BANKING NEWS FLASH February 17, 2014
Table of Contents Sales & Marketing ................................................................................................................. 3 Finance ................................................................................................................................. 7 Technology .......................................................................................................................... 12 Strategy .............................................................................................................................. 16
2|Sutherland Insights Banking News Flash Feb 17, 2014
Sales & Marketing Dexia Asset Management rebrands as CANDRIAM February 14, 2014 | BBR http://assetmanagement.banking-business-review.com/news/dexia-asset-managementrebrands-as-candriam-140214-4177759 Dexia Asset Management has revealed its new brand identity following its acquisition by New York Life Investments on February 3rd, 2014. The company will now move forward as CANDRIAM, a leading pan-European, multi-specialist asset manager, with EUR 73 billion assets under management1. Naïm Abou-Jaoudé, CEO of CANDRIAM and Vice Chairman of New York Life Investment Management International, explains: « Our new name CANDRIAM is the acronym of our core company values: “Conviction and Responsibility in Asset Management. These two values drive everything we do. They are the roots of our expertise, our innovative ideas and a great discipline in our investment processes. Clear convictions empower our teams to strive for excellence. Coupled with responsibility, conviction delivers sustainable outperformance across all areas. » The new brand name CANDRIAM reflects what the company stands for, its heritage, its management style and its work ethics. The name CANDRIAM evokes an interesting linguistic association: the root “CAND” suggests light and positive energy. These positive attributes symbolise a fresh start full of dynamism and enthusiasm, in line with strong ambitions to propel the company further. Backed by New York Life, a Fortune 100 company, CANDRIAM benefits from the strengths and resources of a renowned parent. The successful multi-boutique approach of New York Life Investments allows CANDRIAM to maintain the integrity of its investment processes and its distinct entrepreneurial culture. This unique, complementary partnership is built on a shared long-term vision and a strong cultural fit. With its strong local footprint and client proximity, CANDRIAM is well positioned to fully capitalize on its 20 year track-record and its multi-specialist teams to better service its diversified client base. The affiliation with New York Life will also allow CANDRIAM to expand geographically and to continuously improve its ability to deliver the products and services which its clients need and require. Going forward, CANDRIAM expects continued interest from investors in its multi-asset solutions and its key flagship strategies, in particular those related to Corporate and High Yield, Biotech, SRI, Quant and European equity strategies. Its Index arbitrage and other leading absolute return strategies, presenting interesting risk / return profiles, are already gaining momentum with investors. Naïm Abou-Jaoudé adds: « Our new beginning as CANDRIAM offers an exciting opportunity to grow and develop a leading brand in Europe and abroad. This new energy will significantly reinvigorate our client relationships, unlock business opportunities and boost our innovation. I am convinced that all the ingredients are here to gain market share and position ourselves as a front-runner in the asset management industry.
3|Sutherland Insights Banking News Flash Feb 17, 2014
Loomis Sayles unveils emerging markets opportunities fund February 12, 2014 | BBR http://mutualfunds.banking-business-review.com/news/loomis-sayles-unveils-emerging-marketsopportunities-fund-120214-4175931 Loomis, Sayles & Company has rolled out its latest unconstrained emerging markets bond mutual fund that has the flexibility to invest in developing markets across the globe. Dubbed as Emerging Markets Opportunities Fund, the new offering will be co-managed by longtime global investors Peter Marber, David Rolley, Edgardo Sternberg and Peter Frick. Designed to offer required investment flexibility, this new fund allows the portfolio managers to invest in opportunities across diverse developing markets in Asia, Latin America, Africa, Central Europe, and the Middle East. Apart from this, the fund’s co-managers can choose from sovereign and corporate securities denominated in both local and hard currency. The fund’s co-managers will leverage Loomis Sayles’ global research capabilities, including macroeconomic analysis, global credit and sovereign research, and quantitative analysis and risk management. Loomis, Sayles & Company chief investment officer Jae Park said this fund will offer investors a unique opportunity to invest across all three asset classes; hard currency sovereigns, local currency sovereigns and emerging market corporate debt. “We believe this approach may give investors exposure to yield curves and asset prices that typically do not move in tandem with developed markets, including the US,” Park added. Loomis Sayles manages nearly $12bn in emerging markets assets across the company, as of 31 December 2013.
Deutsche Bank introduces automated Renminbi cash sweeping services February 10, 2014 | Finextra http://www.finextra.com/news/announcement.aspx?pressreleaseid=53786 Deutsche Bank’s Global Transaction Banking division today announced the introduction of automated Renminbi cash sweeping services for cross-border lending to its corporate clients in China. Following the issuance of PBOC’s circular No. 168* in July 2013, many corporate entities in China have started using cross-border Renminbi intra-company loans as a tool to maximise the use of their cash. As a result, the need for more efficient processes from banks has become a priority for Chinabased corporate treasurers.
