelor of Industrial Engineering from the University of Toronto
Best investment decision: “Investing in myself. I’ve always felt more comfortable investing in my future and career and I tell everyone that investing in their own career will always be their best investment.”
Worst investment decision: “Have several ‘lessons’ I have learned, all leading to avoid letting my emotions make my investment decisions.”

Favourite books: “I have lots but two of them are Thinking, Fast and Slow by Daniel Kahneman and The Education of An American Dreamer by Peter G. Peterson.
financial_services  Som_Seif  Bay_Street  books  financiers  entrepreneur  profile  investing  ETFs  Daniel_Kahneman 
january 2016 by jerryking
Upstarts prepare to ambush the lords of finance - FT.com
August 21, 2014 6:16 pm
Upstarts prepare to ambush the lords of finance
By Gillian Tett
financial_services  start_ups  fin-tech 
september 2015 by jerryking
Measuring Technology’s Impact on the Evolution of Financial Services - The CIO Report - WSJ
Jun 26, 2015 GUEST VOICES
Measuring Technology’s Impact on the Evolution of Financial Services
ARTICLE
COMMENTS
BITCOIN
FINANCIAL SERVICES
IRVING-WLADAWSKY-BERGER
7 44
By IRVING WLADAWSKY-BERGER
Bitcoin  financial_services  Irving_Wladawsky-Berger 
july 2015 by jerryking
The Lessons for Finance in the GE Capital Retreat - NYTimes.com
APRIL 10, 2015 | NYT |By PETER EAVIS.

More than 10 years ago, the kinds of investors who seek out weak companies were circulating presentations on Wall Street that argued that General Electric’s enormous lending business was a ticking time bomb.

The financial crisis of 2008 proved those skeptics right, and on Friday, they appeared to have the final laugh. General Electric announced that it was selling most of the loans inside its financial division, GE Capital, leaving a G.E. that will be dominated by industrial businesses.
GE_Capital  GE  exits  financial_services  short_selling  weaknesses 
april 2015 by jerryking
Morgan Stanley Vet Builds Enterprise Startups With Work-Bench Ventures - Venture Capital Dispatch - WSJ
Nov 21, 2014 ACCELERATORS & INCUBATORS
Morgan Stanley Vet Builds Enterprise Startups With Work-Bench Ventures

By DEBORAH GAGE
fin-tech  financial_services  start_ups  incubators  New_York_City 
february 2015 by jerryking
Element Financial’s fortunes tied with U.S. recovery - The Globe and Mail
JACQUELINE NELSON
Element Financial’s fortunes tied with U.S. recovery
SUBSCRIBERS ONLY
The Globe and Mail
Published Thursday, Dec. 18 2014
financial_services  equipment_financing  Element_Financial  leasing  alternative_lenders  Steve_Hudson  alternative_lending 
february 2015 by jerryking
Avoid Regulatory Capture, but Get Informed Regulators — Letters to the Editor - WSJ
Jan. 12, 2015

Regulators without financial experience may disrupt alleged coziness between bankers and regulators, but ignorance is not a recipe for effective oversight of one of the largest U.S. economic sectors......But many of us today are more fearful of regulators—at the IRS and EPA, for example—and expensive, ineffective overreach by Washington than we are about abuse by bankers.
financial_services  regulation  Elizabeth_Warren  oversight 
january 2015 by jerryking
Grouplend brings peer to peer lending to Canada - The Globe and Mail
TIM KILADZE
Grouplend brings peer to peer lending to Canada
SUBSCRIBERS ONLY
The Globe and Mail
Published Thursday, Jan. 29 2015
Tim_Kiladze  lending  peer-to-peer  P2P  banks  banking  financial_services 
january 2015 by jerryking
Banking Start-Ups Adopt New Tools for Lending
JAN. 18, 2015 | - NYTimes.com | By STEVE LOHR.

When bankers of the future decide whether to make a loan, they may look to see if potential customers use only capital letters when filling out forms, or at the amount of time they spend online reading terms and conditions — and not so much at credit history.

