BANKING NEWS FLASH 16th October 2013
Table of Contents Sales & Marketing ................................................................................................................. 3 Finance ................................................................................................................................. 7 Technology .......................................................................................................................... 12 Strategy .............................................................................................................................. 17
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Sales & Marketing Telefónica and CaixaBank set up a new company to strengthen their mobile device financing agreement 16 October, 2013 | BBR http://retailbanking.banking-business-review.com/news/telefnica-and-caixabank-set-up-a-newcompany-to-strengthen-their-mobile-device-financing-agreement-161013 Telefónica and CaixaBank have agreed to set up a joint consumer finance company, which will help customers in Spain to acquire mobile handsets and devices. The new firm, which will be called Telefónica Consumer Finance, is the natural successor of a 2012 agreement between the two companies, under which CaixaBank, via its FinConsum subsidiary, helps Movistar customers to pay for their mobile devices in affordable instalments over 24 months. The deal was signed by the Chairman of Telefónica Spain, Luis Miguel Gilpérez, and the ViceChairman and CEO of CaixaBank, Juan María Nin. The new company will be held 50% each by Telefónica and FinConsum. Telefónica brings to the new company its long experience in mobile device sales, as well as its extensive network of mobile phone stores, while FinConsum, with its proven track record and specialisation in consumer financing, will run the key operating procedures. The Vice-Chairman and CEO of CaixaBank, Juan María Nin, said "with more than a million contracts expected annually, this finance company will be the second largest in Spain in terms of transaction numbers, which underscores just how important this agreement is". Meanwhile, the Chairman of Telefónica Spain, Luis Miguel Gilpérez, pointed out that "Movistar's extensive network of stores, the largest in Spain, means that the new finance provider's services will be offered at more than 2,000 points of sale". He added that, "the deal reaffirms Movistar's commitment to offer its customers the finest quality services and to help them to buy or update their smartphones, thus ensuring that they benefit fully from all the products and services that we offer". More than 700,000 mobile phones financed in 12 months In 2012 Telefónica revolutionized mobile device sales in Spain, moving away from a model based on financial support and towards new formats, such as buying used handsets, refurbishing phones and allowing customers to pay interest-free instalments via their mobile phone bills, thanks to its deal with FinConsum. The growing popularity of this financing model, especially after the launch of Movistar Fusión in October 2012 (with more than 700,000 instalment sales so far), has encouraged the two partners to advance their agreement and set up a new company. This will provide a stronger foundation for partnership between the two groups and ensure that financial solutions can be customised to Movistar users. One benefit for customers will be a single and rapid procedure for all operations, meaning they will be able take home their new mobile devices without delay. A highly innovative paperless contractual procedure, using digital signature technology, is currently being rolled out at Movistar stores and should be ready by the end of this year.
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Furthermore, the procedure will be even simpler for "la Caixa"'s 13.8 million customers in Spain, who will simply be able to show their "la Caixa" card and provide their personal information in order to secure financing. Telef贸nica Consumer Finance is expected to take full control of the mobile device financing business as of the first quarter 2014
Sterling Bank rolls out prepaid cards 04 October, 2013 | BBR http://cards.banking-business-review.com/news/sterling-bank-rolls-out-prepaid-cards-041013 Sterling Bank has launched two new prepaid card products Everyday Cash Card and Student Everyday Cash Card, which are similar to a debit or credit card and can be used anywhere Visa debit cards are accepted and at ATMs, globally. The US lender said that with prepaid cards, the cardholders do not take on debt with prepaid cards, as they would do with credit cards, and they are not linked to a deposit account like debit cards. The new prepaid cards, which can be customized with the cardholder's name, also are entitled to receive direct deposit of payroll and government payments. The lender has designed the student version of card, to help parents or guardians to send funds to children away from home, and serves as a tool to begin financial-management education. Sterling Bank corporate product management and market research senior vice president and director Patricia Baughman said that Sterling's prepaid cards offer an affordable alternative for those who want a traditional checking account. "They also are great for customers who travel or make frequent online purchases and prefer to protect their primary account information. Additionally, they are a great budgeting tool, offering a means to control spending," Baughman added. Customers have been given options to add or remove funds alerts, set up low-balance alerts where you can set your own low-balance definition, signature and PIN transaction alerts. Further, they can also choose weekly balance updates, address and status change alerts, declined transaction alerts and international, out-of-state and card-not-present transactions alerts. Sterling Savings Bank does business as Sterling Bank in Washington, Oregon and Idaho and as Argent Bank in California, and delivers financial products and services, mortgage lending, and trust and investment products.
