www.retailbankerinternational.com Issue 754 / october 2018 WHAT’S IN A NAME? HOW BANK BRANDS MEASURE UP AS THE MARKET GOES INCREASINGLY DIGITAL FEATURE ANALYSIS PRODUCTS Jacqui Allard on how The banking sector is German digital-only N26 RBC converts data into innovating at breakneck takes the fight to the actionable knowledge speed in a digital arms race popular UK challengers RBI 754 October 2018.indd 1 22/10/2018 15:18:47 contents this month COVER STORY NEWS 05 / EDITOR’S LETTER 10, 16 18 / DIGEST • BBVA Anthemis partner to build venture creation studio in London • NatWest first to partner with Finastra’s Fusion LenderComm • London-Shanghai stock connect: HSBC set to list first • Selfie banking: a first for New Zealand • Consumers increasingly willing to use non-banks • BofA beats forecasts with improved margins • SocGen trials biometric cards • Barclays digital bank set to challenge US market • Metro Bank Insights goes live • StanChart and Huawei to develop IoT solution BANK BRANDING 19 Editor: Group Editorial Director: Head of Subscriptions: Douglas Blakey Ana Gyorkos Alex Aubrey +44 (0)20 7406 6523 +44 (0)20 7406 6707 +44 (0)20 3096 2603 [email protected] [email protected] [email protected] Senior Reporter: Sub-editor: Director of Events: Patrick Brusnahan Nick Midgley Ray Giddings +44 (0)20 7406 6526 +44 (0)161 359 5829 +44 (0)20 3096 2585 [email protected] [email protected] [email protected] Junior Reporter: Publishing Assistant: Briony Richter Mishelle Thurai +44 (0)20 7406 6701 +44 (0)20 7406 8633 [email protected] [email protected] Customer Services: +44 (0)20 3096 2603 or +44 (0)20 3096 2636, [email protected] Financial News Publishing, 2012. 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London Office: John Carpenter House, John Carpenter Street, London, EC4Y 0AN Asia Office: 1 Finlayson Green, #09-01, Singapore 049246 Tel: +65 6383 4688, Fax: +65 6383 5433 Email: [email protected] follow RBI on twitter @retailbanker 2 | October 2018 | Retail Banker International RBI 754 October 2018.indd 2 22/10/2018 15:19:03 contents october 2018 ANALYSIS 06 10 / DIGITAL SUB-BRANDS RBS ranks joint bottom of the 16 largest UK lenders for customer satisfaction; as part of its fightback, it is to launch a digital sub-brand, Bó. Douglas Blakey looks at the winners and losers in an increasingly competitive market 15 / DIGITAL ENGAGEMEMT The banking sector is innovating at breakneck speed. In a digital arms race, banks around the world aim to invest a whopping $97bn to improve and accelerate their digital capabilities in the front office alone. Briony Richter writes INDUSTRY INSIGHT 13 / FINASTRA The UK’s Financial Conduct Authority and Competition and Markets Authority recently required large banks to publish data on how likely people would be to recommend them. Martin Häring looks at possible responses FEATURES DISTRIBUTION 14 / FIS 06 / RBC 08 / TINKOFF There has never been a better time to be a Technology and data underpin everything Tinkoff Bank is delivering a double whammy: banking consumer, with banks new and old a successful bank does, but as RBC’s Jacqui Tinkoff Junior is an easy-to-use app to help striving to optimise the customer experience. Allard tells Douglas Blakey, data in itself is young clients manage their personal finances, Marianne Brown asks if established banks can not valuable, it is how RBC converts it into while the Tinkoff Black card can accommodate meet the challenge posed by new entrants actionable knowledge and value that is key up to 30 currencies, reports Douglas Blakey 22 / PILLSBURY WINTHROP 16 / BRAND VALUES 09 / N26 SHAW PITTMAN Banking is not normally praised for its The UK’s fintech sector is crowded and fiercely Last year’s World Payments Report highlighted branding; banks tend to be just present rather competitive. Now, digital-only bank N26 is the emergence of a new payments ecosystem than exciting. And while the sector has built taking the fight to the popular challengers. driven by changing corporate and customer up some brands, others have taken a post- Alex Weber speaks to Briony Richter about expectations, writes Tim Wright crises tumble. Patrick Brusnahan writes building a bank that the world wants to use 12 / REVOLUT The UK triggered Article 50 in March 2017, but key questions remain about what Brexit means for the financial sector. Revolut CEO Nikolay Storonsky speaks to Briony Richter about the bank’s global plans 08 06 22 www.retailbankerinternational.com | 3 RBI 754 October 2018.indd 3 22/10/2018 15:19:15 HEAR ∤ NETWORK ∤ DISCOVER ∤ CELEBRATE SHAPE THE FUTURE OF PRIVATE BANKING Private Banking & Wealth Management: