Banking Finance

Panama is an attractive country to establish an offshore entity.  Though generally not included in a list of industrialized nations, Panama boasts hundreds of banks, including scores of international banks.  Their banking laws are set up to maximize privacy and anonymity for corporations, which is why Panama is a destination for those seeking to incorporate offshore.

Though some Panama banks have translated websites and seek international accounts, don’t expect world-class services.  Email often goes unanswered for days and it is not uncommon for the recipient to not understand your request.  Time is then lost re-translating and resubmitting your original request.  Despite fairly good internet connectivity and reliability, the banking staff is often unprepared for fiduciary services.

The banks use a layering approach with personnel that grants little authority and even less responsibility to its service employees.  A typical bank employee earns between US$ 500 to $800 per month.  They feel little empathy for foreign clients whose checking/savings accounts remind them how little they are worth to their employers.

Most Panama banks issue the typical Visa/MasterCard debit and credit cards.  Typically, credit cards require 125% of the desired credit limit be held in a savings account.  For example, if the client requests a US$ 5,000 limit, a secured balance of US$ 6,250 is required.  Additionally, most Panama banks will only permit US$ 2,000 cash (ATM) withdrawals per billing cycle.

Debit cards seem to work similar to European and American standards but again may be subject to daily limits and other restrictions such as the maximum ATM withdrawal example above.  Importantly, clients have lost their cards in ATMs outside of Panama.  In one such case, a Panama attorney called the bank manager to request the card(s) be cancelled due to loss.  He was informed that such action would require the card holder to travel to Panama and make the request in person in the bank, which is contrary to Visa/MasterCard rules.  In the above example, the attorney threatened to sue the bank for any and all loses caused by their refusal to cancel the card.  The bank manager finally capitulated.  In the end, the bank manager won the day by refusing to issue any replacement cards for the client.

Depositing and withdrawing funds from a Panama bank is not a routine matter for a foreign account owner.  Money laundering and drug money are international problems and Panama banks are very interested in erasing the poor image and reputation they earned during the Noriega years when Panama was a transit site for all manner of illegal financial transactions.

Consequently, Panama now has laws and enforcement regulations that require bankers to know the source of deposited funds and to make a good effort to determine that the funds are clean.  Do not be surprised if your Panama bank refuses to deposit a large wire transfer into your account.  If you have not “pre-cleared” the sender and satisfied the bank that these funds are legitimate payment for services or products that you have provided, the funds will be held until such time as the bank and/or government auditors are satisfied that the wire transfer funds meet their requirements.

There are procedural steps that an account owner can take in advance to minimize these delays, however, you should remember that the bank clerk receiving US$ 500 per month has been told to screen wire transfer deposits for large amounts and that is exactly what she will do.  The suspect deposits will then be reviewed by an unnamed committee and forwarded to senior bank management for final approval or hold.  We have found this to be a bottomless pit with major delays and high levels of frustration when the bank manager tells us his hands are tied and they cannot accept payment from Fortune 500 firms without complete due diligence disclosure from all of their officers and directors.

While some of the cited problems and risks with banking in Panama can be found in other venues, it has been our experience that Panama is not a good choice for international banking.  They experience all of the cited problems and there seems to be a new and different short-coming every week.  Our advice is to avoid banking in Panama if at all possible and regardless of where you bank, it is be both wise and productive to thoroughly investigate how the banking system works in each venue before deciding where to keep your money.

In the electronically connected internet world it is possible to live outside of your home country, bank in another country, and set up a corporation offshore to handle all banking and financial matters. Belize is a common choice of those wishing to enjoy the tax advantages of an offshore location as well as the banking privacy an offshore account in the Caribbean nation affords.

What is Offshore Banking?

An “offshore bank” is one that is located outside of the nation where the person lives or, if living abroad, where he or she has legal residence. People bank in jurisdictions outside of their home country in order to enjoy tax advantages, privacy, easy access to their deposits, and, often, a safer place to keep their money than “at home.” Offshore banking has been routinely and legally used for many years by individuals and organizations worldwide.

Some wealthy individuals will move assets out of their home country if the local legal environment is especially litigious. As some jurisdictions allow individuals with little fault in a legal matter to bear most of the financial burden some choose to hold part of their hard earned wealth a step away from easy discovery by aggressive attorneys. The availability of increased banking privacy and vehicles such as offshore corporations further assist the individual in the perfectly legal matter of putting their assets where they are safe and private.