StanChart, DBS, and HSBC bid to acquire SocGen Asia private bank 03 October, 2013 | BBR http://retailbanking.banking-business-review.com/news/stanchart-dbs-and-hsbc-bid-to-acquiresocgen-asia-private-bank-031013
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Société Générale, the French diversified banking organization, has reportedly received first round of bids from Standard Chartered, DBS, HSBC, for the acquisition of its Singapore-based Asian private banking operations, worth approximately $600m. Sources familiar with the development were quoted by Reuters as saying that SocGen is divesting the division, as part of its business restructuring plan to slash cost and boost profits. Switzerland-based lender Credit Suisse and one US financial organization are among 10 companies, which have submitted their preliminary bids for the unit that manages about $13bn of assets, the sources told the news agency. If the proposed sale materializes, it would mark the exit of the French lender from the Asian private banking landscape. US investment banker JP Morgan is advising SocGen over the deal, the sources said. The French bank is streamlining its asset-gathering operations after integrating them with its corporate and investment bank under head of corporate and investment banking Didier Valet. Earlier in 2013 year, SocGen disposed of its Japan private bank to Sumitomo Mitsui Banking for an undisclosed sum. Besides SocGen, Bank of America sold its Asian and other non-US private banking business to Julius Baer for $911m in 2012
Fexco inks dynamic currency conversion deal with Mitsubishi UFJ 02 October, 2013 | BBR http://cards.banking-business-review.com/news/fexco-inks-dynamic-currency-conversion-dealwith-mitsubishi-ufj-021013 Global financial services group Fexco has embarked on an agreement with Japanese credit card group Mitsubishi UFJ Nicos (MUN), to offer dynamic currency conversion services. The financial service offers credit card holders with cards transaction cost converted into their local currency when making a payment in foreign currency, subsequently users will get exchange at the point of sale. Fexco executive director Dermot O'Shea said, "It is a very significant deal for the company and will generate a number of new positions at our headquarters in Ireland, and also an increasing number in the Tokyo office. "We expect the first live transaction next month and it is a five-year, multimillion euro contract." The company said that Fexco dynamic currency conversion (DCC) in Japan, will initially focus on business travelers and tourists coming to Tokyo from the US, South Korea, Australia, Taiwan, Europe and Hong Kong.
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Mitsubishi UFJ Nicos executive director Ryusuke Narukawa commented, "By adding on DCC, our merchant customer base will be able to provide enhanced services and higher satisfaction to international visitors to Japan, facilitating transactions in the hotel, retail and entertainment sectors." In 1996, Fexco launched first dynamic currency conversion service and currently offers services to over 70,000 merchants with 35 acquiring banks
ANZ, UOB plan to bid for Hong Kong's Wing Hang Bank 30 September, 2013 | BBR http://commercialbanking.banking-business-review.com/news/anz-uob-plan-to-bid-for-hongkongs-wing-hang-bank-300913 Singapore-based United Overseas Bank (UOB) and Australia & New Zealand Banking Group (ANZ) are reportedly mulling over a bid for Hong Kong-based Wing Hang Bank, with strategies to boost their footprint in the region. Earlier this month, Wing Hang's announced that its controlling shareholders have received first round of offers from interested independent parties to buy a stake in the bank. Sources familiar with the development were quoted by Reuters as saying that that ANZ and UOB were among the potential suitors, planning to submit their bid for the Hong Kong bank, which has a market capitalization of $4.7bn. An ANZ spokesman told Reuters, "From time to time we look at opportunities as part of our super regional strategy however we don't comment on market speculation." The growing financial power of China as well as the growth of offshore yuan fixed income market have helped Hong Kong's mid-sized banks to emerge as attractive investments destination for foreign banks that are seeking to grow their business beyond domestic boundaries. Furthermore, the emerging markets in Asia have attracted not only Asian lenders but also global banks, as they aspire to exploit the business opportunities in higher growth markets. ANZ, which reported an unaudited cash profit of A$1.53bn ($1.58bn) for the first quarter of 2013, has been looking to expand its business across Asia, under the leadership of current CEO Mike Smith
