BANKING NEWS FLASH May 15, 2014
Table of Contents Sales & Marketing ................................................................................................................. 3 Finance ................................................................................................................................. 8 Technology .......................................................................................................................... 14 Strategy .............................................................................................................................. 20
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Sales & Marketing MasterCard opens UAE processing centre May 14, 2014 | Finextra http://www.finextra.com/news/announcement.aspx?pressreleaseid=55238 MasterCard today announced it will provide integrated processing services to customers across the Middle East and North Africa (MENA) through an end-to-end, multi-brand cards and payments processing center located in the UAE. The center will help customers respond rapidly to changing consumer needs, drive adoption of innovative technology and increase efficiency. Its opening highlights MasterCard’s commitment to bring global expertise closer to customers in local markets. “The MasterCard Processing Center is a continuation of our global strategy to expand the company’s processing presence in high growth markets, bringing solutions closer to customers,” explains Cathy McCaul, President of MasterCard Global Processing. By harnessing our global expertise, and using that to address specific market needs, we will have the ability to provide customers with integrated issuer and acquirer processing services using a state-of-the-art platform. There is a particular need for this in emerging markets where the rapid change in products and the growth in electronic payments challenge the capacity, security and capability of existing systems.” The MasterCard Processing Center is designed to be a one-stop-shop for financial institutions, governments and telecommunication companies, for all their payment processing requirements. The service will combine best-in-class processing platforms for credit, debit and prepaid processing along with advanced value-added-services around fraud, analytics and loyalty brought by operations owned and operated by MasterCard. Currently, MasterCard provides issuer and/or acquirer processing services in more than 24 countries globally. The company’s focus on customer service and operational excellence has allowed MasterCard to partner with leading issuers to bring new, safer, and simpler payments products to consumers and to make it easier for issuers to focus on their core business by outsourcing their technology and operations. “As consumers continue to embrace electronic payments, MasterCard Processing will ensure partners are well positioned to respond to evolving demands and allow them to offer the most advanced products and services,” says Raghu Malhotra, division president, Middle East and North Africa, MasterCard. “MasterCard Processing will be built as an integrated solution with the most advanced software so it will not have constraints sometimes found in legacy systems. This will ensure a seamless transition to next generation payment solutions like ‘MasterPass’. Eventually, it will also help integrate additional value-added services around multi-channel platforms including ecommerce and m-commerce.”
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Besides allowing its customers to swiftly develop innovative payment solutions, the Center will also deliver richer behavioral insights through comprehensive cardholder intelligence, allowing banks to develop offers based on consumer spending patterns. Furthermore, by linking an easy-to-use single connection to a comprehensive, globally connected infrastructure, MasterCard Processing will eliminate inefficiencies that result from using disparate processing platforms. “Financial institutions in emerging markets usually face constraints that hinder the investment in and adoption of technologically-advanced solutions. With the launch of MasterCard Processing, we have created a unique platform that will now allow our customers to swiftly bring cost-effective innovative solutions to market. We are excited to bring this global capability to the region and we are confident that it will help drive the adoption of next-generation payment solutions,”
Westpac inks five-year agreement with Telstra, Optus May 12, 2014 | BBR http://retailbanking.banking-business-review.com/news/westpac-inks-five-year-agreement-withtelstra-optus-100514-4264357 Westpac, an Australian bank, has inked two separate, five-year agreements with Telstra and Optus seeking their respective data network expertise across its domestic and global business units. The bank has collaborated with Telstra to provide services to domestic data network, primary internet access, outbound voice and Pacific Bank arm. Further, the agreement will mark the St George corporate and branch communications network of 300 locations adapting to the Telstra network with a fibre-based service. Westpac has outlaid the 2017 strategy, primarily aimed at enhancing its customer service offering and the agreement is believed to help it in achieving its goal. Telstra Global Enterprise and Services group managing director David Burns said that the agreement is an expansion of the firm’s existing relationship with Westpac, and is keen to support the business with its digital future strategy across all brands within the Westpac Group. “It has been a truly collaborative story to date, with our tailored solutions helping the business to put the infrastructure in place, to not only achieve its technology transformation but also to support the wider business objectives for 2017,” added Burns. Meanwhile, Optus will provide domestic mobile network and managed services to the bank’s locations across Asia, the US and the UK, alongside service management offerings to Westpac’s domestic channel iof over 13,000 mobile devices. In addition, Optus will refurbish the bank’s contact centers, to facilitate them with features to adapt to the changing customer expectations, including social and mobile customer interactions.
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Optus Business managing director John Paitaridis said: “We’re extremely pleased to extend our deep relationship with Westpac and St. George. It’s exciting to have our capabilities in Australia and the Asia-Pacific region recognised, and we’re looking forward to partnering with Westpac to expand its international reach while delivering world-class mobility, customer service and contact centre transformation.”
