Citadel Advantage

Texting money could replace wire transfers

2012-02-01T11:40:00.000+02:00

In the US, a new service from M-Via in Palo Alto called “BOOM” allows for person to person money transfers. Beginning with tens of thousands of retailers and ATMs - in the US, Mexico and Haiti - M-Via is building a social network, for those who want to share currency.

Cyber Security

2012-01-28T11:23:00.000+02:00

This past week PwC hosted ‘a real time cyber crisis’ highlighting the realities of a cyber attack, at the World Economic Forum in Davos. Entitled ‘What a cyber attack looks like - raising awareness of cyber space risks for government and business leaders,’ PwC consultants used a video and actors to bring the cyber threat to life and highlight the risks organizations face if they don’t have a comprehensive response capability.

The session was chaired by PwC chairman Ian Powell. Mr. Powell commented: “The alarming growth in cyber crime highlights the challenge that all global business leaders face. Although they might be aware of the threat they are not necessarily equipped to respond effectively, so it’s important to discuss the issues at a platform like Davos. After all, cyber is a global risk that knows no boundaries.”

“Cyber security is not just an IT issue. All public and private sector organizations need to transform their mindset and capability to address this growing threat. Often CEOs aren't particularly cyber savvy. Leaders generally see cyber as a technical issue and fail to appreciate the business impact of an attack. As a result, interaction between relevant teams is often unpractised, and decision making and communication under pressure are untested.

“Recent attacks have shown incredible resourcefulness and ability on the part of the criminals and even the most cyber savvy organisations have found themselves exposed and ill prepared to manage the effects. The cyber threat is very real and businesses need to allocate proportionate time and resource.”

This video was shown at the Davos session.

Movie-goers can order food & drinks directly from their seats

2012-01-25T10:19:00.000+02:00

MasterCard has teamed up with Australia’s Commonwealth Bank and cinema group Hoyts to pilot a mobile payments application that lets movie-goers order food and drinks directly from their seats.

CBA and Hoyts will be the first companies in the world to try out MasterCard's QkR app when the pilot starts this month. Movie-goers at La Premiere cinemas in Sydney who have an iPhone or Android handset will be able buy food and drink from their seats through their phones.

Bank charges – Would you accept unnecessary costs from your baker or supermarket?

2012-01-25T10:03:00.000+02:00

The Brussels-based arm of a German bank has launched a marketing campaign that points out the absurdity of bank per item fees. The campaign, using online videos and radio ads, show real-life scenarios of supermarket and bakery customers being asked to pay small fees for all the extras. Hidden cameras have been used to capture real customer reactions, which can be summed up with the phrase, "We're not going take this!"

The campaign uses the tagline "You wouldn't accept unnecessary costs from your baker/supermarket. Why accept them from your bank?"

The supermarket

The baker

High frequency trading and the future of finance

2012-01-21T11:12:00.000+02:00

When people think of the stock market, they think of Wall Street. But the world of finance is changing, and high-powered computers and high frequency trading methods are quickly taking on a larger role. Is this safe, and who wins and who loses?

This video from “Ideas in Action” with Jim Glassman looks at HFT as its know, how it works and the pros and cons.

A computer on a credit card

2012-01-14T11:27:00.000+02:00

One of the products on display this week at CES 2012 that really caught our eye was this credit card device.

Dynamics Inc. has put an entire computer architecture into the size and shape of everyday credit cards. These fully programmable cards are password protected, allowing only authorized users access to funds. They have a host of other features too.

Global Risks 2012

2012-01-14T08:01:00.000+02:00

Economic imbalances and social inequality risk reversing the gains of globalization, warns the World Economic Forum in its report Global Risks 2012. These are the findings of a survey of 469 experts and industry leaders, indicating a shift of concern from environmental risks to socio economic risks compared to a year ago.

Access the report using the link below.

Global Risks 2012 - Seventh Edition

Using your Web Cam as a Card Reader

2012-01-13T12:40:00.000+02:00

Jumio, a US start-up, has developed a system to turn Web cams and smartphone cameras into credit card readers.

The company's Netswipe technology uses video streaming to let customers make online purchases at sites using it by capturing their credit card with a Web cam or smartphone camera and then keying in their CVV code.

