BANKING NEWS FLASH October 16, 2014
Table of Contents Sales & Marketing ................................................................................................................. 3 Finance ................................................................................................................................. 8 Technology .......................................................................................................................... 11 Strategy .............................................................................................................................. 16
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Sales & Marketing First Bankcard partners with Speedway to launch new credit card in US October 15, 2014 | BBR http://cards.banking-business-review.com/news/first-bankcard-partners-with-speedway-tolaunch-new-credit-card-in-us-151014-4405893 First Bankcard, a division of First National Bank of Omaha, has partnered with convenience store chain Speedway to launch a new credit card, Speedy Rewards MasterCard. The new card can be used by customers to pay and manage both their fuel and merchandise, while earning points by using the card. Cardholders can earn 50 points by spending per dollar through card for purchases at Speedway and ten points per dollar on all other purchases. In addition, customers who spend $500 or more within the first three billing cycles will be eligible for 25,000 bonus points. Speedway president Tony Kenney said: "The card will provide our customers a simple and straightforward method to make a payment while earning Speedy Rewards loyalty points faster than ever." As the Speedy Rewards members' numbers are enclosed within the magnetic stripe and the bar code is printed on the back of the credit card, customers can just use a single card at fuelling station and at store, thus eliminating the need to carry multiple cards. First Bankcard president Stephen F Eulie said: "First Bankcard works closely with our partners to understand their customers' needs and deliver customized solutions that benefit our partners and ultimately their customers."
Mashreq partners with Novo Cinemas to launch new credit card in UAE October 14, 2014 | BBR http://cards.banking-business-review.com/news/mashreq-partners-with-novo-cinemas-tolaunch-new-credit-card-in-uae-141014-4404161 UAE-based lender Mashreq has partnered with Novo Cinemas to introduce UAE’s first three in one cinema credit card, Mashreq Novo Credit Card. With Mashreq Novo cards, users can spend anywhere on their credit card, accumulate loyalty points and redeem them for free tickets and refreshments at Novo Cinemas. In addition, the cardholders will have access to dedicated ticketing and F&B counters, and will get complimentary invites to movie previews and screenings. The card also comes with a complimentary TAP n GO NFC-sticker that can be used to make instant payments by just tapping the mobile phone.
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Mashreq payments head Nimish Dwivedi said: "Discounts on movie tickets have become passĂŠ -The new Mashreq Novo card's market-defining loyalty benefit ensures that we add 'entertainment' to even the most mundane of spends. "So the next time the cardholder buys groceries or a cup of coffee, he gets that much closer to watching the next big blockbuster! We have also radically altered the discount proposition - instead of the typical Buy-1-Get-1 or weekend discount offers on tickets, our customers get 50% off every ticket, booked across channels on any day of the week. "The value to the customer is thus huge. Add to this, the 'queue-busting' benefit that TAP n GO and the dedicated counters provide, and you have a Card that is leagues ahead of competition and is the ultimate cinema companion." Novo Cinemas CEO Debbie Stanford Kristiansen said: "The new Novo Entertainment Credit Card not only makes it possible for cardholders to avail special discounts and make purchases as easily as 'TAP n GO', it allows us to reward our loyal customers as we strive to deliver on our promise of A Great Time Out."
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BNZ launches new online banking community in New Zealand October 13, 2014 | BBR http://onlinebanking.banking-business-review.com/news/bnz-launches-new-online-bankingcommunity-in-new-zealand-131014-4402688 New Zealand-based lender BNZ has launched a new online banking community and social hub, BNZ Community, to guide customers on banking and money-related matters. According to BNZ director, retail and marketing Craig Herbison, the community will allow New Zealanders to raise questions, search and give answers, earn rewards and share information about money and banking. BNZ Community will have two main elements, a forum for question and answer sessions and a 'Good with Money' blog. Herbison said: "This year's Money Week theme is around getting Kiwis fighting fit with their money, and we think that BNZ Community is a great place to start improving our collective knowledge about our finances." The lender also plans to integrate the BNZ Community with its website and existing social media platforms. Herbison said: "We know that our customers are increasingly seeking advice online, and that they treat advice from peers and online experts with high regard. "We've launched BNZ Community to foster these really important conversations, and encourage a culture of peer-to-peer support in banking."
