BANKING NEWS FLASH September 01, 2014
Table of Contents Sales & Marketing ................................................................................................................. 3 Finance ................................................................................................................................. 8 Technology .......................................................................................................................... 12 Strategy .............................................................................................................................. 16
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Sales & Marketing 10 million new bank accounts to be opened in India under new scheme August 27, 2014 | BBR http://www.banking-business-review.com/news/around-ten-million-bank-accounts-to-beopened-in-india-under-new-scheme-270814-4354084 Around 10 million bank accounts are expected to be opened in India by public sector banks when the government launches a new scheme Pradhan Mantri Jan Dhan Yojana (PMJDY) on Thursday Under the scheme (roughly translated to prime minister's people's wealth scheme), the government aims to provide two accounts each to 75 million households in the next four years. The finance ministry said in a statement: "About 76 mega functions will also be organized at prominent places throughout the country to mark the launch of scheme which will be attended by the union ministers and the state chief ministers along with other dignitaries. "It is estimated that about one crore (10 million) accounts will be opened on this day." During the phase one of the scheme, each account holder will receive a RuPay debit card with accident coverage of INR100,000 ($1,654.29). The second phase will begin in August 2015 and will provide the account holders with insurance cover and pension products. For Adhaar-enabled accounts operating for six months, the scheme will provide an overdraft facility of INR5,000 ($82.7). The ministry said: "This will enable them to come out of the grip of moneylenders, manage to keep away from financial crises caused by emergent needs, and most importantly, benefit from a range of financial products."
Westpac to integrate Moven’s mobile money management tool in internet banking August 25, 2014 | BBR http://www.banking-business-review.com/news/westpac-to-integrate-movens-mobile-moneymanagement-tool-in-internet-banking-250814-4351448 Westpac New Zealand will integrate its online banking platform with startup Moven’s mobile money management tool to enable customers manage their money through their smartphones, tablets or desktop To be integrated in October 2014, the tool provides downloadable bank accounts for its customers. Westpac customers will be able to track their spending through real-time mobile receipts that will be received immediately after purchasing a product.
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In addition, they can compare their average spend against their actual spend for a month through a graph that uses colors such as red, yellow and green to show the difference. Westpac chief digital officer Simon Pomeroy said: "The key to this set of features is the ease of use. "It is developed with the digital age and the mobile consumer in mind. "There is very little manual set up, it comes preloaded with 12 categories and other features and the way graphs are displayed delivers quick and effective budget and money management information in real time." The integrated system will also provide customers with regular feedbacks and money management decisions. Moven founder and CEO Brett King said: "Our objective is to get as many people as possible around the world using our tools everyday. "When you are talking about providing banking services, however, that also requires great bank partners in those markets where we launch. Our partnership with Westpac is yet another example of their commitment to world-class innovation."
Advantex launches program for TD Aeroplan Credit Cardholders August 21, 2014 | BBR http://cards.banking-business-review.com/news/advantex-launches-program-for-td-aeroplancredit-cardholders-210814-4348879 Advantex Marketing International Inc. (CSE:ADX) has launched a business relationship with The Toronto-Dominion Bank that paves the way for TD Aeroplan Credit Cardholders to earn incremental bonus Aeroplan Miles. Under the two-year agreement, TD Aeroplan Credit Cardholders can now earn extra miles whenever they buy goods and services from merchants enrolled with Advantex. About 1,000 businesses throughout Canada, mainly in the restaurant, leisure and retail sectors, are currently Advantex partners. Merchants will also benefit from the agreement with TD by gaining exposure to a large group of credit cardholders with above-average personal and household incomes. Merchants already enrolled in Advantex's existing programs will automatically participate in the TD program. "The agreement with TD marks a big step forward for us and our partner merchants," said Kelly Ambrose, Advantex's president and CEO. "We can now help businesses market their goods and services to cardholders of two of Canada's largest and most respected financial institutions." Mr. Ambrose added: "We are confident that future expansion of our merchant base, a rising volume of transactions and wider geographical coverage will translate into significant and sustainable growth in Advantex's revenues and profitability.
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Loyalty marketing is a multi-billion dollar business in North America. We are well positioned to gain a wider share of this market with our proprietary technology and outstanding partners."
