scholarly journals A Case Study in Crisis Management in the Digital Transformation Era: Wells Fargo & Company

2021 ◽  
Vol 6 (4) ◽  
pp. 127-130
Author(s):  
Wenjing Wang ◽  
Arthur S. Guarino
Keyword(s):  
Crisis Management ◽  
Financial Services ◽  
Banking Sector ◽  
Management Strategies ◽  
Digital Transformation ◽  
Share Price ◽  
Credit Crisis ◽  
Business World ◽  
Financial Scandals

This case study deals with one of the biggest financial scandals in the new millennium among the banking sector in which the banking giant, Wells Fargo & Company (WFC), has opened millions of accounts without acknowledging its customers. It has been charging various fees without the consent of the company's existing clients, and it has involved many people with the personal credit crisis. On the contrary, senior management team was rewarded enormously for the rocketing profits resulting from the phony accounts numerous fees and elevated the bank's share price in a relatively short time. After the accounts scandal was unveiled by its employees and reported by the media, Wells Fargo's reputation was in great danger. While reputation is vital for almost all companies, it is especially essential for the financial services industry, where reputation is a deep-rooted culture. Crisis management strategies in the new era of digital transformation for companies like Wells Fargo as well as other financial services companies are crucial. Risk management is essential in today's business world, but crisis management as contingent plans cannot be ignored since events are not always going as many think they would be.

COVID -19 and Indian Financial Markets: A Review

2020 ◽  
Vol 16 (02) ◽  
pp. 1-8
Author(s):  
Kamaldeep Kaur Sarna
Keyword(s):  
Financial Markets ◽  
Financial Institutions ◽  
Financial Services ◽  
Stock Markets ◽  
Global Economy ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Negative Impact ◽  
Management Strategies ◽  
The Impact

COVID-19 is aptly stated as a Black Swan event that has stifled the global economy. As coronavirus wreaked havoc, Gross Domestic Product (GDP) contracted globally, unemployment rate soared high, and economic recovery still seems a far-fetched dream. Most importantly, the pandemic has set up turbulence in the global financial markets and resulted in heightened risk elements (market risk, credit risk, bank runs etc.) across the globe. Such uncertainty and volatility has not been witnessed since the Global Financial Crisis of 2008. The spread of COVID-19 has largely eroded investors’ confidence as the stock markets neared lifetimes lows, bad loans spiked and investment values degraded. Due to this, many turned their backs on the risk-reward trade off and carted their money towards traditionally safer investments like gold. While the banking sector remains particularly vulnerable, central banks have provided extensive loan moratoriums and interest waivers. Overall, COVID-19 resulted in a short term negative impact on the financial markets in India, though it is making a way towards V-shaped recovery. In this context, the present paper attempts to identify and evaluate the impact of the pandemic on the financial markets in India. Relying on rich literature and live illustrations, the influence of COVID-19 is studied on the stock markets, banking and financial institutions, private equities, and debt funds. The paper covers several recommendations so as to bring stability in the financial markets. The suggestions include, but are not limited to, methods to regularly monitor results, establishing a robust mechanism for risk management, strategies to reduce Non-Performing Assets, continuous assessment of stress and crisis readiness of the financial institutions etc. The paper also emphasizes on enhancing the role of technology (Artificial Intelligence and Virtual/Augmented Reality) in the financial services sector to optimize the outcomes and set the path towards recovery.

scholarly journals Demonetisation Impact over Banking Loans & Advances: A Case Study

2019 ◽  
Vol 7 (4) ◽  
pp. 51-64
Author(s):  
Narsaiah Neralla
Keyword(s):  
Financial Services ◽  
Banking Sector ◽  
Study Data ◽  
Ecosystem Dynamics ◽  
Banking Services ◽  
Legal Tender ◽  
The Status ◽  
The Government ◽  
Case Study Data

The demonetisation footstep by the Government of India twisted complicated influences in the economy. Complete sectors of the economy had faced and produced mixed sensation results over the decision of demonetisation. India’s financial services struggled with demonetisation; on the other hand demonetisation affects utmost over the banking sector because it is substantial influenced services to transform money circulation in an Indian economy. Eradicating components of currency notes from circulation in an economy is demonetisation. It is as the processes of components of money are denied the status of legal tender. Consequently, ceased currency notes will not be account as valid currency in an economy. The term ‘demonetization’ is an instrument to shrink Inflation, Black Money, Corruption and terror funding, this step discourages a cash dependent economy in India. Government of India drive towards demonetisation has given a strong push to the popularity of digital banking and made helps with the alternative arrangements of e-banking and e –wallet to trade and commerce. Exploring the demonetisation emergence in an economy and impact on banking services ecosystem dynamics, this study take an abductive approach anchored in over 4 years of case study data regarding. The present study foremost intention is to be analysing the demonetisation impact over banking loans and advances. In this regard the present study is to be examining the pre demonetisation and post demonetisation period.

