Article Review A New Landscape

Question: Discuss about theArticle Review for a New Landscape. Answer: Introduction The objective of the paper is to review the selected articles The likely impact of increased competition/ the possibility of challenger banks emerging and A New Landscape. Such review will explain the possible impact of increased competition or the possibility of emerging challenger banks. It will also explain the likely effects of regulatory requirements associated with remuneration. Article Review The Impact of New Regulatory Requirements Relating to Remuneration The article The likely impact of increased competition/ the possibility of challenger banks emerging indicated that several new regulatory requirements associated with remuneration have emerged. All such changes appears in a surrounding at the time banks find themselves within high regulatory scrutiny along with numerous global financial services watchdogs centered on ways in which the banks communicate with their consumers. For instance, the article revealed that in the recent years, all the banks having its operation in the nation must consider embedding the principles set by Financial Services Authority of Trading Consumers Fairly in all every activities after the rules started effective in the previous years. The article also explained that now is a good time for the banks to reschedule policies based on accurate and clear communications within the sales process for making sure of accompanying certain cultural concerns associated within the business (Hollebeek, Glynn, and Brodie 2014) The article Long term Economic performance and fluctuations revealed that the banks must be careful regarding the new dispute regulations associated with the consumer complaints procedures along with newly developed common principles for switching the bank account. This can further affect the consumer relationships those are explained in details in the article. The article considered that considering the regulator concept, these initiatives needs marketing consent, generally sourced from fresh current account consumers at the time they join but highly important for several other bank users (Angelini et al. 2015). As the banks makes high attempts in dealing with their priorities, there can be a ripple impact from newly developed regulations that can redefine the banking relationships. The article explained that these regulations on remuneration aims directly on the basics of banking institution, its balance sheet and the ways in which the banks face challenges of dealing with their ba lance sheet in accordance with the new regulatory guidelines. The Likely Impact of Increased Competition The article Long term Economic performance and fluctuations explained that competition would be increased among the banks that clearly generate both the threats and opportunities for the retail banks with the opportunity of several new consumers availing advantages of newly developed regulations along with threat of high competitive pressure (Angelini et al. 2015). The article revealed the possible affects if high competition along it the emergence of several challenger banks. Considering the increasing competition, several banks have developed consumer retention units that revealed and reacted to the dissatisfied consumers and respond in a better manner. The article considered that the impact of incased completion among the emerging and existing retail banks it is deemed necessary for the retail banks to take into account their consumer base, centre hugely on long standing, loyal customers along with focusing the cross-selling and trust-developing activities on the important consume rs. After reviewing the article The likely impact of increased competition/ the possibility of challenger banks emerging, it has been revealed that the retail banks must require transforming and personalizing consumer relationship as consumer satisfaction is not deemed to be based on price (Hollebeek, Glynn, and Brodie 2014). A personalized relationship initiative is deemed as real differentiator in the competitive marketplace that is not possible to be copied easily by its major competitor banks along with protecting margins. The article revealed that certain challenger banks considers offering ample interesting propositions those have intentions to support increased growth. Increased competition offered by the challenger banks has supported the existing retail banks to develop extremely attractive consumer service proposition along with branches having extended opening hours and providing services in all the days of the year. The article explained that attaining access to equity fundin g the challenger banks might continue to advance and enhance competition among the retail banks. Literature Review on Future of Retail Banking According to Hollebeek, Glynn, and Brodie (2014) implementation of regulation, this modifies of monitors the level along with the structure of modified employee compensation in the banking industry. Previous research stated that government asked for review of corporate culture of the retail banks along with causes of the financial crisis. Angelini et al. (2015) indicated that changes in the remuneration regulation is essential for enhancing the banking system quality. The research paper also revealed that competition for the limited number of bankers increases the compensation and demand that facilities in the bankers being compensated in distinct bonuses and not fixed wages. Claessene and Kodres (2014) stated that optimal banking regulation involves certain limit to the proportion of retail banks balance sheets that can be employed towards paying bankers bonuses rather than fixed wages. These researchers also indicated that optimal banking regulation must involve certain limit to proportion of banks and the strong bonus caps intends to be value destroying, increase in default risk for overseeing the less value for banks. Hollebeek, Glynn, and Brodie (2014) revealed that pay-performance compensation sensitivity in the retail-banking sector is not higher in comparison to other sector that researchers signify being inconsistent with the discussion, that too much incentives resulted in financial crisis. Previous literature also revealed that several changes in the remuneration practices at huge US banks are converging them to the retail banks. Home.kpmg.com (2017) remuneration regulation can be warranted in the market failure. The emergence of the remuneration code in the nations potential and the compensation contracts deals with the principal agent problem are positively aligned based on shareholders interest that results in internationalizing costs of the potential b ank failures (Peecher and Solomon 2013). These researchers also stated that regulations that deals with the market failure might result in socially preferable results, it could also prove to have certain unintended consequences for the banks along it the nations economy like ineffective changes to the asset portfolios of the retail banks. Conclusion The objective of the paper was to review the selected article The likely impact of increased competition/ the possibility of challenger banks emerging and A New Landscape. It was revealed that several new regulatory requirements associated with remuneration have emerged. All such changes appears in a surrounding at the time banks find themselves within high regulatory scrutiny along with numerous global financial services watchdogs centered on ways in which the banks communicate with their consumers. It was also gathered that the article considered that the impact of incased completion among the emerging and existing retail banks it is deemed necessary for the retail banks to take into account their consumer base, centre hugely on long standing, loyal customers along with focusing the cross-selling and trust-developing activities on the important consumers. References and Bibliography Angelini, P., Clerc, L., Crdia, V., Gambacorta, L., Gerali, A., Locarno, A., Motto, R., Roeger, W., Van den Heuvel, S. and Vl?ek, J., 2015. Basel III: Long?term Impact on Economic Performance and Fluctuations.The Manchester School,83(2), pp.217-251. Claessens, S. and Kodres, M.L.E., 2014.The regulatory responses to the global financial crisis: some uncomfortable questions(No. 14-46). International Monetary Fund. Faulkender, M. and Yang, J., 2013. Is disclosure an effective cleansing mechanism? The dynamics of compensation peer benchmarking.Review of Financial Studies,26(3), pp.806-839. Hollebeek, L.D., Glynn, M.S. and Brodie, R.J., 2014. Consumer brand engagement in social media: Conceptualization, scale development and validation. Journal of interactive marketing, 28(2), pp.149-165. Peecher, M.E., Solomon, I. and Trotman, K.T., 2013. An accountability framework for financial statement auditors and related research questions.Accounting, Organizations and Society,38(8), pp.596-620.