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Finance Wells Fargo Q3 2013 net income increased by 13% to $5.6bn 15 October, 2013 | BBR http://retailbanking.banking-business-review.com/news/wells-fargo-q3-2013-net-incomeincreased-by-13-to-56bn-151013 Wells Fargo has reported that its net income increased by 13% to $5.6bn, or $0.99 per diluted common share for Q3 2013, compared to $4.49bn, or $0.88, during the comparable period last year. Commenting on the financial result, Wells Fargo Chairman and CEO John Stumpf said that the bank continued to demonstrate strong and consistent financial performance in the third quarter. "As our economy continues to transition to higher interest rates, our diversified business model and strong risk discipline contributed to record earnings per share along with continued strength in return on assets, return on equity and capital," Stumpf added. For the quarter period ended on 30 September 2013, its revenue stood at $20.5bn, against $21.4bn during the second quarter of 2013. Community banking reported net income of $3.3bn, with an increase of 3%, while revenue decreased by 5% to $12.2bn, from the prior quarter, primarily due to lower mortgage banking revenue. Wholesale Banking reported net income of $2bn, down by 2%, while revenue stood at $5.9bn, with a decline of 4%, from prior quarter on lower sales and trading and investment banking results as well as seasonally lower crop insurance fees. Net income in wealth, brokerage and retirement division stood at $450m, up by 4%, while revenue was $3.3bn, with an increased of $46m, compared to the prior quarter of 2013. Established in 1852 and headquartered in San Francisco, Wells Fargo offers banking, insurance, investments, mortgage, and consumer and commercial finance through more than 9,000 stores, 12,000 ATMs, and the internet, and manages offices in more than 35 countries, globally
BTI Payments to divest 30% stake to ICICI Venture 14 October, 2013 | BBR http://payments.banking-business-review.com/news/bti-payments-to-divest-30-stake-to-iciciventure-141013 BTI Payments, an Indian payments gateway service provider, is planning to dispose of approximately 30% stake to private equity fund company ICICI Venture, in a deal worth INR1.2bn ($196m). Two persons familiar with the development were quoted by the Economics Tines as saying with the sale, the company aims to accumulate necessary capital to launch its automated teller machine (ATM) network, as it recently received license from the Reserve Bank of India (RBI).
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The stake sale has valued the entire company at INR4bn ($65.4m). A recent directive by the RBI has opened the door for third-party companies and service providers to install white-label ATMs across India, which will be set up by a third-party service provider other than the bank. Australia's Banktech Group subsidiary BTI Payments is gradually emerging as a prominent supplier of ATMs and point of sales (POS) network and managed services in the country. In India, the conglomerate manages and operates more than 6,500 POS terminals and over 500 ATMs for several domestic banks. It is expected that the ATMs penetration will grow by four times to 4 lakh by 2017 from 1.1 lakh now. ICICI Venture, which manages $2bn (INR124bn), had invested in a portfolio of companies from healthcare to financial services firms
JP Morgan to sell $3.3bn of physical commodity business 11 October, 2013 | BBR http://assetmanagement.banking-business-review.com/news/jp-morgan-to-sell-33bn-of-physicalcommodity-business-111013 Global investment bank JP Morgan Chase & Co (JPM) has put its physical commodity business worth $3.3bn on sale, amid increased scrutiny from regulators. In July, the US firm announced that it will offload, spin off or enter into a strategic partnership for its physical commodities business, soon after the completion of an internal review of the operation. Persons familiar with the matter were quoted by Reuters as saying that JP Morgan has circulated offering documents to potential buyers, reported the Wall Street Journal. The sources also told the news agency that the major part of the physical business is the bank's crude trading operations, which has been valued at nearly $1.7bn. Other operations of physical commodity business include its North American natural gas assets worth $800m and base metals comprising the Henry Bath warehouse company at $500m. Until it finds a suitable option to maximize value of the operation, it will continue to manage its physical commodities business as a going concern and fully support ongoing client activities. With assets of $2.4trn, JP Morgan Chase provides investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity
