Magazine article Global Finance

Digital Banks of Distinction

Magazine article Global Finance

Digital Banks of Distinction

Article excerpt

Each year, Global Finance honors banks that lead in the development of digital tools and adoption of digital practices with its Best Digital Bank awards. The winners list is dominated by powerhouse institutions that can marshal significant resources in pursuit of their digital initiatives.

Still, the Internet era is characterized by the kind of upheaval that can raise up smaller entities and bring down larger ones, so it makes sense to give consideration to the digital innovations among middle-market and local banks. Let's be clear, these banks are neither small nor weak--JSC Alfa-Bank is among the largest private commercial banks in Russia, and this summer was upgraded from negative to stable by S&P Global Ratings, which noted its above-average profitability. Overshadowed by giants, however, they must deploy thoughtful strategy to compete.

Take Alpha Bank of Greece, for example. Operating under extremely difficult conditions, the bank is still seeking to grow through innovation even as it shores up its balance sheet and pares back bad loans. It has joined with KKR Credit to assign management of some of its corporate clients' credit and equity on a shared platform. Partnerships are popular among these midmarket innovators, because it's often more efficient for them to leverage technology than to develop it in-house. Similarly, E.Sun Financial Holding of Taiwan is recognized in part for savvy moves like partnering with Alipay, China's leading online payment provider, to facilitate e-commerce between the island and the mainland, where lack of a currency settlement mechanism between the Taiwanese dollar and the yuan stifles cross-strait transactions. Taiwanese suppliers in the food, garment, cosmetic, gift, entertainment and other industries will be able to sell online to mainland buyers and get paid through E. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.