PrimeSouth Bank deploys Safe Systems for Cloud-Based IT network support May 08, 2014 | BBR http://bankingtechnology.banking-business-review.com/news/primesouth-bank-deploys-safesystems-for-cloud-based-it-network-support-080514-4262208 Safe Systems, a national provider of compliance-centric IT support and hosted services for financial institutions, announced that PrimeSouth Bank has successfully implemented a suite of solutions to better equip the bank’s existing staff, bolster compliance and drive efficiencies. A strong community bank with 4 strategically located branches, Tallassee, Alabama-based PrimeSouth Bank was looking for a solution that would streamline IT management and network supervision. In an environment where bankers have to do more with less, it has become increasingly necessary to move back of the house functions to an offsite provider. PrimeSouth elected to move its IT network management, reporting, virus protection, patch management, email and data vaulting to hosted services provider, Safe Systems. Through this partnership the bank will be able to decrease its exposure and risk while eliminating the need to hire a full-time IT officer. “After Safe Systems performed a network evaluation on our bank, we had a very clear picture of where our IT was, and where it needed to be,” said Jodi Turner, CFO and COO of PrimeSouth Bank. “Our partnership with Safe Systems began based on the initial good advice they provided. The solutions we implemented have allowed us to focus more on the business of banking, with a strong software infrastructure running in the background.” Safe Systems’ comprehensive network evaluation allowed PrimeSouth C-level executives to see the complete picture of their bank’s IT environment. Turner was able to prioritize which services to deploy through Safe Systems and which she would continue to manage in house. She’s gained greater efficiency and a higher degree of automation as a result. “It is Safe Systems’ mission to provide sophisticated, efficient solutions to solve the everyday problems of community bankers. Our goal is to increase IT security levels, boost compliance and streamline efficiencies,” said Danny Johnston, CEO of Safe Systems. “We are proud to partner with an institution such as PrimeSouth Bank and look forward to building on our existing relationship to provide the highest levels of support.”
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FGB introduces global wealth management service in Singapore May 05, 2014 | BBR http://www.banking-business-review.com/news/fgb-introduces-global-wealth-managementservice-in-singapore-050514-4257853 UAE-based financial services provider First Gulf Bank (FGB) has launched its global wealth management service in Singapore The service launch represents a significant step in the lender’s continuous efforts to enhance its products and offerings, by providing wealth profile customers with greater access to opportunities in Asia Pacific region. Apart from offering a crucial gateway to investors into one of the world’s most important regions, the service is also expected to give wealth customers access to a wider portfolio of global investment products. Specifically, the service is anticipated to enable the bank to provide access to all major assets and geographies in the region, while supporting estate and inheritance planning requirements through trust formation and company incorporation service providers. FGB CEO Andre’ Sayegh said the banks aims to continue to expand its products across businesses and markets to provide customers with a well-rounded, comprehensive financial service that address all their requirements and ambitions for growth in the UAE, the region and abroad in the current year. “Singapore is an undeniable important location for investments. It also possesses the advantage of providing well defined succession and banking secrecy laws,” Sayegh added. FGB Wealth Management & Mortgages Global Head Mufazzal Kajiji said the new brand emphasizes the bank’s continued commitment to create an even more unified and consistent brand platform internationally across the growing FGB Group. “We will be providing many more services of this kind to offer our customers the best opportunities possible for them,” Kajiji added. FGB Wealth currently provides access to more than 1,500 high profile Wealth management products, including equity funds, bond and hedge funds, real estate/private equity funds, capital guaranteed notes, coupon paying notes, equity participation notes, commodity notes, fixed deposits, as well as dual currency deposit and term insurance and savings plans
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Lloyds plans TSB stock market float by June 2014 May 02, 2014 | BBR http://retailbanking.banking-business-review.com/news/lloyds-plans-tsb-stock-market-float-byjune-2014-020514-4257051 Lloyds Banking Group is planning to launch a stock market float of at least 25% of its revived TSB business before the end of June 2014. The state-backed company is required to divest the business, which was launched as a separate entity in the second half of 2013, under the European Commission (EC) rules as a condition for receiving the £20bn taxpayer bailout during the 2008 financial crisis. Lloyds chief executive Antonio Horta-Osorio said the company continued to prepare for an initial public offering (IPO) of the TSB business following its launch. “We are now well placed, subject to final regulatory approval and market conditions, to launch the IPO in the summer of this year,” Osorio added. Lloyds Finance director George Culmer said the stock market float announcement is expected to be made by the end of June subject to regulatory approvals, and will also include a “retail element.” TSB, which currently offers mortgages through its 632-branch network, is expected to fetch the company around £1.5bn, which is twice the amount the company hoped to receive from the attempted sale to the Co-operative Bank in 2013. The TSB sale, which is expected to take place in stages, is scheduled to complete by the end of 2015
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Finance Scotiabank looks to divest all or part of its $3.8B stake in CI Financial May 15, 2014 | Topix http://www.nanaimodailynews.com/business/scotiabank-looks-to-divest-all-or-part-of-its-3-8bstake-in-ci-financial-1.1061492 TORONTO - Scotiabank (TSX:BNS) wants to sell some or all of $3.8 billion worth of shares in asset manager CI Financial Corp. (TSX:CIX), indicating it believes it can more profitably deploy the capital elsewhere. Scotiabank, which first acquired its position in CI in 2008 and currently holds 37 per cent of its stock, said in a release Wednesday that it “intends to explore all options with respect to the monetization . . . over time.” “This may include partial or full monetization of its investment in CI in one or a series of transactions,” it said. While Scotiabank said it has been pleased with its investment in CI, vice-chairman and chief operating officer Sabi Marwah noted that bank has had “a very good track record on deploying capital” and that opportunities for further deployments exit in each of our four business lines — Canadian banking, international banking, global banking and markets as well as in other parts or wealth management. “We have a fairly active pipeline and given that active pipeline we believe that we’ll be able to profitably redeploy that capital,” Marwah said in a telephone interview. He said several factors “played into” the decision, among them the “very strong momentum in our existing 100 per cent owned wealth management platform. “We are much bigger today then were at that time (2008) by owning 100 per cent of Dundee,” he said, referring to DundeeWealth Inc., which the bank acquired in early 2011 and renamed HollisWeath last year. “Our own performance in our own wealth management business, including our own distribution, has been very, very good and overall we remain positive about everything we’ve built. So I think we’re in a good place.” CI issued a statement in response saying it is “now considering the implications of the announcement and the impact it may have on CI’s other shareholders.” “As part of this, CI intends to review its capital structure and dividend policy to ensure that it has the appropriate resources available to respond to any monetization plan Scotiabank seeks to implement.”
