Group 20 – After Brexit: Europe Takes All

Source: les Échos

First of all, we propose you to look at a a very small video in order to better understand the Brexit.

As seen in the article “HSBC ‘plans to move 1,000 jobs to Paris’ due to Brexit“ from the English newspaper ‘The Independent”, France could receive hundreds of jobs seeping out from Britain, as the economic climate is significantly more volatile because of the Brexit vote. HSBC is currently following a relocation strategy, as its London headquarters are no longer suitable to pursue their goals and objectives. Indeed, HSBC is without any doubt one of the most globalized bank, strongly relying on good and stable international agreements which is the opposite of the UK independence and new wave of protectionism.


HSBC chief executive Stuart Gulliver also said trading operations that generate about 20 per cent of revenue for the lender’s investment bank in London may move to Paris, as this one fifth may be affected by the loss of EU passporting rights.


It is also possible that UK could leave the EU but remain a part of the European Economic Area (EEA), in a model similar to that of Norway, Iceland and Liechtenstein.

Employees at HSBC in Canary Wharf, who already process payments made in Euros, would join the 10,000 workers currently based in the French capital under the plans.

A number of other large financial companies including Morgan Stanley, BNP Paribas and JPMorgan have also reportedly made plans to reduce the size of their businesses in the UK, following the referendum result in June.

HSBC currently employs around 48,000 people in the UK, and around 260,000 across the world.

This decision is a direct response to HSBC’s low performances in the first semester following the Brexit vote. Indeed, it’s revenue have decreased by 11% and it’s benefits shrinked by 29% compared to last year results. This is due to a withdrawal of capital by worried investors, as there is a risk of recession due to the current unstable economic climate taking place in the UK.

Source/Full article:



HSBC said the « main near-term economic impact to be elevated uncertainty. » This will hit spending by businesses and individuals and « the impact would likely be most keenly felt in investment, if firms delayed spending until more clarity emerged about the UK’s post-EU arrangements. » As a result, the bank estimates that gross-domestic-product growth will be 1% to 1.5% lower in 2017 than it would have been otherwise.




Prudential CEO, Mike Wells, who has maintained that UK should remain in Europe, has said that a EU exit “would be possible”. He noted that the company generates 87% of its business outside the EU, and said the impact of a Brexit vote in the June referendum would be “manageable”. The group’s investment arm, M&G, would be most affected should Britain leave the EU. “The infrastructure for its distribution is set up in Europe, and an exit from the EU could affect that materially,” Wells said.

Prudential has so far contributed to a record selloff in insurers in London trading.

The insurance giant has stated in August that it may transfer more funds from its asset management arm in London to Luxembourg or Dublin. These transfers will be made in order to maintain access to the EU’s single market after Britain chose to leave the union at the end of June. The new head of Prudential’s M&G fund management arm, Anne Richards has said that a tenth of M&G’s £255.4bn assets under management were from EU clients. “It’s a very important client base for us.”

Like other British insurers, Prudential experienced volatility in its share price due to the uncertainty caused by the EU referendum. Fortunately, strong growth in Asia is helping offset lower profits in Europe. Prudential’s profits rose 15% to £743m in Asia, 9% to £642m in the US and 8% to £473m in the UK. Overall, group profits increased 6% to £2.1bn, beating analysts’ forecasts of £1.8bn.

Sources used:


The section bellow is a counter- argument to the rest of our research: Read it, you may be surprised !🗿


It is interesting to notice that despite the general panic atmosphere sizing the insurance or banking industries located in the UK, the situation does seem promising for some.

Indeed, according to an article published by the Telegraph, there is some belief that there would be more business opportunities in the EU for UK insurance companies Post-Brexit than in the Pre-Brexit.

This is because current EU regulations (called Solvency 2) are said to give a strong disadvantage to British firms compared to their continent rivals. British firms have to hold 2 to 3 times more capital, which in turn raise costs, therefore reducing their competitiveness.

Julian Adams, group regulatory director at Prudential says they need a regime that is appropriate to the UK, and hopes that once the UK is out of the EU, they could adopt rules that are suited to the national companies and their consumers.


Group 20 – The banking innovations in our lives: when revenues meet satisfaction

The banking innovations in our lives: when revenues meet satisfaction

Table of Content

  1. Introduction
  2. Mobile applications are the best modern innovations
  3. The aid of technology: Cardless ATMs to attract customers



   The banking system has known a lot of changes and a wave of innovation in order to retain its customers because of rough competition .

Some commercial banks are investing in new technologies in order to facilitate and secure any transaction , here is exemples of the services given by innovative banks :

-Biometrics system : with this technique , it might be the end for the old way of taping password  or PIN codes . To get a more safe method to make transactions , MasterCard is prepping the launch of a new contactless card with an embedded fingerprint sensor .

-In-car apps : One way to get access to your bank account while driving is to use a mobile banking app , and spain’s most influential bank has created it . This application is controlled by using a voice control functionality with Ford’s SYNC that allows drivers to check their account balance and transfer funds and other services as locating nearby branches .

-SmartWatches : It could be one of the easiest ways for customers to manage accounts only by using their wrist , and that is what UK’s largest building society Nationwide is working on by developing apps for this demand.

Let’s see now in details the other aspects and advantages a bank can have from new technologies.

Sources: tech

  1. Mobile applications are the brand new innovations

    A. Attracts new customers


When banks want to attract new customers, they have have to propose interesting rates and interesting financial plans to potential new customers.

But this was in the old days. Nowadays, banks need to show in addition to their interesting loans rate that they are innovative and “connected”. These innovations necessarily go through mobile application. These mobile applications enables users (banks’ customers) to visualize their bank accounts and to manage their budgets via these little software on their phones, anywhere, at anytime.

These applications are in a way all the banks services in a pocket. These mobile applications are the new commercial arguments for banks to get new customers. Indeed, when a new client is looking for a bank, the one which proposes many options via its mobile app could be the winner.


b) Enables to reduce costs

In addition to that, banks are able to reduce drastically their costs.

How? By different ways :

  • the first one is by proposing new commercial plans directly on the application. No need to hire any sales force, the application can do the job;
  • then, instead of sending each month a report of the account activity, the mobile application can make reports and the customer can download it directly through the app.

This enables banks to propose very competitive prices. The virtualization of banking is the 21st century war for prices.

Magazines have some good examples of great mobile apps for banking:

Video about Lloyds Bank’s Mobile Banking App:


2) The aid of technology: Cardless ATMs to attract customers

1. Innovative

Cardless ATMS provide many benefits: security and consumer appeal. Regarding security, there are extra steps to verify identity when dealing with the account in cardless ATMs. And finally, regarding consumer appeal, this is convenient and that is what consumers want – Things to be easier yet more effective.  

2. Efficiency:

Millennials are a generation that demand for all things with efficiency and convenient, yet also time-saving. A mobile-friendly way to use ATMs might not directly pull them out of the branch, but some features will.The Diebold cardless ATM app allows users to transfer funds to other individuals. The money can then be picked up at an ATM by means of a one-time SMS PIN. At no point does either party need to interact with a teller to transfer the money. This enables one to save time.