How to Bank in Belize

Opening a bank an offshore bank account in Belize is easy. You can set up your account online and by fax. The bank will need your full name and a copy of your driver’s license or passport, proof of your address, a utility bill for your address, and a reference from your current bank.

Banking Privacy

Although the bank will need the above information to open an account your personal information is not available to third parties without your knowledge and consent. You can bank online and carry a debit card for your account and use it anywhere in the world. You can transfer money in and out of your account in complete security and privacy. Your business is with your Belize offshore bank and their business is with you.

Tax Advantages of Offshore Banking in Belize

An offshore bank account in Belize is not taxed in Belize. Interest on money in you Belize offshore bank account is paid without deducting for taxes. Belize banks deal with you and not the government of your country. An individual’s tax liability in their home country may vary and for this it is wise to consult a tax advisor “back home.”

Convenient Offshore Banking in Belize

With the Internet, e-mail, fax and telephone banking and the use of ATM’s, your money is just as accessible as it is from your local bank account. You can easily and quickly transfer your money around the world by electronic transfer and can effectively bank wherever you are. You can withdraw money from ATM machines worldwide from your Belize offshore bank account.

Central Bank of India chairman and managing director S Sridhar ‘s 11th floor office at Nariman Point offers a lovely view of the sea. The interiors of his sprawling office are, however, quite spartan, but what really stands out is an array of statues of gods and goddesses, besides a replica of the Golden Temple. If Sridhar is looking for divine intervention, he perhaps has got it.

Ever since Sridhar took charge in March 2009, the bank’s net profit has nearly doubled to Rs 1,066 crore (as of March 2010) from Rs 570 crore a year earlier. This came on the back of a 20% rise in the total income to Rs 13,821 crore from Rs 11,541 crore from a year ago.

An alumnus of IIT Delhi and Jamnalal Bajaj Institute of Management, Mumbai, Sridhar has about 36 years of commercial and developmental banking experience, having worked with the State Bank of India, Exim Bank and the National Housing Bank (NHB), among others. And he now dons two hats. Apart from being the top boss at the Central Bank, he has been the CMD of NHB since April 2006.

The Central Bank was set up in 1911; and in 1926, it was merged with the Tata Industrial Bank. At that time most banks were set up and run by expatriates. However, the idea behind Central Bank was to have a lender set up and run by Indians — the first bank in India with a true Swadeshi flavour.

So from the very beginning, it was projected as a Swadeshi institution. At the time of bank nationalisation in 1969, it was the No. 1 nationalised bank (the Imperial Bank became State Bank of India, a nationalised bank, in 1955).

In its centenary year, Sridhar wants the swadeshi focus to continue while he introduces new technologies and processes to make banking more pleasurable, broad-based and with an appeal for the youth. Besides, he is also championing rural housing and affordable housing as the head of NHB. Excerpts from the interview..

The bank will soon turn 100. What’s your vision for the bank in its 100th year?
I want it to be a full service bank, for every type of customer. It has to be a contemporary bank, an expertise-oriented bank. Our customers should be at the heart of all our businesses.

Besides, I aim to bring young customers into our banking fold. We are taking several steps to that end, which includes leadership training for our mid-to-senior level managers. We are de-layering the bank by having a large corporate vertical and a mid-corporate vertical.

We have also created a bad loan recovery vertical where we are using legal moves as well as negotiating settlement of NPAs. In this area, we have done some major work, mainly in the field of corporate debt restructuring. Last year we had the best yearly recovery figure ever. We recovered Rs 650 crore worth of bad loans.

What have you planned for the centenary year?

We have just started our annual lecture series — Sir Sorabji Pochkhanawala Memorial Lecture — by eminent Indians.

The first lecture was by Kamalesh Sharma, the Commonwealth secretary-general. We also have two main themes for our centenary year — youth & sports and health for the disabled.

Central Bank is considered an old-age bank. My idea is to change that perception by getting a large number of youth as our customers by using the centenary celebrations platform to reach to them.

We have also signed up as the official banking partner for the Commonwealth Games in Delhi this October.

Besides, we are also associated with football in Kolkata, the Nagpur Marathon and SPICMACAY (Society for Promotion of Indian Classical Music and Culture Amongst Youth). For the second theme, we are working in association with Sankara Nethralaya

A number of banks are raising Tier-I capital. What are your own plans to raise capital?
The bank will get Rs 2,060 crore from the central government for its contribution in our forthcoming rights issue, and another Rs 500 crore from the public shareholders.