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QNB Group Financial Results for the Nine Months Ended 30 September 2013 09 October, 2013 | BBR http://commercialbanking.banking-business-review.com/news/qnb-group-financial-results-forthe-nine-months-ended-30-september-2013-091013 QNB Group, the World’s Strongest Bank and the leading bank in the Middle East and North Africa, announced its results today for the nine months ended 30 September 2013. These results include the financial results of NSGB in Egypt, in which the Group concluded the acquisition of a controlling stake amounting to 97.12% in March 2013. For the nine months of 2013 Net Profit was QR7.1 billion (USD2.0 billion), up by 14.1% compared to the same period last year. The Group's prudent cost control policy and strong revenue generating capability allowed it to maintain an efficiency ratio (cost to income ratio) of 20.4%, which is considered one of the best ratios among financial institutions in the region. Total assets increased by 24.5% from September 2012 to reach QR437 billion (USD120.0 billion), the highest ever achieved by the Group. This was the result of a strong growth rate of 27.4% in loans and advances to reach QR304 billion (USD83.5 billion). The Group was able to maintain the ratio of non-performing loans to gross loans at 1.6%, a level considered one of the lowest amongst banks in the Middle East and Africa, reflecting the high quality of the Group's loan book and the effective management of credit risk. The Group's conservative policy in regard to provisioning continued with the coverage ratio reaching 119% in September 2013. At the same time QNB Group increased customer funding by 23.3% to QR331 billion (USD91.0 billion). This led to the Group's loan to deposit ratio to reach 92%. In order to diversify its source of funds, in April QNB Group announced the successful completion of a bond issuance under its Euro Medium Term Note (EMTN) program in the international capital markets. Under this program a USD1.0 billion tranche was issued on 22 April 2013 with a 7 year maturity and an attractive coupon rate of 2.875%. The Reg S issue generated strong interest from investors around the world. Total Equity increased by 10.5% from September 2012 to reach QR51 billion (USD14.0 billion) as at 30 September 2013. Earnings per Share reached QR10.2 (USD2.8), compared to QR8.9 in September 2012. The capital adequacy ratio stood at 14.6% as at 30 September 2013, higher than the regulatory requirements of Qatar Central Bank and the Basel Committee. The Group is keen to maintain a strong capitalisation in order to support future strategic plans. As a result of the Group's high credit ratings and outstanding asset quality, it was selected as one of the world's 50 safest financial institutions by Global Finance. QNB Group tops the list in the Bloomberg Markets magazine's annual ranking of the World's Strongest Banks. 2012 was the first time that QNB was included in the list of eligible banks (78 banks were eligible globally) as a result of achieving more than USD100 billion of assets.
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QNB Group opened a representative office in China and established a fully owned subsidiary in India under the name of "QNB (India) Private Limited". Based on the Group's continuous strong performance and the expanding international presence, the bank is currently ranked as the most valuable brand in the MENA region, with a world ranking of 120 (Brand Value: USD1.31 billion). With the addition of NSGB, the new subsidiary in India and the new office in China, QNB Group's presence through its subsidiaries and associate companies increased to 26 countries providing a comprehensive range of advanced products and services. The total number of staff is almost 13,500 operating from over 570 locations and with an ATM network of more than 1,200 machines
JP Morgan offers $3bn-$4bn to US regulators to settle RMBS probes 25 September, 2013 | BBR http://commercialbanking.banking-business-review.com/news/jp-morgan-offers-3bn-4bn-to-usregulators-to-end-rmbs-probes-250913 JP Morgan Chase is engaged in negotiations with US federal and state regulators to settle all the criminal and civil investigations into its residential mortgage-backed-securities (RMBS) wrongdoings, for a penalty of $3bn-4bn. The proposed settlement with the New York attorney-general, US attorneys' offices in California and Pennsylvania and the Department of Justice (DOJ), will enable the US lender to settle all outstanding mortgage-related cases, which are turning into a never-ending legal woe for JP Morgan. People familiar with the matter were quoted by media sources as saying that the bank offered nearly $3bn, although the DOJ outrightly rejected the proposal, saying that the amount is too low compared to the number of cases involved. The discussion is an early stage and might not be inked, as there are many issues such as admissions of wrongdoing and sum of fine, among others, on which the concerned parties have not reached an agreement. It is believed that the admission of liability for miss-selling or wrong doings in RMBs will ignite a number of private litigants. In August 2013, media sources reported that the US Federal Housing Finance Agency (FHFA) has demanded a $6bn fine from JP Morgan Chase, to settle cases over sale of bad mortgage bonds to government-backed finance companies. The housing regulators accused the bank for willingly selling the subprime loans packaged into securities to Fannie Mae (FNMA) and Freddie Mac (FMCC), inspite of being aware that the assets were toxic in nature. Most recently, the lender agreed to pay $920m (ÂŁ572m) penalty to the US and UK regulators to settle the case pertaining to its failures to supervise and manage 'London Whale' trading scandal, which forced the bank to suffer a $6.2bn loss.
