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Joris congratulations, great analysis!

Of course, the ultimate solution to this existential challenge is simple and obvious -- with the introduction of THE central bank digital currency, there won't be much objective need for investment banks (and, as an additional bonus, Dr. Janet Yallen won't be able to talk out of both sides of her mouth).  This will definitely protect THE financial system, once and forever.

Let's assume that the time will come fairly soon (2030?) when at least some central bankers of the world would become digitally literate -- and will thereafter sort it all out.  There is a rumor that in the new virtual paradigm bankers are now allowed to dream 24/7/365 about universal all-encompassing QE.  But perhaps it is just a fake rumor.

Hope you are doing fine.

Kind regards

Nahum Goldmann

Joris, congratulations; excellent review!

An additional way to reduce costs of SME SCF processes is by better aligning them with the supply chain, and also by optimizing corporate supply chains based on  SCF analytics, especially in cases of rapid global expansion.

Carry on the good work!

Regards

Nahum Goldmann

Cyril, no, neobanks have not lost their DNA, as they have never had any to speak of.  They just do not realize that retail banking has always been and will always remain conceptually unprofitable whatever they do (as postulated by Peter Drucker, who BTW started his working life as a London merchant banker). 

The new business and socioeconomic paradigm that we all live through now (aka "interesting time"), commodizes all transactional delivery of services in a hurry; i.e., it substantially speeds up margin erosion for every globally competing business.  Plus you can't make much money with free checking accounts and negative interest rate.

This of course does not mean that each and every bank is unprofitable at every given moment of time; Peter was talking of a long term process.  It does, however, mean that "novel" banks should be built on the solid foundation of microeconomic analytics; not on the wishful thinking.

Cyril, carry on the good work; unlike challenger banks you have a courage of asking right questions.

Regards

Nahum Goldmann