4|Sutherland Insights Banking News Flash Feb 17, 2014
In order to help its clients achieve this goal, Deutsche Bank has introduced automated Renminbi cash sweeping services between cross-border intra-company accounts, thereby giving its clients an opportunity to gain time efficiencies. Corporates can set target balances and use this method to enhance their liquidity management. Carl Wegner, Greater China Head of Global Transaction Banking at Deutsche Bank said: “We are proud to be amongst the few foreign banks in China to offer this type of automated services. This speaks volumes about our technical capabilities and further demonstrates our client-centric approach. In addition, this will position Deutsche Bank well from a technical standpoint to offer new pilot services in the China (Shanghai) Free Trade Zone.” Deutsche Bank has received preliminary approval to set up a sub-branch in the China (Shanghai) Free Trade Zone in November 2013, and is currently working with its corporate clients on some of the new services announced in “PBOC’s Opinion on Providing Financial Support for the Development of the China (Shanghai) Pilot Free Trade Zone”, such as two--way Renminbi cross-border cash pooling services, centralised payments & collections, and transaction processing for Renminbi Direct Investments.
Xoom launches instant deposit service for Metrobank and PNB accounts in the Philippines February 07, 2014 | BBR http://onlinebanking.banking-business-review.com/news/xoom-launches-instant-deposit-servicefor-metrobank-and-pnb-accounts-in-the-philippines-070214-4173316 Xoom Corporation, a digital money transfer provider, is now offering instant deposits to all Metrobank and PNB accounts (Peso and US Dollar), accessible 24 hours a day, seven days a week, 365 days a year. Metrobank and PNB join BDO - three of the top five banks in the Philippines - with instant deposit service for Xoom customers to instantly send money directly into their recipients’ accounts. “Xoom is committed to providing ‘instant’ in all of our services, and we are excited to launch instant deposit with two more important bank partners in the Philippines: Metrobank and PNB,” said Julian King, Senior Vice President of Marketing and Corporate Development for Xoom. “People can rest assured that their loved ones with accounts at Metrobank, PNB and BDO will receive their money without waiting or having to worry about cut-off times. Xoom customers can send anywhere, anytime from their computer, mobile phone or tablet.” In the past, senders were mindful of cut-off times, arranging their schedule to ensure that they send on time, so their recipient will not have to wait another full day. Instant deposit in the Philippines means no waiting on the part of either the sender or recipient, making this a fast and convenient service for all Xoom customers. In addition to Metrobank, PNB and BDO, G-Xchange, Inc. offers instant deposits in such banks as Chinabank, Allied Bank, Security Bank and many more.
5|Sutherland Insights Banking News Flash Feb 17, 2014
Oberthur releases fast dual interface MasterCard payment card February 04, 2014 | BBR http://cards.banking-business-review.com/news/oberthur-releases-fast-dual-interfacemastercard-payment-card-040213-4171331 Oberthur Technologies, a world leader in digital security solutions for the mobility space, has release the fastest MasterCard dual interface payment card on the market. Chrysalis Fly v3.0 reaches unprecedented contactless performances. In the urban transport, contactless technology has always been challenged for its speed performances and its level of security. Indeed, the most difficult challenge of the Open Payment is the transaction speed during validation at the gate. It must be very fast to ensure maximum fluidity of commuter’s traffic and fulfil stringent authorization to access the network. Thanks to this new EMV dual interface card, the users of public transport network will experience the fastest way to travel in urban areas. Oberthur Technologies’ Chrysalis Fly v3.0 is the first card significantly converging between payment and public transport ecosystems. OT offers banks new revenue streams by promoting the usage of their MasterCard payment instruments for Open Payment in transit network. This innovative usage will bring additional value to cardholders’ payment cards. “We are proud to release such a complete and high-performance product that is leveraging on OT’s expertise and excellence in delivering best-in-class products to both urban Transit and Payment industries” said Antoine Vilain - Payment and Transport Product Lines Director at OT. “With this new product, OT demonstrates once more its commitment to offer Mobility to end-users”. “Customers rightly expect fast, simple and intuitive experiences when riding public transport systems. So MasterCard is delighted to see OT tackling the challenge of faster transit transaction times with the launch of Chrysalis Fly, and thereby enabling banks and other card issuers to deliver great payment experiences to cardholders in ever increasing numbers of cities around the world” said Will Judge, Senior Business Leader Transit at MasterCard. ABOUT OBERTHUR TECHNOLOGIES OT is a world leader in digital security solutions for the mobility space. OT has always been at the heart of mobility, from the first smart cards to the latest contactless payment technologies which equip millions of smart phones. Present in the Payment, Telecommunications and Identity markets, OT offers end-to-end solutions in the Smart Transactions, Mobile Financial Services, Machine-to-Machine, Digital Identity and Transport & Access Control fields. OT employs over 6 000 employees worldwide, including 600 R&D people. With more than 50 sales offices across 5 continents and 10 facilities, OT’s international network serves clients in 140 countries.