These signals about behavior — picked up by sophisticated software that can scan thousands of pieces of data about online and offline lives — are the focus of a handful of start-ups that are creating new models of lending....Earnest uses the new tools to make personal loans. Affirm, another start-up, offers alternatives to credit cards for online purchases. And another, ZestFinance, has focused on the relative niche market of payday loans.
Steve_Lohr  tools  banking  banks  massive_data_sets  start_ups  data_scientists  Earnest  Affirm  ZestFinance  Max_Levchin  consumer_finance  credit_scoring  fin-tech  financial_services  consumer_behavior  signals 
january 2015 by jerryking
Mobile’s Rise Poses a Riddle for Banks - WSJ
By DANIEL HUANG
Updated Dec. 18, 2014

for bigger and more-complex transactions, which often require fees, Ms. Bueno prefers to visit a bank teller in person. That means her digital devotion to the bank doesn’t actually generate much revenue, a puzzle firms across the industry still are trying to solve.

VOTE

Do You Use Your Mobile Phone for Banking?
This year, for the first time, U.S. customers interacted with their banks more through mobile devices than any other means, according to a new study by consultancy Bain & Co. Mobile interactions are now 35% of the total, more than any other type, including traditional online channels, automated-teller machines and branch visits, the report showed.
millennials  banking  banks  mobile_applications  financial_services 
december 2014 by jerryking
Boutique Investment Banks Gain Prestige - NYTimes.com
By MICHAEL J. DE LA MERCED DECEMBER 9, 2014

FINANCIAL SERVICES, INVESTMENT BANKING, MERGERS & ACQUISITIONS, THE DEAL CYCLE, ALTMAN, ROGER C, BANKING AND FINANCIAL INSTITUTIONS, CENTERVIEW PARTNERS, EFFRON, BLAIR W, EVERCORE PARTNERS INC, LAZARD LLC, MERGERS, ACQUISITIONS AND DIVESTITURES, MOELIS & CO, QATALYST PARTNERS,
investment_banking  Wall_Street  prestige  size  financial_services  mergers_&_acquisitions  M&A  Centreview  Qatalyst  boutiques  Lazard 
december 2014 by jerryking
Technology will hurt the banks, not kill them
October 15, 2014 | FT.com |John Gapper

Does Silicon Valley really want to blow up retail banking and create an entirely new financial system, or would it prefer to ride on the existing one?...Mr Andreessen, a partner of the venture fund Andreessen Horowitz, added in an interview with Bloomberg Markets magazine last week: “To me, it’s all about unbundling the banks. There are regulatory arbitrage opportunities every step of the way. If the regulators are going to regulate banks, then you’ll have non-bank entities that spring up to do the things that banks can’t do.”...There is no doubt that the infrastructure of retail banks is antiquated, and is built in a way that invites competition from peer-to-peer networks. Nor is there a doubt that banks make themselves vulnerable by how they price – offering core deposit services cheaply or free while squeezing customers on ancillary products such as overdrafts and currency exchange....what is the best way to compete with an industry that makes little from a capital-intensive, regulated service with formidable barriers to entry, and a lot from less protected add-ons? The question answers itself, which is why Silicon Valley focuses on payments while talking about disrupting lending....US laws made it impossible to establish a national credit union open to any customer....One growth area in UK finance has been online payday lending by companies such as Wonga, which promised to extend banking to the underserved. ... tech companies can improve on credit scoring by scanning search histories and social network data...The biggest barrier to competition is that the core business of taking in deposits and keeping them safe is not very profitable in a low-interest world....A start-up bank that has no branches and spends less on patching up legacy software might do this more efficiently – and good luck to those that penetrate the regulatory thicket and try. But it is much less risky to attach a new service to the existing banking infrastructure, and it absorbs less capital....Technology may eventually change the infrastructure of banking but it will not happen soon....“is a long-term threat that will play out over decades, not months or years”...Silicon Valley will compete at the edges, where banks make their best profits.
banks  Silicon_Valley  Marc_Andreessen  Andreessen_Horowitz  disruption  fin-tech  start_ups  Bitcoin  financial_services  underserved  unbanked  regulators  P2P  payday_lending  credit_scoring  low-interest  branchless  capital-intensity  legacy_tech  regulatory_arbitrage  financial_system 
october 2014 by jerryking
Lunch with the FT: Vikram Pandit - FT.com
July 11, 2014 | FT | By Tom Braithwaite.