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Meanwhile, it said the company’s clients, business partners and shareholders “can be assured that the bank’s decision has no impact on the management of CI or the strong fundamentals of its business,” noting that it has been posting “record gross sales and its best net sales in over a decade, with strong results across all distribution channels.” Scotiabank, which describes itself as Canada’s most international bank, provides financial services in more than 55 countries through a team of more than 83,000 employees serving some 21 million customers. CI Financial, with $126 billion of assets and $97.3 billion of assets under management, is a diversified wealth management and investment fund company involved in the management, marketing, distribution and administration of mutual funds, segregated funds, structured products and other fee-earning investment products for Canadian investors. On the Toronto Stock Exchange, Scotiabank shares closed down at penny at $66.97 on Wednesday, while CI shares were down 17 cents at $36.13.
BNP Paribas to pay more than $3.5bn to resolve US sanctions violations probe May 14, 2014 | BBR http://retailbanking.banking-business-review.com/news/bnp-paribas-to-pay-more-than-35bn-toresolve-us-sanctions-violations-probe-140514-4266364 French bank BNP Paribas is reportedly in talks with the US authorities to pay more than $3.5bn to resolve investigation into its transactions with the US-sanctioned countries, including Iran and Sudan Four people familiar with the matter were quoted by Bloomberg as saying that the agreement, whose amount may vary, is currently being negotiated and is expected to be finalized next month. If finalized, the amount could be the largest penalty paid to date by any organization for US sanctions violations, the sources added, noting that the US prosecutors are also pushing the lender to plead guilty to criminal charges as part of a resolution. One of the sources also noted that the prosecutors are still negotiating settlement terms, including the type of charges and whether the parent company or a subsidiary would plead guilty. Paris-based BNP Paribas is under investigation by the US Department of Justice (DoJ) on whether it violated sanctions and anti-money laundering rules by hiding dealings with Iran, Sudan and Cuba, which are under economic sanctions by the US, as reported earlier by The Financial Times. Apart from DoJ, the investigation also includes the US Attorney’s office, the US Treasury Department, the Manhattan District Attorney’s office, as well as the New York Department of Financial Services and the Federal Bureau of Investigation (FBI).
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The bank, which announced last month that it will have to pay more than the $1.1bn to settle the probe, is also facing allegations that it did not fully cooperate with the investigation, according to the news agency. Meanwhile, BNP spokeswoman Julia Boyce refused to comment on the discussions
GSE Profits Fall, ‘Only’ Sending $10.2 bln to Treasury for Q1 May 08, 2014 | Mortgage News Daily http://www.mortgagenewsdaily.com/05082014_gse_financial_results.asp Freddie Mac and Fannie Mae both reported profitable results for the first quarter of 2014 today, the 10th consecutive profit for Freddie Mac and the 9th for its sister company. Based on their quarterly earnings the government sponsored enterprises (GSEs) will make aggregate dividend payments of $10.2 billion to the U.S. Treasury under terms of their respective senior preferred stock agreements. Freddie Mac reported its net income in the first quarter at $4.0 billion compared to $8.6 billion in the fourth quarter of 2013 and comprehensive income for the two periods was $4.5 billion and $9.8 billion. Fannie Mae reported net income of $5.3 billion and comprehensive income of $5.7 billion for the first quarter of 2014 compared to fourth quarter results of 6.6 billion and $6.5 billion respectively. Freddie Mac’s income was impacted by $4.9 billion and Fannie Mae’s by $4.1 billion in revenue from legal settlements relating to private-label securities lawsuits. Freddie Mac also reported it suffered derivative losses of $2.4 billion driven by long-term interest rates. Freddie Mac Freddie Mac reported it had $3.5 billion in net interest income in the first quarter of 2014 compared to $3.8 billion in the fourth quarter of 2013. Non-interest income for the two periods was $5.8 billion versus $6.1 billion and non-interest expenses were $(0.8) billion and $(0.4) billion. The derivative losses of $2.4 billion in the first quarter were against gains of $1.0 billion in the previous period. Freddie Mac will pay a dividend of $4.5 billion to the U.S. Treasury, bringing the total cash dividends paid since the GSEs were placed in conservatorship in 2008 to $86.3 billion. In the first years of conservatorship Freddie Mac drew an aggregate of $71.3 billion from the Treasury During the first quarter of 2013 Freddie Mac provided funds to 104,000 borrowers to purchase a home and financed 51,000 multifamily rental units. Relief refinancing including loans under the Home Affordable Refinance Program (HARP) was provided to 59,000 borrowers and 81,000 were refinanced through other programs. The companies assistance to distressed homeowners resulted in 19,000 loan modifications, 8,000 repayment plans, 2,000 forbearance agreements, and 5,000 short sales or deeds-in-lieu of foreclosure during the quarter. Since the beginning of the conservatorship Freddie Mac has assisted over 12.6 million homeowners avoid foreclosure.