US regulator suspends Standard Chartered operations over laundering compliance August 20, 2014 | BBR http://retailbanking.banking-business-review.com/news/us-regulator-suspends-standardchartered-operations-over-laundering-compliance-issues-200814-4346996 The New York Department of Financial Services (DFS) has imposed a fine of $300m on Standard Chartered Bank (SCB) and restricted it from continuing certain financial services for its ‘failures to remediate anti-money laundering compliance problems’ The regulator requires the bank to suspend dollar clearing at his Hong Kong subsidiary for high-risk retail business clients, and exit high-risk client relationships within certain business lines at its branches in the UAE. SCB will exit high-risk small and medium business clients in 90 days, failing which it has to suspend US dollar clearing through the New York branch for those clients. The bank needs to take prior approval from DFS to service new dollar-clearing clients or accounts across its operations. The restrictions on SCB's operations are a result of its failure to comply with the monitoring systems agreed with the DFS in 2012. Superintendent of financial services Benjamin Lawsky said: "If a bank fails to live up to its commitments, there should be consequences. "That is particularly true in an area as serious as anti-money-laundering compliance, which is vital to helping prevent terrorism and vile human rights abuses." SCB paid $667m to US regulators in 2012 for enabling money transactions involving Iran, Myanmar, Libya and Sudan. The DFS appointed an independent monitor after the 2012 agreement. It was found by the monitor that the bank's own monitoring system did not detect potentially highrisk transactions mainly originating from its branches in Hong Kong and the UAE. The DFS said: "SCB failed to detect these problems because of a lack of adequate testing both before and after implementation of the transaction monitoring system, and failed to adequately audit the transaction monitoring system."
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ADCB Launches Commercial Offshore Banking Products August 18, 2014 | Zawya https://www.zawya.com/story/ADCB_Launches_Commercial_Offshore_Banking_ProductsZAWYA20140818071750/ Abu Dhabi, 18 August 2014: Abu Dhabi Commercial Bank ( ADCB ) announced today the launch of commercial offshore banking products through its Jersey branch. Eligible ADCB wholesale banking clients will now have the option to diversify and preserve their resources with full flexibility and control. Clients will be able to open Current Accounts, Call Accounts & Term Deposits in multiple currencies. ADCB 's Jersey Branch makes offshore banking stress-free, allowing clients to easily access their account via secure online portals anywhere in the world. "We are pleased to announce to the launch of ADCB offshore banking products to our commercial clients through our Jersey branch. It's a great value proposition that makes our product suite comprehensive," said Colin Fraser, Head of Wholesale Banking Group. " ADCB offshore banking is currently available to our commercial, wealth management, and business banking clients, adding wholesale banking to our Jersey branch offering ensures every one of ADCB 's clients has access to a suite of world-class products." HomeÂťNews Article 18 August 2014 more articles from. ADCB Launches Commercial Offshore Banking Products Google PlusFacebookTwitterLinkedInEmail A FriendPrint This Page Save as PDFAdd to Reading List In This Article Abu Dhabi Commercial Bank Abu Dhabi, 18 August 2014: Abu Dhabi Commercial Bank ( ADCB ) announced today the launch of commercial offshore banking products through its Jersey branch. Eligible ADCB wholesale banking clients will now have the option to diversify and preserve their resources with full flexibility and control. Clients will be able to open Current Accounts, Call Accounts & Term Deposits in multiple currencies. ADCB 's Jersey Branch makes offshore banking stress-free, allowing clients to easily access their account via secure online portals anywhere in the world. "We are pleased to announce to the launch of ADCB offshore banking products to our commercial clients through our Jersey branch. It's a great value proposition that makes our product suite comprehensive," said Colin Fraser, Head of Wholesale Banking Group. " ADCB offshore banking is currently available to our commercial, wealth management, and business banking clients, adding wholesale banking to our Jersey branch offering ensures every one of ADCB 's clients has access to a suite of world-class products."