First National Bank of Omaha and First Bankcard launch TravElite American Express Card October 09, 2014 | BBR http://cards.banking-business-review.com/news/first-national-bank-of-omaha-and-firstbankcard-launch-travelite-american-express-card-091014-4399299 First National Bank of Omaha速 (FNBO), part of the largest privately owned banking company in the United States, and First Bankcard速, a division of First National Bank of Omaha and a leading issuer of credit cards, announce the launch of the First National Bank of Omaha TravEliteSM American Express速 Card designed specifically for frequent travelers. The First National Bank of Omaha TravEliteSM American Express速 Card offers frequent travelers: 3 points per dollar spent on eligible hotel and eligible airline purchases. 1.5 points per dollar spent on all other eligible credit card purchases.
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Reward points to redeem for travel, gift cards, name-brand merchandise, or cash back as a statement credit. "First Bankcard is focused on creating possibilities for our customers by offering a comprehensive variety of credit card rewards programs," said Stephen F. Eulie, president of First Bankcard. "We are offering an extraordinary rewards program, which offers a rich array of benefits and services on the American Express network and is one of the most competitive available to frequent travelers today." Cardmembers can enroll their card with the Premium Concierge service and receive up to $100 per year in statement credits for incidental airline purchases such as airport lounge access, in-flight food and beverage, and checked baggage fees. Cardmembers also will receive a statement credit for the $100 application fee when registering for Global Entry, a U.S. Customs and Border Protection program that allows expedited clearance for pre-approved, low-risk travelers upon arrival in the United States at select airports.
BancorpSouth Bank opens new loan production office in Houston, Texas October 08, 2014 | BBR http://retailbanking.banking-business-review.com/news/bancorpsouth-bank-opens-new-loanproduction-office-in-houston-texas-081014-4398079 BancorpSouth Bank, subsidiary of BancorpSouth, has opened a loan production office in the Houston, Texas suburb city of Friendswood, providing a broader range of financial services available to the Company's Houston metropolitan area clients. BancorpSouth initially opened an office in temporary office space just over five months ago in a Southwest Houston location. The office recently moved to its new location at 699 S Friendswood Drive, Suite 107. The move enhances BancorpSouth's reach to the Pearland, Alvin, Clear Lake/Webster, League City, and Galveston markets, while assuring a continued ability to generate commercial business from the Houston market in general. Friendswood is a progressive suburban city conveniently located between downtown Houston and Galveston within the Houston metropolitan area and near three major airports and deepwater ports. BancorpSouth's Friendswood team consists of a group of financial services industry veterans, and includes Ruth Eklund, Senior Vice President and commercial lender; Jennifer Shaffer, Assistant Vice President, bank manager and lending assistant; and Petra Soares, customer service representative. The BancorpSouth team is focusing on providing clients a broad range of commercial and consumer banking services, including commercial real estate, construction and residential lending. Ruth Eklund brings over 35 years of commercial banking experience to BancorpSouth with a background as a banking center president, real estate lender and compliance officer. She is a graduate of the ABA Compliance School and has completed numerous other banking related courses. Jennifer Shaffer has over 23 years of banking experience as a branch manager and consumer retail lender. She is a member of Pearland Chamber of Commerce, and serves on finance-related committees at her church.