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The US investment bank is facing a volley of legal cases, which cost nearly $10bn over the last two years and at the end of June 2013, the lender raised its estimate of losses to more than its reserves to $6.8bn compared to $6bn at the end of March 2013
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Technology Comarch launches Mobile Business Banking solution in the UK 16 October, 2013 | BBR http://bankingtechnology.banking-business-review.com/news/comarch-launches-mobilebusiness-banking-solution-in-the-uk-161013 Global software & IT specialist Comarch today launches its Mobile Business Banking solution which allows banks to offer their corporate, SME and microbusiness customers dedicated business banking services on the go. The service is already being used by major financial institutions, such as ING Bank. Decision makers and CFOs of large enterprises find the application really helpful as they can process and approve orders while being away from the office. Statistics and application usage have shown so far that a mobile channel for corporates is the right direction to go. said Adam Walendziewski, Head of Product Management Department, ING Bank and Comarch Mobile Business Banking customer. The popularity of mobile banking is increasing among business customers. Two thirds of UK treasury executives would use mobile banking to run their corporate accounts according to research from Anite. However the market remains underserved with 3.5m microbusinesses lacking access to mobile banking services (Finextra, 2013). Mobile business banking will allow banks and other financial institutions to reduce churn, and improve loyalty. By migrating customers to the lower-cost mobile channel, there is an opportunity to not only reduce costs but also to unlock new revenues for the bank. The Comarch Mobile Business Banking solution is designed and built specifically for Corporations, SME's and Micro customers, with tailored features, functionality and state-of-the-art security for each business segment not commonly found in rival alternatives, including: Approval workflows aligned with internet banking procedures Monitoring of credit card expenditure, limits and payoff days. Processing of packaged transactions, mass approvals and other non-transactional orders Invoice support - notifying payment deadlines or outstanding invoices Integration with loyalty schemes and external value-added services Cash flow risk detection, with push notifications The system also offers several unique features targeted at corporate banking customers such as hierarchical access to account data, a full approval system aligned with internal procedures and underpinned by state-of-the art security. Standard features include allowing customers to view account information, list and search transactions, view exchange rates, make transfers and payments, get push notifications of payments and balances, and location-relevant information on nearby branches, report lost or stolen credit cards.