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ADCB continually brings its clients effective, reliable and innovative solutions. Collecting awards from Global Finance as the 'Best Bank in the Middle East for Cash Management' and Asian Banker as the 'Best Domestic Cash Management Bank in United Arab Emirates,' these awards come as a testimony to ADCB 's market leading capabilities. ADCB understands the ambitious requirements of its clients and delivers solutions both at home and internationally to suit those needs. About ADCB : ADCB was formed in 1985 and as at 30 June 2014 employed over 4,300 people from 61 nationalities, serving over 561,000 retail customers and approximately 43,000 corporate and SME clients in 50 branches, 3 pay offices and 2 branches in India, 1 branch in Jersey and a representative office in London. As at 30 June 2014, ADCB 's total assets were AED 198 bn. ADCB is a full-service commercial bank which offers a wide range of products and services such as retail banking, wealth management, private banking, corporate banking, commercial banking, cash management, investment banking, corporate finance, foreign exchange, interest rate and currency derivatives and Islamic products, project finance and property management services. ADCB is owned 60.2% by the Government of Abu Dhabi (Abu Dhabi Investment Council - 58.08% and Abu Dhabi Government Entity - 2.07%). Its shares are traded on the Abu Dhabi Securities Exchange. As at 30 June 2014, ADCB 's market capitalisation was AED 37 bn
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Finance CaixaBank signs €500m deal with Fujitsu for contactless cash machines in Spain August 29, 2014 | BBR http://www.banking-business-review.com/news/caixabank-signs-500m-deal-with-fujitsu-forcontactless-cash-machines-in-spain-290814-4356606 Spain’s CaixaBank has awarded a €500m deal to Fujitsu for manufacturing 8,500 contactless cash machines The new machines will allow the bank to offer services under the new Punt Groc cashpoint model for cards, mobile phones and wearable devices. The machines will feature automatic banknote recognition and recycling units. In addition, they will improve cash availability at the cashpoints and streamline the manual paper money loading process, the company said. The machines are fitted with support tools such as sign language, high-contrast screens, large-sized text and buttons, a screen reader and keyboard browsing to enhance user experience, especially for disabled people. Caxiabank said: "The software installed in CaixaBank's Punt Groc machines enables the menu of services that appears at the start of a transaction to be fully customised. "Users can choose between more than 250 different transactions, all displayed through a style book based on the latest design and usability preferences. "This suite of services was installed across the entire network during the first quarter of 2014." Deployment of the machines will begin this year and spread through 2024. Fujitsu has begun the production of the machines at its facility in Malaga. The companies will also work together to make innovations in the cashpoint technologies
Stonegate Bank to buy Community Bank of Broward for $61.2m August 26, 2014 | BBR http://retailbanking.banking-business-review.com/news/stonegate-bank-to-buy-communitybank-of-broward-for-612m-260814-4353169 Stonegate Bank announced today the signing of a definitive agreement by which Stonegate will acquire all the operations of Community Bank of Broward. Stonegate Bank's management expects the combination will increase total assets to approximately $2.1 billion and will rank Stonegate Bank as the 10th largest bank headquartered in Florida.
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The value of the total consideration to be received by CBB's common shareholders will be equal to approximately 140% of the tangible book value of CBB as determined at the month-end prior to the closing date. The consideration will be in common stock of SGBK valued at $26.00 per share. As of June 30, 2014, the transaction is valued at approximately $61.2 million. CBB, headquartered in Weston, Florida, is a state chartered bank operating eight branches all in Broward County, Florida. As of June 30, 2014, CBB had total assets of $487 million, total loans of $413 million and total deposits of $419 million. "This acquisition significantly expands our deposit market share in Broward County to approximately 2.0%, resulting in Stonegate having the largest deposit market share of any community bank in Broward County," said Dave Seleski, President and Chief Executive Officer of Stonegate Bank. "In addition, we believe this merger creates substantial economies of scale and will significantly improve our shareholder returns. Stonegate's total combined deposits in southeast Florida will now exceed $1 billion. Stonegate's capital ratios will remain strong and allow the bank to continue to grow organically as well as through future acquisitions." "We are very excited about becoming a part of the Stonegate banking team. We have been friendly competitors for many years and now we can become a part of their very high performance financial organization. We will also be able to provide additional products and services for our customers. We have a common culture of productivity, excellent customer service and follow-through and I am very excited about this new partnership," added Bruce Keir, President and Chief Executive Officer of Community Bank of Broward. Stonegate estimates the transaction to be immediately accretive to earnings per share with doubledigit accretion in the first full year. Furthermore, it is anticipated that tangible book dilution resulting from the transaction will be modest and recovered in less than 3 years. This transaction will mark Stonegate's seventh acquisition since 2009. The merger has been approved by the Board of Directors of Stonegate Bank and CBB. In addition to certain customary closing conditions, approval by the shareholders of Community Bank of Broward and Stonegate Bank as well as the as the applicable bank regulatory agencies will be required prior to completing the transaction. The closing is expected to take place late in the fourth quarter of 2014. Sandler O'Neill+ Partners served as financial adviser to Stonegate Bank. Gunster, Yoakley & Stewart, P.A.served as legal counsel to Stonegate Bank. Hovde Group, LLC served as financial adviser to Community Bank of Broward and rendered a fairness opinion in connection with the transaction. Smith Mackinnon, P.A. served as legal counsel to Community Bank of Broward
BNG Bank reports net profit of â‚Ź153m August 25, 2014 | BBR http://commercialbanking.banking-business-review.com/news/bng-bank-reports-net-profit-of153m-250814-4351930 BNG Bank's net profit rose by EUR 30 million to EUR 153 million compared with the same period in 2013.
