BANKING NEWS FLASH May 02, 2014
Table of Contents Sales & Marketing ................................................................................................................. 3 Finance ................................................................................................................................. 7 Technology .......................................................................................................................... 12 Strategy .............................................................................................................................. 17
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Sales & Marketing Wells Fargo takes commercial card portfolio to Europe May 01, 2014 | Finextra http://www.finextra.com/news/announcement.aspx?pressreleaseid=55071 Responding to the needs of its growing multinational customer base, Wells Fargo & Company (WFC) announced today it has expanded its commercial card portfolio to Europe by offering the European Commercial Card, where commercial card transactions in pound sterling or euros will now be easier to process, track, and report. Supported by MasterCard, one of Wells Fargo’s longtime credit card partners in the United States, the Wells Fargo European Commercial Card can be used in 37 million outlets worldwide. “Our middle market and large corporate customers are increasingly conducting business globally. The European Commercial Card solution is designed to streamline our customers’ purchasing process in pound sterling or euro, whether it’s for small purchases, travel and entertainment, or large expenditures,” said Mary Mazzochi, senior vice president and manager of the Commercial Card product suite at Wells Fargo. “The European Commercial Card product launch follows successful introductions in the United States and Canada and rounds out our international program offering based on our customers’ needs.” The European Commercial Card solution balances enhanced controls and local, regional, and global management oversight with international traveler convenience through a global card expense reporting tool via Wells Fargo’s Commercial Electronic Office® (CEO®) portal. This tool permits company financial officers and their employees the ability to monitor commercial card transactions, such as travel expenditures (e.g. airfare, hotel, rail), use data for local, regional or global strategic sourcing opportunities, and maintain visibility over expenses. The European Commercial Card is supported by 24/7 multilanguage customer service. In a related announcement, Wells Fargo said all new USD WellsOne® Commercial Cards will be embedded with microprocessor chips defined by E.M.V. (Europay, MasterCard, and Visa) standards. In addition, Wells Fargo has begun migrating all of its existing cardholders over in advance of the October 2015 deadline in the United States. While still retaining a magnetic stripe to facilitate general acceptance as the U.S. market progresses, these E.M.V.-enabled WellsOne Commercial Cards provide cardholders added security and protection when shopping with merchants that employ E.M.V. payment systems, as well as enable easier acceptance in other regions of the world. This chip technology is already widely adopted across Europe, Canada, and several Asian countries.
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Metro Bank launches .London Web site April 29, 2014 | Finextra http://www.finextra.com/news/announcement.aspx?pressreleaseid=55025 Metro Bank, the revolutionary high street bank, today unveils its new website MetroBank.London as part of the pioneer launch of the Dot London domain. The community bank, based in London and the South East, is the only bank to be involved in the Dot London launch. Metro Bank’s new Dot London site will sit alongside its existing website, and will feature an overview of the bank’s work with local London communities. Included in this is a series of business and personal customer case studies, as well as a profile of a Metro Bank colleague discussing their experiences of working for the growing bank. Craig Donaldson, Chief Executive Officer, Metro Bank: “Metro Bank started its journey to revolutionise banking nearly four years ago. Now with 26 stores across London and the South East, we work with more than 300,000 personal and business customers and we’ve created more than 1,000 careers for people in and around London. As a bank that truly supports and represents London and its many diverse communities, the decision to partner with Dot London was an easy one, and we’re honoured to be the first bank involved. Our new MetroBank.London site will showcase our work in local communities and the people who matter most to us - our customers.”
RBS goes mobile with new wheel-based branches April 28, 2014 | Finextra http://www.finextra.com/news/fullstory.aspx?newsitemid=26007 There’s more than one way to mobile bank. RBS has spent £600,000 on five new vans kitted out with iPads which will travel the UK bringing financial services to remote communities. The first mobile bank branch was introduced in 1946 on the Isle of Lewis for crofters who were too busy weaving tweed to make it to the main town, Stornoway. In recent years physical branches have been closing as people turn to another type of mobile banking. Earlier this month RBS said that it will shut 44 branches across the UK, blaming a 30% fall in in-store transactions over the last few years for its decision. That decision came despite the 81%-owned taxpayer-owned bank specifically pledging to stay open for business if it is the last provider in a town in a 2010 ‘customer charter’ designed to rebuild public faith in the wake of the bailout.
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One alternative to expensive, rarely used permanent branches in isolated parts of the country is mobile van banks. RBS and its NatWest unit now have 18 vans on the road at any one time, visiting 357 communities and covering 7000 miles each week. The five latest additions to the fleet do away with traditional counters and glass screens, and the staff no longer need to call up the home branch to get a customer’s account balance. Instead a satellite dish on the roof means that wherever the van goes customers can log in to their account using the mobile van’s iPad. Jane Paterson, who is in charge of rolling out the new vans, says: “The satellite means that even in areas where there’s no normal broadband coverage, customers will be able to take advantage of online banking.”
