BANKING NEWS FLASH November 15, 2013
Table of Contents Sales & Marketing ................................................................................................................. 3 Finance ................................................................................................................................. 7 Technology .......................................................................................................................... 13 Strategy .............................................................................................................................. 17
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Sales & Marketing New York state explores feasibility of 'BitLicenses' for virtual currency firms November 15, 2013 | Finextra http://www.finextra.com/news/fullstory.aspx?newsitemid=25439 The New York State Department of Financial Services (NYDFS) is exploring the feasibility of creating a new brand of money transmission license for virtual currencies, dubbed BitLicenses. The Department says it plans to hold a public hearing on virtual currency regulation in New York City in "the coming months at a time and location to be determined". In August, NYDFS signalled its intent to get a grip on the nascent market when it subpoenaed 22 bitcoin-related companies requesting information about the way in which they operate. In Thursday's statement, the agency says: "Virtual currencies may have a number of legitimate commercial purposes, including the facilitation of financial transactions. That said, NYDFS also believes that it is in the long-term interest of the virtual currency industry to put in place appropriate guardrails that protect consumers, root out illegal activity, and safeguard our national security." The upcoming hearing will debate the use of new regulatory guidelines tailored specifically to the unique characteristics of virtual currencies. In particular, it is expected to consider the possibility and feasibility of NYDFS issuing a 'BitLicense' specific to virtual currency transactions and activities, which would include anti-money laundering and consumer protection requirements for licensed entities. "Given the increased demand from consumers and investors, as well as demonstrated concerns regarding money laundering, regulators would be remiss if they turned a blind eye to virtual currencies," states the NYDFS. "We have a responsibility to take a hard look at these issues."
Fidelity Investments expands short duration bond mutual funds line up November 13, 2013 | BBR http://mutualfunds.banking-business-review.com/news/fidelity-investments-expands-shortduration-bond-mutual-funds-line-up-131113 Fidelity Investments has added three new offerings to its portfolio of short duration bond mutual funds for investors and financial advisors. The new products include Fidelity Limited Term Bond Fund, Fidelity Conservative Income Municipal Bond Fund and Fidelity Short Duration High Income Fund (Advisor and retail shares classes).
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The three new products are managed with varying degrees of credit and interest rate exposure, as well as with weighted average maturities between six months to five years. Fidelity Limited Term Bond Fund aims to provide a high rate of income and is credit-oriented, focusing on investment in sectors which typically offer higher yields. The fund normally has a dollarweighted average maturity between two and five years. The conservative income municipal bond fund invests in money market securities as well as high quality investment-grade municipal debt securities with a short duration. It normally maintains a dollar-weighted average maturity of a year or less. Fidelity Short Duration High Income Bond Fund invests in higher quality below investment grade bonds rated BB or B. It also aims to invest in floating rate loans and investment grade corporate bonds.
This fund normally maintains a dollar-weighted average maturity of three years or less. Fidelity Fixed Income division president Charlie Morrison said that a top concern for many bond investors is their exposure to interest rate risk and the negative impact rising rates could have on their bond portfolios. "For investors seeking to lower this risk, short duration funds can be an appropriate addition to a well-diversified bond portfolio," Morrison added.
Canada’s online bank ING Direct to rebrand as Tangerine November 06, 2013 | BBR http://onlinebanking.banking-business-review.com/news/canadas-online-bank-ing-direct-torebrand-as-tangerine-061113 ING Direct Canada will be rebranded as Tangerine, effective spring 2014, as part of the terms of its sale to the Bank of Nova Scotia (Scotiabank) in September last year. The online-only bank also unveiled a new visual identity. ING Direct president and CEO Peter Aceto said Tangerine and the new visual identity exemplify everything ING Direct has represented since its start in Canada in 1997, specifically its continued focus on being an innovative and progressive alternative for Canadians who embrace forward banking and banking in a direct way. "We're very excited about the new name because it reflects everything our clients love about us and what everyday banking can be: simple, flexible, accessible, progressive and innovative," Aceto added.
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The rebranding program follows the culmination of a 12-month process whereby ING Direct consulted with more than 10,000 Canadians, employees and customers, through qualitative and quantitative research. ING Direct was acquired by Scotiabank from ING in 2012.