So nearly Rs 2,600 crore will be infused in the bank in the form of equity. So, with that our capital adequacy and capital position of the bank will be considerably stable.

As of March 2009, the bank’s capital adequacy ratio was 12.84%. The rights issue will happen in the current financial year but the dates have not been fixed yet.

You also head the National Housing Bank. What is your focus area at NHB now?
For NHB, affordable housing is one of the main focus areas. Way back in 2006, at a CREDAI (the Confederation of Real Estate Developers’ Associations of India) conference, I had proposed the need for affordable housing and the need to have a Rs 1-lakh house.

For India, the need of the hour is to have affordable housing. We contribute to the area of affordable housing through banks and housing finance companies (HFCs).

The rural housing and financing of rural housing are the other focus areas. For housing in rural areas, we have the Rural Housing Fund, under which we give low-cost loan refinance at 6-7% (per annum), depending up on the type of loan.

This is meant for the weaker sections in rural areas, as per the RBI definition. Because of the Rural Housing Fund, a number of HFCs are now entering the rural housing financing space. NHB also holds a 15% stake in Mahindra & Mahindra Financial Services (one of the leading companies in the rural housing finance area).

We are willing to take such equity in more private companies, which are into rural housing and rural housing finance. However, 75% of their financing should be in the rural housing segment. We are also trying to get RRBs (Regional Rural Banks) interested in rural housing. And after several years of initiatives, about 15 RRBs are now in rural housing.

When it comes to your money, you have more choices than just the corner Savings and Loan your grandparents used. Today, tech-savvy consumers are clicking their way to virtual banks, where no overhead costs and 24/7 access is often translated into major benefits to the customer.

“If you look at online adoption rates, close to 75-80% of banking customers are online,” advises Kevin Travis, a director at Novantas, a provider of management consultancy and information services to the financial services industries. “These rates are closely correlated to access to technology and comfort with technology, including smart phone penetration, broadband penetration, and age.”

Virtual banks often carry the same FDIC-insured protection for your finances that traditional banks do, but how do they really compare? Before you choose where to stash your cash or switch banks, discover how virtual banks stack up to their brick-and-mortar competition.

Account Types

Both virtual and traditional banks offer many types of accounts, including savings accounts, checking accounts, CDs, home loans, retirement accounts, and even business accounts. The main difference? Virtual banks typically offer high yield accounts or debit rewards and the ability to transfer funds with a click of the mouse. These eBanks are usually compatible with financial software, like Quicken and Microsoft Money, or online tools like Mint.com, which technology-savvy consumers tend to love.

ATMs

In an ATM-reliant world, virtual banks are giving consumers faster access to their cash by partnering up with major ATM companies like STARsf®, with many machines located in many major drugstores and retailers, to eliminate fees and dial up the convenience factor. In fact, STARsf® has more free ATMs in the country than any of the big brick and mortar banks.And, many virtual banks give you the option of direct deposits and free overnight shipping to make bank transactions as easy as adding pennies to your piggy.

Fees

With the absence of overhead costs, virtual banks are able to pass on the savings to the consumer. Monthly fee-free accounts, free checks, low overdraft fees, and no low-balance penalties make virtual banks an attractive option for many. You can also reduce overdraft fees with overdraft protection with both online and traditional banks, meaning more change in your pocket.

Customer Service Experience

Day or night, at home or across the globe, virtual banks are opened 24/7 from any computer. Transferring money, ordering checks, and paying bills electronically can all be done on your time, with the level of interaction with a bank rep completely up to you. “With online accounts, I don’t have to deal with customer service reps trying to cross-sell me other products. I just want to bank in peace,” shares Arlene Dang, from Southlake, Tex. When you need them, customer service reps are just a click or phone call away with most virtual banks.

Limitations

Compared to the conveniences eBanks present, the limitations are minimal. Although the number of days it takes for deposits to clear varies, funds from direct deposits and transfers are often immediately available. And, unlike many brick-and-mortar bank accounts, most virtual bank accounts are free of minimum balance and monthly transaction requirements.

