[Dave Birch] This month’s Financial World magazine (not available online) has an article by David Lascelles of the CSFI on their annual “Banking Banana Skins” report. They survey 500 “financial practitioners and analysts” around the world to find out what they think are the biggest risks to the banking industry over the coming year. It’s a good way of working out where the attention of the people who runs banks is focused (hint: not here).
The overall level of risk hasn’t changed much over the years, although the “spread” has come down (in other words, the magnitude of the biggest risks is now closer to the average). Payment systems are now the 29th most important risk area (down from 25th last year). However important we think the world of electronic payments is, it doesn’t keep bankers awake at night. And remember, that’s payment systems as a whole. If retail payment systems were taken into a separate category, they would be around 129th.
By the way, when they talk about payment systems risk, I think they mean systemic risk (such as consumers losing faith because of fraud), not the risk that software will screw up and credit a customer with $700 million instead of $70 (although that did happen this week).