AQUIS EXCHANGE GETS FCA AUTHORISATION TO LAUNCH November 06, 2013 | BBR http://ecnandexchanges.banking-business-review.com/news/aquis-exchange-gets-fcaauthorisation-to-launch-061113 Aquis Exchange, the proposed pan-European trading exchange, has received approval from the UK’s Financial Conduct Authority (FCA) to begin trading as a multilateral trading facility (MTF). Commenting on the approval, Aquis Exchange CEO Alasdair Haynes, said: "We are very pleased to have received the green light from the FCA just a year after announcing the creation of Aquis Exchange. We can now forge ahead with the introduction of subscription pricing to the European cash equities market." Aquis Exchange was established in October 2012 and is set to revolutionize the European trading landscape by its introduction of subscription pricing and innovative order types. Currently, over 90% of European equity trading in each individual country takes place on only two exchanges. The aim of Aquis Exchange is to bring fresh competition into the marketplace in order to lower the trading costs maintained by the existing duopoly. Aquis Exchange's subscription pricing works on a similar model to that of the telecoms industry and is designed to encourage participation from all categories of professional trading firm. Users will be charged according to the message traffic they generate, rather than a percentage of the value of each stock that they trade. There will be different pricing bands to accommodate varying degrees of activity. There will be a very low usage band for small firms that are traditionally disadvantaged by the pricing structure of the incumbent exchanges and, at the other end of the pricing structure, will be the top category where usage is unlimited (subject to a "fair usage" policy). Aquis Exchange has informed its prospective Members that will hold a dress rehearsal on 9th November and, subject to a successful outcome, will subsequently announce a launch date.
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Barrow Street Advisors Launches its First Mutual Funds November 01, 2013 | BBR http://mutualfunds.banking-business-review.com/news/barrow-street-advisors-launches-its-firstmutual-funds-011113 Barrow Street Advisors LLC (Barrow) announced the launch of the Barrow All-Cap Core Fund (BALIX, BALAX) and the Barrow All-Cap Long/Short Fund (BFSLX, BFLSX), the first mutual fund offerings for the investment advisor. The Barrow All-Cap Core Fund is the successor to Barrow Street's flagship U.S. equity offering, Barrow Street Fund LP. This limited partnership had only been available to accredited investors since its formation in 2008. Barrow Street organized the Barrow All-Cap Long/Short Fund to succeed a private limited partnership managed using the Advisor's Long/Short strategy. Now a broad range of investors can enjoy access to both of these strategies through registered, no-load investment funds. The Funds are managed by the firm's co-founders, Nicholas Chermayeff and Robert F. Greenhill, Jr. Prior to forming Barrow Street, Mr. Chermayeff was an investment professional in Morgan Stanley's Principal Investment Group for the Morgan Stanley Real Estate Funds and Mr. Greenhill was an investment professional for the Goldman Sachs' Whitehall Funds. "We formed our mutual funds to offer investors of all sizes access to our investment strategies," said David R. Bechtel, a Principal at Barrow. "Our distribution focus for the Funds will be the Financial Advisor, Family Office, and Trust channels." Each Fund employs Barrow Street's proprietary Systematic Quality Value (SQV) approach, which assesses a company's relative quality and value based on key fundamental factors. Utilizing disciplined portfolio construction techniques, the SQV approach aims to mitigate risk through diversification across companies, market capitalizations, and industry sectors. Barrow's Long/Short strategy follows the same approach with its long positions, and further seeks to reduce volatility and attempts to preserve capital during market downturns by shorting stocks which Barrow believes are of low quality and poor value. "We believe that systematic investment in high quality companies where there is a large Margin of Safety+ has the potential to generate above-average returns with below-average risk," said Mr. Chermayeff. "With almost five years of performance data behind it, investors can evaluate how the Barrow All-Cap Core Fund's track record and investment process stack up against the competition. I think they'll be impressed." The Barrow All-Cap Core Fund is ranked in the Top 1% for 3-Year performance by Bloomberg for the three years ending 10/24/13. The ranking is based on total returns for Bloomberg's "Value Broad Market" peer group that consists of 588 funds. "We do not try to time the market or use cash defensively," Mr. Greenhill added. "Since our approach avoids emotional responses to market volatility, we believe these funds may be a smart choice for an investor's long-term portfolio