Eastern Bank sets up innovation laboratory April 28, 2014 | Finextra http://www.finextra.com/news/fullstory.aspx?newsitemid=26006 Boston-based Eastern Bank has partnered with former members of PerkStreet Financial to create a new innovation laboratory that will use the bank’s data assets to rapidly prototype and launch new technologies for use within the bank and onsale to other financial institutions. PerkStreet Financial, an online financial services outfit which offered customers cash-back rewards on debit card spending, shut down in Septtember last year as it ran out of funds. Eastern Labs will be headed by Dan O’Malley, PerkStreet’s former CEO whose financial services career began at Capital One where he co-founded the company’s payments division. He will serve as EVP and chief digital officer at the new venture. John Magee, PerkStreet’s former vice president of analytics, will be senior vice president and chief data scientist. Laurence Stock, PerkStreet’s former CFO, will become SVP of emerging technologies. The new recruits will lead a team of over 80 current Eastern Bank employees who will join the Lab to ensure integration with the bank’s operations, technology, and data assets. Explaining its mission, the Eastern Labs Web site states: “When an experiment is successful, we spin out a new business that already has talent, capital, and partners. We also ‘spin in’ ideas to Eastern Bank, providing multiple monetization paths. In addition, we partner with existing companies where our access and capital can accelerate innovation.” Eastern Labs will build new technologies for use both within and outside of Eastern Bank. Core to these technologies will be the hundreds of millions of pieces of digital data created every year within Eastern.
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“Banks generate incredibly powerful data, with each piece an expression of what a customer wants their money to do,” says O’Malley. “Combined with the new ways technology allows us to engage with customers, there are incredible opportunities to pursue, with Eastern’s nearly 200 years of history as the platform.” In addition to building technology, Eastern Labs says it will identify and partner with companies outside the bank to further develop “disruptive and transformative” technologies within financial services.
ANZ chief Smith puts social media at the heart of the bank’s future strategy April 16, 2014 | Finextra http://www.finextra.com/news/fullstory.aspx?newsitemid=25972 ANZ chief executive Mike Smith has committed to making social media engagement and digital services a “key business priority” for the Australian bank over the next three years. Writing on the bank’s new social communications platform BlueNotes, Smith explains his recent ‘Road to Damascus’ conversion to the power of social media and digital business following a trip to Silicon Valley in May last year. “It was a bit of ‘light bulb’ moment” he says. “It was already clear to me that digital financial solutions were redefining our business. What wasn’t quite so clear to me...was that social media had become completely main stream and was driving a fundamental shift in the way people find and consume information, and how they expect organisations like ANZ to communicate.” Smith has since become a LinkedIn ‘Global Influencer’, an experience which has served to reinforced his view that “there’s now both a need and an opportunity for business to move faster in becoming socially-enabled enterprises”. For many of the bank’s customers, the digital and social future is already here, he says. “As a business we need to respond more quickly to participate in the opportunity. That’s why I have made accelerating ANZ’s progress with digital solutions for our customers, and engagement through social media a key business priority over the next three years.” The shift is not without its challenges, he states, requiring the bank to rethink all of its specialist support functions in marketing, communications, legal, risk and technology, and how all staff across the bank, from the CEO down, should communicate with customers. In February, the bank appointed former Farifax publishing executive Amanda Gome to a newlycreated position to lead the bank’s social and digital media strategy. Another business journalist, Andrew Cornell, has been called upon to guide the development of BlueNotes, which covers the economy, financial services, investment and society from both within ANZ and from experts outside the bank and is pitched as a way for the business to become more transparent, more engaged and more responsive in its communications strategy.
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Finance Discover Q1 net income slides 6% April 23, 2014 | Finextra http://www.finextra.com/news/announcement.aspx?pressreleaseid=54950 Discover Financial Services (DFS) today reported net income of $631 million or $1.31 per diluted share for the first quarter of 2014, as compared to $673 million or $1.33 per diluted share for the first quarter of 2013. The company’s return on equity for the first quarter of 2014 was 23%. First Quarter Highlights •
Revenue net of interest expense was up $86 million, or 4%, from the prior year to $2.1 billion.
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Total loans grew $3.5 billion, or 6%, from the prior year to $63.9 billion.
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Credit card loans grew $2.2 billion, or 5%, to $50.9 billion and Discover card sales volume increased 3% from the prior year.
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Net charge-off rate for credit card loans decreased 4 basis points from the prior year to 2.32% and the delinquency rate for loans over 30 days past due decreased 5 basis points to 1.72%.
