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Stumbling Giants Winner of the 2018 Donner Prize for the Best Public Policy Book by Canadian authors Stumbling Giants by Patricia Meredith and James L Darroch presents a compelling new vision of the Canadian banking industry in which stakeholders work together to propel the country's banking system into the twenty first centuryCanada's big six banks survived the 2008 financial crisis by adhering to traditional banking practices which made them a safe harbour amidst the turmoil With banks earning 40 per cent return on euity from practices such as in person retail banking pressure from investors with short term interests continues to discourage technological innovation and adaptationHowever today's global information economy has transformed the financial lives of individuals and companies alike Meredith and Darroch argue that Canadian banks refuse to address the disruptive info tech changes that ultimately threaten their very existence The authors also set forth a cohesive set of recommendations to prepare the nation's banks for the challenges and opportunities offered by the digital ageThis call to action for the Canadian banking will resonate with financial sector managers policy makers and above all general readers An eye opening survey of the banking industry in Canada Protected by the regulatory system against competition the banks have seen little incentive to innovate Their core business remains highly profitable as long as competitors remain on the peripheryTechnology Banks are not reinventing themselves as technology companies and find themselves being outflanked by companies that are aggressively developing software particularly in the mobile segmentMortgages Brokers have been working on disintermediating the mortgage market and now can deliver better service and a better price The mortgages can be securitized and marketed giving Canadians a good alternative to the banksSmall and medium business This is one of the core roles the banks need to play to support the growth of the Canadian economy yet they have not shown commitment In the states it has been the regional banks rather than the national banks that have done the best job financing growing businesses Rules about reserve reuirements also make it difficult This is an important topicInvestment Products The banks make huge profits on the high fees paid by Canadian mutual funds While low cost alternatives are now available the banks are not pushing them This may be understandable but it may not be a sustainable situationPayments Inefficient paper based transactions cheues in particular are becoming rare in many countries While Interac represented an advanced system when it was introduced little progress has been made since The rest of the world has continued to move ahead At the moment the payment system in Tanzania may be advanced than the one in CanadaThe book purports to give advice to the banks and was generous with them at every turn But I felt like it is advice they didn't ask for and will not listen to However it really is the rest of us that need to read this book It looks increasingly like we do not need the banks I suspect the situation may be similar in other countries as well The book opened with a uote from Bill Gates We need banking but we don't need banks any This book demonstrates the truth of that statement in detail

  • Hardcover
  • 256 pages
  • Stumbling Giants
  • Patricia Meredith
  • 14 January 2014
  • 9781442649514

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