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The increase was mainly due to an improved result on financial transactions, almost entirely due to unrealized market value adjustments. At EUR 4.7 billion the volume of new long-term lending in the reporting period was almost EUR 1.0 billion lower than in the first half year of 2013. The bank's persistently high share in the total demand for financing in its main client sectors in conjunction with the lower volume reflects a decline in client demand. This demand largely relates to the refinancing of existing loans. The unfavorable economic conditions coupled with spending cuts or tax and rate increases offer the bank's clients little room for new investments. Moreover, clients have adopted a reticent approach due to continuously changing regulations. In the reporting period BNG Bank raised EUR 9.6 billion (2013: EUR 7.7 billion) long-term funding for refinancing and lending purposes. The international capital markets' growing confidence in the euro and the European banking sector has further improved the availability of funding at attractive rates. BNG Bank will most probably fall under the direct supervision of the European Central Bank effective November 2014. In the build-up to this transition, the bank is taking part in the Comprehensive Assessment, which includes the Asset Quality Review and the Stress Test. The results will be announced in October. The 2014 interest result is expected to turn out lower than that for 2013. The result on financial transactions will remain sensitive to the level of economic recovery in the Eurozone. In view of the prolonged uncertainties, the bank does not consider it wise to make a statement regarding the expected 2014 net profit
Bank of America to pay $16.65bn fine over faulty mortgages August 22, 2014 | BBR http://retailbanking.banking-business-review.com/news/bank-of-america-to-pay-1665bn-fineover-faulty-mortgages-220814-4349896 The US Department of Justice has ordered the Bank of America (BofA) to pay $16.65bn to settle the claims over selling risky mortgage securities prior to the 2008 financial crisis As part of the settlement, BofA will pay $7bn as relief to affected homeowners. The bank is also required to pay $5bn penalty under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) and $4.63bn in compensatory remediation payments. The penalty being paid to FIRREA is the highest ever paid. US attorney general Eric Holder said: "Under the terms of this settlement, the bank has agreed to pay $7bn in relief to struggling homeowners, borrowers and communities affected by the bank's conduct. "This is appropriate given the size and scope of the wrongdoing at issue."
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The civil investigations found that BofA was involved in packaging, marketing, selling, structuring and issuing residential mortgage-backed securities, collateralized debt obligations, and followed faulty practices while underwriting and creating mortgage loans. The lender also accepted that it misrepresented the quality of mortgage loans to Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA). US associate attorney general Tony West said: "At nearly $17bn, today's resolution with Bank of America is the largest the department has ever reached with a single entity in American history." The state claims against BofA include its former and current subsidiaries Countrywide Financial Corporation and Merrill Lynch. US attorney Paul J. Fishman for the district of New Jersey said: "In the run-up to the financial crisis, Merrill Lynch bought more and more mortgage loans, packaged them together, and sold them off in securities - even when the bank knew a substantial number of those loans were defective."
First Midwest Bancorp Declares Third Quarter Cash Dividend of $0.08 per Share August 21, 2014 | BBR http://commercialbanking.banking-business-review.com/news/first-midwest-bancorp-declaresthird-quarter-cash-dividend-of-008-per-share-210814-4348876 First Midwest Bancorp, the holding company for First Midwest Bank, announced today that its Board of Directors declared a quarterly cash dividend on the Company's common stock of $0.08 per share. This quarterly cash dividend will be payable on October 14, 2014 to common stockholders of record on September 26, 2014 and will represent the 127(th) consecutive dividend paid by First Midwest since its inception in 1983. First Midwest, with assets of approximately $9.0 billion, is the premier relationship-based banking franchise in the dynamic Chicagoland banking market. As one of Illinois' largest independent bank holding companies, First Midwest, through its subsidiary bank and other affiliates, provides a full range of business and retail banking and wealth management services through approximately 100 banking offices located in metropolitan Chicago, northwest Indiana, central and western Illinois, and eastern Iowa. First Midwest has been recognized by J.D. Power as having the "Highest Customer Satisfaction with Retail Banking in the Midwest Region" according to the 2014 Retail Banking Satisfaction Study(SM).
