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Brussels

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2017

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Capilever Bankloch Blog

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Security Payments Regulation & Compliance People Wealth management Retail banking Sustainable Cloud DevOps Start ups Financial inclusion Cryptocurrency Markets Predictions

Joris's blog archive

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Joris Lochy

Product Management Consultant | Co-founder at Capilever

Message Posts: 97 Comments: 15

Bio Independent Product Management Consultant, helping customers in the Fintech space to innovate, i.e. from ideation to conceptualization to implementation, taking on different roles and responsibilities (business analysis, functional and technical design, solution architecture and project management). Career History Active in the financial services industry, since 2003: - 8 years at Accenture - 3 years at CSC - 3 years at Deutsche Bank - 3.5 years at The Glue - 3.5 years at Monizze

Blogs

Financial Inclusion

Beyond the Surface: The concept of Underbanked in Developed countries

28 Aug 2023

When we think about the concept of financial inclusion and more particularly about underbanked and unbanked populations, we often picture developing countries where access to banking services is limited. However, it might surprise you to learn that even in developed European countries, where banking services are abundant, a sizable portion of the ...

Blockchain Observations

Is centralization inevitable when making DeFi available to the masses?

31 Jul 2023

In recent years, I have delved into the domains of DeFi (decentralized finance), Web3, blockchain, and cryptocurrencies, building a solid understanding (although far from being an expert) of their underlying concepts and technologies. Nonetheless, I continue to grapple with the business and economic aspects surrounding these innovations. Surprisin...

Embedded Finance

The Rise of Embedded Finance: How SaaS Companies Are Transforming into Niche Neo-Banks

06 Jul 2023

In my blog post "The financial sector boundaries are blurring" (https://bankloch.blogspot.com/2022/11/the-financial-sector-boundaries-are.html) I explored the evolution where traditional financial companies are expanding their offerings with adjacent services, while companies from other sectors are also offering more and more financial s...

Safeguarding Your Savings: Embracing Term Deposits for Stability

02 Jul 2023

In my previous blog, "In the Blink of an Eye: How the Digital Age Intensifies the Risk of Bank Runs" (https://bankloch.blogspot.com/2023/06/in-blink-of-eye-how-digital-age.html) I discussed the increased risk of rapid bank runs in today’s digital age, particularly when customers hold substantial deposits in current and saving accounts, a...

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Joris is Commenting on

Beyond the Surface: The concept of Underbanked in Developed countries

Scott, thanks a lot for the feedback. Much appreciated. Indeed even though the list of examples I gave in the article is already quite long, this list is far from exhaustive. A few more examples are: * Discrimination against certain minorities. Although laws exist to avoid this, we can not ignore there is an inherent (often unintentional) bias both in the automated risk algorithm and manual risk decision process. This means that certain minority groups are definitely "underbanked". * For medical insurance, obviously people with a history of cancer is not the only example. Everyone with a history of medical expenses or pre-existing conditions might be impacted. In many countries medical insurances are even more expensive for women, due to the expected medical costs associated with child birth. * Any form of non-traditional employment. In the blog I refer to freelancers and gig-workers, but obviously other non-traditional roles like e.g. artists, performers, or creatives are also impacted. * People with disabilities might need specialized financial products and services that aren't widely available or are offered at higher costs. * Language barriers for non-native speakers * Temporary Residents and people doing remote work (due to complex tax regulations) * ... Clearly the list is enormous, leading to a considerable percentage of the population being underbanked in some form.

12 h Reply Read article

In the Blink of an Eye: How the Digital Age Intensifies the Risk of Bank Runs

Sorry, I think there is a misunderstanding of what I meant here with term deposits. Indeed obviously if the bank invests my saving deposits in term deposits or any othe bonds this doesn't change anything to the liquidity of my saving deposits. What I mean here with term deposits, is that the customer invests directly his excess saving deposits in term deposits. This could be government bonds, but also term deposits offered by the bank. It's this last type I am referring to here. When term deposits are offered by the bank, the amount and duration can be very flexible, making it a good complement for saving deposits. The big difference with those term deposits (typically with maturity of 3, 5 or 10 years), is that the customer has to pay a penalty if he wants to liquidate them before maturity date. This makes the customer less inclined to quickly liquidate in case of a panic.

04 Jun 2023 Reply Read article

In the Blink of an Eye: How the Digital Age Intensifies the Risk of Bank Runs

Many thanks for the interesting comments. I fully agree that general regulation (applicable to all banks) will be most effective, otherwise commercial short-term gains will always attract certain banks to take more risk. These general regulations will however take time and after all lobbying will always be some kind of half-baked compromise. But I do also believe banks can also do a lot themselves. In above comment "Limiting deposits will reduce the size of bank balance sheet. Not sure how many bank shareholders will approve of that measure." I agree that banks will never limit deposits, but they can limit deposits on saving account, when they can ensure the money is put in term deposits at the bank or invested in securities. Often those products gain even more money to the bank than saving deposits and they don't bear this risk of immediate liquidation in case of panic. Interesting views also on who is to blame for fake news put on social media. This is a very interesting discussion, but it's a discussion for lawyers and politicians. Once panic breaks out, all harm is already done and this harm can not easily be undone even when the perpetrator of the fake news is identified and it is confirmed that the news is fake. As a bank, you should therefore also take action to protect you against fake news, even if illegally spread. In this digital age, you won't have the time to go to court and obtain confirmation of the fact it was illegal fake news.

02 Jun 2023 Reply Read article

Buy Now Pay Later - A credit in disguise?

Ketharaman, thanks for interesting feedback. With regards to your comment on "buying products they don’t even need", I agree that this is not an issue per se, i.e. for people that can afford it. Unfortunately these type of credits push people that can't afford it in also buying these type of unneeded products. As a result, debt becomes so problematic, that they have to cut down on products/service they do really need (like food, health care, children's education, utilities...). This is an undesired situation, which should and is also addressed by governments and regulators. So in the end it's all about financial literacy and budget management.

28 Jul 2021 Reply Read article