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Freddie Mac’s 2005-2008 legacy single-family book continues to represent a declining portion of the company’s single-family credit guarantee portfolio. At March 31, 2014, the 2005-2008 legacy singlefamily book represented 15 percent of the unpaid principal balance of the company’s single-family credit guarantee portfolio, but accounted for 77 percent of the company’s single-family credit losses during the first quarter of 2014. The gradual reduction of Freddie Mac’s 2005-2008 legacy singlefamily book has positively impacted the payment performance of its overall single-family credit guarantee portfolio. Fannie Mae Fannie Mae’s net income of $5.3 billion and comprehensive income of $5.7 billion for the first quarter of 2014 compares to net income of $58.7 billion and comprehensive income of $59.3 billion for the first quarter of 2013, which reflected Fannie Mae’s release of a majority of the valuation allowance on its deferred tax assets. Fannie Mae’s first quarter 2014 comprehensive income includes a provision for federal income taxes of $2.6 billion resulting from the company’s estimated federal income tax expense for the first quarter 2014. Fannie Mae will pay a dividend of $5.7 billion to the U.S. Treasury as a result of its first quarter earnings. This will bring the total dividends paid to $126.8 billion against cumulative draws under its senior preferred stock purchase agreement of $116.1 billion. Fannie Mae has not requested funds from Treasury since the first quarter of 2012. Fannie Mae said it remained the largest single issuer of single-family mortgage-related securities in the secondary market in the first quarter of 2014, with an estimated market share of new singlefamily mortgage-related securities issuances of 41 percent in the first quarter of 2014, compared with 46 percent in the fourth quarter of 2013 and 48 percent in the first quarter of 2013. As of March 31, 2014, 78 percent of Fannie Mae’s single-family conventional guaranty book of business consisted of loans it had purchased or guaranteed since the beginning of 2009. Given their strong credit risk profile and based on their performance so far, the company expects that in the aggregate these loans will be profitable over their lifetime, meaning the company’s guaranty fee income on these loans will exceed the company’s credit losses and administrative costs for them. Thus far in 2014 Fannie Mae has provided financing for 200,000 home purchases, 200,000 refinances, and 100,000 units of multifamily housing. Fannie Mae says it continues its efforts to keep borrowers in their homes and in the first quarter of 2014 it arranged 36,000 loan modifications, 2,255 repayment plans or forbearances, 1,374 short sales and 538 deeds in lieu of foreclosure.
Visa and MasterCard face heavy price for Russian business May 06, 2014 | Finextra http://www.finextra.com/news/fullstory.aspx?newsitemid=26039 Visa and MasterCard will have to cough up nearly $4 billion in security deposits to Russia’s central bank if they want to continue operating in the country, under a new law signed by president Vladimir Putin.
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In March, Visa and MasterCard stopped processing transactions for several Russian banks because of US sanctions designed to put pressure on Putin after he moved to annex the region of Crimea. The Russian president has responded with a new law that will create a national payments system to compete with the American-owned giants, which currently process around 90% of all card transactions in the country. In addition, the pair have been told that if they wish to carry on working in Russia they will need to deposit collateral with the central bank equivalent to the value of two days of processing volumes around $3.8 billion. According to the Moscow Times, the amount will be payable in eight quarterly payments starting from July. The new law also means that the companies will face fines of up to 10% of the deposit per day if they unilaterally cut off services to a Russian bank - which could prove costly if the US government makes anymore sanctions moves. In addition, Visa and MasterCard will have to keep all of their transaction data within Russia’s borders, in a nod towards data privacy concerns Putin has raised
ABA Community Bank LLC Pays Owner-Participants $967,362 May 01, 2014 | American Bankers Association http://www.aba.com/Press/PressRSS/Pages/050114CommBankLLCPayout.aspx Average bank-owner payout was $34,592 Page Content WASHINGTON — ABA Community Bank Mortgage LLC paid $967,362 in 2013 to participating bankowners who sold loans to LLC affiliates. The average payout to active owners was $34,592. “Ownership in the LLC gives us access to better pricing, thanks to the program’s leverage,” said Dennick Skeels, chief operating officer, Union First Market Bank, Richmond, Va. “As an owner bank we have recouped our initial investment many times over from the bonus payments we have received through the program. The flexibility offered by the program not only enables us to execute without pressure to meet volume quotas, but it’s also a proven way to expand the investor pool. This has been a terrific investment for us.” Presidential Bank in Bethesda, Md. recognized this opportunity as a way to improve its competitive position in the Washington, DC metropolitan marketplace.