6|Sutherland Insights Banking News Flash Feb 17, 2014
Finance Lehman Brothers reaches $767m claim settlement with Freddie Mac February 14, 2014 | BBR http://retailbanking.banking-business-review.com/news/lehman-brothers-reaches-767m-claimsettlement-with-freddie-mac-140214-4177721 Lehman Brothers Holdings has reached a $767m settlement with the US government-controlled mortgage-finance company Freddie Mac to free up millions of dollars to creditors. This will resolve a $1.2bn claim that arises from two loans the mortgage company provided to Lehman Brothers before it collapsed during the financial crisis of 2008, reported The Wall Street Journal. Both loans were due on 15 September 2008, the day Lehman filed for bankruptcy, which triggered the financial crisis. The settlement also will enable Lehman Brothers to use the information available with Freddie Mac to pursue claims against mortgage originators, who misrepresented the facts about the quality of the mortgages. Lehman Brothers bought mortgages from originators, securitized them and transformed them into mortgage-backed securities and then sold out to Freddie Mac. The deal is subject to bankruptcy-court approval. Fannie Mae and Freddie Mac busted during the height of financial crisis of 2008, subsequently the US government pumped nearly $187.5bn, to keep them running.
3% Fee Clarification; State Compliance News Including Washington’s Unusual Requirements February 12, 2014 | Mortgage News Daily http://www.mortgagenewsdaily.com/channels/pipelinepress/02122014-mortgage-licensingfannie.aspx Atlanta has too much snow and slush, and is staying home. California, however, is in the midst of a terrible drought - and it is only February. Thanks to James Hedvall for sending along this map showing us water conditions around the nation. The nation will be watching California politics (farmer versus fisherman, LA versus San Francisco) heat up over this issue during 2014 unless the rains come. Speaking of California, a court in San Jose (the 6th District Court of Appeal) ruled that tenants who have a lease on rental property when the owner defaults on a mortgage loan have the right to stay in their home until the end of the lease. The court also said tenants have the right to sue the bank that took over the property if they are evicted after the foreclosure, overruling a judge who had decided that the foreclosure ended the lease. Deutsche Bank was unavailable for comment.
7|Sutherland Insights Banking News Flash Feb 17, 2014
There are plenty of millionaires out there in California, although many of them are setting up residence in Nevada or Texas. A study by Phoenix Marketing International finds the top 5 states with the highest percentage of millionaire households per capita (ratio of millionaires to total households) in order are: MD (7.70%), NJ (7.49%), CT (7.32%), HI (7.18%) and AK (6.75%). The bottom 5 states are: MS (3.63%), AR (3.73%), ID (3.76%), WV (3.82%) and KY (3.84%). Finally, states with the greatest number are: CA (12.9mm); TX (9.4mm); FL (7.6mm); NY (7.4mm) and PA (5.1mm). Florida’s Digital Risk eliminated 40% of its work force, certainly impacting Central Florida’s economy. Bank mergers & acquisitions continue to motor along. Within the last week it was announced that the Stephenson National Bank and Trust ($318mm, WI) will acquire Bank North ($125mm, WI) for an undisclosed sum. Leighton State Bank ($118mm, IA) will acquire Monroe State Bank ($25mm, IA) for an undisclosed sum. Columbia Bank ($2.0B, MD) said it will close 5 branches. First National of Nebraska has filed with the OCC to combine its subsidiaries First National Bank of Omaha ($14.3B, NE), First National Bank & Trust Co of Columbus ($444mm, NE), First National Bank ($441mm, NE), First National Bank South Dakota ($368mm, SD), Fremont National Bank & Trust Co ($300mm, NE) and Platte Valley State Bank & Trust Co ($422mm, NE) together as one bank. In a story yesterday in CNN, Fannie & Freddie are on the verge of paying the government bailouts all back. “Later this month, Fannie Mae and Freddie Mac are likely to report earnings that will result in them paying the U.S. Treasury more than the $187 billion they received starting in 2008. Since the beginning of last year, Fannie and Freddie have been turning over virtually all profits to the government each quarter. Before that, they were paying a 10% dividend on the preferred stock held by Treasury. That change has meant a windfall for Treasury, which controls 80% of each company’s stock.” Uh, and why would Congress want to turn that income stream back over to stockholders? “A recovery in the housing market, coupled with accounting rules that produced huge one-time gains at both firms last year, also resulted in much larger payments.” The story goes on to say, “But not everyone is happy about the prospect of taxpayers being made whole for the rescue of the firms. In fact, there are two federal lawsuits challenging the current repayment schedule. In one suit, hedge fund Perry Capital argues that the larger repayment violates the 2008 law that authorized the bailout. They contend that if profits are being returned to taxpayers, the government should give up some shares in return. That would increase the value of the shares held by private investors, including Perry Capital, that account for 20% of the firms’ stocks. Other private investors, who bought Fannie and Freddie before the housing bust, include community banks, pension funds, university endowments and foundations.” I received this note: “We are now being told by several legal sources that affiliate title companies fees for broker don’t need to be counted in the 3% fee rule for QM. Are you hearing anything about this? We were told only lenders, correspondents and table funders needed to count the affiliate title fees into the 3% fee rule. When management heard this from inside and outside counsel we concluded that it doesn’t make any sense that brokers would be excluded from that rule. We are also hearing from one of our brokers, when we informed then they needed to restructure a loan because it didn’t met the QM standard, they said other lenders are not counting those fees toward the 3% rule.” The CFPB discounts that notion, and requests lenders to take a look at the actual language of the definition of points and fees for closed-end mortgages, which is found in 1026.32(b)(1); specifically, 32(b)(1)(iii)(C) is what’s relevant here (and even more specifically, see the words within that paragraph that should be regarded): (b) Definitions. For purposes of this subpart, the following definitions apply: (1) In connection with a closed-end credit transaction, points and fees means the following fees or charges that are known at or before consummation...(iii) All items listed in