In a technology age, the economy as a whole seems to be surfing the web, so it’s only a matter of time before online banking becomes the norm, believe many. “In the banking industry, we’re seeing more traditional banks moving into the virtual banking channel,” explains Travis. “They are taking transactions out of the branch networks and giving their customers mobile banking tools, and transforming branches into advice centers instead of transaction centers.”

So, before you make your next bank transaction, be sure to give virtual banks a good look when considering switching bank accounts; they may be the banking champion you’ve been looking for!

Singapore strives as an international financial hub and boasts great banking facilities. Several reputable international banks have a branch located in Singapore, including BNP Paribas, Standard Chartered, Bank of India, JP Morgan Chase, Citibank, HSBC, and Bank of America. Singapore’s local banks, including DBS, OCBC and UOB, are also highly respected. Opening a corporate bank account in Singapore can be executed with smooth procedures. Following is some information on opening corporate bank accounts in Singapore.

Banking in Singapore is controlled and regulated by certain rules and regulations. The regulatory body that governs these rules is the Monetary Authority of Singapore. Opening an account with a bank in Singapore will have certain requirements, which can slightly from bank to bank. However there are common requirements that most, if not all, banks in Singapore adhere to having.

For those that are interested in operating with multiple currencies, they can open one corporate account in a Singapore bank. Another option for people that wish to handle multiple currencies without being restricted to having one account is to open one account for each currency. For example, United States dollars can have their own account while Mexican pesos can be in a separate account.  However it is important to note that banking with foreign currencies may lead to some restrictions in the countries of each currency. For instance, transferring United States dollar funds into or out of a corporate bank account in a Singapore bank may not have restrictions in Singapore, but it may have restrictions in the Unites States. Knowing the rules and regulations for banks of both the countries is vital.

Furthermore, people with a bank account in Singapore can benefit from banking versatility. Funds can be withdrawn from the bank and deposited into the bank with few restrictions.

To open a Singapore corporate bank account, certain documents are required if it is being opened offshore. Such documents include signed corporate bank account opening forms and a resolution by the board of directors that must be filled out by the company stating that it is allowing the account to be opened and that the signatories will be the persons to operate the account.

Other required documents can include:

(i)            A certified copy of the company’s certificate of incorporation

(ii)          A certified copy of a memorandum,

(iii)         Articles of association from the company,

(iv)         Passports and proof of residence belonging to the entrepreneur opening the corporate bank account,

(v)          A business profile (this may be optional at some banks).

Although the documents required to open a corporate bank account may seem overwhelming, Singapore’s efficient and developed banking center makes it relatively easy to open a corporate bank account in Singapore.

It is surprising after all of the uproar of the past few years how many people will still put their money in just any bank. Being creatures of habit and maintaining a tried routine has many benefits in life.  However All banks are not created equal, and let’s be clear that many have proven more solvent than others, on this issue visit bankrate.com to review their safety and soundness ratings of your current and future bank. Besides FDIC insurance, what other characteristics should you seek – and what questions should you consider?

How close is this bank? Is there a branch near where you live and close to where you work? How is the online banking setup? (Yes, you should value convenience, but it shouldn’t be the only factor in mind as you choose a bank.)

How cheap is it to bank there? You’ve heard of overdraft fees and ATM fees. But how about wire fees, notary fees, and fees on cashier’s checks and money orders? Returned-deposit fees? Stop-payment fees? Fees to check your balance? Fees to talk to a teller? (No kidding, some banks do charge for that.) Is it bad taste to ask a bank to detail its potential fees? No, it’s smart. Some banks offer you a free checking or savings account and a whole lot of potential charges besides. Some have plans that cover a whole range of services, plans that could save you some money.

What else can this bank do for me? I you are a business owner can the bank provide your business with credit card processing? Do they offer interest bearing checking accounts?What kind of CDsdoes the bank offer? How about mortgage, auto, credit cards, and other loan types? Could you send money overseas via this bank? And can you access your account via the ATM if you are overseas?  Do they do any trust planning?

How friendly is this bank? When you walk into the bank, what’s the reception? Do people greet you and ask how they may help you? Or are you ignored for a prolonged period? What happens may hint at the level of service coming your way.

Ask to see a bank officer, if possible. Oh, and before you go… write down a list of what you want, and see how close your potential new bank comes to providing it. Don’t be afraid to make the bank work for your business – they all should be working harder than ever for it.