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Payment Services pretax income was down $19 million from the prior year to $28 million. Transaction dollar volume for the segment was $50.8 billion, up 4% from the prior year.
“Our results this quarter reflect a solid start for 2014 as we delivered strong card loan growth that was near the top of our targeted range while maintaining excellent credit performance and continuing to grow other lending products as well,” said David Nelms, chairman and CEO of Discover. “Additionally, we are increasing our return of capital to shareholders through the recently announced dividend actions and the continuation of share buybacks following our inaugural CCAR stress test.” Segment Results: Direct Banking Direct Banking pretax income of $994 million in the quarter was down $39 million, or 4%, from the prior year. Total loans ended the quarter at $63.8 billion, up 6% compared to the prior year. Credit card loans ended the quarter at $50.9 billion, up 5% from the prior year. Personal loans increased $915 million, or 27%, from the prior year and private student loans increased $385 million, or 5%, from the prior year. Excluding purchased student loans, private student loans grew $900 million, or 26%, from the prior year.
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Revenue net of interest expense increased $94 million, up 5% from the prior year due to loan growth and net interest margin expansion. Net interest income increased $153 million, or 11%, from the prior year, benefiting from loan growth, lower interest expense and higher loan yield. Net interest margin was 9.88%, up 49 basis points from the prior year. The increase in net interest margin reflects decreased funding costs and higher loan yield. Credit card yield was 12.14%, an increase of 20 basis points from the prior year. The increase in credit card yield reflects a modestly higher portion of customers revolving balances and lower interest charge-offs. Interest expense as a percent of total loans decreased 28 basis points from the prior year as the company continued to take advantage of available low rate funding. Other income decreased $59 million, or 12%, from the prior year due to lower direct mortgage related income and higher rewards costs. The increase in rewards was primarily related to a decrease in the rewards forfeiture rate as well as higher standard and promotional rewards. The delinquency rate for credit card loans over 30 days past due was 1.72%, an improvement of 5 basis points from the prior year and flat compared to the prior quarter. Credit card net charge-off rate for the first quarter was 2.32%, down 4 basis points from the prior year and up 23 basis points from the prior quarter. The student loan net charge-off rate excluding PCI loans was 1.31%, up 49 basis points from the prior year due to a larger portion of the portfolio entering repayment. The personal loans net charge-off rate of 2.07% decreased by 23 basis points from the prior year due primarily to strong growth. Provision for loan losses of $270 million increased $111 million from the prior year primarily due to a smaller reserve release. The reserve release for the first quarter of 2014 was $59 million. The first quarter of 2013 included a reserve release of $154 million. Expenses increased $22 million, or 3%, from the prior year primarily due to increased headcount, higher information processing expense and higher other expense, partially offset by lower professional fees. Payment Services Payment Services pretax income was $28 million in the quarter, down $19 million from the prior year. Revenue decreased $8 million from the prior year primarily due to lower transaction processing margins at PULSE. Expenses increased $9 million from the prior year primarily due to ongoing Diners Club costs in Europe. Payment Services dollar volume was $50.8 billion for the first quarter of 2014, up 4% from the prior year. PULSE transaction dollar volume was up 5% year-over-year.
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BofA signs $950m deal with FGIC to settle RMBS case April 18, 2014 | BBR http://retailbanking.banking-business-review.com/news/bofa-signs-950m-deal-with-fgic-tosettle-rmbs-case-180414-4216567 Bank of America (BofA) has reached a $950m settlement with nine FGIC insured countrywide RMBS Trusts, to resolve the charges that its countrywide unit sold faulty residential mortgage backed securities (RMBS). The recent agreement will resolve pending litigation as well as outstanding and potential claims by FGIC related to alleged representations and warranties breaches and other claims involving such securitizations. Under the terms of the settlement, BofA will pay more than $365m in direct cash payments to the RMBS Trusts, while FGIC received nearly $584m. Fir Tree Partners, a $12bn private investment firm that has been a majorbondholder of RMBS insured by FGIC since 2008, has welcomed the settlement. The bank said that litigation cost forced it to sustain a net loss of $276m for the first quarter of 2014. During the recent quarter, the lender spent $6bn on to settle many legal disputes. BofA CEO Brian Moynihan has committed over $50bn to resolve disputes with regulators and investors over foreclosures and marketing of RMBS. Earlier in March, BofA agreed with the Federal Housing Finance Agency (FHFA) to a $9.33bn claims settlement over the alleged sale of faulty RMBS to Fannie Mae and Freddie Mac between 2005 and 2007.