8|Sutherland Insights Banking News Flash Feb 17, 2014
§1026.4(c)(7) (other than amounts held for future payment of taxes), unless: (A) The charge is reasonable; (B) The creditor receives no direct or indirect compensation in connection with the charge; and (C) The charge is not paid to an affiliate of the creditor;”. Yes, it appears that means that fees paid to affiliates of brokers aren’t included in the Points and Fees test unless they otherwise would. Keeping on with regulations, Illinois has adopted several changes to the registration fee requirements for loan originators. The changes included the addition of an exempt entity registration fee, constituting a $657 increase from $2,043 to $2,700 annually. This fee is broken down into an investigation fee and initial application fee. Nicole Legere of Bankers Advisory writes, “The applicant must pay a $1,500 dollar non-refundable investigation fee which is an increase from the prior fee of $1,135 dollars. The applicant must also pay an initial license fee of $1,200 dollars which is an increase from the prior fee of $908 dollars. These fees can be paid separately or as a singular combined fee based on the discretion of the Director of the Division of Banking. Applicants for license renewal will face the same overall increase in fees as the annual licensing fee is being raised to $2,700 dollars.” These changes have already been implemented. Oregon has amended the provisions regarding Foreclosure Avoidance Notice. The amendment provides the form and content of the notice that is to be issued by a beneficiary, when the beneficiary determines that a grantor is not eligible for any foreclosure avoidance measure, or that the grantor has not complied with the terms of a foreclosure avoidance measure to which they have agreed. The new provisions also provide the address to which a copy of the notice must be sent. The form can be found on the Oregon DOJ website. Justin Flake at TruHome Solutions wrote to me recently on a compensation rule: “We recently received the clarification from Washington copied below. It requires all processing and underwriting managers to be licensed as LOs. Have you heard any grumblings about this? It doesn’t make any sense to require an employee whose sole responsibility is to oversee a group of processors or underwriters to take a test designed for LOs, not to mention fulfill annual license renewals and continuing education requirements. Has anyone else in Washington come up against this? Have they come up with any solution short of licensing their managers?” The Washington State Department of Financial Institutions writes, “It has come to our attention that clarification is needed on the following rule WAC 208-620-301. Your managers, including branch managers, must license individually as mortgage loan originators if they conduct the following activities: (1) Take residential mortgage loan applications, negotiate the terms or conditions of residential mortgage loans, or hold themselves out as being able to conduct these activities; (2) Super
Banks spent $172m on reissuing credit cards affected by Target breach February 10, 2014 | BBR http://cards.banking-business-review.com/news/us-banks-spend-172m-on-reissuing-credit-cardsaffected-by-target-breach-100214-4174469 The US banks have spent nearly $172m for reissuing more than 17.2 million debit and credit cards affected by Target data breach, according to a report by the Consumer Bankers Association (CBA). The association further said this is an increase from the initial round of 15.3 million card replacements by CBA’s member banks.
9|Sutherland Insights Banking News Flash Feb 17, 2014
Consumer Bankers Association president and CEO Richard Hunt said, “When retailers say this data breach come at no cost or liability to consumers they are right - because its banks and card issuers who are on the hook often at little or no cost to retailers like Target. “Retailers should recognize the costs of data breaches snowball with time and they should take responsibility when they are at fault.” The report by CBA highlights that approximately 110,000,000 customers were affected until now, nearly 17,206,844 cards have been replaced, which cost them $172,068,440. It also underlines that about 40,000,000 Target customer cards have been compromised. The bank incurred $10 for replacing each card, including the card itself, informing consumers of a card reissuement, shipping and activating the card, and often supplemental communication through call centers and the internet. Furthermore, the CBA said these numbers do not take into account any fraudulent activity which may have occurred or may occur in the future. Following the Target breach and others incidents, CBA has laid down a number of recommendations for policymakers to help strengthen the payments system and better protect consumers. It has recommended creating a national data security breach and notification standard to better protect consumers by replacing the current patchwork of state laws with a national standard for data protection and notice. In its proposal, the agency further said those responsible for data breaches must be held accountable and bear the associated cost and losses arising out of such breaches. It also called for the removal of redundant legal and other barriers, so that effective threat information sharing between law enforcement and the financial and retail sectors could be improved.
Citi agrees to pay $110m over force-placed insurance February 07, 2014 | BBR http://retailbanking.banking-business-review.com/news/citi-agrees-to-pay-110m-over-forceplaced-insurance-070214-4173378 Citi has reportedly reached an agreement to pay $110m to several homeowners, in a bid to settle a lawsuit that accused the lender for forcibly charging high property insurance premiums. A court filing was cited by Reuters as saying that the homeowners will get back 12.5% of the premium upon submitting a claim, who were charged for force-placed hazard insurance. As per the case filed in a New York federal court,’force-placed insurance’ is adopted by a bank or other mortgage lenders to shield their interests in a property if the homeowner’s insurance lapses. The plaintiffs accused the lender for collecting approximately $758m in hazard insurance premiums and $173m in flood insurance premiums.
