BACKCHAT/DIARY Backchat ‘B


itcoin is saving my family from starvation’ was the title of a Reddit post published over two months ago by a user claiming to be a Venezuelan citizen, who had exchanged much of their money to


the cryptocurrency to safeguard it from the fragile volatility of the Venezuelan bolivar. This post attracted a lot of attention last month, as it had conveniently been published just before the local currency plummeted to under the value of a gold unit in the online game World of Warcraft – an idea mocked by many, as this type of currency has no inherent value.


Nobody doubts that, although volatile, Bitcoin is more stable than the bolivar, and many millennials have probably set aside bolivars in Bitcoin for future spending – a practice that although not strictly illegal, the president of the country has cracked down on those mining or trading. What’s interesting is the criticism this post elicited. However, the value of the bolivar is irrelevant, as most of the trading in Latin American countries is done through the black market. Venezuela being the new Bitcoin’s forerunner? I doubt it, although there may be an undercurrent of cryptocurrency adoption in certain circles.


The global crisis was only 10 years ago and it can’t happen again, according to the International Financing Review which reports that junk sub-prime auto ABS spreads are at record lows. The ‘highlights’ of the report included: Westlake’s Double Bs cleared at iSwaps plus 300 base points – a record low for non-benchmark name; similar bonds fetched 800 base points plus in Q1 2016; investors are still flocking to higher yielding ABS. This all sounds worryingly familiar. Sub-prime Double B tranches trading at 300bp over? As one commentator said: “My apologies. How silly of me to forget that this time it will be different. Perhaps it is the time to update Hume’s First Law to state that no market excess is too great not be repeated in either even larger size and or at an even tighter price, or wherever possible, in both.”


In Canada, where we will be shortly heading for SIBOS, Three TD Bank Group employees have been speaking out about what they say is “incredible pressure” to squeeze profits from customers by signing them up for products and services they don’t need. The long-time employees, reported CBC News, say their jobs have become similar to the stereotypical used car salesman, as they’re pushed to upsell customers to reach rising sales revenue targets. “Customers are prey to me,” says one teller. “I will do anything I can to make my [sales] goal.” The TD employees say elderly customers are a common target because they’ve grown to trust their tellers. “There are elderly customers who have fought for us – they have an army pension,” says the teller. “And here I am, setting them up with all these service fees and they don’t have a clue what’s going on.” The moral of this little story is watch your wallet if you have to visit a bank branch at SIBOS.


IN THE NEXT ISSUE


Treasury and Capital Markets (TCM), Risk Technology, SIBOS preview, Money 20/20 USA preview


Diary SEPTEMBER


11-14: Finovate Fall, New York https://finance.knect365.com/finovatefall


19-20: BankTech Asia 2017, Manila http://www.banktechasia.com


OCTOBER


4-5: PayExpo Europe 2017, London www.payexpo.com


4-5: BAI BEACON, Atlanta www.bai.org/baibeacon


9-10: Lendit Europe, London www.lendit.com/europe/2017


10-11: ATM & Cyber Security 2017, London www.rbrlondon.com/events


16-19: Sibos 2017, Toronto www.sibos.com


17-18: 2nd Annual Liquidity Risk Management, New York www.cefpro.com/events


19-20: 3rd Annual Operational & Enterprise Risk Management, New York www.cefpro.com/events


22-25: Money 20/20, Las Vegas www.money2020.com


IBS Journal August 2017


47


Download the IBS Intelligence mobile app


Catch up on the latest FinTech news on the go. Search IBS Intelligence to download the app on your iPhone/iPad or any Android phone or tablet.


2017 banking tech/FinTech events


For a comprehensive listing of industry events, visit our website: www.ibsintelligence.com


IBS Intelligence is a prominent media partner of many FinTech industry events worldwide. If you are interested in a media partnership with us and marketing opportunities, please contact


Abhijit Chakravarty, Marketing Manager Email: abhijitc@ibsintelligence.com


www.ibsintelligence.com


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48