If you’re wondering why your bank’s mobile app sucks, it might be because EU’s bonus caps are doing exactly what Nassim Taleb thinks they should be doing: driving all of the creativity and entrepreneurialism out of banks.
Spanish bank BBVA, which makes more noise than most about its digital promise, has hit upon a glitch: how to attract and keep the smartest analysts and developers who help build its best apps. The problem is these people are falling afoul of the same European bonus-restriction rules that were meant to rein in aggressive risk taking traders and dealmakers….
BBVA has written to the European Commission to raise the problem, because it can stop the bank keeping talent or buying fintech start-ups, especially when it is competing with non-banks for the same people.
The bank would like regulators to grant an exception to the rules for the geeks who aren’t financial risk-takers.