10 | S u t h e r l a n d I n s i g h t s B a n k i n g N e w s F l a s h F e b 1 7 , 2 0 1 4
Under the agreement between Citigroup and the plaintiffs, which is pending receipt of the court approval, Citi will refrain from accepting commissions for force-placed insurance over a six-year period from the settlement date. The US-based bank has also decided to repay 8% each of force-placed flood insurance premiums and force-placed wind insurance premiums; although, no commissions were paid to Citi or its affiliates on flood or wind insurance. In September 2013, JPMorgan Chase & Co and force-placed insurer Assurant agreed to pay $300m in a similar settlement.
US judge partly approves BofA’s $8.5bn deal with investors February 03, 2014 | BBR http://retailbanking.banking-business-review.com/news/us-judge-partly-approves-bofas-85bndeal-with-investors-030214-4170044 A New York state judge has approved a large part of Bank of America’s (BofA’s) $8.5bn settlement with mortgage-bond investors, including BlackRock and Pacific Investment Management, who suffered huge losses due to sale of faulty RMBS. The New York State Supreme Court Justice Barbara Kapnick in Manhattan has yet to clear one part of the settlement agreement. The settlement is part of BofA CEO Brian Moynihan’s efforts to settle down the liabilities pertaining to sale of faulty mortgages, most of which came along with its 2008 acquisition of Countrywide Financial. The recent approval, for which the bank filed a petition in June 2011, will largely enable the lender to settle the claims that the bank’s mortgage securities failed to meet their promised quality. A Bank of America spokesman was quoted by the Wall Street Journal as saying, “We are pleased that the court approved the settlement.” “Any outstanding issues raised in the opinion can be addressed without undue delay,” the spokesman told the news agency. It is believed that the deal, if approved by the court, would resolve nearly half of all claims from private investors over mortgage-backed securities
11 | S u t h e r l a n d I n s i g h t s B a n k i n g N e w s F l a s h F e b 1 7 , 2 0 1 4
Technology MasterCard launches digital payment offering MasterPass in Spain February 14, 2014 | BBR http://cards.banking-business-review.com/news/mastercard-launches-digital-payment-offeringmasterpass-in-spain-140214-4177828 MasterCard has introduced its digital payment offering MasterPass in Spain, following agreements with several financial institutions and merchants in the country. MasterPass eliminates the need to enter detailed shipping and card information to complete online purchases, thereby enables consumers to make online payments in a comfortable, fast and safe manner. The service can be easily tailored and commercialized to provide clients with the option of making payments with digital wallets. MasterCard said that the merchants who are accepting MasterPass will benefit -with a minimum integration impact- of accepting a modern way of payment that has global reach. According to a study by the company, currently more than 30,000 merchants globally already accept the option to make online payments with MasterPass. MasterCard Spain country manager Ovido Egido said that consumer habits are changing radically and online purchase volume is growing rapidly, and not just through personal computers or laptops. Spain becomes the fourth European country to offer MasterPass services, after its launch in the UK, followed by recent announcements in Italy and Sweden. MasterPass, which will arrive to several other markets around the world throughout 2014, is available in the US, Canada and Australia, and was recently announced in Brazil.
ACH Alert delivers fraud protection technology to Los Alamos National Bank February 12, 2014 | BBR http://riskmanagement.banking-business-review.com/news/ach-alert-delivers-fraud-protectiontechnology-to-los-alamos-national-bank-120114-4175891 Los Alamos National Bank of New Mexico has installed ACH Alert’s PRO-TECH service to add another layer of security to its account holders. ACH Alert’s technology allows account holders to make the decision to pay or decline incoming electronic debits, preventing fraud and theft. Customers receive an alert when an electronic debit hits their account, enabling them to detect fraudulent entries immediately and return them instantly. All of this is done without a financial institution’s intervention, a time-saving benefit for businesses both large and small.
12 | S u t h e r l a n d I n s i g h t s B a n k i n g N e w s F l a s h F e b 1 7 , 2 0 1 4
Los Alamos National Bank president Steve Wells said ACH Alert has a proven track record for delivering technology solutions that can provide another layer of fraudulent transaction safeguards to our customers. “In addition to helping us improve service to our customers, PRO-TECH captures revenue opportunities that we’d otherwise miss out on,” Wells added. ACH Alert CEO Debbie Peace said fraudsters are continually finding ways to circumvent traditional security methods, leaving financial institutions and their account holders at risk. “PRO-TECH is part of a layered approach to fraud prevention that shifts control of the pay/no-pay decision to the customer, an option most account holders crave,” he concluded.