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“By leveraging the bonus payments from the LLC, our bank is able to enhance consumer loan pricing,” said John Schoemer, executive vice president, Presidential Bank. “The bonus payments are used to enhance consumer pricing and access to a broader range of mortgage customers that has made Presidential more competitive and profitable.” Created in 2007, ABA Community Bank Mortgage LLC is a unique and ABA-exclusive mortgage cooperative structure designed to leverage the collective bargaining power of risk-averse community banks that actively sell loans in the secondary market. The association and 71 ABA member banks jointly own the LLC, and those institutions enjoy aggressive loan-sale executions through that ownership
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Technology Banco Santander México selects Nuance voice biometrics for automated phone system May 14, 2014 | Finextra http://www.finextra.com/news/announcement.aspx?pressreleaseid=55230 Nuance Communications (NUAN) today announced that Banco Santander México has deployed Nuance’s Vocal Password voice biometrics solution to replace PINs, passwords, and security questions in their automated phone system. Nuance’s voice biometrics solution is being used to securely and automatically confirm the identity of Santander customers - using just the sound of their voice. This is the first such customer-facing voice biometrics application in México. Santander, one of the top five banks in México, has launched Nuance’s VocalPassword solution so that customers who call in to the bank’s phone system can simply speak to be authenticated, making the banking-by-phone process quick, secure, and convenient. Until very recently, Banco Santander México’s customers needed to remember passwords and PINs and often were inconvenienced to recall answers to security challenge questions in order to gain access to their accounts. Now, customers simply speak the phrase “At Banco Santander, my voice is my password” to be authenticated by their unique voiceprint when they call into Santander’s interactive voice response (IVR) phone system. Since the introduction of Nuance VocalPassword at Banco Santander México, more than 1.7M customers have enrolled to benefit from the improved banking experience, and authentication success rates have doubled. Efforts to enroll a larger base of Santander’s customers continue. Data collected following Santander’s deployment of voice biometrics shows that a majority of customers are pleased with the new voice biometrics authentication process. Most customers report finding voice biometrics both easier and more secure than PIN-based authentication, and would recommending the use of voice biometrics over PINs. “As the first bank in México to deploy a voice biometrics solution in this way, we are able to offer our customers the exceptional experience that they deserve. The ability for customers to use their voice to gain access to their accounts is an easy and natural process, allowing the first point of contact with our bank to be enjoyable and hassle-free,” said José Ignacio Zorrilla, Executive Director for Multichannel, Banco Santander México. Recent surveys have shown that 85% of people are dissatisfied with current authentication methods, which typically require remembering multiple PINs, passwords, and security questions. Racing to address this consumer outcry for a more natural authentication process, organizations around the globe, such as Banco Santander México, are turning to Nuance voice biometrics to create an effortless and engaging experience from the customer’s first point of contact. In fact, data from
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Opus Research shows that, from 2011 to 2012, spending on voice biometric solutions for authentication grew by 74.2% and is on target to grow at a rate of 35% (CAGR) over the next five years. “With voice biometrics, banks have a real opportunity to change their customer experience for the better, while at the same time improving security,” said Robert Weideman, executive vice president and general manager for the Enterprise Division of Nuance. “Our voice biometrics technology offers a dependable solution for companies like Santander to improve the overall experience for the consumer by allowing them to use their voice as a passphrase with the added benefit of proven security” During this week’s Opus Research Voice Biometrics Conference in San Francisco, attendees will learn more about Nuance’s voice biometrics solutions and will hear first-hand from customers who are using voice biometrics to improve their customer service, including Banco Santander México and US Bank. Nuance voice biometrics technology leads the industry, with over 40 million voiceprints deployed by its customers, representing over 80% of the commercial market. (Opus Research: Research Report: Voice Biometrics Vendor Survey and “IntelliView” 2013, July 2013). Large organizations the world over have leveraged Nuance voice biometrics technology to speed account access for their customers, automate fraud detection for their contact centers and even automate password reset processes for employees
SunTrust establishes innovation branch to test new banking technologies May 13, 2014 | BBR http://bankingtechnology.banking-business-review.com/news/suntrust-establishes-innovationbranch-to-test-new-banking-technologies-130514-4265545 SunTrust Banks, Inc., recently unveiled the latest in banking technology at the SunTrust Plaza Garden building in downtown Atlanta. This branch will be a testing ground for new concepts that could make their way into other SunTrust locations. Among the new features is a fully automated safety deposit box system that allows clients to access their valuables using their debit card, pin number and hand scan. The system, built by Hamilton Safe, is the first of its kind to be installed in the U.S. Other key features of the innovation branch include: Teller Connect machines that combine the convenience of an ATM with the personal touch of a live teller to help clients self-serve when performing various transactions, including check cashing. Developed by NCR Corporation, Teller Connect allows clients to initiate a video conference call to a remote teller in order to ask questions or complete a transaction. A Tablet Bar that provides clients with a secure and convenient way to use SunTrust Mobile, Tablet and Online Banking via guest Wi-Fi.
