Living a debt-free life : Utopia or aspiration?
Some recent surveys indicate that the biggest aspiration of millennials today is not to buy a house or getting married, but to become debt-free. Younger generations want to become more flexible in their life-choices, having more freedom to change jobs, houses, etc. They have seen their parents being restricted in certain life choices by the debt they carried along… Read more
Are credits not too commoditized?
Since 1 July 2007, the Belgian electricity market has been liberalized. While in the first years, only few consumers switched electricity provider, this has reached a new high this year. The electricity market has become fully commoditized and price has become the only differentiator. It’s interesting now to make the analogy with the banking sector … Read more
The best way to regain your customer’s trust
After the 2007-2008 banking crisis, the trust of consumers in the banking sector reached an all-time low. For a sector built on the foundation of trust, this is alarming. But also a great opportunity! Banks which can rapidly regain the trust of their customers, are likely to attract new customers and better retain their existing customers … Read more
Can banks help to fundamentally redefine our notion of trust?
Trust is the glue that holds society together. Historically we trusted people in our local community. Later this evolved to a centralized trust in large corporations and institutions, but recently this has shifted towards a more distributed trust, meaning that we sometimes need to place our faith in complete strangers … Read more
Being unique is not enough – how to assess the impact of a new banking solution
When positioning a new solution, banks first have to analyse the business case, i.e. compare the costs of implementing, operating, marketing and selling the new product or service versus the increased revenues and reduced costs (directly measurable) and increased customer experience and brand value (indirect and hence more difficult to measure). As banks have the critical mass of their large existing client base, the cost of marketing the new solution is typically lower than for a new start-up positioning the same product or service … Read more
Banks that can maximally reduce financial risks in a user-friendly way can compete with any future tech player
Banks are technology companies with a banking license ! This claim and similar claims can be read more and more in articles on trends in the financial services sector and is often used as an argument that banks will soon be replaced by Fintechs and Silicon Valley tech giants. At Capilever we strongly believe that IT is crucial for a bank and its importance can hardly be underestimated, but – call us conservative – we also believe that risk management is equally important as a bank’s core business … Read more
How collaboration with specialist providers can boost bank innovation
Bank offerings and customer expectations are evolving fast. For each specific client need, specific solutions need to be built, requiring lots of investments, IP and expertise. To keep up, banks can’t afford to reinvent the wheel every time. Therefore they are opening up, and welcoming the win-win collaboration with specialist third parties that can help them improve their offering … Read more
Why lending against your investments is perfectly compatible with daily banking and PFM/BFM offerings
Today’s bank customers want a fluent, end-to-end experience. Unfortunately most Online and Mobile banking platforms are still very silo organised, with typically modules for Daily Banking, Investments, Credits and Insurances. Even though this reflects very well the internal (IT) organisation of the bank, customers would prefer to have a more customer-oriented cockpit, where they can manage end-to-end solutions and not banking products … Read more
Democratizing asset based lending and how banks can protect themselves from systemic market risk ?
A big advantage of the Liquid Asset Based Lending product is that customers can use the money for whatever purpose. This advantage for the customer can however also result in a big risk for the bank, when customers start using the money of the LABL to buy other assets, which are in their turn used as collateral for a next LABL loan. This is called investment leveraging and a valid usage of the LABL product.
In principle, the risk does not increase for the bank since each individual LABL credit request (by the customer) always contains coverage … Read more
Liquid Asset Based Lending (LABL) – a clear retail banking market opportunity
Lending against liquid marketable assets like securities and bonds, has been around for quite some time. Nowadays, we find LABL or Lombard loans mostly in the private banking segment. High net worth individuals can borrow against some of their assets. In the corporate space this type of lending facility is also frequently available, offering flexible credit lines and working capital for large corporates. Finally a great opportunity is available in the retail and SME banking space … Read more
Welcome to our blog !
Welcome to the Capilever blog ! Our blog will give us the unique opportunity to share news and updates, while also offering a place for us to interact with our network.