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Global banking is a fallacy

So
the afternoon progresses and I’m now bouncing around like a ping-pong
ball between SEPA, corporates, Asia, FpML, Fedwire … you name it.  It
must be to do with this idea that yours truly can assimilate the global
banking trends and regurgitate them at will.  Can I really do this?  No
way.  I’m just a humble London boy.

It all comes to a head when I chair a panel debate around Globalisation. 

Y’know,
we all talk about globalisation, the BRIC economies, supply chains that
allow goods to move from Shanghai to San Francisco cheaper than the
cost of a light bulb … it’s such baloney.

Globalisation is
great in a manufacturing and primary industry.   Globalised supply of
toys, oil, computers, flights, payments, software, services, rabbits (?
don’t ask !) … sure.  Products can be global and globalised from a
supply viewpoint.

But globalised banking?  Don’t believe a word.  Banking is always local.

OK,
so I’m being extreme.  But how many branches do you go to that are
global?  Is your branch manager global?  Would you be happy dealing
with a global bank with no local presence?  No way, Jose.

Banking
is local. That’s why HSBC talks about the world’s local bank.  And
y’know the real reason it’s local?  Because it’s all about people.

Financial
services is just that – services.  Services are delivered by humans.
So you can globalise widgets, goods, products, hardware … you can’t
globalise humans.  That’s why you can’t globalise services.

Banking
is delivered by humans (most of the time 🙂 ) and humans connect with
humans.  People buy from people.  Any bank that therefore thinks they
can run remote with just a few computers, go take a hike.

Ah
well, enough of this thinking.  I’m off for drinks in my new local,
Boston.  Two dinners to choose from and two parties to go to … I’m
sure I’ll find a global human to connect with locally.

About Chris M Skinner

Chris M Skinner
Chris Skinner is best known as an independent commentator on the financial markets through his blog, the Finanser.com, as author of the bestselling book Digital Bank, and Chair of the European networking forum the Financial Services Club. He has been voted one of the most influential people in banking by The Financial Brand (as well as one of the best blogs), a FinTech Titan (Next Bank), one of the Fintech Leaders you need to follow (City AM, Deluxe and Jax Finance), as well as one of the Top 40 most influential people in financial technology by the Wall Street Journal’s Financial News. To learn more click here...

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