Bank of America reports $276m net loss in Q1 2014 April 17, 2014 | BBR http://retailbanking.banking-business-review.com/news/bank-of-america-reports-276m-net-lossin-q1-2014-170414-4216037 Bank of America has reported a net loss of $276m for the first quarter of 2014, compared to net income of $1.5bn during the corresponding period earlier year. For the quarter period from January to March 2014, its revenue, net of interest expense, on an FTE basis decreased by 3% from the first quarter of 2013 to $22.8bn. The first quarter of 2014 result was largely affected by $6bn in litigation expense related to the previously announced settlement with the Federal Housing Finance Agency (FHFA), and additional
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reserves primarily for previously disclosed legacy mortgage-related matters. Bank of America CEO Brian Moynihan said the cost of resolving more of its mortgage issues hurt its earnings durign the quarter. “But the earnings power of our business and customer strategy generated solid results and we continued to return excess capital to our shareholders,” Moynihan added. For the quarter period ended on 31 March 2014, its consumer and Business Banking (CBB) reported net income of $1.7bn, up by 15%, from the year-ago quarter. Global Wealth and Investment Management (GWIM) posted net income of $729m, up slightly from the first quarter of 2013, reflecting continued strong revenue performance and low credit costs. Global Banking reported net income of $1.2bn, with a decline of $45m from the year-ago quarter, as an increase in revenue was offset by higher noninterest expense and increased provision for credit losses.
Ahli United Bank considers $5bn divestment, merger deal April 17, 2014 | BBR http://retailbanking.banking-business-review.com/news/ahli-united-bank-considers-5bndivestment-merger-deal-170414-4216002 Bahrain-based Ahli United Bank (AUB) is reportedly exploring options to divest or merge its operations with a competitor bank in the country in a transaction, which could be worth around $5bn, as part of its plan to streamline operations. Several bankers familiar with the development were quoted by Reuters as saying that the bank is in the process to find out the suitable bank for the deal; however, they did not reveal the name of the potential target. According to Thomson Reuters data, if the proposed transaction materializes, it would be the largest banking deal in the region for the past 20 years. The deal would surpass Emirates Bank’s $3.7bn takeover of National Bank of Dubai in the year 2007 and Qatar National Bank’s acquisition of Societe Generale’s Egyptian business during 2012 for $1.9bn. AUB, which has pan-Arab operations, reached near to combine operations with a Gulf Cooperation Council (GCC) area bank in 2010; although, it could not turn into reality due to financial crisis. Goldman Sachs, which was involved in preparing ground for a merger between AUB and a peer of GCC in 2010, is likely to be engaged if any transaction takes place, according to the news agency.
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Citigroup Q1 2014 net income rose to $3.9bn April 16, 2014 | BBR http://retailbanking.banking-business-review.com/news/citigroup-q1-2014-net-income-rose-to39bn-160414-4215086 Citigroup has reported net income of $3.9bn, or $1.23 per diluted share for the first quarter 2014, compared to $3.8bn, or $1.23 per diluted share, during the comparable period last fiscal. For the quarter period ended on 31 March 2014, its revenues stood at $20.1bn against $20.2bn during the corresponding period earlier year. Commenting on the financial result, Citi CEO Michael Corbat said, “Despite a quarter that was difficult for our company, we delivered strong results.” “Both our consumer and institutional businesses performed well and we grew both loans and deposits while holding the line on our expenses.” Citicorp net income declined 8% from the prior year period to $4.2bn. Global Consumer Banking (GCB) net income declined 6% versus the prior year period to $1.7bn, reflecting the decline in revenues, partially offset by lower expenses, lower cost of credit and a lower effective tax rate. North America GCB net income was $1bn, 5% lower than the first quarter 2013, driven by the decline in revenues and a reduction in loan loss reserve releases, partially offset by lower operating expenses, among others. International GCB net income declined 6% from the prior year period to $700m on a reported basis and declined 2% in constant dollars. Citi Holdings net loss stood at $284m compared to a net loss of $804m in the prior year period, driven by the higher revenues and lower net credit losses.