What can you do to make a banking relationship better for you? If you bring major amounts of cash to a bank, of course you’re going to be treated as a VIP. If you don’t, it may help you to establish a relationship or two. So often, we go to a bank and we look at the tellers – and even the loan officers and mortgage consultants – as mere functionaries instead of human beings.

If you have a lousy experience at the bank or you get dinged with some weird fee all of a sudden, ask why – preferably in person or then over the phone at your local branch.  Only if the problem is not resolved then maybe the customer service staff (via that 800 number to the main office/call center) can address the matter and work out a solution.  A good way to assure your known as a valued customer is to bank when it isn’t “rush hour” including Saturday’s. A friendly, recognizable customer who wants the best from his banking relationship can turn into a valued banking client.

Would it be better to use a bank online? How often do you need to go inside your bank? If you really don’t require much in the way of in-person services, maybe an online bank is a better option – after all, why should you pay to support your bank’s branches if you never set foot in them? There are some outstanding banks online that can provide you the services of a traditional brick and mortar bank, and because of their lower overhead costs they provide these services at a better value to you. Some typical examples are higher interest rates on CD’s, money market rates, and checking accounts , discounts on other banking products/services and innovative products that are often unavailable to you at a traditional bank.

Thinking small may help. Many people were leery of small banks in this last economic downturn, yet the customer service and overall customer experience can be considerably better at such institutions.  Also though I am using the word “bank” do not forget to consider credit unions as a strong viable option for your needs as they also provide many strong products along with fine service. When a community or other bank is bought by a bigger one, bigger does not necessarily mean better in terms of attention to you the customer, so please be proactive in looking for the best options for you and your family.

Retail banks largely missed out on opportunities to develop online financial services during the e-commerce revolution of the ‘90s. They may be missing out again, this time within the realm of social media – except that now, the global online virtual dollar market can reach US$10 billion in 2010, with Asia accounting for US$7 billion, according to Engage Digital Media.

The size of financial transactions online is also increasing. In December 2009, a user of Entropia Universe’s game bought a virtual Crystal Palace Space Station for US$330,000. This property currently holds the Guinness Record for the most expensive virtual world object.

Social network users and social gaming players are becoming more comfortable paying for virtual goods, and there is without a doubt, a need for convenient and secure micropayment transactions made in virtual or real currencies.

Just take a look at the variety of financial transactions conducted over social media and social games today:

•    Purchase of virtual goods e.g. Entropia Universe, Second Life, World of Warcraft, Facebook, QQ
•    Purchase of physical goods e.g. Facebook
•    Social lending e.g. Kiva, Prosper, Lending Club, Virgin Money USA
•    Donations e.g. Facebook, Twitter
•    Online dating services e.g. Zoosk

Opportunities for banks

The need for flexible and secure payment infrastructures within social media environments gives banks the opportunity to offer solutions to social media players based on their technological knowledge, processes, reliability, regulatory compliance and reputations.

The opportunity is huge, given the growth of social media usage across the world. Social media users from US, UK, Australia, Brazil, Japan, Switzerland, Germany, France, Spain and Italy spent on average more than 5.5 hours per month on social networking sites in 2009, which is over 80% more than a year before. It is estimated that two-thirds of Americans now use Facebook, Twitter, MySpace, and other social media sites.

Here are just some ways retail banks can tap this growth:

•    Setting up virtual banks
•    Facilitating secure online money transfer services
•    Management services for virtual currencies
•    Risk and liquidity management solutions for peer-to-peer banking services

1. Setting up virtual banks

Players of online role-playing games with cash economies, such as Entropia Universe and Second Life, have the option to set up interest-bearing accounts, which they use to deposit their virtual salaries, pay virtual bills or lend virtual cash via the virtual banks.

MindArk, the creators of Entropia Universe, became the first company in the world to issue virtual banking licenses in 2007. These licenses were valid for two years and were sold for a total of US$404 000 to real world banks and entrepreneurs. In March 2009, Mind Bank AB, a wholly owned subsidiary of MindArk, was granted a real-world banking license, which allowed it to offer real bank services to consumers who are also inhabitants of their virtual universe.

There is a demand for strong reputable financial institutions within virtual environments. Second Life, created by Linden Labs, bans all unregistered and unregulated banks from their virtual world, after complaints about several virtual banks defaulting on their promises to pay high returns on customer deposits.

Such virtual banks could soon be introduced to social media networks such as Facebook, Friendster and Twitter, as they seek to allow their online communities to interact like they would in real life economies and to create more revenue-generating services.

