In the 1990s, the rug pulled out from under the music industry.

Kurt Lykke Lindved Ph.D Culture and Development - UN Lecturer and Writer Honored Dutch Counsel Former CEO in EAC Entertainer and Event Management

Kurt Lykke Lindved Ph.D
Culture and Development – UN
Lecturer and Writer
Honored Dutch Counsel
Former CEO in EAC
Entertainer and Event Management

For 300 years the banks have survived that customers came in off the street to insert or borrow money. When banks meet for the annual meeting on Monday morning, it will be with the knowledge that their former so autocratic status is challenged by a host of new players on massive digital development requirements and historically treacherous customers.

In the 1990s, the rug pulled out from under the music industry. Industry living selling CDs and partly minidisc and LP, but with the invention of the mp3 format music could suddenly distributed digitally. Certainly not legal, but superlight via the Internet.

It was convenient and changed the perception of consuming music. Suddenly it no longer makes sense to buy a CD with ten tracks to grab a single hit. For ten years the storm raged around the recording industry, and turnover fell by two thirds.

Now the storm has hit the banks – a sector under massive change.

JEWISH-BANKER-RABBI

The Austrian economist Joseph Schumpeter described already in 1942 how the innovation and development of new technologies at the expense of existing programs, which may engage in massive and all-embracing change in order to survive.

That was what happened to the music industry in the 1990s, and it is the same threat that banks now face.

We have heard about it drip. The digitization eating into the banks’ physical presence, Lehman-Brothers-collapseand the advent of alternative payment forcing banks to fight for control of the money transfers that traditionally were their livelihood.

In the US coffee chain Starbucks, held on 20 largest bank calculated based on the amount that customers have added to their loyalty cards.

And that’s just one example of how banks’ role as a provider of payment infrastructure is being challenged.

“Starbucks and other companies with prepay cards have a huge amount below, which is basically a deposit. An even bigger question right now, which compete for business is fierce, however, are loans from alternative channels for companies and individuals – for example through crowd funding. This is something that we see, but it is yet to predict how large it is, “says Jesper Rangvid, Professor of Finance at CBS.
Banks have lost the monopoly

According to Søren Jensen, director of the Division Future Business at the IT Company Atea, banks have lost their monopoly on money management.

“Today, banks can no longer control over the format. Competition can come from anywhere – from eBay, Google, Apple. It is suddenly on consumer conditions, not the banks, “he said, pointing out that the banks with the sale of Nets have loosened the grip further.

guidebank_large“The banks have been sitting on the sovereign to operate payments because it has been a legal requirement that it has been those who issued credit cards, and they have not closed the other into their ecosystem. Because they choose to sell the Nets, they release themselves from liability, but it is also the obligation that protected them, ”

“Our daily business has changed, and which are now just something generic, something underlying that run underneath. But nothing can replace the advice and it is the banks’ core competence. On the other hand, the demands on them stronger. Customers meetings only bank in counseling situation, and that is where the bank can create loyalty of the customer ‘

The development is driven by several trends that are interconnected.

“Banks compete always, but they are more pressed today than when times were good. They think cost-conscious, generating branch closures and digitization, which is also a business opportunity and one of the future competitive parameters for them,”

@KLL

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About lindvedpress

Professional – Career * Qualified as a Charter Agent in the East Asiatic Company - Became a State Authorized Shipping Broker in 1969 * Captain in The Sirius Patrol – Greenland at Thule Air Base, 1969-1971 * Postings in New York, New Orleans, Toronto, Rio de Janeiro, Lagos and London as Charter Agent and Manager 1972 – 1983 working for The East Asiatic Company Ltd. – Copenhagen * 24 years with The East Asiatic Company Ltd and subsidiary companies as Charter Agent, Marketing and Development Manager; and General Manager * Supplementary courses and examinations in Maritime and Commercial Law Management. * Founder and Owner of Sonata Production, Art and Music International Inc. – France & Denmark 1995 – present - Entertainment, Lectures, Concerts, Exhibition Events, CD, DVD and Video Recordings. Professional – Freelance * Qualified as trumpet player at Aarhus Music School – Denmark * Professional musician with several orchestras and bands – including the Matadors, Saratoga Jazz Band, Rice Wood Jokers and Aarhus Brass Band. * Leader of ”Show and Entertainment Group 28 Carat” and the Evening & Theatre School 28 Carat * Self-taught Artist (painter) Lecturer and Writer * Responsible for several large Theatre and Exhibition Events Worldwide Awards * Dutch Consul, Denmark * Goodwill Ambassador – Various Non-Profit Organizations
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