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Petra Soares is an experienced customer service representative and teller supervisor. She earned a BA degree from the University of Bombay. BancorpSouth Chairman and Chief Executive Officer Dan Rollins, commenting on the BancorpSouth team's progress, said, "Ruth Eklund and her teammates are off to a solid start closing nearly $30 million in new loans." Chris Bagley, BancorpSouth President and Chief Operating Officer, added, "We are proud to have such capable and experienced commercial bankers who know the Houston metropolitan market so well. Friendswood and the surrounding area provide BancorpSouth with outstanding growth opportunities." Houston is the most populous city in Texas and the fourth most populous city in the United States. The Houston economy has a broad industrial base in energy, manufacturing, aeronautics, and transportation. Only New York City is home to more Fortune 500 headquarters. The port of Houston ranks first in the United States in international waterborne tonnage handled and second in total cargo tonnage handled. The city has a population from various backgrounds and a large and growing international community. BancorpSouth Bank currently operates 19 full-service banking locations in East Texas with almost $1billion in net loans and more than $800 million in total deposits. BancorpSouth serves the Houston metropolitan market area with commercial, P&C and life insurance products and services through its Houston office of BancorpSouth Insurance Services, Inc. At year-end 2013, BancorpSouth expanded its insurance presence in the Houston market through the acquisition of the assets of the Houston-based GEM Insurance Agencies, LP. BancorpSouth Insurance Services, Inc. is one of the largest bank-owned agencies in the country. BancorpSouth recently opened a loan production office in Sugar Land, Texas, an award-winning community and regional employment center southwest of Houston. BancorpSouth, Inc. is a financial holding company headquartered in Tupelo, Mississippi, with approximately $13.0 billion in assets. BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., operates approximately 300 commercial banking, mortgage, and insurance locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas, including an insurance location in Illinois.
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Finance Citigroup’s OneMain Financial launches IPO for $50m October 10, 2014 | BBR http://retailbanking.banking-business-review.com/news/citigroups-onemain-financial-launchesipo-for-50m-101014-4401018 Citigroup’s consumer finance unit OneMain Financial has filed an initial public offering (IPO) in the US for $50m. The spinoff of OneMain comes five years after Citigroup first indicated its intentions to dispose the business. OneMain offers personal loans and has assets of around $10bn. The company did not specify the number of shares to be sold and the pricing. The filing, however, provides a peek into OneMain, whose results Citigroup has not publicly revealed before, reports The Wall Street Journal. During the financial crisis, Citigroup's unit was badly hit, but the filing with SEC showed that lender was in profits since 2012, reporting net income of $407m in 2012 and $536m in 2013. The group earned $7.54bn and $13.67bn in 2012 and 2013, respectively, reports the publication. Citigroup would continue to hold a stake in OneMain after the IPO, claimed the lender.
National Bank of Kuwait sells 30% stake in IBQ for $538m October 07, 2014 | BBR http://retailbanking.banking-business-review.com/news/national-bank-of-kuwait-sells-30-stakein-ibq-for-538m-071014-4396319 National Bank of Kuwait (NBK) has agreed to sell its 30% stake in International Bank of Qatar (IBQ) to Qatari investors for $538m. According to NBK, the sale would generate a profit of $87m, which would reflect in the 2014 financial result. In 2004, National Bank of Kuwait acquired a 20% stake in IBQ and then raised its shareholding to 30% in 2007. NBK chairman Nasser Al Sayer said: "We have decided to exit this partnership as we saw limited opportunity to increase our 30% ownership in IBQ to a controlling stake. "This sale will also strengthen our capital position to pursue our regional expansion strategy and benefit from any opportunity in Qatar or any of the other GCC markets."
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The sale is subject to customary conditions including regulatory approvals. NBK Group CEO Isam Al-Sager said: "We view this transaction as a fruitful exit from a long term investment. "NBK has achieved excellent returns from its investment in IBQ; not only from the gain generated from the sale but also from a decade of profit contribution from IBQ as an associate of the Group."