Fight of the Century: Keynes vs. Hayek Round Two

2012-01-11T14:59:00.000+02:00

"Fight of the Century" is another economics hip-hop music video by John Papola and Russ Roberts at http://EconStories.tv .

According to the US National Bureau of Economic Research, the “Great Recession” ended almost three years ago, in the summer of 2009. Yet we're all uneasy. Job growth has been disappointing. The recovery seems fragile. Where should we head from here? Is that question even meaningful? Can the government steer the economy or have past attempts helped create the mess we're still in?

In "Fight of the Century", Keynes and Hayek weigh in on these central questions. Do we need more government spending or less? What's the evidence that government spending promotes prosperity in troubled times? Can war or natural disasters paradoxically be good for an economy in a slump? Should more spending come from the top down or from the bottom up? What are the ultimate sources of prosperity?

Keynes and Hayek never agreed on the answers to these questions and they still don't. Let's listen to the greats. See Keynes and Hayek throwing down in "Fight of the Century"!

Mobile Banking: Is It Safe?

2012-01-11T14:43:00.000+02:00

You’re a banker …..

2012-01-02T15:06:00.000+02:00

Humphery advising Sir Desmond about the possibilities of making the Minister make the decision that they want him to make. Great clip from the comedy 'Yes Minister.'

But comedy aside, this is exactly what is making the current financial crisis much worse than it should be; politicians and bankers each Hell bent on pursuing their own agendas.

Mobile Banking: What Features Do You Need?

2011-12-31T11:40:00.000+02:00

State Bank of India’s "Freedom Mobile Banking"

2011-12-28T11:23:00.001+02:00

A nice add for mobile banking. Not understanding the language is not a problem. The advertisement says it all.

Mobile Banking: Will Smartphones Replace Your Wallet?

2011-12-26T07:17:00.000+02:00

Seasons Greetings

2011-12-21T18:08:00.001+02:00

The end of another year gives us the chance to wish you a happy holiday season and say thank you for your continued support.

We look forward to serving you in the New Year.

From all of us at Citadel Advantage.

"Fear the Boom and Bust" - A Hayek vs. Keynes Rap Anthem

2011-12-10T08:00:00.001+02:00

A fun way to learn about current (as well as old) economic issues. This video by Econstories.tv provides a platform to learn about the economic way of thinking through the eyes of creative director John Papola and creative economist Russ Roberts.

Citibank – Theatre of the Absurd

2011-12-05T18:40:00.002+02:00

By Richard Barr, Principal Associate, Citadel Advantage Ltd.

For banks, is there such as a thing as too much security when it comes to protecting your client’s money?

On the face of it, the answer would be no. After all a bank has a fiduciary obligation to look after the client’s interests. Multiple layers of heavy security can only serve to strengthen that position of trust. Multiple layers of access security not only protect the clients, it protects the bank and serves to enhance its reputation. At least that how reasoning goes, and it certainly seems to make sense. Nobody wants to be the victim of theft.

But when those multiple layers of security become so heavy as to be a complete roadblock to the client, it becomes useless. Take my experience at Citibank as a case in point…

I needed to transfer a relatively small sum of cash from my account at Citibank to my sister-in-law’s account, also at Citibank. By any description, this should be a very easy transaction to perform. I’m soon to discover how wrong I was.

1. I log into my Citibank account online, requiring my user name and password; the first layer of security.

2. After requesting an internal bank transfer to another party, I’m asked for my ATM card number and a specific token; the second layer of security.

3. So far so good, I’ve passed through the 2 layers of security and entered all the transfer information. Reviewing the data, I click on the confirm button thinking all is good. Up pops a screen telling me to call a customer service number to finalize the transfer, otherwise the transfer will automatically be cancelled. Now minor irritation kicks in.

4. I call the number (international long distance in this instance) and navigate the annoying system and reach who I assume to be a real person. This person performs yet another layer of security checks and places me on hold; my third layer of security. After perhaps 5 minutes on hold, he returns to me and tells me that he’s transferring me to the office where the transfer may be finalized. Why did he bother putting me on hold? Why didn’t the web page give me that phone number directly instead of jumping through a useless hoop? Minor irritation turns to a slightly higher level of frustration.