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Technology Vietnam’s Asia Commercial Bank to deploy CyberSource payment gateway April 29, 2014 | Finextra http://www.finextra.com/news/announcement.aspx?pressreleaseid=55024 CyberSource, a Visa company (NYSE:V), and one of the world’s largest providers of eCommerce payment management services, today announced a partnership with one of Vietnam’s largest privately-held banks, Asia Commercial Bank (ACB). This partnership will enhance the bank’s capabilities in processing both local and global online payments. The agreement allows ACB to deploy CyberSource’s global payment gateway solution and fraud management tool, Decision Manager. This will help significantly expand the array of payment services available to the bank’s merchant customers. ACB offers diversified bundled products across consumer and corporate banking, including more than 25 online features for consumers and 30 for enterprises. These include card payment services, payment and account management, as well as global remittance services. Vietnam’s total eCommerce sales hit US$700 million by the end of 2012, of which 11.8 percent was conducted via non-cash transactions[1]. Growth projections for the Vietnamese eCommerce market remain robust, with total eCommerce sales in the country expected to reach US$1.3 billion by 2015[2]. However, the sector is still relatively young, with a small group of acquiring banks serving a burgeoning number of eCommerce merchants. “We see vast potential in Vietnam’s eCommerce market. Our customers’ trust is our top priority, and CyberSource is the chosen partner due to its expertise and state-of-the-art technologies in fraud management and payment processing. CyberSource’s global payment gateway solution and Decision Manager tool will enable us to process payments more securely and effectively for our customers, helping us establish our market leadership in the growing eCommerce market in Vietnam,” said Le Quang Khanh, Bankcard Centre Director, ACB. Today, ACB maintains an active approach in Vietnam’s push towards a cashless society by boosting customer confidence in card usage as well as online transactions. CyberSource Decision Manager features the World’s Largest Fraud Detection Radar, and provides a comprehensive platform to pinpoint fraud faster, more accurately and with less manual intervention, by screening inbound orders against data and correlations from more than 60 billion transactions that Visa and CyberSource process annually. Every transaction is analyzed by over 260 detector tests and time-tested statistical risk models, which can be further localized by region.
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“Many leading financial companies around the world work with CyberSource to enable their payment and fraud management strategies. We are pleased to be providing ACB with the payment management platform it needs to expand its business by enabling eCommerce merchants to transact easily and securely, worldwide,” said Chew Ann Wee, Regional Director, Southeast Asia, CyberSource.
Chief Specialized Bank deploys Polaris’ Intellect universal banking solution April 28, 2014 | BBR http://bankingtechnology.banking-business-review.com/news/chief-specialized-bank-deployspolaris-intellect-universal-banking-solution-280414-4253384 Chief (Cambodia) Specialized Bank PLC (CCSB), a bank providing financial solutions to corporate, small and medium enterprises and agriculture-based customers in Hong Kong, has gone live with Polaris’ state-of-the-art Intellect® Core Banking, Lending, Trade and Treasury Solution in Cambodia. CCSB chose Polaris Financial Technology Ltd, a leader in products, solutions and services that enable unprecedented operational productivity for the global Financial Services industry, to implement its Core Banking, Lending, Trade, Treasury, Armor (Security Shell) and Integrator (Middleware for interfacing), enabling it to commence its operations in Cambodia. Intellect’s UBS implementation in Chief Specialized Bank is designed to facilitate the growth plans of the bank in terms of unique positioning, business scaling, product depth and meeting ever evolving customer expectations. Polaris’ highly scalable Core Banking Solution for emerging markets has paved the way for CCSB to have a competitive edge over competitors, which is essential for steady business growth. Intellect UBS enables the bank to increase its efficiency, performance, security and transparency of its day-to-day operations allowing its customers to enjoy a higher level of service. The Intellect software has facilitated smooth integration with other systems and has provided a platform for ensuring risk control through its various processes and controls. Commenting on this initiative, Loke Wai Ming, CEO of Chief Bank said, “The rollout of the new integrated Core Banking platform has created the technological framework to cater to all requirements of Chief Bank as we rapidly expand our geographic presence and support our ambitious plans to diversify and expand operations in the future. Polaris’ domain experience in Core Banking implementation and Intellect’s rich functionality and scalability, robust technology and open architecture makes Polaris’ solution a true business enabler. Intellect solution will enable us to transform into a complete financial services provider, supporting our ambitious plans to diversify and expand operations in the future.” Commenting on the successful implementation, Jaideep Billa, Joint CEO, Consumer & Institutional Money Management, Polaris Financial Technology Ltd said, “We are extremely happy to partner with Chief Specialized Bank PLC to launch their business operations in Cambodia. Our Intellect solution is a seamlessly integrated platform covering Core Banking, Lending, Trade, Treasury and Internet banking that manage the complete life cycle of banking operations with ease and comfort. Intellect Universal Banking Solution will enable CCSB to increase its efficiency, performance, security
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and transparency of its day-to-day operations allowing its customers to enjoy a higher level of service with ease and comfort. Supporting the vision of the bank, this implementation enables them to move towards next generation banking technology that provides them with a competitive service edge and faster go-to-market.” Polaris Intellect UBS’ rich functionality designed for banks, straddles the entire range of banking operations from basic Core modules, General Ledger, Operational Accounts, Deposits, Loans and Advances, Security Services Module, L/C Module, Counter Operations, Clearing Operations, Remittances, to other focused modules such as Integration Middleware, MIS and Analytics, Audit Trail and Access Control with Single Sign-on. This unique solution is perfectly suited to develop, modify and launch innovative products and services, thereby improving the go-to-market timeline in a rapidly developing economy such as Cambodia.