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Technology CaixaBank invests EUR500m in contactless ATMs August 27, 2014 | Finextra http://www.finextra.com/news/fullstory.aspx?newsitemid=26391 Spain's CaixaBank has struck a EUR500 million deal with Fujitsu to build 8500 cash machines fitted with contactless readers. Under a 10 year partnership, the pair will begin installing the ATMs this year, overhauling a network which is the third largest in Europe. CaixaBank and Fujitsu first teamed on a contactless ATM back in 2011. The feature means that, instead of inserting their cards in a slot in the machines, customers tap their contactless card, mobile phone or wearable device against a reader and enter their PIN. This, says the bank, makes cash withdrawals 30% faster. The new ATMs also come with automatic banknote recognition and recycling units to improve cash availability and streamline the manual paper money loading process. To ensure accessibility, the machines have avatars who uses sign language, high-contrast screens, large-sized text and buttons, a screen reader and keyboard browsing. The partners say that they will also work over the course of their contract to add more innovative features to the network, which is used 7.5 million times a month
Location Data Could Become Key to Fighting Bank Fraud August 27, 2014 | American Banker http://www.americanbanker.com/issues/179_166/location-data-could-become-key-to-fightingbank-fraud-1069639-1.html?utm_campaign=abla%20daily%20briefingaug%2028%202014&utm_medium=email&utm_source=newsletter&ET=americanbanker%3Ae299 6315%3A995751a%3A&st=email Banks are closely following an emerging technology BillGuard is testing that would monitor the whereabouts of mobile devices to detect payment anomalies. The New York tech firm, which combs consumers' transaction data to find suspicious purchases after they post, is tracking phone locations in a bid to better detect shady point-of-sale purchases. "We are using the location of a phone as a data source," said Yaron Samid, BillGuard's founder and chief executive. "It's a very high-value alert." The device is almost always close to its owner and can serve as another method to spot potential fraud scenarios that transaction data alone might overlook.
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BillGuard's geolocation enhancement, which requires users' consent, comes as financial institutions are publicly exploring ways to use location-based services to prevent fraud and avoid blocking transactions without cause. Westpac in Australia, for example, updated its app in August to monitor customers arriving at airports, while prompting them to inform the bank through the app about specific dates and locations of overseas travels. Then, Lone Star National Bank in Texas partnered with fintech firm OnDot last year to let customers set their card control preferences — including whether they want to let a banking app monitor their locations. Wells Fargo, which launched an accelerator program in late August, also made location-based services company Zumigo Corp. one of the initiative's first participants. Banks have long mined transaction data to block someone from buying something in Michigan an hour after swiping a card in New York. But spot checking whether the smartphone and card are in the same place could uncover red flags that transaction data alone might not spot. "The mobile device adds a ton of context," said Julie Conroy, a research director for Aite Group's retail banking practice. Take last year's Target breach, which compromised data of some 40 million debit and credit card users. Conroy said the criminals were selling the ZIP code of the breached store in addition to the stolen card data so that the mules could use counterfeit cards within the footprint of the genuine consumer. While the transaction data might have appeared fine, geo-location capabilities could have helped raise a red flag, she said. BillGuard's Samid describes his company as a partner with banks in the fight against card fraud. Unlike financial institutions that try to prevent fraud before it happens, BillGuard is exclusively focused on scouting for suspicious activity after transactions post. Users will receive the alerts as soon as BillGuard receives the data, which varies by bank and card issuers but typically hits the same day or within two days. Like all of its alerts, BillGuard users can dismiss the alert or pursue the problem. The firm said it has been testing the location-monitoring service with a limited beta group of 7,000 cardholders. The location monitoring methods are supposed to be battery life friendly. In an online FAQ, BillGuard said it may only sample a person's geolocation two to three times a day and can often do so without activating the phone's GPS, which is a battery hog. BillGuard did not immediately provide more detail on how it tracks the location data. Some companies gather location data through wireless triangulation, which works by collecting data from cell towers. The firm's efforts are applauded by industry observers who perceive a growing appetite among consumers to let them choose stronger card controls in the wake of major data breaches. Tracking mobile devices' locations can serve as a very powerful tool to catch fraud at the point of sale, said Al Pascual, director of fraud and security for Javelin Strategy & Research. Pascual said he views BillGuard's beta feature as a positive development for the financial services industry. "This is a nice sign of where we are," Pascual said. "We are on the cusp of real consumer empowerment through the mobile device."