“For a large group of people who grew up over the past two, three, four decades, they’ve been in a very different world – it was a world of predictable growth, it was a world of the ability to finance yourself, it was a world where you could really put one foot in front of the other. You find people grappling with what’s the new sustainable model for growth. And that is true of countries, it’s true of businesses.”
At the same time, Pandit proclaims that, largely thanks to technology, “It’s never been easier to start your own business.”
Our starters arrive. Beetroot and ricotta for Pandit while I get a plate decorated with delicious oily slivers of fish and vegetables offset by the occasional crunch from puffed rice and bite of horseradish.
“Bon appétit,” says Pandit, as he slices into a beetroot and continues to extol the virtues of something he calls the “SMAC stack”. I tell him this sounds awful but, he assures me, “it’s the vernacular for the ease for which you can get into business today,” and it stands for “Social media, Mobility, Applications and Cloud.
“Data is like . . . You’re too young, but there was a movie with the [line about] plastics.” When I assure him I’m familiar with The Graduate, he says: “Data is this generation’s plastics. I don’t see business models being truly successful until you get it.”...Pandit has a fondness for big concepts and management-speak and it can be difficult to bring him down to earth. I press him for examples. “You have large auto companies saying, ‘Where is the growth?’ and, on the other hand, you have a SMAC stack that’s created Uber. What’s interesting is that all those intangible abilities are inside the auto companies to make it happen.”
He has been investing in a steady stream of companies that he thinks embody innovative ideas that might make them the next Uber, the suddenly ubiquitous taxi-ordering app. At the same time, he is chairman of TGG Group, a consulting company set up by Steven Levitt, co-author of pop economics book Freakonomics – which aims to help corporations unlock their inner Ubers....Accordingly, while many of Pandit’s new investments are financial companies – Orchard, a platform for users to trade loans; CommonBond, a student lending platform; Fundbox, which lends money to small businesses against their invoices – only one, in India, has any aspirations to be a traditional bank.
With many of his new interests, Pandit says he is looking to remove “frictions”, which happen to be the way Citi and other banks make their money: for example, the middle men that sit between a big bond manager and retail investors and charge a fee. As he points out, the wealthiest individuals are not saddled with these costs to the same extent.
Vikram_Pandit  Citigroup  Wall_Street  career_paths  start_ups  financiers  financial_services  Sheila_Bair  fin-tech  Steven_Levitt  data  behavioural_economics  Second_Acts  reinvention  platforms  layer_mastery  data_driven  jargon  frictions  pain_points  large_companies  growth  Fortune_500  intangibles  SMAC_stack  automotive_industry 
july 2014 by jerryking
Q&A: Tips From a Serial Job Interviewer - At Work - WSJ
Jun 10, 2014| WSJ |By ADAM RUBENFIRE.

WSJ: Over the course of 100 interviews, you’ve been asked a lot of questions. Which ones caught you by surprise?

Faruqi: The ones that caught me by surprise were the ones that were either really good or really bad. Some of the best that I’ve been asked were: “What values did you grow up with? What makes you proud of who you are?” Also, “What’s the most exaggerated point on your résumé?”
interview_preparation  job_search  questions  interviews  hiring  financial_services  Wall_Street  Wharton  alumni 
june 2014 by jerryking
London's Former Investment Bankers Are Joining the Start-Up Craze - NYTimes.com
March 19, 2014, 12:41 pm
London’s Former Investment Bankers Are Joining the Start-Up Craze
By MARK SCOTT
start_ups  London  United_Kingdom  innovation  banks  financial_services  finance  mobile_applications  fin-tech  Yahoo! 
march 2014 by jerryking
Kensho, a startup doing Siri (or Watson) for financial markets, has raised $10M — Tech News and Analysis
By Derrick Harris
Jan. 22, 2014

It looks like a smart product from a smart team, especially if the UI and visualizations are as good as the algorithms.... Warren (as in Warren Buffett, I presume), is a natural-language search engine for data on financial markets. You (assuming you’re a banker or very sophisticated day trader) type in a question — an example from the company’s website is “Which aerospace companies rally following major breakthroughs in drone technology?” — and it returns results in the form of data.
start_ups  open_data  value_chains  fin-tech  finance  Kensho  search  search_engines  financial_services  Siri  IBM_Watson 
january 2014 by jerryking
Honesty That Benefits All
November 11, 2013 | NYT | By DOUG STEINER.