Deutsche Bank creates Global Solutions function February 10, 2014 | BBR http://commercialbanking.banking-business-review.com/news/deutsche-bank-creates-globalsolutions-function-100214-4174816 Deutsche Bank has created a Global Solutions function within the Trade Finance/Cash Management for Corporates (TF/CMC) business in its Global Transaction Banking division. TF/CMC Global Solutions will focus on accelerating business growth by systematically tailoring and replicating solutions across target industries and geographies, focusing on large corporate clients. The newly-created business is headed globally by Shahrokh Moinian, previously Head of TF/CMC for the Americas. Based in Frankfurt, Moinian reports to Michael Spiegel, Head of TF/CMC. On a regional level, the Global Solutions teams are led by Suman Chaki for Asia Pacific and Arthur Brieske for the Americas. Deutsche Bank today also announced the appointment of James Binns as Managing Director and Regional Head Global Solutions EMEA, joining the Bank from HSBC. He will be based in London and report to Shahrokh Moinian. Michael Spiegel, Head of TF/CMC commented: “Global Solutions will play a critical role in our growth aspirations for TF/CMC. It is a global key initiative and perfectly complements the client-centric approach of our business.”
Oman’s bank muscat live on Charles River Investment Management technology February 07, 2014 | BBR http://bankingtechnology.banking-business-review.com/news/omans-bank-muscat-live-oncharles-river-investment-management-technology-070214-4173320 Charles River has announced that bank muscat’s Asset Management Division in Oman, is live on the Charles River Investment Management Solution (Charles River IMS) to support its equity and fixed income operations.
13 | S u t h e r l a n d I n s i g h t s B a n k i n g N e w s F l a s h F e b 1 7 , 2 0 1 4
bank muscat is leveraging Charles River IMS for automated portfolio management, trading, compliance monitoring and performance measurement and attribution. “Our portfolio managers, traders, compliance and operations staff now manage all accounts in Charles River. The flexible portfolio management tools and the combined order and execution management capabilities simplify our workflows and ensure compliance throughout the trade lifecycle,” said Abdullah Al Hinai, Deputy General Manager, Investment Banking and FIG, bank muscat. “Asset managers in the Middle East, like bank muscat, attract international investors and assets by incorporating new investment strategies and instruments into their portfolios,” said Stephen Butcher, Managing Director-EMEA, Charles River. “Through our experience in these local markets we help investment firms across the region standardize and automate their investment operations to support expansion and control risk.”
Citi launches new mobile app February 04, 2014 | BBR http://bankingtechnology.banking-business-review.com/news/citi-launches-new-mobile-app040214-4171365 Citi launched its redesigned Citi Mobile app for iPhone and Android devices to provide U.S. banking and credit card customers with new and enhanced mobile account management capabilities. New features, a cleaner, sleeker design, intuitive navigation and alerts on-the-go have been added to make it faster and simpler for customers to check balances, transfer money and make deposits and payments. Over time, the new application will go live to Citi customers around the world. The U.S. launch includes a limited beta test of Citi Mobile® Snapshot, a new opt-in feature that enables customers to check deposit and credit card balances and recent transactions without having to log into their accounts. Citi is the first major U.S. bank to offer the feature, which is expected to be rolled out to all U.S. customers later this year. Citi was also the first major U.S. bank to launch a mobile application in 2007. “At Citi we want our customers to have remarkable experiences in every way they interact with us and manage their accounts,” said Melissa Stevens, Managing Director, Citi Internet & Mobile. “Citi Mobile is a vital and growing channel for our customers, so we have reimagined what mobile banking looks like and produced a new app that is designed specifically for how people bank on their phones. We have added new features and intuitive navigation to make Citi Mobile - the first of its kind when it launched seven years ago - an industry leader again and an even easier way for people to manage their accounts on-the-go.” New Citi Mobile features include: Citi Mobile Snapshot: Citibank and credit card customers who choose to enroll in Citi Mobile Snapshot will have quick access to their basic account information merely by opening the Citi Mobile app. The new feature will help enrolled banking and credit card customers monitor their accounts on-the-go by displaying balances and the 15 most recent transactions without requiring them to log in every time. Information will be shown only for customers who choose to opt in by enrolling in the
14 | S u t h e r l a n d I n s i g h t s B a n k i n g N e w s F l a s h F e b 1 7 , 2 0 1 4
feature. All account transactions will continue to require log-in authorization. The beta test period is in place to help optimize the feature based on direct customer feedback. Advanced Mobile-Specific Design: Citi has received numerous accolades for its uniquely-designed Citibank for iPad® app that provides a robust experience specific to the tablet. Designed specifically for a mobile interface, the new Citi Mobile app was reengineered to enhance how customers view and access account information on their phones. Moving away from a sequential navigation, the new app features a fluid single-screen layout that makes navigation by the touch of a finger easier, faster and more intuitive. Streamlined Payment and Transfer Options: Customers can utilize simplified menus for payments and transfers, with faster access to popular banking functions like Popmoney® personal payment service, which enables users to pay other people directly from their Citibank account, and Mobile Check Deposit, which allows users to deposit checks into their account with the snap of their mobile camera. By simply clicking an icon, a menu now opens all of the potential payments and transfer tasks users may need to complete, making it quicker than ever to check off banking to-dos on the go. Automatic Notifications: New push notifications will help customers stay on top of their finances. Citi Mobile customers can now receive account-specific notifications on the status and activity of their deposit and credit card accounts, such as when a check has cleared, a balance has fallen below a set threshold, or a payment is due. Expanded Transaction Search Capability: Customers will find it easier to sort and search through their transaction history and edit or cancel scheduled payments. The Citi Mobile app is available free to download from the App Store? or Google Play™. A demo video of the app can be found here on Citi’s YouTube channel. The new Citi Mobile app is the latest example of Citi bringing new digital features to customers to help simplify their lives. Forrester Research, Inc. recently ranked the new Citibank® Online and Citi’s digital banking services #1 for the second straight year in its January 2014 report: “2013 US Bank Secure Website Rankings.” Citi was cited as standing out for assisted service, providing a wide array of contact options as well as best-in-class social media customer service, and in security and privacy, with succinct and consumer-friendly guidance on identity theft, cyber threats, and email spoofs. Since its launch in 2011, the Citibank for iPad app, which is now rolling out globally, has been continuously recognized as the industry leader by research consultancies and industry observers. In 2012, Javelin Strategy & Research’s Tablet and Banking Report identified Citi as a tablet banking market leader, pointing to its progressive apps for tablets. And in 2012, the app won a Meffy Award in the Innovation for App category and Gold in the “Best Use of Digital in the Financial Services Sector” category at the Digital Impact Awards. Last month, Citibank unveiled a new ATM experience in the U.S. that “remember” customer preferences to reduce time customers spend checking balances, making deposits and withdrawing cash. The new ATMs feature quick-touch balance peeks and new on-page scrolling for faster access to more information without requiring navigation to additional screens. Citibank led the introduction and adoption of ATMs worldwide in 1977.