JPMorgan completes sales of physical commodities assets to Mercuria Energy Group October 06, 2014 | BBR http://retailbanking.banking-business-review.com/news/jpmorgan-completes-sales-of-physicalcommodities-assets-to-mercuria-energy-group-061014-4394762 JPMorgan Chase has today completed the previously announced sale of parts of its physical commodities business to Mercuria Energy Group Limited. In addition to completing the all-cash transaction with Mercuria, J.P. Morgan agreed to sell to other buyers physical commodity assets that had originally been included in the Mercuria transaction. Reflecting the completed sale to Mercuria as well as the asset sales with other parties, J.P. Morgan will have sold or liquidated substantially all of the physical commodity assets that had been part of the original $3.5 billion deal with Mercuria. The after-tax impact of J.P. Morgan's various sales is not expected to have a material impact on the firm's earnings. J.P. Morgan will continue to be an active participant in the commodities markets, providing traditional banking activities including: financing, derivatives, LME warrant trading, the vaulting and trading of precious metals, liquidity and risk management, and offering advice to global companies and institutions.
Societe Generale to increase shareholding in France’s Boursorama October 03, 2014 | BBR http://onlinebanking.banking-business-review.com/news/societe-generale-to-increaseshareholding-in-frances-boursorama-190314-4199130 Societe Generale (SocGen) is planning to file a takeover offer for free-floating shares of its online banking brand Boursorama, valuing the company at ₏1.05bn. This move comes on heels of the bank's latest concerting shareholders agreement with Caixa Group. Currently, SocGen and Caixa Group hold 56% and 21% of Boursorama respectively. The proposed takeover offer will target the shares that are neither owned by SocGen nor Caixa Group.
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SocGen said it will file an offer of â‚Ź12 per share through French Financial markets authority (AMF) for about 23% of minority holding. According to SocGen, the bid for the French online bank brand Boursorama is part of the company's strategy to pursue its development in this market. The takeover offer which is expected to open during May 2014 will be followed by a squeeze out process, should minority shareholders, excluding Caixa Group, hold less than 5% interest in Boursorama. Boursorama, which was created in 1995, currently has 500,000 clients in France. The company also has international operations in the UK, Germany and Spain.
National Bank of Fujairah offers sharia-compliant financial solutions in UAE October 03, 2014 | BBR http://retailbanking.banking-business-review.com/news/national-bank-of-fujairah-offers-shariacompliant-financial-solutions-in-uae-031014-4392007 National Bank of Fujairah (NBF) has begun offering sharia-compliant financial solutions to customers in the UAE with the launch of new unit, NBF Islamic. The new Islamic unit will initially offer retail banking products to customers, with plans to expand the offerings for companies and businesses in the region. NBF retail banking head Sharif Mohd. Rafei said: "Over the years, we have been witnessing a growing demand for Islamic banking products as we broadened our personal banking footprint beyond our traditional home base of Fujairah. "With NBF Islamic, we will not only be able to better serve the needs of our customers, but further establish our growing reputation as a well-respected local bank fully committed to preserving the values of the community." To operate the new unit as per the principles of Islamic law, NBF Islamic will be helped by the Shariah Supervisory Board of Amanie Advisors. According to a report from Ernst and Young, the Islamic banking assets in the UAE increased from $83bn in 2012 to $95bn in 2013, reported Gulf Business. NBF CEO Vince Cook said: "We are pleased to contribute to the UAE's aspirations to becoming a hub for Islamic finance. Expanding our suite of client-centric solutions is crucial to the success of our customers and the bank, and we are confident that NBF Islamic will further establish our position as a reliable and trusted banking partner in the UAE."