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An interactive 80-inch Microsoft Surface touch screen allowing users to learn more about SunTrust accounts and services by selecting from a menu of options. SunTrust is the first super-regional bank to install this type of screen and educational tool in a branch. “Banking preferences are certainly changing,” said Brad Dinsmore, SunTrust corporate executive vice president of Consumer Banking and Private Wealth Management. “Consumers want the option of self-service technology inside the branch. This new technology allows more choices and greater convenience, while also ensuring access to experienced tellers who can offer the personal touch and human element that no technology can take away.” In addition to Atlanta, SunTrust will also launch a similar innovation branch in Washington, D.C.’sGeorgetown neighborhood later this summer and test more than 35 Teller Connect machines in various markets
OTP Bank launches new mobile payment solution in Hungary May 09, 2014 | BBR http://payments.banking-business-review.com/news/otp-bank-launches-new-mobile-paymentsolution-in-hungary-090514-4263877 Following the joint announcement by OTP Bank, Cellum and MasterCard in February, OTP Bank’s brand new service, ready to revolutionize the Hungarian mobile payments market, is now available to the general public. OTPay is an integrated mobile wallet for smartphones that is the first to bring in-store mobile payments to Hungarian users. The solution was developed by Cellum Group, in accordance with MasterCard’s standards for mobile payment systems. The solution of Cellum and OTP can break the bottleneck of mobile payments in Hungary. Mobile payments are now made possible essentially anywhere, as the technical background has been established: anyone can download the app and register a bank card, and merchants can introduce mobile payments in their store free of charge. The application born out of the cooperation between OTP Bank, Cellum and MasterCard is extremely simple to use: in stores, restaurants and web stores where OTPay’s logo is displayed, clients can use their smartphones just like a plastic card. In physical stores, customers simply scan the QR code placed next to the cash register; and in online stores, only the phone number is needed instead of all the bank card details; in either case a plastic card is no longer needed. OTPay uses cloud payment technology to carry out secure transactions, during which users do not need to hand over their bank card details to merchants. Cellum’s unique and patented card vault technology thus provides the highest, banking-grade security available. The essence of so-called „split secret” technology is that one part of the bank card details is stored on the handset, while the other part is stored on secure servers.
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Founder and Chief Visionary of Cellum, Balázs Inotay said: “We have been hearing ever more frequently of cases where cybercriminals compromise merchants’ traditional card storage systems and steal customers’ card details, damaging hundreds of thousands of cardholders. These cases highlight how the increased security of mobile payments can benefit users.” The noted specialist pointed out that through the use of OTPay payment data is encrypted and sent to the bank’s system without passing through the merchant, thus the solution provides a much higher degree of security for the user, while taking a large burden off the merchant’s shoulders. “We’re on the verge of some really exciting changes. We’ve never been this close to the U.S. or Japanese markets in terms of mobile payments. We’re technically letting anyone pay anywhere using a smartphone. This opens a new chapter in the evolution of mobile payments in the region”, Inotay added. “OTPay is to date the most open mobile payment scheme in Hungary. The application isn’t only for clients of OTP Bank, anyone can register any of the most popular bank card types. Besides in-store and online payments, clients of OTP Bank can use it for peer-to-peer money send and account balance query. Furthermore, the app can also be used for prepaid card top-up and donation,” said Péter Forrai, Managing Director of OTP Bank’s Electronic Banking Directorate. Regarding plans for the future, he added: “The service will be expanded with new functions in the future, such as payment with MasterPass at over 30,000 merchants worldwide, as well as payment of OCR-enabled checks and in-app catalog orders.” Joining OTPay’s merchant network is also very easy: OTP Bank does not require entrants to open a new account, any account kept at any bank in Hungary can be used. The service has no monthly or fixed fees, there is no need for POS terminals, and there is no entry or contracting fee either. Upon launch, OTPay is already accepted as a payment method at over 90 merchants across Hungary, and the number is constantly growing. Stores, restaurants and online merchants who are interested can obtain further information from Cellum’s Sales House. OTPay will be the first digital wallet in Europe to integrate MasterPass™, MasterCard’s global payment platform. The open API of MasterPass™ allows third-party partners to link their electronic wallets with the MasterPass™ acceptance network, leveraging all the benefits of MasterCard’s payment, fraud monitoring and identification services
BankID selects Gemalto’s Valimo Mobile ID solution May 05, 2014 | BBR http://www.banking-business-review.com/news/bankid-selects-gemaltos-valimo-mobile-idsolution-050514-4258191 Gemalto, the world leader in digital security, announces that it will support BankID of Norway in creating a nationwide system for robust electronic authentication and legally-binding digital signatures using the Valimo mobile ID solution.