U.S. Bank coverts ATMs to Windows 7 operating system April 23, 2014 | BBR http://cards.banking-business-review.com/news/us-bank-coverts-atms-to-windows-7-operatingsystem-230414-4218827 U.S. Bank has fully converted its fleet of nearly 5,000 U.S. Bank automated teller machines (ATMs) to the Windows 7 operating system, avoiding issues that could arise since Microsoft has discontinued support of its previous operating system, Windows XP. The industry had been planning for the discontinuation of support from Microsoft for Windows XP for several years. U.S. Bank is one of the first major banks to complete the conversion of its entire ATM fleet. Other ATM owners in the industry have announced that they plan to purchase extended support from Microsoft while they complete their conversion. “We are very pleased to have completed our conversion in a timely manner, avoiding future expense or exposure,” said Jeannie Fichtel, executive vice president for U.S. Bank 24-Hour Banking. “Data security is very important to us, and while upgrading to Windows 7 is not our only defense, it is an important piece of our overall security measures.” U.S. Bank chose to upgrade the operating systems on its entire fleet by the April 2014 deadline as part of an overall strategy that included updates to meet new technology enhancements such as ATM deposit automation, compliance with enhanced accessibility rules from the Americans with Disabilities Act (ADA) and replacement of older ATMs in the fleet. Today, the average age of a U.S. Bank ATM is five years. In October 2013, U.S. Bank and Diebold announced their joint work to initiate the industry’s first ATM conversions to Windows 7 and placing U.S. Bank at the forefront of meeting the new security requirements.
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“U.S. Bank was one of the first banks to comply with ADA regulations so it’s no surprise that they are the first to initiate Windows 7 conversions,” said Mychal D. Kempt, Diebold vice president of North America operations, at the time of the October announcement. “One of our most progressive customers, the bank was the first to use our latest Agilis software, deploying a customized solution that enables efficiencies when implementing new services at the ATM.”
Commercial Bank of Qatar adopts Experian’s PowerCurve Strategy Manager April 17, 2014 | BBR http://riskmanagement.banking-business-review.com/news/commercial-bank-of-qatar-adoptsexperians-powercurve-strategy-manager-170414-4216385 The Commercial Bank of Qatar is now using Experian’s PowerCurve Strategy Manager with advanced analytics to help deliver large scale portfolio growth for its retail consumer business in the Middle East. The investment in PowerCurve™ Strategy Manager is the first automated decision and analytics deployment by the Commercial Bank of Qatar and is set to support extensive portfolio growth with the acquisition of new profitable customers for its credit cards, personal loans and automotive finance products. PowerCurve™ Strategy Manager is providing the Commercial Bank of Qatar with a range of credit risk and operational benefits, notably a world class single risk decisioning platform, integrated analytics modelling and a reporting environment. Benefits include operational efficiency and cost saving through efficient decision automation plus portfolio revenue through increased activation, reduced delinquency and responsible lending. Mr Abdulla Saleh Al Raisi, CEO of the Commercial Bank of Qatar, commented: “We chose Experian as our partner because it has both local knowledge and global experience in helping clients implement advanced automated decisioning and analytics. Experian understood our long term customer acquisition growth plans which ensured we were able to deploy a tailored credit risk platform that automates our decisions across credit cards, unsecured personal loans and vehicle loans. This moves us towards a generic risk product decisioning and analytical infrastructure, capable of managing organic and acquisition growth. “However this is only the beginning for Commercial Bank of Qatar as, by continually working with our partner Experian, the solution provides us the ability to instantly report upon and monitor our strategies and models, enabling the Bank to proactively evolve and optimize our decision process. As well as being a global leader in decision analytics, it was also important for us that Experian has local presence in the Middle East and we are proud to be their first customer in Qatar.” Charles Butterworth, Managing Director, Experian EMEA, commented:. “We are delighted to be supporting the Commercial Bank of Qatar in its automated decisioning analytics platform deployment and continued evolution, which I have no doubt will provide the secure consolidated basis for large scale portfolio development in its retail banking business. PowerCurve™ Strategy
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Manager’s scalable and easy-to-use interface will also allow Commercial Bank of Qatar to fine tune and improve its strategies and models, reduce operational costs and drive more profitable growth.” PowerCurve™ Strategy Manager has been developed in response to increasingly complex market demands for a truly agile and consolidated risk decisioning system which will enable lenders to adapt quickly to dynamic business situations, adjust to different regulatory environments and grow their business quickly and profitably. Clients can choose to install PowerCurve™ within their own IT environment, integrating just the capabilities they need in order to effectively manage costs and leverage their existing software investments. Alternatively, PowerCurve™ can support delivery of Experian’s analytics and decisions in a secure environment as a hosted software service provided by one of Experian’s state-of-the-art data centres.