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Technology EClerx launches KYC platform October 16, 2014 | Finextra http://www.finextra.com/news/announcement.aspx?pressreleaseid=57093 eClerx, a leading provider of knowledge and business processing today announced it has launched its proprietary Know Your Customer (KYC) solution. Offered in a three tier system, enabling banks to have access to the best offering based on the immediate and strategic requirements, the KYC platform enables both sell side and buy side clients to quickly establish and effectively conduct KYC processes and satisfy these rules through a highly controlled and supervised operations platform, reducing regulatory risk and ensuring compliance across multiple jurisdictions. The eClerx KYC solution addresses key compliance requirements of the major regulatory bodies, both US and International, including the Federal Reserve and Office of the Comptroller of the Currency (OCC) in the United States, which require customer identification, due diligence and record keeping for the purposes of preventing identity theft, fraud, money laundering and terrorist financing. In conjunction, the expansion of these KYC regulatory mandates overlap with FATCA, Dodd Frank and the Legal Identity Identifier (LEI) initiatives. In the wake of these regulations, institutional broker dealers and banks are demanding high quality and cost-effective KYC solutions to manage these complex and burdensome requirements while mitigating risk. Clients leveraging eClerx’s KYC offering are able to more efficiently on-board accounts to start business relationships, minimize suspended accounts due to a lack of KYC completeness, and, along with other critical compliance processes, decrease the probability of illegal activities such as money laundering. “KYC has come into the regulatory forefront and is an essential component of enterprise risk,” said Larry Tabb, CEO and Founder, TABB Group. “The myriad global and national regulatory frameworks create significant internal challenges within the banks. There is tangible and costly headline risk and reputation damage for organizations which do not properly manage KYC, especially now that the procedures needed to achieve compliance have been expanded.” “We are seeing record fines that are reaching into the billions of dollars, and many cease-and-desist orders from the OCC due to lack of proper KYC protocols,” said Mahesh Muthu, Associate Principal at eClerx. “As increasingly stringent KYC guidelines are being prescribed by regulatory authorities, we leveraged the best practices developed from our years of experience supporting diverse client requirements for major banks to create a solution that will enable our clients to more easily manage these mandates and proactively manage their portfolio of regulatory risk. We have found that more than 10% of the entities we have reviewed have required a risk re-rating, while more than 2% of entities have been dissolved or result in a negative news hit.” eClerx’s team has processed more than 350,000 entities, and created configurable work tools to embed varying rules across jurisdictions and risk classifications to deliver structure and control. The firm established KYC metrics and accurate reporting providing business insights, benchmarking data, and eliminating process bottlenecks to aid continuous improvement. The eClerx KYC Solution provides support for buy side institutions to be ready for participation in industry KYC utilities. Additional features in the product include:
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Risk level and anti-money laundering (AML) classification
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Validation of core customer attributes, including officials, on a periodic basis
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Archival evidence of any changes, and the performance of negative news checks on companies and its officials
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Ability to both cross reference entities and jurisdictions against politically exposed persons (PEP) and blacklisted individuals, and works with banks to adapt policies per client type, jurisdiction and AML classification
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Assured quality assurance levels with variable, per entity pricing, and established processes for leveraging hundreds of public and paid data sources
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Support for Institutional clients, Private Banking and Wealth Management clients, and Retail clients
Axis Bank goes live with Fundtech remittance module October 15, 2014 | Finextra http://www.finextra.com/news/announcement.aspx?pressreleaseid=57160 Fundtech, a market leader in global transaction banking solutions, today announced that India’s third largest private bank, Axis Bank, has gone live with Fundtech’s flagship cash management solution, Global CASHplus, for remittances. The solution enables Axis Bank to efficiently process cross border remittances by automating the money transfer process for retail customers. Using the solution Axis Bank will achieve greater operational efficiency, improved control, and be able to offer its customers a differentiated customer experience. The solution also gives Axis Bank the capability to process higher transaction volumes helping the bank to capture a larger market share in the fast growing remittances business. Fundtech’s remittance solution is also compliant with the requirements set forth in the amended Dodd-Frank Act for foreign remittance transfers. The service, branded as AxisRemit, allows Axis Bank to accept inward remittances from Canada, Hong Kong, Singapore, the United Arab Emirates, the United Kingdom, the United States and the 18 European countries that use the Euro. Using AxisRemit, a remitter can choose from any funding method—ACH, online transfer or Smartwire. The remitter can then deposit the funds into an Axis Bank bank account, or electronically transfer the funds to another bank account. Sanjay Dalmia, CEO of Fundtech India, says, “The go-live at Axis Bank is further confirmation of the competitive advantage Fundtech’s transaction banking solutions can bring to the table for banks, and in turn, their customers. We’re delighted that Axis Bank has been able to realize its vision of implementing a multi-country and multi-currency remittance solution from a single implementation.”