15 | S u t h e r l a n d I n s i g h t s B a n k i n g N e w s F l a s h F e b 1 7 , 2 0 1 4
Strategy ElectraCard Services scores credit processing deal with NMB Bank February 14, 2014 | BBR http://cards.banking-business-review.com/news/electracard-services-scores-credit-processingdeal-with-nmb-bank-140214-4178315 ElectraCard Services (ECS) has announced that they have undertaken the end-to-end management of NMB Bank credit and debit cards. ECS will offer these services through their world class PCI DSS certified data centre. NMB Bank Limited, one of the leading commercial banks in Nepal, has been licensed as ‘A’ class financial institute by Nepal Rastra Bank in May 2008. Over the past fifteen years the bank has been successfully providing banking and financial services in the Nepalese financial market. NMB Bank joins over 9 other banks in Nepal that are already running on the ECS payment platform. ECS will provide the Bank a comprehensive debit and credit processing solution. The EMV compliant card management systems provide the Bank with complete management of the cards lifecycle, and support all major card networks like VISA®, SCT and NPN. Selection of ECS at NMB was facilitated by Imark Pvt Ltd., one of the largest local IT systems integrators in Nepal, and will help the bank to achieve its ambitious business objectives of expanding its credit and debit card base. ECS provides global institutions with end-to-end Processing Services to suit their individual market requirements. With superior software technology, agile processing, cost effective deployment, continuous innovation and a PCI-DSS certification, ECS provides customers with an outstanding value proposition. “For banks to provide customers with the best banking solutions, technology becomes crucial. We were the ideal technology partner given our modern platform, extensive expertise in migrations globally and adept understanding of the regulatory and banking requirements of Nepal. We are extremely happy to join forces with NMB Bank and help them offer customers better service, wider reach and improved security. With the addition of NMB Bank, the electra platform becomes the foremost platform on which card issuance is carried out in Nepal, with a 75% market share,” said Mr. Ramesh Mengawade, CEO, ElectraCard Services. Mr. Upendra Poudyal, CEO, NMB Bank, said, “We chose ECS due to its global leadership, unparalleled deployment experience and installed base in Nepal. It also offers unrivalled functionality over a broad solution set, as well as its seamless integration capability. ECS will provide us with a solid platform to manage our growth efficiently. The platform will help us quickly and costeffectively deliver new products and services as we grow and serve our customers in Nepal.” With the move to ECS processing platform, NMB Bank will also be able to provide their customers additional features on the cards including secure ecommerce transactions and reward points.
16 | S u t h e r l a n d I n s i g h t s B a n k i n g N e w s F l a s h F e b 1 7 , 2 0 1 4
Vodafone, MoneyGram sign M-Pesa money transfer agreement February 12, 2014 | BBR http://payments.banking-business-review.com/news/vodafone-and-moneygram-sign-globalmoney-transfer-agreement-120214-4176027 MoneyGram, a global money transfer and global payment services company, and Vodafone have signed an agreement to allow consumers to transfer funds directly from around 200 countries to the millions of users of M-Pesa. The money transfer service will be initially rolled out in selected markets during the second quarter of 2014, while additional launch planned throughout the rest of the year. Using the new service, consumers can send funds directly to M-Pesa accounts by visiting MoneyGram’s 334,000 agents across the world. MoneyGram customers can also transfer money to an M-Pesa user through moneygram.com or using a mobile app, available on iPhone, Android and Windows 8 phones. M-Pesa is curretnly available in the following countries the Democratic Republic of Congo, Egypt, Fiji, India, Kenya, Lesotho, Mozambique, South Africa and Tanzania. M-Pesa, which enables customers to pay bills and withdraw, transfer and deposit money easily, will be launched in additional markets during 2014. Vodafone M-Pesa director Michael Joseph said there is huge demand for sending funds back to family and friends in your home market and an estimated $90bn per year is transferred to M-Pesa markets from around the globe. “Our partnership with MoneyGram provides the most extensive global network and greatest number of access points for consumers wishing to transfer funds to M-Pesa users,” Joseph added. Developed by Vodafone, M-Pesa had nearly 16 million active customers as at 30 September 2013 and almost 165,000 authorized agents globally.