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- Companies large and small are demanding secure digital services in an increasingly global, mobile and data-driven marketplace, said Jonathan Withers, Director of Banking, Comarch UK. - UK banks that seek to meet these demands have the opportunity to be a leader in customer servicing, beating their rivals to the punch. Business banking is entering a period of flux, with new entrants looking to meet the needs of a neglected market sector - a sector that demands more than the rebadged retail banking solutions that are currently being offered
ING Vysya Bank Selects IBM MobileFirst to Support Business Growth 14 October, 2013 | BBR http://bankingtechnology.banking-business-review.com/news/ing-vysya-bank-selects-ibmmobilefirst-to-support-business-growth-141013 ING Vysya Bank Ltd. selected IBM (NYSE: IBM) and the company’s IBM MobileFirst solutions for the development of ING Vysya Mobile, a cost effective, secure and scalable mobile banking app. Launched in July, the new app will effectively enhance the bank’s reach into untapped markets, such as remote cities and rural areas. Additionally, the app will improve engagement with the bank’s customers through new personalized features that provide greater availability and convenience to its services. For instance, using the ING Vysya Mobile app, customers can now use their mobile devices to pay utility bills, transfer funds to other accounts, view mini-statements, request check books, stop payment of checks, and locate the nearest ATM and branches, among many other features. As a result, customers are able to manage their accounts and financial performance more efficiently. As the banking industry in India is becoming more competitive, forward-thinking organizations have started to adopt alternative channels like mobile and the Internet for banking services. These services will help ING Vysya Bank to build an effective ecosystem for its customers to interact across multiple access channels, as well as extend its services across India. ING Vysya Bank, a premier banking service provider in India, has always been on the forefront of IT adoption. With just over 530 branches across India servicing more than two million customers, ING Vysya Bank required an application development platform to quickly and securely build new mobile banking solutions. In addition, mobile banking will allow the bank to further differentiate itself with better, more personalized services. The bank selected IBM Worklight, an integral part of the IBM MobileFirst solutions portfolio, to help create cross-platform apps, as well as manage the whole app development life cycle. Using this technology, the bank has reduced the time to market and cost for product development. IBM Worklight also provides secure connectivity with the client's back-end systems, allowing it to efficiently manage version upgrades, user data and audit data. With data capture capabilities, the bank is able to analyze patterns and trends of customer usage. "As the mobile revolution continues to change the way we interact with customers, transforming our services to meet these demands and deliver a consistent customer experience, regardless of the device or operating system, has become critical to our growth," said Aniruddha Paul, chief information officer, ING Vysya Bank. "With an IBM mobile solution, we are now able to quickly and easily roll out new mobile services to support our business growth strategies."
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The bank is the first IBM Worklight client in India to go live with a publicly downloadable app. Currently available on the Apple iOS mobile platform, ING Vysya Mobile apps will soon be extended to other platforms such as Android, BlackBerry and Windows Phone. ING Vysya Bank's mobile strategies that are focused on speed and improving the customer experience are in line with the findings of a new study from the IBM Institute for Business Value that studied trends in enterprise mobility. For example, one of the key strengths of an effective mobile environment is the timely delivery of information and insight to service customers regardless of location. In fact, 58 percent of all respondents selected "faster response time to customers" as a key benefit of using mobile. "It has become mission-critical for organizations to have a mobile presence, given increasing customer demands," said Naveen Gupta, business unit executive, IBM India/South Asia. "Many companies want to build mobile apps with the same features as their web counterparts, without compromising on user experience. IBM MobileFirst helps clients dramatically reduce mobile app time to market and ensure cost effectiveness."
FIS unveils cloud-based, real-time core banking utility for mid-tier banks 08 October, 2013 | BBR http://bankingtechnology.banking-business-review.com/news/fis-unveils-cloud-based-real-timecore-banking-utility-for-mid-tier-banks-081013 Global banking and payments technology provider FIS has launched it new cloud-based, real-time core banking platform, designed to offer real-time banking capabilities while controlling costs, to mid-tier banks in Central and Eastern Europe. Developed using FIS Profile core banking system and Xpress middleware layer, the service will benefit from Krajowa Izba Rozliczeniowa's (KIR) hosted modern and secure cloud infrastructure and high-speed links to all the banks in Poland. KIR, which currently manages more than 120 million monthly transactions, is the Polish payment processor and central clearing house for the country's banking sector. FIS outsourcing managing director Jonathan Davis said, "With FIS Profile in the cloud, mid-tier banks in the region now have a core banking platform that can enable them to launch innovative and competitive new products quickly and cost effectively." The technology will offer access to recognized product libraries, enabling lenders to launch new products to the market quickly. Capable of easily integrating with new digital channels, the platform allows banks to build efficient services to meet the demand of individual customers, while giving a holistic view of the customer's banking relationship. Headquartered in Jacksonville, Florida, FIS serves over 14,000 institutions through 35,000 employees in more than 100 nations
