LONDON, Oct. 19, 2017 (GLOBE NEWSWIRE) -- The global economic system has long been affected by financial institutions being so large and interconnected that their failure could bring about an enormous financial crisis. Ali Sadr, Chairman of Pilatus Bank, believes that this has led to a complacency that potentially could impose a systemic risk on the banking industry as a whole.
We are at a crossroad in banking. The challenge of the past decades was due to the too-big-to-fail syndrome, and we might be dealing with the behavioral effect of that for the next decade. It is transparent that the consequence of being a large established bank often translates into rather unwarranted behavior. As banks are becoming complacent to their low-quality customer service, the effect is felt by the customers. The Chairman of Pilatus Bank, Ali Sadr, says, “One of the major consequences of not dealing with this issue of too-big-to-fail banks for almost two decades, is that these banks now have become too-big-to-care.”
Not only was the concern of too-big-to-fail not properly dealt with, but the only loser during the last two decades were the customers. Chairman Ali Sadr, Chairman of Pilatus Bank, predicts that fintech could be the catalyst that ensures that these banks, who have taken their customers for granted for more than 20 years, will get a reality check before the wave of deposit shifting starts.
Chairman of Pilatus Bank, Ali Sadr, explains, “It is obvious that some well-established banks will face new challenges when customers are walking away with their deposits. This situation could potentially go beyond the credit risk that nearly brought many banks to their knees. The too-big-to-care risk is one that could have the same devastating effects.”
The Governor of Bank of England, Mark Carney, recently said that the issue of too-big-to-fail is still a worry for ordinary people. He continued to say that the memories of the financial crisis and how close some banks came to collapse still are very strong, and that it’s a matter of fundamental unfairness.
Chairman of Pilatus Bank, Ali Sadr, points out that since 2006, with the exception of the Chinese banks recently having climbed up the ladder, the list of the 20 Largest Global Banks has been very exclusive to US and UK banks. He warns, “This exclusive club might be facing a new risk that could impose systemic risk on the global banking systems.”
In fact, that risk is already starting to take effect, and as a result we are experiencing a surplus of challenger banks and fintech companies on the market space. Ali Sadr believes that Pilatus Bank is set to disrupt the industry in massive way through their exclusive fintech platform. The Chairman states, “Pilatus Bank is going to bring its world-class service to those who have fallen into the recent service gap by the well established bank. These banks have taken their patient and tolerant customers for granted for too long and they will now feel the effect of their negligence.”
About Pilatus Bank
Pilatus Bank is a leading European bank that specialises in providing private and commercial banking services to high net-worth and affluent individuals. Pilatus Bank, located on 4 Old Park Lane, W1K 1QW in London, is mainly focused on offering its private banking services through its proprietary technology platform in order to make private banking more accessible and scalable. The Bank’s simple and convenient solution has been a hallmark of transformation and quality of service.
Hanna Olofsson
Pilatus Bank
+44 (0)330 3636360