Paycorp, PayPal integrate to provide customers with greater payment flexibility February 10, 2014 | BBR http://payments.banking-business-review.com/news/paycorp-paypal-integrate-to-providecustomers-with-greater-payment-flexibility-100214-4174787 Payment provider PayPal has announced that its online and mobile payment services will be integrated into Paycorp, a provider of enterprise payment processing solutions. Through the technology alignment, Paycorp will be able to process and deliver transactions to PayPal for various market verticals and merchant categories. As a result PayPal payments will be integrated into some of Paycorp’s existing payment solutions including RentPay which is used by real estate agents to process rent payments.
17 | S u t h e r l a n d I n s i g h t s B a n k i n g N e w s F l a s h F e b 1 7 , 2 0 1 4
Simon Banks, Director of Enterprise Sales, added: “Through our new relationship with Paycorp we will be able to continue to expand our reach into other verticals such as bill payments, so even more Australians can choose to pay with their PayPal account. We’re seeing an increased demand by consumers for flexibility and choice in regards to digital payments, with mobile serving as a critical channel. As consumers continue to evolve behaviours and embrace new technologies different payment options is becoming more crucial than ever for merchants.” John Caliguri, Chairman of Paycorp’s group of companies said, “Given PayPal’s extensive global network, this partnership allows Paycorp to be a competitive payment solutions provider in the Asia Pacific region. Consumers are increasingly embracing alternative payments and offering PayPal to our consumers makes sense as more consumers continue to shop online.” Mazeen Farook, Managing Director of Paycorp International, said: “Merchants will be able to leverage PayPal’s strong security proposition. Security is a major concern for both consumers and merchants and the partnership enables us to meet the needs of our merchants by offering a payment solution that is both innovative and secure.”
Sun Life Financial opens new institutional asset management business February 07, 2014 | BBR http://assetmanagement.banking-business-review.com/news/sun-life-financial-establishesinstitutional-asset-management-business-070214-4173526 Sun Life Financial has opened its new asset management business that will specialize in providing private asset class pooled funds and liability driven investment strategies for defined benefit (DB) pension plans and other institutional investors in Canada. The new Sun Life Investment Management business will be led by Steve Peacher, Sun Life Financial executive vice-president and chief investment officer. The new operation will include investment operations of Sun Life Assurance Company of Canada that manages nearly $100bn in assets, including almost $38bn in private asset class investments. Sun Life Financial president and CEO Dean Conno said through this initiative the company will be offering the same type of expertise to third-party clients that it has built over the decades to manage its insurance assets. “This broadens the asset management pillar of our enterprise strategy, providing an excellent complement to MFS Investment Management, Sun Life Global Investments (Canada) Inc. and our Asian asset management businesses,” Conno added. The new company is also planning to roll out a set of three funds, Private Fixed Income Plus Fund, the Canadian Commercial Mortgage Fund, and the Canadian Real Estate Fund, which are yet to receive regulatory approvals.
18 | S u t h e r l a n d I n s i g h t s B a n k i n g N e w s F l a s h F e b 1 7 , 2 0 1 4
Kearny Federal Savings Bank agrees to purchase Atlas Bank February 03, 2014 | BBR http://retailbanking.banking-business-review.com/news/kearny-federal-savings-bank-agrees-topurchase-atlas-bank-030214-4170102 Kearny Financial, the holding company for Kearny Federal Savings Bank, has signed an agreement to acquire Atlas Bank, for an undisclosed sum. Following completion of the transaction, the acquired entity will be merged with and into Kearny Federal Savings Bank and will operate as its division retaining the brand name ‘Atlas Bank’, for at least a year following the merger. The deal will provide Kearny with Atlas’s offices in Brooklyn and Staten Island, New York, according to the company. Based on the terms of the deal, Atlas’ depositors will become depositors of Kearny and will have the same rights and privileges in Kearny MHC. Kearny Financial Corp president and CEO Craig L Montanaro said this transaction provides the firm with an excellent platform to further grow and diversify its franchise there. “This will be achieved by delivering on our value proposition of providing superior customer service coupled with our rich history of investing in the communities we serve,” Montanaro added. Pending approvals from Atlas’s depositors and regulators, the transaction is expected to conclude during the second or third quarter of 2014. Spidi & Fisch and Kilpatrick Townsend & Stockton served as legal counsel to Kearny and Atlas, respectively. FinPro Capital Advisors and Sandler O’Neill + Partners acted as financial advisor to Kearny and Atlas, respectively
19 | S u t h e r l a n d I n s i g h t s B a n k i n g N e w s F l a s h F e b 1 7 , 2 0 1 4