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DataCash integrates GateKeeper:2.0
MasterCard's
Global
Network
Insights
into
08 October, 2013 | BBR http://riskmanagement.banking-business-review.com/news/datacash-integrates-mastercardsglobal-network-insights-into-gatekeeper20-081013 Global payments services provider DataCash has integrated MasterCard's Expert Monitoring System Fraud Scoring and lost-stolen account list API with its fraud management technology, GateKeeper:2.0, for merchants. DataCash, a MasterCard company, said that its GateKeeper:2.0 fraud detection application cross references more than 30 million lost and stolen cards globally, thus enables online merchants to detect frauds. Besides, enhancing a merchant's ability to identify a fraud, the tool provides merchants with a highly accurate predictive fraud score that gives broader insight into card behavior. With the recent enhancement, GateKeeper:2.0 will further boost merchants abilities to more accurately detect fraudulent transactions, and reduce the potential of rejecting genuine customers. MasterCard processing products group head Johan Gerber said, "These solutions are designed to help merchants run and grow their businesses more efficiently." "The integration into DataCash's GateKeeper:2.0 makes it a powerful single platform solution for merchants to manage and execute their fraud strategies." Equipped with multiple layers of advanced fraud identification technologies, DataCash's GateKeeper:2.0, currently screens over 30 million monthly transactions, from over 30,000 merchants across 180 nations, globally.
Capiota introduces online lending platform for SMEs in UK 07 October, 2013 | BBR http://onlinebanking.banking-business-review.com/news/capiota-introduces-online-lendingplatform-for-smes-in-uk-071013 Capiota, a UK-based business lending company, has introduced a new online lending platform designed for small and medium-sized enterprises (SMEs) in the country. The new online application process will enable the SMEs to avail business loans of up to ÂŁ50,000, by replacing the traditional lending model in the country. Capiota claims that the innovative underwriting platform processes the online application from SME owners, by using advanced data analytics to determine business loan eligibility, provide approval and issue funding.
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Commenting on the technology, Capiota managing director Tony Pegg said that Capiota's disruptive technology allows SME owners to get the funding they need without wasting valuable time completing reams of paperwork or jumping through hoops to receive approval. "We are delighted to provide SMEs with a fast and efficient way to get the capital they need to help them grow their businesses," added Pegg. Additionally, the company has raised a ÂŁ30m credit line to provide capital to SMEs across the region. Currently, the company is seeking partnerships with online websites and apps geared towards SME users, e-commerce service providers and local review sites to offer online loans to its SME user base through the Capiota platform.
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Strategy Banco do Brasil engaged in negotiations to acquire 49% stake in Plural 16 October, 2013 | BBR http://www.banking-business-review.com/news/banco-do-brasil-engaged-in-negotiations-toacquire-49-stake-in-plural-161013 State-controlled Banco do Brasil is in talks to acquire a 49% stake in regional investment banking firm Brasil Plural Banco Multiplo. Although further details of the deal have not been disclosed, the acquisition is a part of its strategy to set up a securities and financial advisory business in Brazil, Reuters reported quoting a report by the online edition of Veja magazine. Founded in 2010 by former partners of Grupo BTG Pactual, Plural is one of the Latin America's largest independent investment banks based in Sao Paulo. Further development of the business will enable the state-owned bank to establish brokerage operations in the country, as cited by Valor Econômico newspaper. In an interview with Reuters, Banco do Brasil wholesale and private banking and international operations senior vice president Paulo Rogério Caffarelli said the investment bank is considering to boost its sales and trading, mergers and acquisitions, advisory and credit, as well as equity research capabilities. Currently, Banco do Brasil is discussing with Banco Votorantim, in which it already owns a 49.9% capital, to establish a specialized banking unit
Local First to establish Hampshire Community Bank 07 October, 2013 | BBR http://www.banking-business-review.com/news/local-first-to-establish-hampshire-communitybank-071013 Local First, a consortium of finance experts, is planning to establish a locally-owned and run bank in Hampshire, UK, which will bolster the local economy. The proposed Hampshire Community Bank is planning to raise around £7m and expects the government to invest the same amount in order to create £14m in total, reports the bbc.co.uk. This bank plans to initially lend at least £100m in the first year based on the level of customer deposits. Project member and banking expert Prof Richard Werner was quoted by the site as saying, "It's exactly what is missing in the UK banking landscape. "The idea is, you gather deposits locally and you lend locally and I think people will like that.
