Thursday, October 28News That Matters
Shadow

Tag: consolidation

Europe’s digital banks got a ‘wake-up call’ in 2020. And consolidation could be coming

Finance
The icons for the Monzo and Starling Bank banking apps on a smartphone.Adrian Dennis | AFP via Getty ImagesLONDON — In a year when online banking has taken off, you'd think it would be a golden opportunity for Europe's digital challenger banks to shine.Research from Mastercard last month found that 42% of Europeans handle their finances digitally more frequently than they did before the coronavirus pandemic, while 62% are thinking of switching from physical banking to digital platforms altogether.But many of the so-called "neobanks" have stumbled in 2020, with the likes of Monzo and Revolut revealing deepening losses and getting hit with a multitude of complaints from customers about service.Monzo, whose founder Tom Blomfield stepped down as CEO earlier this year, caused concern after flag...
Government mulls various options for consolidation of PSU general insurers

Government mulls various options for consolidation of PSU general insurers

Finance
NEW DELHI: The government is exploring various consolidation options including merger of state-owned general insurance companies with New India Assurance with a view to create synergy and unlock value. The Department of Investment and Public Asset Management (DIPAM) under the Ministry of Finance is also looking at other options including stake sale in three state-owned insurance firms like National Insurance Company, Oriental Insurance Company and United India Insurance Company, sources said. The idea is to fast track stake sale in the public sector general insurance companies, which has been pending for the past two years, sources said. Various options including issuance of fresh shares which could be subscribed by New India Assurance are also being explored, they said, adding that direct...

Italy’s resilient savers are driving consolidation in asset management

Finance
THE rumour mill is grinding again. In early 2017 reports swirled of a possible merger between Generali, Italy’s biggest insurer, and Intesa Sanpaolo, the country’s second-biggest bank. That deal came to nothing. But Intesa is still looking for a partner. Now it is said to be in talks with BlackRock, the world’s biggest asset manager, about a stake in Eurizon, the bank’s asset-management unit. Deal or no deal, two things are clear. Italy’s asset-management industry is consolidating. And though investors fret over a populist government and towering public debt, its pool of private savings will keep them keen.Last year Amundi, a French asset manager, bought Pioneer, the fund-management arm of UniCredit, Italy’s biggest bank. Over half of assets under manage...
Government actively working towards bank consolidation: Arun Jaitley

Government actively working towards bank consolidation: Arun Jaitley

Finance
NEW DELHI: The government is "actively working" towards consolidation of banks, said Finance Minister Arun Jaitley today. The meeting of top bankers with the finance minister, where ministry officials and RBI Deputy Governor S S Mundra were present, was called to take stock of lenders' financial position and speedy resolution of bad assets. "Consolidation of banks was not on the agenda as far as this present meeting is concerned. But I can tell you, we are actively working in that direction," Jaitley told reporters at a question-answer session, post first round of the discussions. "I can't give you further details because some of these are price sensitive, but you can take it that there is a movement going on in that direction," he emphasised. The minister hinted that a solution is c...