2. Facilitating secure online money transfer services

Currently, the most popular payment options include credit cards, mobile phone payments and online payment systems such as PayPal. These cover payments for virtual currencies or goods and services but are limited as they are relatively expensive and not all payment options desired by the users are available on all social media platforms in all countries. Hence, current payment systems are not flexible enough for transactions such as multiple purchases of goods with lower monetary value or multi-country money transfers.

Advantages of current online money transfer systems

•    Virtual currency systems simplify online payments and lower the transaction fees
•    Most of the social media platforms accept at least the most common credit cards
•    Systems such as PayPal make the transactions easier and faster as the financial details need to be entered only once, at the registration phase
•    Mobile payments are a relatively easy payment option that is gaining popularity

Disadvantages of current systems

•    Fees per transaction are still high
•    Functionalities for multi-country users are limited
•    The selection of payment options available on social media platforms is limited
•    Security issues still create reluctance among some users
•    Credit or debit cards payments are relatively time-consuming due to the need to enter financial information every time a purchase is made

This inhibits social media interaction and transactions on the Web. This in turn leads to lower revenues for social platform owners, social game developers and other stakeholders.

Social media developers are currently looking for better financial services solutions.

In April 2010, Facebook announced plans to add 100 to 200 local payment options worldwide that would allow Facebook members to buy Facebook Credits. They can use these virtual credits for games or to purchase virtual and real-world goods, participate in auctions as well as pay for advertising for example. The company is looking for partners who can range from mobile payment providers to bank payment system providers.

There are already solutions, such as Nokia Money, that allow consumers to manage their personal finances with a mobile phone. This business model, which allows individuals to transfer money without a bank account, has great potential in emerging economies where banking services are not so common. It also offers greater convenience and security to consumers in developed markets who do not wish to have to login into their online bank accounts in order to conduct mobile payments.

Perhaps it will be possible for consumers to use their Facebook and other social media accounts to transfer money, pay bills and deposit money in the future, either through their mobile phone on other mobile devices.

3. Management services for virtual currencies

Like any real-world economy, virtual currency supply controls and currency exchange systems are needed to keep virtual inflation low and virtual economies sustainable. Secure and flexible solutions in these two areas are crucial to the growth of virtual activities. Banks could offer their technology, know-how and regulatory compliance to social media players in the set up of transparent, reliable virtual currency mechanisms.

4. Risk and liquidity management solutions for peer-to-peer banking services

Online peer-to-peer lending platforms such as Kiva, Prosper, Lending Club and Virgin Money USA are gaining popularity as alternatives to the intermediated financial services industry. The average loan sizes vary from around US$400 on Kiva’s network to US$4,500 on Prosper and US$8,700 on Lending Club.

Such loan solutions are more flexible when it comes to interest rates, sizes of loans, loan application requirements and lending periods. Some connect borrowers and lenders directly while others connect them via a third-party intermediary. On some peer-to-peer sites, lenders can set interest rates themselves and others pre-set rates based on historical performance and credit scores. Not surprisingly, peer-to-peer online banking services are usually more cost efficient than traditional banking services.

According to some estimates, peer-to-peer lending is expected to reach US$5.5 billion to US$6 billion this year alone.

Lenders to peer-to-peer banking services usually take on all the risk of potential credit defaults and their investment is less liquid than many other alternatives, as lenders are often required to keep their investment until loan maturity. Some peer-to-peer banking websites came up with solutions to tackle these two downsides of social lending. Lending Club, for instance, has created a secondary market for loans for those lenders that do not want to hold them to maturity. Prosper tries to lower the investment risk by offering loans only to borrowers with strong credit.

As peer-to-peer lending platforms are still looking for ways to lower the investment risk and improve the liquidity of loans, banks have the opportunity to offer risk management solutions, including loan insurance products, and liquidity management services such as loan securitization.

Conclusion

Retail banks that partner with social media and social gaming businesses have a great opportunity to capitalize on social media developments.

They can do this through a number of ways: by creating convenient and secure micropayment transactions for social media platforms, by setting up virtual banks, by providing technology and know-how for virtual currencies management and by selling risk and liquidity management solutions to peer-to-peer lending platforms banks.

Retail banks can increase and diversify their revenue sources and enable further growth of social media platforms as they seek to improve their financial infrastructures.