Headlines highlight the bad deeds of players in financial markets: insider trading scandals, traders colluding on interest rate manipulation, executives backdate options, etc....One tool of tackling problematic behavior is to rely on behavioral economics (i.e. traditional economics' assumption — that everyone acts rationally when making decisions — is wrong).

Behavioral economists combine the social psychology of human interactions with the thought processes involved in making economic decisions. They predict and explain how people use faulty logic in building a framework for making decisions. Then they figure out how to make people behave properly by inserting new triggers for better behavior..... people can justify lying if it’s “just a little bit.”(e.g. customers underreporting annual miles driven when filling out their car insurance audit forms, or their income when filling out tax returns). ...adding "morality reminders" (e.g. asking customers to sign forms attesting to the accuracy of their reports at the top of a page, instead of the bottom)....can change behavior, ... minor, even imperceptible changes to workflow can significantly affect honesty....human decisions can be influenced with small suggestions — say, a reminder that “over 99 percent of people truthfully answer these questions.” Or a group might be reminded of a collective cause-and-effect. (“You and your colleagues will not be eligible for bonuses if any of you engage in illegal behavior.”)

Employing similar behavioral psychology in financial transactions can discourage bad actions. Some examples:

■ Getting legal advice: .... Showing lawyers the profound influence they have on trading action might dissuade them from endorsing or seeming to endorse questionable decisions.
■ Making the costs clear to clients: Modern technology allows firms to automatically trade against clients who are unaware of the practice or oblivious to it. Clients generally lose money on these trades. Such actions are legal, even if they’re unseemly. This type of behavior has to be defined as immoral within the industry, or it won’t be long before it is made illegal
■ Setting the right tone:

...the financial crisis of 2008 showed that risk perception and reality differed widely. Efforts to use social psychology to change behavior are resulting in two changes at the same time.

The first is a change in the general perception of business risk, and how much risk a firm should assume to make returns to shareholders. The second is more important and more controllable. It involves personal perceptions of how much risk they should take when, say, trading securities, to impress their bosses and presumably get a larger bonus.
Doug_Steiner  behavioural_economics  honesty  financial_markets  financial_services  behavioral_change  risk-assessment  risk-perception  personal_risk  psychology 
january 2014 by jerryking
Also Stalking the Fund Industry: Obsolescence - WSJ.com
Dec. 10, 2003 | WSJ | Holman W. Jenkins.

Quiz for economists: Suppose you have a competitive, transparent industry that one day begins acting in a more short-sighted, exploitative way towards its customers. What's really going on?

Here's a hint: Think of the gradual slide toward sleazier marketing by the traditional long-distance companies. When your business has a future, you invest in customer relationships. When you see your future going away, you milk them like the wasting assets they are. Big swaths of the fund management business are behaving exactly like an industry in decline...Mutual funds exploded in the 1990s, growing from less than $2 trillion in assets to $7 trillion. A long bull market helped to conceal the fact many of these entrants brought no value to the table. Their managers were, on average, merely as lucky as everyone else to be standing in the right place at the right time.
mutual_funds  Holman_Jenkins  Eliot_Spitzer  industry_analysis  obsolescence  customer_satisfaction  financial_services  luck  short-sightedness  sleaze  customer_relationships  exploitation  bull_markets  imposters  decline  '90s  cash_cows 
december 2013 by jerryking
In London, Nimble Start-Ups Offer Alternatives to Stodgy Banks
October 22, 2012 | NYT |By MARK SCOTT.

