2006 issues for the banking sector?

HGLTsuperstar

I have to give a student presentation, (of very high standard) answering the following question; all comments welcome please ASAP
"What are the key issues and opportunities at present for British banks?"

ReportInvestor

I remember writing an essay on this before I left school. Needless to say technology has meant changes greater than I envisaged - although they have only just announced swifter cheque clearance times which I advocated decades ago .

A couple of points off the top of my head.

How they can make the European Single Market an opportunity rather than a threat?

I think the government made a big mistake in not letting Lloyds take over Abbey so that there could be some consolidation in the UK, increasing UK banks chances of being predator rather than prey.

Links with China are also problematic but opportunities. Will China just milk UK banks for their expertise and them dump any partnerships at a later date?

How to combine the paradoxical desire of customers for a personalised service with an equal desire for cheap direct banking that cuts costs.

And finally,

How to cope with the rise of MSE and the consumer savvy society once Martin has converted the masses :snow_laug

HGLTsuperstar

Any more anyone?

Woby_Tide

I was going to suggest much along report investors last comment. How are they going to cope with reduced revenues now people are wising up to the facts they offer poor interest rates on savings products, over inflated interest on credit products, vastly more expensive and inflexible insurance products than most of the market, which the internet has allowed to take a bigger hold and be easily compared to the banking sectors rates, and showing them to be poor value.

deemy2006

The banking sector ....

Not a clue... but interested in determining the key factors involved in when a sector begins the shift from being out of favour to being in favour i.e. sector retating that invariably results in stock price jumps of 50%+ as happened with oils, mining, perhaps thats where research would be more useful ?

DO stocks signal commodity bull runs, or do commodity bull runs signal stocks... As it seems that most people pile on at the end of a sector cycle when its going through the distribution phase.

But offcourse what are the signals for a rerating of the banking sector ?

any good sector comparison websites out there ? So as to try and determine which sectors wil be hot and which cold during 2006 ?

I know that if we follow the presidential cycle then, then sector plays are possible in relation to that cycle !

BWZN93

Depending on the subject you are studying - there are also:

Fraud and anti money laundering

rise in technology (e.g internet banking - proposals to make cheque/dd clearing faster)

Legal aspects & FSA regs (again, money laundering, ID, compliance issues, self-regulation via the banking code)

Opportunities outside of the UK (international banking, single markets, investments)

Does this help? If so then I might be able to get my hands on some more in depth info as im currently studying banking law which focusses on some of this.

Jo xx

Kazza242

The following might be of interest:

http://www.bba.org.uk/content/1/c4/45/25/manifesto_flyer.pdf

http://www.bba.org.uk/bba/jsp/polopoly.jsp?d=222&a=4524

- The effects that result from the move towards faster clearance on electronic payments. The banks must already be thinking about how they are going to recoup the money they will lose once it comes into place. At the same time they will still have to ensure that their financial products are attactive to existing and prospective customers.

Woby_Tide

also take a look at www.swift.com for initiatives and mandatory events that UK banks will ikely to have to be involved in during future