scholarly journals Ghana

2020 ◽  
pp. 147-173
Author(s):  
Emily Jones
Keyword(s):  
West Africa ◽  
International Finance ◽  
Financial Services ◽  
Banking Sector ◽  
Party Politics ◽  
Major Elements ◽  
International Standards ◽  
Radical Reform ◽  
Policy Priority

In Ghana the stop-start dynamics of Basel implementation reflects party politics. Moves to implement Basel and other international standards have coincided with periods when the New Patriotic Party (NPP) has been in office. The NPP has a vision for positioning Ghana as a financial services hub for West Africa and strong ideological and material connections to international finance. In 2017 the NPP government embarked on a radical reform of the banking sector, implementing major elements of Basel II and III and catapulting Ghana to among the most ambitious implementers of Basel standards among our case study countries. In contrast, the National Democratic Congress (NDC) focused on directing finance to the productive sectors of the economy and supporting indigenous banks, and the implementation of international standards was not a policy priority during their periods in office.

scholarly journals Pakistan

2020 ◽  
pp. 105-125
Author(s):  
Natalya Naqvi
Keyword(s):  
World Bank ◽  
Financial Services ◽  
Banking Sector ◽  
Basel Ii ◽  
International Standards ◽  
Basel Iii ◽  
The World Bank ◽  
The World ◽  
Over Time

Pakistan has the highest level of implementation among our case study countries. The impetus for converging on international standards has come from different actors over time. The adoption of Basel I adoption in the 1980s was driven by the World Bank and IMF. In the 1990s and early 2000s, the adoption of Basel II was driven first by politicians promoting the expansion of financial services, and then by banking sector regulators. Most recently, as banks have internationalized, they have championed the implementation of Basel III. Pakistan is one of the few cases where all three major actors—politicians, regulators, and major banks—are now aligned behind the implementation of the standards, leading to a high and ambitious level of implementation.

Financial regulation, collective cognition, and nation state crisis management

2015 ◽  
Vol 16 (3) ◽  
pp. 284-302 ◽  
Author(s):  
William Patrick Forbes ◽  
Sheila O Donohoe ◽  
Jörg Prokop
Keyword(s):  
Financial Markets ◽  
Crisis Management ◽  
State Intervention ◽  
Decision Makers ◽  
National Study ◽  
Bank Failures ◽  
Credit Crisis ◽  
Content Type ◽  
Practical Implications

Purpose – The purpose of this cross-national study is to evaluate the communality and differences in experiences and policy responses in the run up to the 2007-2009 credit crisis and during its critical early stages in Germany, Ireland and the UK. The importance of shared cognitive illusions regarding the power and stability of financial markets is emphasised. Design/methodology/approach – A multiple case study approach is used which draws on publicly available information to trace developments leading up to bank failures (or near failures) and the evolution of government responses drawing upon alternative paradigms used to justify State intervention. Findings – Findings emphasise the role of state regulatory bodies and their response to the crisis as a primary source of the “rules of the game” in financial markets, here it is the “game of bank bargains” and a potential source of repair. Given the degree of interconnectedness, opacity and complexity of financial markets investors/politicians/regulators will fall victim to cognitive biases which affect their decisions. Research limitations/implications – This case study method allows identification of patterns in decision-makers’ behaviour and yields richer insights than a quantitative approach but is limited in its generalisability. Practical implications – This paper offers practical implications in suggesting that a pivotal step in effective crisis management requires directly addressing sources of uncertainty, namely, time pressure, complexity and opacity of underlying cause–effect relationships, empowering decision-makers to act responsibly. Originality/value – This paper is novel in its illustration of the collective cognitive paradigm for justifying regulatory action across three countries using six case studies.

scholarly journals Digital transformation of the banking sector of the economy of Ukraine

2021 ◽  
Vol 2021 (3) ◽  
pp. 84-98
Author(s):  
Viktoriia KOVALENKO ◽  
Keyword(s):  
Information And Communication Technologies ◽  
Financial Services ◽  
Banking Sector ◽  
Banking System ◽  
Financial Education ◽  
Internet Banking ◽  
Digital Transformation ◽  
Banking Services ◽  
Banking Business ◽  
Self Service

