The Selfish Bank: “The
best strategy depends
upon what the
majority are doing”
Javier Santamaría
Vilnius, 8 October 2015
Cooperation is the continuation of selfishness by other means
Selfishness and
cooperation are,
basically, positive,
and the basis for
healthy competition
and survival.
2
Does Adam Smith prevail over John Nash in Europe?
“Every man for himself”
(“individual ambition serves the
common good”)
vs
https://www.youtube.com/watch?v=2d_dtTZQyUM
“The best outcome comes from
everyone trying to do what is
best for himself and the group”.
Cooperation is positive and able to
unleash a huge trapped potential in
situations of “positive sum games”
3
Business dynamics do not follow zero-sum-game patterns in sports
A positive sum game occurs
when no one wins at someone
else’s expense - the sum of
positives and negatives (wins
and losses) is positive.
Banks and non-banks do not
have diametrically opposing
positions and win-win
situations are possible.
4
Cooperation is not for granted, given the constraints
Zone of
effective
cooperation
5
Trust is not enough and incentives may be necessary
Real situation
Perceived situation
6
Third condition: match between scope and community
more ambitious
humbler
Scope and goal
tougher
closer
more complex
easier
smaller
Community and effort
broader
7
Cooperation is possible but only if competition is fair
requirements
A level playing field is a pre-requisite
• Sound definitions: competition, stakeholders
• Beneficial for everybody taking part
• Incentives and active management
8
Cooperation is also a way to innovation
Purpose: to support and promote European payments integration and development
• Recognised and trusted
• Open and professional
• In dialogue with stakeholders
• With a strategic and holistic
perspective
9
Never say again European PSPs are not innovative
Cooperation
Functionalities
Adaptation
Compliance
Cost
Value
10
The Selfish Bank: “The
best strategy depends
upon what the
majority are doing”
Javier Santamaría
Vilnius, 8 October 2015