Qatar Islamic Bank partners with NCR for technology and security solutions April 16, 2014 | BBR http://bankingtechnology.banking-business-review.com/news/qatar-islamic-bank-partners-withncr-for-technology-and-security-solutions-160414-4215196 Qatar Islamic Bank (QIB) has signed a strategic agreement with NCR to implement a suite of technology projects in 2014, as part of its strategy to boost operational efficiency. Under terms of the agreement, QIB will install NCR Skimming Protection Solution (SPS) in an effort to proactively address ATM skimming challenges and deliver maximum protection and convenience to its customers. Furthermore, the bank will boost its IT infrastructure with the use of security firewalls, network access control; data center switches upgrade and the technology refresh of its entire telephony system. QIB, which has already implemented Solidcore Suite for APTRA, said that the technology upgrade will enable it to offer improved banking experiences to its customers. Qatar Islamic Bank chief information officer Ghazi Qarout said that the agreement with NCR will deliver the latest software and hardware technology to help protect QIB banking platforms so the bank can sharpen its focus on productivity and protect our clients data. “NCR brings a unique vision for transforming our IT Infrastructure and ATM channel through software platforms, consulting and hardware enablement, helping us speed our innovation, improve our customer experience and build on a roadmap deemed for success,” Qarout added.
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Strategy Alpha Bank considering acquisition of Citibank’s Greece operations April 28, 2014 | BBR http://retailbanking.banking-business-review.com/news/alpha-bank-considering-acquisition-ofcitibanks-greece-operations-280414-4253273 Greece-based commercial bank Alpha Bank is reportedly exploring options to acquire local operations of Citibank, as part of its expansion plans. In response to press reports that it was nearing a deal to buy Citibank’s Greece operations, the lender said in a statement that the bank periodically explores a wide range of options that serve the plan of implementing its business plan and acting in the best interest of its shareholders. “In any event, as is standard practice, the bank will proceed with any requisite announcements,” the statement added. Certain media reports were cited by Marketall as saying that Alpha is in advanced talks with Citigroup for purchase of Citibank’s retail network and possibly its credit card portfolio in Greece. Additionally, the reports claim that Citibank, however, aims to maintain its shipping and corporate banking businesses. Meanwhile, Citibank officials could not immediately be reached for comment on the possible transaction. Citibank started shipping and corporate lending operations in Greece in 1964, before foraying into retail banking in the 1980s, and currently runs a network of approximately 21 branches across the country, reported Reuters. A number of foreign banks, including France’s Credit Agricole and Societe Generale, have been forced by Greece’s debt crisis to sell their local units to Greek banks in the recent years. Claimed to be Greece’s fourth-largest lender, Alpha Bank purchased Emporiki Bank from Credit Agricole in 2012.
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BNY Mellon may sell its corporate trust business April 24, 2014 | BBR http://commercialbanking.banking-business-review.com/news/bny-mellon-may-sell-itscorporate-trust-business-230414-4219675 BNY Mellon, a US-based investment management and investment services firm, is reportedly looking to sell its corporate trust business, in a bid to boost profitability. Unnamed sources familiar with the matter were quoted by Bloomberg as saying that the company is already contacting potential buyers and is expected to start soliciting bids within a month. Another source said the bank has hired Goldman Sachs Group to find potential buyers for the division that could bring as much as $2.5bn. Employing 3,500 people and with 61 offices worldwide, the corporate trust division provides administration and management services for the major categories of conventional, structured finance and specialty debt, according to the company. The business, which services approximately $12trn in total outstanding debt for its clients, including United Technologies, and Volkswagen Financial Services, among others, was generating less profits since the credit crisis. Guggenheim Securities analyst Marty Mosby was quoted by the news agency as saying that the division could attract interest from large commercial banks that are already involved in corporate trust or interested in expanding into the market, such as Bank of America, U.S. Bancorp, Wells Fargo, and PNC Financial Services Group. “It is a very stable business, there is not a lot of real risk to it,� Mosby added. Meanwhile, BNY Mellon spokesman Kevin Heine and Goldman Sachs spokesman Andrew Williams, declined to comment on the report. Apart from corporate trust business, the New York-based bank, which sold its Mexican operations to CIBanco in 2013, also plans to sell its Wall Street headquarters, as it prepares to cut down its office space.