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BillGuard's product should be appealing to consumers, said Jim Bruene, founder of The Finovate Group. Bruene, a fan of the update, said banks looking to do something similar must avoid the boy who cries wolf with too many false negatives, and thus, customer fatigue. "You get 10 in a month and you get used to" the alerts, Bruene said. Still, tech firms are convinced consumers want to have a stronger role in the way they monitor their cards. OnDot Systems, which sells card control software to banks, said consumers want to set user preferences — including monitoring mobile phones — to prevent problems on their cards much like any safety precaution. "Why do you lock the house?" said Rachna Ahlawat, OnDot's founder and executive vice president of products. "It's more and more common for people to control their own [payment] instrument."
St George preps fingerprint login for iPhone app August 22, 2014 | Finextra http://www.finextra.com/news/fullstory.aspx?newsitemid=26382 Australia's St George Bank will soon let iPhone-owning mobile customers log into their accounts with only a fingerprint. The bank says that it will introduce the feature for iPhone 5S owners when Apple rolls out its iOS8 operating system next month, taking advantage of the handset's Touch ID technology. Customers who open the St George app will have the choice to use their fingerprint or a password to log in and check their balances, transfer funds and carry out other transactions. St George's parent, Westpac, is planning to follow suit in the near future, while a similar biometric login system for the Android-based Samsung Galaxy S5 is also in the pipeline
Wells Fargo launches accelerator programme to support fintech start-ups August 21, 2014 | BBR http://payments.banking-business-review.com/news/wells-fargo-launches-acceleratorprogramme-to-support-fintech-start-ups-210814-4349085 American banking and financial services company Well Fargo has launched a new Startup Accelerator programme to support firms that develop financial technology (fintech) products. Under the six-month programme, the lender will invest up to $500,000 in each selected start-up firm and provide business planning ideas. In addition, the lender's subject matter experts and purchasing managers will conduct workshops and provide individual coaching to the firms to develop their financial technology products. The company will select up to 20 start-ups that develop products for payments, fraud and operations. Wells Fargo Wholesale Services head and executive vice-president Steve Ellis said: "For Wells Fargo to work on big ideas and spark innovators inside our organization, we need to expand our access to new ideas at the edges of our industry.
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"The Startup Accelerator adds a new cylinder to our corporate innovation engine. "We're taking a proven business model from the venture capital community and repurposing it as a strategy for connecting with start-ups whose ideas and growth prospects could add value to our business and our customers." The company has already selected three firms, Zumigo, EyeVerify and Kasisto for the Startup Accelerator programme. Ellis said: "We're interested in any technology that could be used by an institution like Wells Fargo to better serve our customers or operate our business. "Analytics, big data, mobile, security, and infrastructure are all important to us. We're looking to engage with innovators beyond the edge of our own creative enterprise."