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Cross County Savings Bank selects DNA from Fiserv October 14, 2014 | Finextra http://www.finextra.com/news/announcement.aspx?pressreleaseid=57138 Fiserv, Inc. (NASDAQ: FISV), a leading global provider of financial services technology solutions, announced today that Cross County Savings Bank, based in Middle Village, New York, has selected the DNA(TM) account processing platform and several integrated solutions to attract and serve future generations of customers. The $400 million asset bank will use the Fiserv platform to automate many of its processes and offer more personalized products. Founded in 1888, Cross County Savings Bank has earned the loyalty of generations of New Yorkers by delivering exceptional service. To keep going the extra mile for its customers, the bank needed a modern core platform that could help it drive efficiency and deepen relationships. After a thorough review of account processing systems, Cross County Savings Bank selected DNA from Fiserv. "DNA will streamline our operations so that we can dedicate even more time to providing the personalized service that is the hallmark of our bank," said George Makowski, Chief Operating Officer, Cross County Savings Bank. "The platform offers everything we wanted - automation, a 360 degree view of customers and a contemporary technology foundation. We'll have access to a huge array of integrated solutions from Fiserv to help us grow and adapt to the needs of future generations." In addition to Fiserv solutions, Cross County Savings Bank will have the ability to add new functionality with user-created DNA applications, called DNAapps(TM). Cross County Savings Bank can create its own DNAapps using the DNAcreator(TM) development toolkit or download those created by others from the DNAappstore(TM) - the first collaborative online marketplace for custom core extensions. DNAapps enable users to quickly customize and enhance the robust retail, mortgage and commercial banking capabilities of DNA. "DNA will help Cross County Savings Bank gain a richer understanding of customer needs and provide employees with additional opportunities to deliver outstanding products and services," said Steve Cameron, president, Open Solutions Division, Fiserv. "The bank has a trusted, long-term partner in Fiserv that will help it keep competitive with our industry-leading solutions for years to come." In addition to DNA, Cross County Savings Bank will implement the CRM & Business Intelligence suite for DNA, instant issue card production and network services. The bank is an existing user of Fiserv debit processing services. Fiserv is the U.S. market leader in account processing services, and more than one-third of U.S. financial institutions rely on Fiserv for account processing solutions and expertise. DNA has been recognized by industry-leading analysts for its technology, user experience and breadth of functionality, including two recent awards from CEB TowerGroup for "Best-in-Class" product management and customer-centricity
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Standard Bank chooses Eagle as Enterprise Technology Platform October 09, 2014 | BBR http://www.banking-business-review.com/news/standard-bank-chooses-eagle-as-enterprisetechnology-platform-091014-4399293 Eagle Investment Systems, a leading provider of financial services technology and a subsidiary of BNY Mellon, today announced that Standard Bank South Africa, will implement Eagle's accounting and enterprise data management solutions across its Private Clients business. The technology solutions will be hosted on Eagle ACCESSSM, Eagle's secure private cloud. Standard Bank Group's Private Clients business is a leading full-service wealth management firm with approximately $12 billion in assets under management worldwide. The Private Clients business offers holistic financial solutions in the areas of wealth management, specialized lending, risk solutions, trust, fiduciary and transactional banking. To manage the expected growth within the Private Clients business, Standard Bank embarked on a search for a solution provider with proven experience in the international marketplace that could also meet the local South African investment requirements and regulations. "We are always looking to create operational efficiencies and methods for cost-savings by leveraging the best providers and services available," said Penny Bibby, chief operating officer at Standard Bank Private Clients. "In our search for a technology solutions provider, Eagle stood out amongst both international and local system providers, and we were pleased to see how their enterprise-wide solution has already been proven successful with other premier clients in South Africa. Our adoption of Eagle's software and deployment on Eagle ACCESS SM will enable us to establish a firm-wide, state-of-the-art, secure technology solution that will help us to centralize our platform much more easily and efficiently." "Our engagement with Standard Bank will allow us to demonstrate not only our expansive solution capabilities, but also to share both our global and local best practices and staff expertise," said John Legrand, Eagle managing director, EMEA and APAC. "We look forward to working closely with Standard Bank as an Eagle client and extending the strategic relationship the group already shares with BNY Mellon." Eagle is enjoying strong traction within EMEA and the South African investment market. Standard Bank Private Clients joins Prescient as part of Eagle's client base in South Africa.