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"Banking is actually a highly profitable business and it is really a no-brainer for a local authority to invest in setting up a local bank." Hampshire Community Bank is expected to become operational in two years, following regulatory approval. However, Eastleigh borough councillor Keith House noted that due to the regulatory process, the council would not be able to initiate funding the bank for at least another year
Gilmore Bank completes merger with Grandpoint Bank 27 September, 2013 | BBR http://commercialbanking.banking-business-review.com/news/gilmore-bank-completes-mergerwith-grandpoint-bank-270913 Grandpoint Bank has completed the acquisition of Gilmore Bank, after receiving approvals from all shareholders and the concerned regulators. Post merger, the acquirer will add Gilmore Bank offices at the Original Farmers Market in Los Angeles and in La Canada Flintridge to its banking office network. Grandpoint Bank's total assets stood at nearly $2bn, at the close of the transaction. In July 2013, Grandpoint Bank entered into a definitive agreement to acquire Gilmore Bank, which would be merged with the acquirer after closing of the transaction. A F Gilmore Company president and CEO said, "The merger with Grandpoint brings additional services to the bank that will benefit our existing clients and help attract new business." Established in 1955, Gilmore Bank operates as a full-service commercial bank, providing tailored products and services to businesses and consumers. Grandpoint Bank manages two divisions, Bank of Tucson and Regents Bank, and operates six bank branches in Los Angeles and Orange counties
PayPal plans to acquire Braintree Payments 25 September, 2013 | BBR http://payments.banking-business-review.com/news/paypal-plans-to-acquire-braintreepayments-250913 PayPal, an online payment company, is set to ink an agreement to acquire Chicago-based startup Braintree Payments Solutions, with a strategy to boost its mobile commerce offering. Sources familiar with the matter were quoted by the WSJ as saying that if the proposed transaction materializes, it will enable PayPal to access data and lucrative transaction fees from Braintree's expanding network, which currently processes over $10bn annually. Financial terms of the transaction have not been revealed.
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The deal will enable the online payment firm to tap maximum revenue from smartphone and tablet users, as researches have underlined that mobile payment is slated for rapid growth in future. A report by research firm Gartner claims that the mobile-payments market will expand by 31% this year and touch $235.4bn, and it will rise by more than three-folds by 2017. Set up in 2007, Braintree secured approximately $70m in funding in the last two years, from Accel Partners, New Enterprise Associates and others, and its payments service is being used by nearly 4,000 merchants. In September this year, PayPal rolled out its expanded Seller Protection policy in Asia Pacific (APAC) region, with a strategy to safeguard merchants from counterfeit transactions and situations where goods are not received by buyers. The company serves approximately 132 million active accounts in 193 markets and 25 currencies, across the globe
JC Flowers expresses interest to acquire Lloyds' TSB operations 23 September, 2013 | BBR http://retailbanking.banking-business-review.com/news/jc-flowers-expresses-interest-to-acquirelloyds-tsb-operations-230913 New York-based private equity firm JC Flowers has reportedly shown interest to acquire Lloyds Banking Group’s TSB business that was spun off from the bank in earlier this month. The proposal is in early stage, although the bank's management is seriously contemplating on the plan, as reported by the Sunday Telegraph. Additionally, another private equity firm AnaCap has expressed interest in some form of trade sale, the news agency reported. Lloyds, which is 32.7% owned by the British government, has been working for TSB's stock market flotation in the middle of 2014, but failed to execute the plan. Ultimately, the bank established TSB bank, with more than 600 branches, as per the agreement inked with the European regulators, when it received a financial package of £20bn during the financial crisis of 2008. Most recently, the government divested 6% stake in the newly formed TSB at a transaction value at approximately £3.2bn ($5.1bn). A Lloyds spokesman said, "We're progressing towards an IPO of TSB next year but will consider any offers that would provide greater certainty or value to our shareholders." Citigroup and JP Morgan are advising the British banking group on TSB.
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