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BankID is the central body for eID established by the Norwegian banking industry. The mobile BankID service works across all networks and phone types, and has already been adopted by over 270 service providers in Norway, including major banks and numerous other commercial organizations. The Valimo Mobile ID solution is the world leading mobile identity authentication and mobile digital signature software. The addition of Mobile ID to the existing BankID online services infrastructure delivers new standards of convenience for Norwegian citizens when using mobile phones and mobile devices to access banking or to digitally sign transactions. For banks and other providers, the arrival of a Mobile ID option for BankID offers all the advantages of a unified and readily available route to market for secure mobile services. Working seamlessly with all the mobile apps offered by the leading banks in Norway, Valimo’s Mobile ID solution is characterized by a straightforward registration process that can be completed in minutes. Almost a million Norwegians are now employing the BankID system for secure online authentication, of which nearly 40% are using the Mobile ID app. “With Mobile BankID, mobile phone users are now capable of performing any banking transaction on the go,” said Nils Inge Bruberg, strategic product manager for the BankID system. “Many were already using the certificate scheme that was developed for electronic banking, but the arrival of Mobile ID has doubled the average number of transactions per user to 12 per month.” “This project is the very first nationwide Mobile ID solution for online banking, with over 120 financial institutions connected to the system,” said Tomi Soininen, Senior Vice President of Valimo at Gemalto. “With our support, BankID is ultimately looking to reach all three million Norwegians currently using online banking services, and attract more service providers keen to meet rapidly growing demand for access to secure services from mobile devices
ASG Software’s EIM suite chosen by undisclosed US bank May 02, 2014 | BBR http://bankingtechnology.banking-business-review.com/news/asg-softwares-eim-suite-chosenby-undisclosed-us-bank-020514-4257067 ASG Software Solutions announced that a top five U.S. Bank has chosen its Enterprise Information Management (EIM) suite to optimize business value for its diverse financial application portfolio. Since working with ASG, the Bank has increased its efficiency by 80-times over manual data lineage and analysis processes, reduced data lineage costs by 80 percent and ensured that it was able to demonstrate compliance with TARP and Basel II requirements.
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After the financial crisis and changing economic landscape of 2007 - 2008, the Bank needed a better way to ensure data quality, accountability and governance of its data from end-to-end, along the entire data stream, to avoid making any regulatory errors. It sought a solution that would support regulatory compliance, automate data forensics and allow for an end-to-end view of its application assets, from mainframes to distributed technologies. ASG’s EIM solution not only met these requirements, enabling visibility into all data assets, but it also increased the efficiency of the Bank’s manual data lineage and analysis processes. This deep analysis along entire data streams and applications enabled the Bank to align information management efforts, and understand how its data was being used by business and IT. As a result, the Bank could make more informed business decisions, allowing it to be more competitive
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Strategy Scotiabank considers sale of $3.8bn stake in CI Financial May 15, 2014 | BBR http://www.banking-business-review.com/news/scotiabank-considers-sale-of-38bn-stake-in-cifinancial-150415-4267466 Canada-based multinational financial services company Scotiabank is considering sale of minority or all of its stake in the country’s largest independent asset manager, CI Financial The lender said in a statement that it has decided to explore options for monetization of some or all of its investment in CI Financial, which sub-advises on $2.3bn of mutual fund product with access to the bank’s various distribution channels. “This may include partial or full monetization of its investment in CI in one, or a series of transactions,” the bank added, without offering any assurances for completion of any transaction. “The capital associated with its investment in CI will be redeployed to other strategic priorities of the Bank.” Having acquired its position in CI from Sun Life Financial in late 2008, the Toronto-based lender currently holds 37% of CI shares with a current market value of approximately $3.8bn. Scotiabank chief operating officer Sarabjit Marwah was quoted by Financial Post as saying that the sale would free up the capital, which will allow the bank to use it for more profitable investments, including in further potential acquisitions. Commenting on Scotiabank announcement, CI said the company will review its capital structure and dividend policy to ensure it can adequately respond to any monetization plan Scotiabank intends to implement. CI Financial Chairman Bill Holland said: “Scotiabank is entitled to dispose of their shares as they see fit. As always, CI will work in the interests of all of our shareholders and management will remain focused on the continued success of our business.” The bank has retained its capital markets subsidiary, Scotia Capital and Goldman Sachs & Co. to advice on the monetization plan
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HSBC agrees to sell Pakistan subsidiary to Meezan Bank May 12, 2014 | BBR http://retailbanking.banking-business-review.com/news/hsbc-agrees-to-sell-pakistan-subsidiaryto-meezan-bank-100514-4264152 HSBC, a British banking major, has entered into an agreement with Pakistani lender Meezan Bank to exit the market by divesting its subsidiary HSBC Pakistan in an undisclosed deal. In an official statement, Meezan bank confirmed the agreement with HSBC Bank Middle East (HMBE), a unit of HSBC Holding, to acquire its Pakistani business. Currently, awaiting regulatory approval, the Pakistani Islamic bank is planning to convert HSBC’s operations to Islamic system and has scheduled the merger during the second half of fiscal 2014. The sale of HSBC Pakistan, operating through 10 branches and managing assets of $450m, is said to be a part of HSBC chief executive Stuart Gulliver’s strategy to spin off non-core assets to cut costs by $3.5bn. The European banker has in past offloaded its retail banking businesses in countries including the US, Canada, Russia, Chile and Poland, besides announcing plans to follow the suite in Japan. Earlier in 2013, the company sold its personal unsecured loan and personal homeowner loan arm of its US business to SpringCastle Acquisition and Newcastle Investment for $3.2bn. Meezan Bank currently operates 351 branches in 103 cities. The lender had acquired Societe Generale’s Pakistani operations in 2002
ING Bank to sell remaining stake in ING PTE to ING Continental Europe May 09, 2014 | BBR http://retailbanking.banking-business-review.com/news/ing-bank-to-sell-remaining-stake-in-ingpte-to-ing-continental-europe-090514-4262953 Poland-based banking and financial services provider ING Bank Slaski (ING BSK) has signed a nonbinding agreement to sell its remaining 20% stake in the open pension fund managing company, ING PTE, to ING Continental Europe (ING CEH). ING CEH currently holds 80% stake in ING PTE, which manages ING open pension fund (OFE) and a voluntary pension fund (DFE). The value of the non-binding agreement has been placed at approximately PLN242m ($80.3m), which equates to the independent valuation of the block of shares.
