Matthew Saal

Head of Digital Finance, IFC.
The postings on this site are my own and do not necessarily reflect the opinions and positions of the World Bank Group

[Matthew Saal @MatthewSaal]

Leaves Paytm with the wallet business, competing with UPI.
UPI now processes 12 bln transactions/month; every bank can offer a wallet (and over 500 now do).
Little wonder Paytm share price is down 50% from its high after listing.

[Matthew Saal @MatthewSaal]

https://t.co/UD5wNyDjEi

[Matthew Saal @MatthewSaal]

I thought Thai banks were reasonably advanced, but my friend has an active Bangkok Bank account and working ATM card, and in December 2023 still had to go to the branch where he opened the account to enable the mobile banking app.

[Matthew Saal @MatthewSaal]

It's not just about having a website and app, but about seamless customer journeys. (See earlier post on Metrobank)

[Matthew Saal @MatthewSaal]

We've seen a lot of digital first banks struggle, and many close. But there will still be a market need as long as traditional banks fail to get what it means to be digital.

[Matthew Saal @MatthewSaal]

So much for the importance of customer retention. Although maybe it will be forced detention until I can fly over to visit a branch.

[Matthew Saal @MatthewSaal]

Moved from UK to US 7 years ago. Recently lost access to my #Metrobank account when UK mobile provider took away my number due to lack of activity. #Metrobank won't let me use my overseas mobile or my virtual UK land line (Lloyds enables both), or email to get the necessary OTP.

[Matthew Saal @MatthewSaal]

#Metrobank "customer service" advises that I must be a UK resident; a UK citizen residing overseas cannot have an account. Call back Monday to see if they can transfer funds by phone and close the account, or else I must visit a branch.

[Matthew Saal @MatthewSaal]

@kientan74 @virginmedia type it twoce

[Matthew Saal @MatthewSaal]

https://t.co/D9FNwSJR8p
The journey is hard and there are no medals for embarking on it. Some may in fact win. But certainly those who fail to start the journey will not survive.

[Matthew Saal @MatthewSaal]

Just a replay of the bank lobbyist playbook we saw around the S&L crisis and global financial crisis: free markets when banks can make money and bailouts for their depositors when they can't.

Not a good look to be shilling for old-school bank lobbyists, @Fintechnexus

[Matthew Saal @MatthewSaal]

@Fintechnexus gets it wrong with their pitch not to better regulate 17 mid-size banks
https://t.co/fovF1YdgCM
You can't ask the government to step in and protect ALL depositors, and not tighten standards.

[Matthew Saal @MatthewSaal]

It is untenable for fintech folk who cried for the feds to backstop deposits to now cry about the logical implications of that backstop - better supervision.
Is "Bank Policy Institute" willing to have government publicly foreswear future bailouts of uninsured deposits?

[Matthew Saal @MatthewSaal]

https://t.co/HXjHwJArj9

[Matthew Saal @MatthewSaal]

https://t.co/SdjA5qH8go

[Matthew Saal @MatthewSaal]

February 24
LIVE EVENT
Fintech and the Future of Finance: Market and Policy Implications
9.00 to 10.15 am EST
https://t.co/9UYLb9506C

[Matthew Saal @MatthewSaal]

Narrow product companies will be tested; so too will diversified giants. What's in the mix matters.
https://t.co/eO29hHEUOe
For current conditions, MS got its diversified mix (IB+asset mgmt) right while GS' mix (IB+retail/tech) didn't cut it. Another fin whose tech needs a fix

[Matthew Saal @MatthewSaal]

https://t.co/pk46x9WwSa
Learning to live in an era of more expensive capital means expense management and tempering the drive for growth with a focus on profitability. But fintech has fostered disaggregation of financial services that also needs to be re-examined.

[Matthew Saal @MatthewSaal]

Case in point
https://t.co/73vAfRAt3r
Fintech models focused on originating don't get the NIM benefits of rising interest rates. Balance sheet lenders (eg banks) also see loan demand slow and NPLs rise, but their interest income will also rise, so they can profit from high rates