29th June 2017

BBA Brief – 29 June 2017

BBA – 30 banking app transactions per second

The BBA’s latest Way We Bank Now report has found that more customers are using banking apps to manage their money than ever before, with a 57% increase in app transactions last year. A number of papers covered the report, including The Daily Telegraph, The Mirror, The Independent, Daily Mail and City AM. Eric Leenders, BBA Managing Director, Retail and Commercial Banking, said: “More and more people are moving beyond payments, increasingly using apps to access a broader range of banking services, such as savings, credit cards, mortgage and investment accounts. Whether we want to visit our local bank branch, use a mobile or internet-bank, there are more ways we can choose to access and manage our money than ever before.” The full report is available here.

Carney hints rate rise may be on the horizon

Sterling rose by almost 1% yesterday, following remarks by Bank of England Governor Mark Carney suggesting that interest rates could rise if business investment increases (BBC News, online). Sky News (online) reports that analysts remain divided over the speed of a potential rate rise, noting that Howard Archer, Chief Economic Adviser to EY Item Club, does not expect to see a rate rise this year, while Neil Wilson, Senior Market Analyst at ETX Capital, said “there is a sense the MPC may wish to ‘correct’ its rate cut last summer in light of a surprisingly resilient UK economy and rising inflation, which is accelerating quicker than the Bank expected”.

The BBA Brief will be taking a well-earned summer break next week, starting again in September as the UK Finance Brief. You’ll still receive the Brief if you’re currently on the distribution list, please feel free to drop us a line at press@bba.org.uk if you have any questions.

Latest from the BBA

Eric Leenders, BBA Managing Director for Retail and Commercial Banking, blogs on customer demand for mobile banking.

Aneta Dyakova, BBA Economic Analyst, sets out a snapshot of the UK’s key economic indicators.

Avoka asks how banks can respond to customers’ desire to apply for products and services at point of need, rather than in branches

Tuesday 4 July MIFID II Conference

With only six months to go, there are still implementation obstacles to be overcome with MiFID II, from updating legacy systems, to understanding the finer details of the transaction reporting framework and implementing investor protection rules.  To register, click here.

Tuesday 4 July  Risk Governance – the perspective of smaller banks and subsidiaries

This half-day workshop will discuss governance responsibilities and Senior Managers Regime requirements from the perspective of smaller firms, UK firms that are parts of international groups and UK “ring-fenced” entities. To register, click here.

Latest from our sponsor Jaywing

IRB or not to be

With multiple pressures already bearing down on capital, how does a smaller bank cope with the dichotomy of having to lend to support the SME and mortgage market at a time when CRD IV combined capital buffers are increasing in time for 2019? Is now the time to be considering IRB as a means of optimising capital? Read our latest blog to find out more.

Stat of the day

57%: increase in banking transactions carried out via mobile apps in 2016 (BBA, Way We Bank Now 2017).

News in brief

BBC News (online) reports that the largest US banks have passed the second part of the US Fed’s stress tests, potentially paving the way for a relaxation in regulations.

The FSB’s taskforce on climate change disclosures is expected to publish its final recommendations to help firms to help them identify the information needed by investors, lenders, and insurance underwriters to evaluate climate-related risks and opportunities (Politico, £, online).

EU Budget Commissioner Gunther Oettinger has said that the EU will consider imposing a financial transactions tax to replace the UK’s contribution to the EU’s overall budget after Brexit (The Independent, p11).

Diary

BBA Retail Banking Conference – join the conversation on #retailbanking

UK Prime Minister Theresa May meets German Chancellor Angela Merkel in Berlin.

Bank of England publishes Monetary & Financial Statistics for May 2017.

What the commentators say

Writing in the Financial Times (£, p11) Bank of England Governor Mark Carney argues that markets could be the key to solving climate change if investors have the information they need to underhand the risk that climate change poses to the companies they own.

Commenting in The Daily Telegraph (£, B2), Ambrose Evans-Pritchard criticises the US Fed for perceived complacency over the probability of another financial crisis happening. He notes that while US banks may be in good health, global data indicates that many countries are over-indebted.

A word about UK Finance

Launching on 1 July, UK Finance is a new trade association, representing over 300 UK firms that provide credit, banking, markets and payment-related services. The new organisation will take on most of the activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association.

Please register or login to add this to your interests.