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ING BSK said in a statement that the initial price will be adjusted for dividends paid by ING PTE for 2013 and 2014, the actual number of fund’s participants, who will declare to continue transfer of some part of their pension contribution by 2014 end, and the financial result for 2014. “The sale price may be further adjusted should there be a decision by the Polish Constitutional Court relating to the pension fund reform or amendments to the legislation as regards open-ended pension funds,” the statement added. ING BSK vice-president Miroslaw Broda said the deal is expected to be finalised by the end of fourth quarter of 2014, and will be settled in the second quarter of the following year. The positive impact of the transaction on the bank’s books is estimated to be around PLN90m ($29.8m), Broda added. The transaction will require the approval of the Polish Financial Supervision Authority (KNF).
Barclays set to outline massive job cut plans May 08, 2014 | BBR http://www.banking-business-review.com/news/barclays-set-to-outline-massive-job-cut-plans080514-4261744 British multinational banking and financial services company Barclays is all set to outline plans to cut thousands of jobs over the next three years as part of its new strategic review Barclays chief executive Antony Jenkins, who took over from Bob Diamond in August 2012, will announce the bank’s revised strategy today, which is likely to include additional aggressive costcutting targets, as reported by Reuters. Approximately 15,000 jobs are expected to be slashed by the bank worldwide this year, a quarter of which would come from the underperforming investment banking division, in a bid to reduce costs and boost profits for shareholders. In addition, the bank is also expected to cut 6,000 more jobs in the unit by the end of 2016, Sky News reports. The figures are significantly more than the bank had indicated it would slash in February this year. Commenting on new strategic plan, Jenkins said: “This plan will address issues underlying the performance challenges we have recently experienced, including positioning the Investment Bank for the new operating and regulatory environment.” The British lender is also expected to announce the creation of a bad bank to house and look after the sale of majority of its non-core assets, including investment bank, commodities, emerging market fixed income, as well as continental European retail operations.
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A person with the knowledge of the matter was quoted by Reuters as saying that the process would be led by Barclays’ investment bank co-head, Eric Bommensath, and may include £56bn of assets already deemed “non-core” and include some retail banking businesses in France, Italy, Spain and Portugal. Meanwhile, a Barclays spokesman refused to comment on the reports
J. Safra Sarasin to buy Morgan Stanley’s Swiss private banking business May 01, 2014 | BBR http://www.banking-business-review.com/news/j-safra-sarasin-to-buy-morgan-stanleys-swissprivate-banking-business-010514-4255412 Safra Group’s Swiss unit Bank J. Safra Sarasin has signed an agreement with Morgan Stanley to acquire its private banking business in Switzerland The agreement covers qualifying clients and their relationship management teams who are focused on ultra high net worth (UHNW) clients across Europe, Middle East & Africa (EMEA) and Latin America. With offices in Zurich and Geneva, Morgan Stanley’s private banking business, which operates as Bank Morgan Stanley, manages approximately $10bn in assets, Bloomberg reported citing J. Safra Sarasin’s chairman, Ilan Hayim. Safra Sarasin Group vice chairman Jacob Safra said the company is determined to play a leading role in the consolidation of the Swiss private banking market, after successful integration of the operations of Safra and Sarasin. “Our capital strength and family ownership gives us great flexibility to do transactions like this one,” Safra added. “The Morgan Stanley business is an excellent fit with our strategic focus on providing tailor made solutions to UHNW clients.” Bank J. Safra Sarasin CEO Edmond Michaan said: “Switzerland is a great country from where to operate a leading global private bank, and we are confident that Bank J. Safra Sarasin has all the attributes required to grow and prosper in a sustainable manner.” The acquisition, which is a logical extension of J. Safra Sarasin’s private banking business for EMEA and Latin America, also expands its worldwide wealth management business. Subject to regulatory clearance, the transaction, whose financial terms remain undisclosed, is expected to complete during the first semester of 2015. Morgan Stanley sold its EMEA wealth management unit with approximately $13bn in assets to Swiss multinational financial service company, Credit Suisse in 2013.
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