Markit launches chat room management software October 06, 2014 | Finextra http://www.finextra.com/news/announcement.aspx?pressreleaseid=57028 Markit (Nasdaq: MRKT), a leading global diversified provider of financial information services, today announced the launch of new software and services that enable banks and other financial institutions to host and manage instant message chat rooms.
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Markit’s new software gives financial institutions direct access to the content in chat rooms they host, and complete control over information security. Chat rooms created using the software will be connected to Markit’s open Collaboration Services network and will be accessible to financial market professionals using a variety of messaging technologies. Today, more than 220,000 industry professionals are connected by Collaboration Services. In addition, Markit provides fully integrated identity management services facilitated by the Collaboration Services Directory, ensuring firms can verify the identity of all chat room participants, prior to and during sessions, and control access to chat rooms. Kevin McPartland, head of market structure and technology research at Greenwich Associates, said: “Instant messaging is core to how business gets done on Wall Street and technology that enables people using different platforms to access the same chat room can make a range of front and back office processes more efficient. At the same time, new ways to give compliance and risk officers greater control over who has access to chat rooms, and what is being said, should be welcomed by the industry.” Andrew Eisen, managing director and head of Collaboration Services at Markit, said: “Use of chat rooms has been scrutinised by regulators and the industry, but banning chat is not the answer. Markit’s solution makes it possible to manage chat rooms across federated platforms in a compliant manner, a first for the industry. This means chat rooms will now be accessible to professionals throughout the enterprise and broader industry, regardless of the messaging system they use.” Markit’s chat room software uses standard protocols that are compatible with active and passive compliance software and e-discovery tools. Collaboration Services is an open messaging network launched by Markit in partnership with Thomson Reuters and eight global banks in October 2013. The network enables financial market professionals to send instant messages and use chat rooms securely across disparate messaging platforms.
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Strategy Citigroup to exit consumer banking business in 11 countries October 15, 2014 | BBR http://www.banking-business-review.com/news/citigroup-to-exit-consumer-banking-business-in11-countries-151014-4404901 Citigroup is closing consumer banking businesses in 11 countries in order to focus on markets with high growth potential, simplify operations and boost profits. The bank will shut down its businesses in Costa Rica, Czech Republic, Egypt, El Salvador, Guam, Guatemala, Hungary, Japan, Nicaragua, Panama and Peru, and consumer finance business in Korea. After the closure, the group's Global Consumer Banking (GCB) division will serve around 57 million clients in 24 markets. Citigroup CEO Michael Corbat said: "I am committed to simplifying our company and allocating our finite resources to where we can generate the best returns for our shareholders. "While we have made progress optimizing these 11 consumer markets, we believe our Global Consumer Bank will achieve stronger performance by focusing on the countries where our scale and network provide a competitive advantage." This is the second time that Citi has announced to exit consumer business from markets with low returns since Corbat took over as CEO two years ago. Previously, it announced to cut 11,000 jobs and exit consumer banking business in Spain, Greece and Turkey, reported Bloomberg. GCB CEO and Citigroup co-president Manuel Medina-Mora said: "Today's actions are the next step in the execution of our strategy to build an urban-based, globally integrated consumer bank. "Since 2009, the Global Consumer Bank has become more streamlined, efficient and profitable. Focusing our presence in 100 cities across both the U.S. and top emerging markets where we have the greatest scale and growth potential, positions us to win."
Lloyds to slash thousands of jobs to embrace digital banking October 07, 2014 | BBR http://retailbanking.banking-business-review.com/news/lloyds-to-slash-thousands-of-jobs-toembrace-digital-banking-071014-4395452 Lloyds Banking Group is reportedly planning to cut thousands of jobs and close more branches, to go digital and automate its business.
