Banking-as-a-service? American and European G-SIBs performance

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The importance of mobile banking and digital transformation in the financial sector could be viewed as following: - Democratization of financial services: Mobile banking is breaking down barriers to financial access. It's particularly impactful in developing countries where traditional banking infrastructure is limited. This technology can empower individuals who were previously excluded from the formal financial system. - Shift in bank-customer relationships: Digital platforms are fundamentally changing how banks interact with their customers. The traditional model of infrequent, transactional interactions is evolving into a more continuous, data-driven relationship. This shift allows banks to become more integrated into customers' daily lives, potentially offering more value but also raising privacy concerns. - Potential for financial education: Mobile apps provide an opportunity to embed financial literacy tools and resources directly into the banking experience. This could help address the widespread lack of financial knowledge and potentially lead to better financial decision-making among consumers. - Double-edged sword of convenience: While the convenience of mobile banking is undeniable, it also raises concerns about impulsive financial decisions. The ease of transactions could potentially lead to less thoughtful spending or investing behaviors. - Cybersecurity arms race: As banking becomes increasingly digital, it's creating a constant battle between financial institutions and cybercriminals. This drives rapid innovation in security technologies, but also means that the stakes for security breaches are higher than ever. - Redefining the purpose of physical banks: With routine transactions moving to mobile, banks need to rethink the role of their physical branches. They could evolve into spaces for financial advising, community engagement, or showcasing new technologies. - Accelerating wealth inequality: While mobile banking can promote financial inclusion, it may also exacerbate wealth gaps. Those who are tech-savvy and have access to smartphones can take advantage of better rates, lower fees, and more sophisticated financial tools, potentially leaving others behind. - Environmental impact: The reduction in paper usage and travel to physical branches is positive, but we should also consider the environmental cost of the massive data centers required to run these digital services. - Pressure on traditional banks: The rise of mobile-first neobanks is putting immense pressure on traditional institutions to innovate quickly, which could lead to hasty decisions and potential missteps. - Data ethics challenges: The wealth of data collected through mobile banking raises complex ethical questions about how this information should be used, shared, and protected.

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