London’s fast-growing start-up scene is trying to disrupt the financial status quo. As consumers’ trust in banks deteriorates because of a series of recent scandals, young companies are pressing their newcomer advantage. Firms are offering services like low-cost foreign currency exchange and new ways for small business to borrow cash.

Backed by venture capital firms like Index Ventures, the financial start-ups are taking on entrenched incumbents by using technology to pare back costs and improve the customer experience. Local authorities do not directly regulate many of the firms, but the young companies often use traditional banks and other financial firms for their back-office functions, like processing payments, which are monitored by British regulators.
London  United_Kingdom  start_ups  banks  financial_services  finance  regulators  mobile_applications  fin-tech  foreign_exchange  nimbleness  back-office 
october 2012 by jerryking
A natural fit.
Summer 2001 | LIMRA's MarketFacts Quarterly | by Richard C. Martin
wealth_management  financial_services  high_net_worth  insurance  marketing 
august 2012 by jerryking
Have $50 Million? Come On In - WSJ.com
February 1, 2005

Have $50 Million? Come On In
Milstein Opens Private Bank In a Rare Start From Scratch; The Gold Rush for Ultrarich

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high_net_worth  financial_services  wealth_management  New_York_City  private_banking  commercial_real_estate  moguls 
august 2012 by jerryking
Colleges Aim for Niche in Online Banking
October 26 2001 | The Chronicle of Higher Education48. 9 (Oct 26, 2001): A33-A34. | Audrey Y. Williams.

Drexel University last year became the first university to open a bank online. Several other colleges are now doing the same. A private-label Internet bank is a low-cost way to build and maintain crucial connections with far-flung alumni. The Drexel enterprise grew out of a conversation between Constantine N. Papadakis, the university's president, and a longtime friend, Betsy Z. Cohen, chief executive of TheBancorp.com. They agreed that the Internet-banking company, which provides financial services to affinity groups -- people with common ties to employers or organizations -- would set up AJDrexelBank.com, a consumer bank for students, faculty and staff members, and alumni. The bank is named after the university's founder, the late Philadelphia financier Anthony J. Drexel.
ProQuest  Colleges_&_Universities  financial_services  students 
july 2012 by jerryking
Next product to offer' for bank marketers
(2003) |Journal of Database Marketing 10, 353–368; doi:10.1057|
Kin-nam Lau1, Sheila Wong2, Margaret Ma3 and Connie Liu4
While traditional campaign management in the banking industry selects quality customers for a particular product, the 'next product to offer' model selects the products to cater for the needs and priorities of each customer. A CRM research team of the Chinese University of Hong Kong initiated an 11-month joint research project with the Standard Chartered Bank (HK) on the design and implementation of a next product to offer system. The system consists of two major components: (1) data cleansing and fusion, (2) integrating bank strategies with customer information. It is the first of its kind in Hong Kong and a simplified version of the system and its implementation process is reported in this paper.
financial_services  data_driven  marketing 
july 2012 by jerryking
Cross-selling in the financial sector: Customer profitability is key
Journal of Targeting, Measurement and Analysis for Marketing (2002) 10, 282–296; doi:10.1057/palgrave.jt.5740053


Yasar F Jarrar1 and Andy Neely2
cross-selling  financial_services 
july 2012 by jerryking
What Business Would You Start?
Mar 1, 2002 | Inc. Magazine |By Thea Singer.

The simple answer to the question 'How do you do this?' is, you find a really large market -- or one that's going to be large -- that's inefficient, and you come up with a breakthrough way of delivering value to customers that nobody has ever done before.
start_ups  advice  entrepreneur  opportunities  Dell  demographic_changes  financial_services  healthcare  education  travel  large_markets  inefficiencies 
may 2012 by jerryking
Innovation and Knowledge Flows in the Financial Services and ICT Sectors of the Toronto Region
November 2011 |Ontario Ministry of Research and Innovation, the Toronto Region Research Alliance, and the City of Toronto| A report prepared by David A. Wolfe, Charles H. Davis, Nicola Hepburn, Nicholas Mills & Gale Moore
financial_services  innovation  Toronto  Ontario  banks  mapping  geography  banking  software  location_based_services 
november 2011 by jerryking
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