The article considers the main digital transformational changes in the banking business. The current state of banks' use of financial digital technologies is analyzed, and the factors of digital transformation that affect their financially stable development are singled out. It is determined that the digitalization of the world economy over the past decade has posed new challenges to the banking system, which are caused by increased competition in the financial services market. The factors of emergence of financial intermediaries of the new generation and the need for digital transformation of contemporary banks are described. It is proved that the digital transformation of the banking sector of the economy is due to the development of financial technologies, digital marketing channels and innovation. Three main holistic proposals for FinTech development have been identified. The digital transformation of the banking business is changing not only the supply to customers. It is changing the contours of the business and staffing requirements. Such tools as ATMs and self-service terminals, telephone banking, SMS banking, Internet banking and mobile banking represent the evolution of customer access channels to banking services based on the use of information and communication technologies. The article considers the basic scheme of transformation of a classical bank into a dynamic system of a digital bank by gradually forming the directions of digital distribution. Further digital transformational changes in the banking business should be aimed at the vectors of financial education of consumers of banking services, regulation of the cryptocurrency market in Ukraine, definition of common standards of regulation and supervision of banks and non-banking institutions in the area of digital financial services.

FEATURES OF DIGITALIZATION OF THE BANKING SECTOR OF THE RUSSIAN ECONOMY

2020 ◽  
Vol 5 (10) ◽  
pp. 28-34
Author(s):  
M. A. MAMEDOV ◽  
Keyword(s):  
Financial Services ◽  
Digital Literacy ◽  
Structural Changes ◽  
Banking Sector ◽  
Digital Transformation ◽  
Banking Services ◽  
Disruptive Technologies ◽  
Russian Economy ◽  
Tech Nologies ◽  
The Face

The article discusses the issues of digitalization of the banking sector of the Russian economy. Banks are actively introducing various innovative disruptive technologies into their activities. Innovative tech-nologies have a significant impact on both quantitative and structural changes in banks and changes in their offerings for the products and services provided. As a result, of the increase in digital literacy of the country's population, the face of the consumer of banking services is also changing. Digital transformation leads to the polarization of the banking sector of the economy and the introduction of new non-financial services and products provided by banks to their consumers. The largest banks, through the introduction of various inno-vative technologies, create ecosystems.

BANKING SECTOR DIGITALIZATION: TRENDS OF DEVELOPMENT AND ECONOMIC SECURITY

2021 ◽  
Vol 1 (9) ◽  
pp. 93-98
Author(s):  
N. F. KUZOVLEVA ◽  
◽  
N. V. TARASOVA ◽  
Keyword(s):  
Financial Services ◽  
Banking Sector ◽  
Central Banks ◽  
Economic Security ◽  
Digital Transformation ◽  
Special Role ◽  
Security Risks ◽  
Domestic Credit ◽  
Transformation Processes

The article is devoted to the current problems of digitalization in the banking sector including ensuring of economic security in connection with introduction of digital currencies by central banks. Emphasized is special role of credit and financial organizations in development of digital banking technologies. Economic security risks of the banking sector arising in the process of introducing digital financial services are noted. The article gives an assessment of the level of development of digital transformation processes of the domestic credit and banking sector.

Risk of money laundering in the US: HSBC case study

2016 ◽  
Vol 19 (3) ◽  
pp. 225-237 ◽  
Author(s):  
Mohammed Ahmad Naheem
Keyword(s):  
Risk Assessment ◽  
Money Laundering ◽  
Corporate Culture ◽  
Financial Services ◽  
Banking Sector ◽  
Internal Audit ◽  
Governance Structure ◽  
Content Type ◽  
Global Banking

Purpose This paper uses a case study approach using the Permanent Sub Committee on Investigations (PSI) report on HBUS to determine where gaps in anti-money laundering (AML) regulation and compliance are within the banking sector. Design/methodology/approach The PSI highlighted five areas of serious weakness and fundamental flaws in the HBUS AML risk assessment. This paper examines the governance response that led to these weaknesses and applies a rationale decision-making theoretical framework to explain it. Findings The report found that corporate culture and attitude at the governance level were key factors in the difficulties that HBUS faced. Research limitations/implications This paper focuses on one case, albeit one of the largest banks in the global banking sector. Although generalisations are limited, the report does highlight areas to consider with all banks. Practical implications The implications that are identified are aimed at banks and auditing firms that have to work alongside governance structure within banks. The role of internal audit is raised and has future implications for how risk assessment is undertaken and how AML compliance frameworks are devised and reported on. Social implications A stronger social corporate responsibility attitude is suggested that considers the wider social impacts of supporting criminal transactions, even inadvertently, by inappropriate and under-resourced AML risk-assessment frameworks. Originality/value The detailed analysis of one case that considers the governance response to AML regulation is new in this paper, and the detailed recommendations for improving and developing stronger AML risk-assessment frameworks apply to the banking, financial services and auditing professions.

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