Citi seeks buyer for its 50 branches in California April 22, 2014 | BBR http://commercialbanking.banking-business-review.com/news/citi-seeks-buyer-for-50-branchesin-california-220414-4217637 US-based Citigroup is reportedly seeking buyers for its approximately 50 branches holding $3bn of deposits in California, as it looks to cut down its branch network.
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Three sources involved in the process were quoted by Bloomberg as saying that the offices are located in rural areas from Sacramento to north of Los Angeles, and are likely to be sold for more than $100m. The bank, however, wants to keep its branches in Los Angeles, San Francisco and San Diego, the sources added. Meanwhile, Citi Bank spokesman Andrew Brent declined to comment on the speculation. Claimed to be the third-largest US lender, Citi had a total of 384 offices in California holding close to $48bn in deposits as of 30 June, according to the Federal Deposit Insurance. In its annual securities filing, the New York-based lender had confirmed that it has more than 3,700 offices worldwide at year-end, with less than 1,000 in the US. Citigroup chief executive officer Michael Corbat is trimming down branches both in the US and overseas to help company focus on the world’s top 150 cities, according to the news agency. The company, which agreed to sell its 21 Texas-based branches to BB&T in December 2013, however, failed to find a bidder for 16 Nevada branches the same year. Of the total 21 branches sold to BB&T for $36m, eight were located in San Antonio, seven in Austin, while the remaining six branches were in the Bryan-College Station market, as reported earlier by Winston-Salem Journal.
Alfa Bank closes banking operation in Crimea April 16, 2014 | BBR http://retailbanking.banking-business-review.com/news/alfa-bank-closes-banking-operation-incrimea-160414-4215075 Alfa Bank Ukraine is set to shut down its banking business in Crimea amid rapidly changing geopolitical and legal condition in the region. The bank said in a statement: “Alfa Bank no longer can work within the legal framework of the new Ukrainian legislation, and doesn’t have a legal basis for continued operations and provision of banking services in the territory of Crimea.” It further said that Ukraine and the Western countries do not recognize Russia’s annexation of Crimea, and Ukrainian and Western banks have been shutting down their business in the region. Assuring its customers, the bank said that they can close their accounts and return deposit funds, and can still use its other Ukrainian branches.
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Most recently, UniCredit Ukraine has officially announced that it halted operation in Crimea from 15 April, saying that it no longer had a legal basis for offering banking services in Crimea. In March 2014, Privatbank closed its operations in Crimea by shutting down all 339 bank offices in the region. Most recently, a subsidiary of Austria’s Raiffeisen Bank International said it would cease operations in Crimea by mid-April. First Ukrainian International Bank, which is owned by Ukrainian oligarch Rinat Akhmetov and stateowned Ukrgasbank, is also planning to halt banking business after mid-April. According to the National Bank of Ukraine estimations, there were 1,022 branches of more than 20 Ukrainian banks operating in Crimea before the seizure by Russia, with assets and liabilities worth $1.7bn to $1.9bn.
Bank of China New York signs MoU with Deutsche Bank to expand clearing service cooperation April 16, 2014 | BBR http://custodyandclearing.banking-business-review.com/news/bank-of-china-new-york-signsmou-with-deutsche-bank-to-expand-clearing-service-cooperation-160414-4215227 Bank of China New York and Deutsche Bank has signed a Memorandum of Understanding expanding their cash management relationship by utilizing Deutsche Bank’s new Guaranteed US Plus solution to process Bank of China New York’s international USD payments to US beneficiaries. Guaranteed US Plus was developed by Deutsche Bank’s Global Transaction Banking business to create a more efficient way for US beneficiaries of cross-border USD payments, and their foreign counterparts, to transact. Leveraging the long-standing partnership between Bank of China New York and Deutsche Bank, functionality was adapted by both providers to achieve a new milestone of broadened payment capabilities. This service will provide Bank of China New York with the benefit of payment principal preservation and end-to-end pricing transparency, which can in turn be passed along to its own customers. Bank of China is a leading Chinese bank and provides a full range of financial services globally. The New York branch, which opened for business in 1981, provides commercial banking services including corporate banking, personal banking, USD clearing, custody and financial markets solutions. Shihui Wang, Executive Vice President and Chief Operating Officer at Bank of China USA said, “We chose to expand our existing cash management relationship with Deutsche Bank to provide our clients with this unique service that results in greater pricing transparency for individual USD
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payments entering the US. Looking forward, there are many opportunities where we can work together to provide the best value for our clients. “ “We are pleased to extend this value proposition to Bank of China allowing them to support their expanding client franchise,” said Jeffrey Bisig, North America Head of Cash Management for Financial Institutions Sales, Deutsche Bank. “Bank of China will become the first Chinese bank to utilize and benefit from our new service which is of growing importance as payment flows continue to increase between the US and China.”
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