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The job cuts could be the biggest since 2011. They are expected to affect mortgage processing, call centre and new account opening, where customers are increasingly using internet and mobile applications, reported The Times. An announcement is expected to be made the lender in its third quarter results at the end of this month. The changes are likely to be implemented over three years. The move by Lloyds, which is 25% owned by the UK Government, would enable it to maintain cost advantage over rivals such as Barclays and Santander UK. The cuts are unlikely to be on the same line as seen in the aftermath of the financial crisis in 2008, when over 37,000 job were removed. This was followed by retrenchments in 2011. Nearly 1,080 were cut in January. In May, Barclays announced plans to cut 19,000 jobs by 2016.
ABC Capital Corp. Announces Continued Expansion October 07, 2014 | Mortgage Professional http://www.nationalmortgageprofessional.com/news59645/abc-capital-corp-announcescontinued-expansion ABC Capital Corp., a New York-based commercial mortgage lender, is pleased to announce its 37 state wholesale lending territory expansion. ABC's wholesale "reduced documentation" multifamily and commercial mortgage program is focused upon the subject property's "net operating income" for primary loan amount qualification, not the individual's personal income (both investor and owner user) for commercial properties. Loan applications from $100,000-$5 million are considered for this program. Property types include: Auto repair (mechanical/body), mixed-use, mobile home park, multifamily (five-plus units), office property, retail store (strips malls, self-storage facilities, warehouse structures), and investor-rented one- to four-family properties. Mortgage loans considered for reduced loan amounts for funeral home, hotel, motel, church, more. "A, B, C" credit loans will be considered with varying loan limits.
Citizens Bank Eyes NWA Expansion, Names Doug Lynch Market President October 06, 2014 | Arkansas Business http://www.arkansasbusiness.com/article/101213/citizens-bank-marks-beginning-of-nwaexpansion-names-doug-lynch-market-president Citizens Bank of Batesville is opening a loan production office in Fayetteville in February, marking the launch of its expansion into northwest Arkansas. Doug Lynch, who has served as Citizens Bank's executive vice president and chief lending officer since 2012, will lead the effort as market president for northwest Arkansas. The official open date is Feb. 1.
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The office will be located at 1676 East Joyce Blvd. in the former Delta Trust building. "Our Board of Directors is committed to a strategic growth plan that is both exciting and challenging," Phil Baldwin, president and CEO of Citizens Bank, said in a news release, "and we believe Doug is the right person to lead us into this important region of our state. Doug is a 15-year veteran of the northwest Arkansas market with a proven track record and many strong relationships and good friends in the northwest Arkansas business community." Lynch has held various leadership role at numerous banks across the state in his 27-year banking career. "Our commitment to serving customers and community will continue to be strongly emphasized as we establish a presence in Fayetteville and beyond," Lynch said in the release. Citizens Bank's leadership aspires to transform the company into a regional bank, doubling its assets to $1 billion through acquisitions and opening offices in new markets.
Mortgage-Lending Community Banks See Opportunity in Regulatory Minefield October 02, 2014 | Inside Mortgage Finance http://www.insidemortgagefinance.com/issues/imfpubs_imf/2014_37/news/Mortgage-LendingCommunity-Banks-See-Opportunity-in-Regulatory--1000029162-1.html The vast majority of community banks plan to continue to offer mortgages even though increased regulation is limiting business, according to a survey conducted by the Conference of State Bank Supervisors. Rules from the Consumer Financial Protection Bureau remain a primary concern, although many community banks already offer loans outside of the standards for qualified mortgages. “Banks continue to see opportunity in residential mortgage lending but have a mixed view of non-QM lending,” according to the report jointly compiled with the Federal Reserve. “Assessing the ability to repay and QM standards against current exposures, bankers generally identified a low level of nonconformance, suggesting the rules may generally be in line with bank practices while still requiring significant changes in operations.” Some 64 percent of the 884 community banks surveyed said.
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