5. Yet another person conducts the identical security confirmation to start the conversation, which by the way I already had with the previous clerk. Yet another security check; the forth layer of security (HEAVY SIGH).

6. The Citibank clerk than tells me he’s going to ask me three multiple choice questions about me gleaned from public records and I should know the answer. Yet another level of security; this is the 5^th layer and most ABSURD of security I’m being put through. Why absurd? Because the questions have NOTHING to do with me. The three questions have no connection to my reality. They consist of places I was supposed to have lived in such as Bolder Colorado or Santa Fe New Mexico; both of which I’ve never lived at. Next were P.O. Box locations for cities I’ve never even visited, let alone lived. And a place I owned property, though I’ve never owned property in the United States, ever! But because they’ve been gleaned from public sources, I’m the one that must be wrong and the clerk immediately cancels the transfer. No amount of reason, logic or truth will be accepted. The faulty Citibank system is the final judge, juror and executioner. No appeals allowed!

7. The clerk’s supervisor backs up the clerk and I am not allowed to access my funds in the way I’ve chosen despite having gone through several layers of what turns out to be useless security. I request the supervisor’s manager only to be patched though to an answering machine.

I’m still waiting for a call back. Something tells me, I better figure out another avenue to transfer the small amount of money I need to.

So to answer the question “Can a Bank have too much security in regards to its client’s money?” The answer is yes, when, like Citibank, the security becomes absurdly wrong and it acts to impede the legitimate client. This in turn damages a bank’s reputation such as it does to Citibank.

"Death to Pennies"

2011-12-03T10:53:00.000+02:00

An entertaining and informative video on why Pennies are economically inefficient and should be abolished.

M-PESA has changed Kenya and shown the world how Mobile payments can be done

2011-12-01T07:46:00.000+02:00

Launched in partnership with Safaricom in March 2007, M-PESA was the first mobile payment solution that enables customers to complete simple financial transactions by mobile phone.

M-PESA is aimed at mobile customers who do not have a bank account, typically because they do not have access to a bank or because they do not have sufficient income to justify a bank account. All they need to do is register at an authorised M-PESA Agent by providing their Safaricom mobile number and their identification card.

M-PESA is a simple and practical solution that really does make a difference where it counts. In Kenya alone, it is estimated that almost a quarter of the population now uses M-PESA.

In this video William Ndirangu talks us through the impact M-PESA has had on his business and his life.

Google Wallet in action

2011-12-01T07:43:00.000+02:00

Want to know the Google wallet works? Watch this video.

Now is the time to intensify your staff training

2011-11-29T10:29:00.000+02:00

The current climate has made it a busy and volatile time for both risk managers and operations professionals. These conditions have also made it the ideal time to intensify staff training in order to remain competitive. Well-trained employees are knowledgeable and more motivated and will find new ways of generating revenue or protecting the banks operations in the tough times we now find ourselves in.

We list below Operations & Payments Training that is coming up over the next few months. Just click on the course name for full details.

INTERNATIONAL PAYMENTS – Johannesburg – 6/7 February

REMITTANCES - ISSUES & OPPORTUNITIES – Johannesburg – 8/9 February

BUSINESS CONTINUITY & SCENARIO PLANNING – Singapore – 14/15 February

OPERATIONS RISK MANAGEMENT FOR NON-RISK MANAGERS – Singapore – 16/17 February

Electronic Pickpocketing

2011-11-23T18:12:00.000+02:00

It's called electronic pickpocketing and security expert Walt Augustinowicz says relatively new technology designed to make your purchases more convenient could put your credit card number at risk.

In a mall in New York City, Augustinowicz showed INSIDE EDITION's Paul Boyd how it can happen. In a matter of seconds, he effortlessly pickpockets four unsuspecting shoppers without ever laying a finger on their purses or wallets.

Drowning in data

2011-11-22T14:13:00.000+02:00

Digital data is flooding the planet. This video from The Economist helps us understand what data is all about. Watch the video HERE.

Checkout iZettle for a European Chip & PIN version

2011-11-22T08:04:00.002+02:00

In Sweden anyone can now take card payments. You and your friends. Your business. All you need is an iPhone and iZettle.

Square dongle in action

2011-11-22T08:01:00.001+02:00

Ever seen Square in action? Check out this video produced by Discover Card to see how it works.