SIMI, PayNearMe partner to offer cash collection services to US government agencies August 20, 2014 | BBR http://payments.banking-business-review.com/news/simi-paynearme-partner-to-offer-cashcollection-services-to-us-government-agencies-200814-4347664 Electronic cash transaction network PayNearMe and payment processing provider for US government agencies Systems & Methods (SMI) have partnered to offer a cash collection method that eliminates the hassle of manual cash processing, while giving customers of child support government agencies an easy and affordable way to pay child support in cash. Upon approval from the government agency, the partnership between SMI and PayNearMe extends the reach of the agency's payment processing centers by allowing non-custodial parents to make payments at more than 17,000 participating 7-Eleven, Family Dollar and ACE Cash Express stores in PayNearMe's nationwide network. "Cash shouldn't be harder to accept or send than other payment methods, and when it comes to government services, it is especially critical that the process is handled correctly the first time," said Michael Darnaud, vice president of business development for government services at PayNearMe. "This partnership frees government agencies from the hassle of traditional cash or money order processing while providing their customers with the flexibility to pay in their own neighborhoods." The convenience of paying at a neighborhood store, many of which are open 24 hours a day, seven days a week, saves non-custodial parents the cost and headache of driving to a payment location during work hours or going out of their way to obtain a money order. The fee of $3.99 per payment for payments up to $1,000 is significantly less than the cost of alternative cash payment options. "SMI seeks innovative and convenient payment options for every lifestyle," said Joe Stone, SMI's chief executive officer. "Providing cash payers with another convenient payment option removes one of the barriers to making regular payments." To make a cash payment, customers simply bring their printed or mobile payment code to a participating store and pay at the register as if they are making a purchase at the store. Customers receive a paper receipt and/or confirmation on their mobile device. The transaction takes less than 60 seconds to complete
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Strategy CaixaBank buys Barclays’ Spanish assets for €800m August 01, 2014 | BBR http://retailbanking.banking-business-review.com/news/caixabank-buys-barclays-spanish-assetsfor-800m-010914-4357308 CaixaBank has entered into a €800m deal with Barclays Bank to purchase the latter's Spanish unit that manages retail, wealth management and corporate banking businesses The acquisition will allow CaixaBank to add around 550,000 new customers from the retail banking and private and personal banking divisions in Spain, and expand its presence in the country with a network of 270 branches and around 2,400 employees. CaixaBank chairman Isidro Fainé said: "The acquisition will bring a very qualified, professional team focused on providing a high quality service to its customers, which is a goal that it has in common with CaixaBank, whose business model is based on a large network of branches and personalized advisory services tailored to each customer's needs." The deal, however, does not include Barclays' Spanish investment banking and Barclaycard assets. Barclays CEO Anthony Jenkins said: "We announced Barclays' strategy update in May this year, creating the Barclays Non-Core cluster containing, amongst others, our Spanish retail banking business. "We were clear that this business, while not central to Barclays' strategy, could be attractive to another owner, and today's announcement reflects that perspective." The transaction, which is subject to approvals from regulatory and competent agencies, is scheduled to close by the end of this year. The acquisition came a couple of days after CaixaBank had awarded a €500m deal to Fujitsu for manufacturing and deploying 8,500 contactless cash machines in Spain
Scotiabank wants to increase its profile in countries such as Mexico and Peru August 26, 2014 | Nanaimo Daily News http://www.nanaimodailynews.com/business/scotiabank-wants-to-increase-its-profile-incountries-such-as-mexico-and-peru-1.1328956# TORONTO - The Bank of Nova Scotia says it's seeing some good growth from its international operations — particularly in Asia — as it continues to work on increasing its presence in Central and South America. "To drive the greatest growth, we remain focused on building scale in our highest priority markets of Mexico, Peru, Colombia and Chile," Scotiabank president and CEO Brian Porter told analysts during a conference call Tuesday.
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Porter said the bank will continue to try to streamline operations and improve efficiencies as it deals with weaker performance in the Caribbean and parts of Central America due to a "challenging economic environment that still persists." Touted as Canada's most international lender, Scotiabank (TSX:BNS) has a presence in more than 55 countries. Porter's comments came as the bank reported increased profits in the latest quarter, boosted by its wealth management and insurance businesses and the sale of its stake in money manager CI Financial Corp. The bank also increased its quarterly dividend by two cents to 66 cents per share. Scotiabank earned a profit of $2.35 billion, or $1.85 per diluted share, for the quarter ended July 31. That compared with a profit of $1.75 billion, or $1.36, in the same period a year earlier. Scotiabank announced a deal in May to sell more than two-thirds of its interest in CI Financial (TSX:CIX). The sale boosted the bank's quarterly results with after-tax gain of $555 million, or 45 cents per share. Excluding the deal and other one-time items, the bank's adjusted net income was $1.79 billion, up eight per cent from $1.65 billion on adjusted earnings per diluted share of $1.40. Analysts had