The two big issues bank CEOs have with FinTech

first_imgFor all the talk about how well FinTech start-ups are doing, I hear two regular laments from bank CEOs. First, why aren’t we valued like FinTechs? and second, why aren’t FinTechs regulated like us.On the first point, it’s quite clear that FinTech start-ups are being valued on potential and not reality. When a Stripe is worth more than three Commerzbanks or an Ant Financial is seen to be worth more than ten Deutsche Banks, then sure, bank CEOs are a bit pissed off. As Goldman Sachs CEO David Solomon put it, the bank is “getting absolutely no credit from anybody else in the investing community” on the firm’s digital banking efforts. Monzo gets two million customers in the UK and gains a $1.3 billion valuation; Goldman Sachs launch Marcus, get four million customers, $1 billion in deposits a month, launch a credit card with Apple, and its share price falls almost 20%. As Solomon states it: “If we were out in Silicon Valley and made 20% of the progress that we’ve made, we would get a lot of credit and people would be throwing money at us to own a piece of this business. But nestled inside little old Goldman Sachs, we’re just going to have to prove it over time.”Yea, yea, yea, yada, yada, yada.This first point is indicative of the fact that the banking sector is measured by real returns whilst the start-ups are measured by hope. Banks have shareholder return, return on equity, return on investment and so on and so forth. Real measures against real results. A start-up has a million customers, some of whom are active. It’s all about how you dress it up. ShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr continue reading »last_img read more

‘We are at war’: France imposes lockdown to combat virus

first_imgAnyone flouting the restrictions, in place for at least the next two weeks, would be punished.”I know what I am asking of you is unprecedented but circumstances demand it,” Macron said.”We’re not up against another army or another nation. But the enemy is right there: invisible, elusive, but it is making progress.”He said tougher action was needed after too many people ignored earlier warnings and mingled in parks and on street corners over the weekend, risking their own health and the wellbeing of others. In France the coronavirus has killed 148 people and infected more than 6,600.Army mobilizedUnder the new measures, soldiers would help transport the sick to hospitals with spare capacity and a military hospital with 30 intensive care beds would be set up in the eastern region of Alsace, where one of the largest infection clusters has broken out.Macron said he was postponing the second round of local elections on Sunday. Because the government’s sole focus needed to be fighting the pandemic, he said he was suspending his reform agenda, starting with his overhaul of the pension system.The government would, when necessary, legislate by decree to fight the coronavirus, he said.Coronavirus infections and fatalities in France and Spain have been surging at a pace just days behind that of Italy, the epicenter of the outbreak in Europe where hospitals in the worst-hit northern regions are stretched to breaking point.Seeking to offer further reassurance to businesses, Macron said the government would guarantee 300 billion euros worth of loans. The loan guarantee plan would be submitted to parliament in coming weeks and would be retroactive, a finance ministry source said.Rent and utility bills owed by small companies would also be suspended to help them weather the economic storm, he added.”No French company, whatever its size, will be exposed to the risk of collapse,” Macron said.  French President Emmanuel Macron on Monday ordered stringent restrictions on people’s movement to slow the spread of the coronavirus, and said the army would be drafted in to help move the sick to hospitals.France had already shut down restaurants and bars, closed schools and put ski resorts off limits, but Macron said measures unprecedented in peacetime were needed as the number of infected people doubled every three days and deaths spiraled higher.In a somber address to the nation, the president said that from Tuesday midday (1100 GMT) people should stay at home unless it was to buy groceries, travel to work, exercise or for medical care.center_img Topics :last_img read more