Switzerland 2018 12th December 2018 ∤ Marriott, Zurich Private Banking & Wealth Management: Switzerland 2018 Conference and Awards leverages the expertise across the Verdict research and publishing portfolio, including Private Banker International, Wealth Insight and Wealth Intelligence Centre. The event is an opportunity to share ideas, discover trends and network with peers across the wealth industry. Key Issues : ∤ Economic trends to 2020. Wealth ∤ How should Switzerland’s private banking management industry performance industry define itself in the age of digital technology and intensifying competition? ∤ With technology playing an increasingly significant role in service delivery what ∤ What channels are working for attracting, benefit does institutional size confer? retaining and managing an increasingly diverse customer universe? ∤ What are the implications for service, delivery and product distribution in the ∤ What’s the connection between distribution age of the digital wealth manager? and profitability? How are Swiss private banks adapting to the challenge of tight ∤ How is technology enabling faster, more cost margins and higher costs? effective on-boarding, KYC and compliance reporting among wealth management ∤ What does the country need organisations? to do to stay ahead? Gold Partner: Silver Partner: Bronze Partners: Exhibitor: Supported by For more details please contact: Page 1 Vicki Greenwood on [email protected] or call +44 (0) 20 3096 2580 editor’s letter A small cheer for FOS extended powers Douglas Blakey, Editor ews that the FCA is giving the green light to the The UK regulators are held up on the global stage as Financial Ombudsman Service to have greater being among the best – in other areas at least. Having N access to SMEs is to be welcomed. the luxury of attending, speaking or chairing banking The expanded FOS remit is a long time coming. Its new conferences around the world, I hear international powers will extend to businesses with an annual turnover bankers praise the UK for its approach to encouraging below £6.5m ($8.48m) with fewer than 50 employees, or competition. If anything, we now have a surplus of new an annual balance sheet below £5m. bank startups – well done the UK regulatory system. Take The FOS will now be able to award a maximum Open Banking: the UK is leading the way with support compensation of £350,000. According to the FCA, an for fintechs and a benevolent tax regime – again the UK additional 210,000 SMEs will be eligible to take their punches above its weight. complaints to the Ombudsman Service. It is, however, Bearing in mind the damage inflicted upon the victims only a partial solution. Questions remain about the FOS of scandals such as HBOS Reading and RBS GRG, more skill set to determine complex cases. needs to be done to ensure that small businesses are not The calls from politicians from all parties for a exploited. That may, however, be a trifle unfair on lenders complementary Financial Services Tribunal will not go that enjoy unsullied reputations in this sector, such as away. Such a tribunal would need the power to compel Handelsbanken or Metro Bank. witnesses, force the disclosure of information and hear A positive note – confirmation of payee to be welcomed judgements in a public forum that can influence culture Paul Horlock, chief executive of Pay.UK, is one of the and behaviour. Only a tribunal is likely to have the good guys in UK banking. He did an outstanding job at authority to ensure that large financial institutions fear it Nationwide and was a prudent choice as CEO of Pay.UK. and comply with its judgements. Push-payment fraud has risen up the political agenda Such action might have been avoided but for the in the past year, with the Treasury Select Committee indefensible way in which certain lenders, in particular (TSC), among others, demanding action. Banks have RBS in relation to its Global Restructuring Group, have been accused of dragging their heels; meantime, a total acted. The saga of commercial lending regulation has been even more shameful, and does the government and the of £145m was stolen from UK bank customers in the six FCA little credit. months to end-June via push-payment fraud. The FCA has said time and again that it does not have The plan to roll out confirmation of payee from next the powers to deal with commercial lending. So it blames year is a welcome step. Banks and building societies must parliament – which, meantime, when it is not otherwise have systems in place by April, with the system to go live fixated by Brexit, lazily responds via a succession of by July.