Home About FBF Overview “Digital media is one of the biggest challenges facing banks today along with interest rates and Basel IV”  


06 october 2016

“Digital media is one of the biggest challenges facing banks today along with interest rates and Basel IV”

FBF CEO Marie-Anne Barbat-Layani gave an interview to La Tribune in which she outlined the major challenges facing banks today


Digital media serving banking needs

Digital media are changing the way banks operate. Today, all everyday services can be obtained online and customers are making fewer trips to their branch. She added: "But that is not a criticism of the branch or its advisors." The business model French customers are looking for is an accredited CRM, backed by good digital service. "Digital relations have brought customers even closer to their bank." So digital media should be seen as an opportunity to improve customer relations and innovation.

New non-banking players

"Banks are already active in digital media. They have worked hard to make the customer relationship a truly multi-channel experience, including call centres, platforms, mobile applications and branches."

On the FinTech ecosystem: "There is a strong movement in France to promote the emergence of FinTech companies, and the FBF supports this movement, notably as a partner of the Finance Innovation competitiveness cluster. Banks also have very strong relations with FinTechs. They have developed incubators and many FinTechs have entered into partnerships or even capital relationships with banks." ... "they support this creative, powerful and dynamic ecosystem."

On GAFAs: "Are they willing to subject themselves to banking regulations, which are cumbersome and very expensive? Plus, profits in the banking industry are relatively low compared to what these internet giants earn."

On security: "We are highly vigilant when it comes to overall system security and ensuring a level playing field in terms of competition. The aim is not to inflict Basel in its entirety on a small specialised company. But between that and nothing at all, we need to find some kind of middle ground." ... "in particular for payments, the European Commission has created new links in the payment chain with the Payment Services Directive, and it's important that they not turn out to be weak links." ... "the level of security must be high and the same for everyone. Trust in the entire system is at stake."

Basel IV risks

The work of the Basel Committee runs the risk of "imposing on Europe the kind of standardised regulation suited to the US economic funding model. The thing is, our ecosystem works well because of what makes it uniquely French. Right now Basel IV is a battleground for different financing models." ... "The German and French Ministers as well as ECOFIN have shared their viewpoints, and have no intention of allowing the European financing model to be railroaded."

Consequences of an unprecedented interest rate environment

"When banks deposit money with the European Central Bank, it costs them money: they're being charged 0.40%. Some of our members have begun charging for deposits by very large corporations. But no one in France charges individuals for their deposits."

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