A new book by Paul Schulte, CEO of Schulte Research International, shows
how Alibaba may become the future of banking. In a statement from his
new book, The
Next Revolution in our Credit-Driven Economy: The Advent of Financial
Technology (Wiley; July 2015; ISBN: 978-1-118-98960-9), Schulte
points out that, ‘companies like Alibaba, Palantir, Intuit, Mint,
Indinero and Tencent, among dozens of others, are at the forefront of
new forms of funding, analysis, research, credit checking, trading and
lending which are causing banks deep anxiety’.
According to him, banks have shown themselves to be out of touch when it
comes to the allocation of capital and the management of risk. In a
world where the cost of capital is zero, firms are attracted to them
like a magnet to inefficient organizations which cannot change with the
times and that mismanage their own core businesses.
“Central banks are accommodating this deleveraging of credit by allowing
loans which can no longer be held by banks drop onto their balance
sheets. So, people who say that central banks are printing money are
deluded. It is simply not true. In fact, the opposite is the case,”
Schulte said.
Schulte wrote The Next Revolution in our Credit-Driven Economy
to show how credit markets, which drive the prices of just about
everything that investors touch—equities, bonds, currencies and real
estate—work. It features examples of countries which have sound and
sustainable policies for their banking industries, such as Hong Kong,
Singapore and Korea; as well as countries, which are likely to get into
trouble for ignoring lessons from the past crises, such as Thailand and
Indonesia. It also offers simple ways to understand how central bank
intervention can cause countries—especially the emerging markets—to rush
into trouble. The book includes examples of specific charts which will
clearly illustrate where, when and how these credit crises begin.
The Next Revolution in our Credit-Driven Economy is an easy
to read analysis of global financial trends for the layman readers,
professional investors, MBA students and policy makers. The book will
enable investors to identify growth opportunities, and regulators to
create a sustainable economic environment.
The Next Revolution in our Credit-Driven Economy is now available
at the publisher’s website (www.wiley.com),
major bookstores and online retailers nationwide at the price of
US$50.00.
Contact the publicist:
Sharifah Sharomsah
Publicist
skbsharoms@wiley.com
+65 6643-8099