expected adjusted earnings per share of $1.41. Return on equity was 20.6 per cent, compared with 17.2 per cent at the same time last year. Revenues were $6.48 billion compared with $5.51 billion. However, Scotiabank said its international banking arm saw profits drop 16 per cent to $452 million, as it had solid earnings growth from Latin America and Asia, but had to deal with weakness from its operations in the Caribbean and Central America and lower loan balances. Barclays analyst John Aiken said in a note the international division delivered disappointing results, but the outlook still remains positive for the bank. "We do not believe that one weaker quarter really puts Scotia's growth outlook into question," he wrote. Its global wealth management and insurance arm earned $846 million, helped by the CI Financial deal and continued favourable conditions from the markets. Without the CI transaction, net income in the division grew by six per cent. Profits from its personal and commercial banking in Canada division rose three per cent to $565 million, boosted by a hike in loans, deposits and higher fees and commissions. It also saw higher increases in loan losses, but said that was mainly due to an increase business volume. RBC Capital Markets analyst Darko Mihelic said he had expected Scotiabank's "usually strong cost control culture" to help rein in some of its quarter-over-quarter expenses growth. "Overall, we view BNS's earnings results as disappointing as they fell short of our expectations in all segments other than wholesale banking and generally the 'other' segment helped to offset some of the weakness in the 'core' segments," Mihelic wrote in a note. Scotiabank's shares closed down $1.74 or 2.35 per cent at $72.45 on the Toronto Stock Exchange
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Russian Government to buy VTB Bank and Rosselkhozbank for $6.6bn August 25, 2014 | BBR http://ecnandexchanges.banking-business-review.com/news/russian-government-to-buy-vtbbank-and-rosselkhozbank-for-66bn-250814-4352094 The Russian Ministry of Finance will purchase shares of VTB Bank and Rosselkhozbank (Russian Agricultural Bank) for around RUB239bn ($6.6bn) to boost the banks’ Tier 1 capital. According to VTB, the Tier 1 capital fell from 10.9% at the end of December 2013 to 9.4% in the first half of 2014. The ministry will use its National Wealth Fund (NWF) funds to make the purchases. The ministry will buy the shares after VTB, Rosselkhozbank, Bank of Moscow and VTB 24 repay subordinated loans to Vnesheconombank. The loans were given based on the federal laws that stipulated additional measures to support the financial system of the country. The shares on sale are neither part of any stock index nor traded on the open market
Citi to divest retail banking business in Japan August 20, 2014 | BBR http://commercialbanking.banking-business-review.com/news/citi-to-divest-retail-bankingbusiness-in-japan-200814-4347783 Citigroup is reportedly planning to sell off its retail banking arm in Japan and is in talks with at least three prospective buyers. Reuters quoted an unidentified source as saying that the bank is in talks with Mitsubishi UFJ Financial Group (MUFG), Mizuho Financial Group and Sumitomo Mitsui Financial Group (SMFG) in addition to a few regional banks. Citigroup is also reworking on its overseas strategy to focus on growing markets while going slow in saturated countries such as Japan. The US bank will keep corporate and investment banking and trading businesses in Japan, the source told Reuters. Citigroup has 33 branches, 3.6tn yen ($35bn) in deposits and 356.2bn yen in outstanding loans in Japan as of the end of March. Japanese regulators penalized the bank three times between 2004 and 2011 for lack of monitoring on money laundering. The group has earlier withdrawn from Spain, Greece and Turkey. Citi's reduction of operations in Japan will follow similar moves by HSBC and Standard Chartered in the past
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Hana, KEB heads embark on early merger of two banks August 19, 2014 | The Korea Herald http://www.koreaherald.com/view.php?ud=20140819000862 The heads of Hana Bank and Korea Exchange Bank (KEB) agreed in a joint statement on Tuesday to speed up the merger of the two local lenders, which has faced stiff opposition from KEB's union. Hana Bank President Kim Jong-jun and KEB President Kim Han-jo signed a joint statement announcing the official beginning of the integration process to "end confusion and strengthen competitiveness," according to an emailed press release. The move is the latest in efforts by the two banks' management to drum up support for the integration of both banks that belong to financial giant Hana Financial Group. The banking group acquired KEB from U.S. buyout firm Lone Star Funds for 3.9 trillion won (US$3.8 billion) in early 2012 but has postponed the integration process amid strong protest from KEB employees. Hana Financial and the KEB union have already agreed on post-takeover terms, under which the former will run KEB as an independent entity and maintain its current brand and wage system until 2017. In the joint statement, the two heads urged KEB's union to take part in the integration process. "A speedy integration is inevitable for the bank to become the country's best lender," the Hana Bank chief said. "We will step up efforts to reflect opinions on the terms of employment." KEB chief Kim also said the union should begin talks as soon as possible to sustain stable work conditions for KEB employees. Following the joint statement, the two banks are expected to open a board meeting next week ahead of establishing a committee for the integration and getting approval from shareholders. The KEB union reaffirmed its firm will to oppose the move that is "a clear violation" of the posttakeover terms. In a statement, the union said it plans to begin a protest at KEB's headquarters on Wednesday and pledged "not to hold any sort of negotiations." (Yonhap)
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