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Finance Stonegate Reports Solid Q3 Results November 15, 2013 | National Mortgage Professional Magazine http://nationalmortgageprofessional.com/news44794/stonegate-reports-solid-q3-results Stonegate Mortgage Corporation reported results for the quarter ended September 30, 2013. "Our third quarter results reflect solid business execution during a period of rising interest rates and underscore the strength of our differentiated, vertically integrated and scalable mortgage banking platform," said Jim Cutillo, chief executive officer of Stonegate Mortgage. "Our three lines of business--mortgage originations, mortgage servicing and mortgage financing--complement each other and create a natural hedge against interest rate volatility and business cyclicality, an important factor in our performance. Having completed our IPO, we continue to execute our growth strategy as evidenced by our recently announced acquisitions which will accelerate our geographic expansion, add talented senior executives and enhance our ability to serve a broader range of mortgage brokers and regional banks. We are confident in our ability to integrate these businesses, which will help fuel our growth and create near and long-term shareholder value for our investors." Net income for the third quarter was $1.7 million, or $0.10 per diluted share, compared to $9.1 million, or $0.63 per diluted share, in the second quarter of 2013 and $9.5 million, or $1.00 per diluted share in the third quarter of 2012. Adjusted net income was $6.1 million, or $0.35 per diluted share, for the third quarter 2013, after adjusting for non-cash valuation adjustments, certain other non-cash expense items and ramp-up and other non-routine expenses. Adjusted net income was $8.4 million, or $0.58 per diluted share, for the second quarter of 2013 and $7.0 million, or $0.74 per diluted share, for the third quarter 2012. Revenues decreased 27 percent to $32.3 million in the third quarter of 2013 from $44.3 million in the second quarter of 2013 and were up three percent from $31.4 million in the third quarter of 2012. Adjusted revenues decreased four percent to $37.8 million in the third quarter of 2013 from $39.5 million in the second quarter of 2013 and were up 50 percent from$25.2 million in the third quarter of 2012. Mortgage loan origination volume increased 12 percent, to $2.3 billion during the third quarter of 2013 from $2.1 billion in originations in the second quarter of 2013 and grew 123 percent from origination volume of $1.1 billion in the third quarter of 2012.
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The company's servicing portfolio, as measured by unpaid principal balance (UPB), ended the third quarter 2013 at $9.7 billion, an increase of 28 percent from second quarter 2013 ending UPB of $7.6 billion, and up 229 percent over the third quarter 2012 ending UPB of $2.9 billion.
Wincor Nixdorf full year Ebita jumps 31% November 11, 2013 | Finextra http://www.finextra.com/news/announcement.aspx?pressreleaseid=52667 Wincor Nixdorf AG has completed fiscal 2012/2013 with year-on-year growth of 5% in net sales and a significant increase of 31% in operating profit (EBITA). In total, net sales generated by the supplier of IT solutions for banks and retailers in fiscal 2012/2013 amounted to €2,465 million (prev. year: €2,343 million), while EBITA rose to €132 million (prev. year: €101 million). Profit for the fiscal year increased by 40% to €88 million (prev. year: €63 million). The proposed dividend is up markedly at €1.48 per share (prev. year: €1.05). Although the first quarter is expected to be slightly weaker than in the preceding year, Wincor Nixdorf will be looking to maintain its pattern of growth in the current fiscal year 2013/2014, with a projected 4% increase in net sales and additional fast-track growth in EBITA of 17%, which would take earnings to €155 million. "Growth generated in the emerging markets during the current fiscal year 2013/2014 will once again be sufficient to offset the protracted weakness in investment spending within the European market," said CEO & President Eckard Heidloff. Despite a slightly brighter macroeconomic outlook for some of Europe's key industrialized countries, Wincor Nixdorf had not yet seen a significant improvement in its business prospects in this region. At the same time, Heidloff noted that the Group's business endeavors in the emerging markets would be accompanied by continued pressure on profit margins. Committed to expanding its business with an eye to the future, Wincor Nixdorf will press ahead with the strategic realignment of its operations. The aim of remodeling measures currently being pursued by the company is to exploit to an even larger extent the benefits associated with change in its markets and sustain the pattern of growth to which it has recently returned. Alongside assertive positioning within the emerging markets and the advancement of its business in the area of cashless and mobile payment methods, the focus in particular is on expanding Wincor Nixdorf's software activities. "We want to double our software business to over €600 million in the coming five years," said Heidloff in emphasizing the company's commitment. He went on to explain that Wincor Nixdorf intended to focus in particular on organic growth, complemented by suitable acquisitions. According to Heidloff, software - in conjunction with innovative hardware - is playing an increasingly important role in the business process changes being implemented by retail banks and retailers. In this context, he pointed to fundamental industry trends such as the integration of multiple sales channels, new features introduced at branch and store level, and mobile communication and distribution concepts. At the same time, the growing importance of software - accompanied by increasingly buoyant demand - has become apparent in the field of IT infrastructure optimization.
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Wincor Nixdorf also believes that developments within the competitive environment will open up attractive opportunities for expansion. "The market covered by software vendors is currently showing signs of consolidation, as was the case several years ago in the hardware sector. We are priming ourselves," said Heidloff. He explained that the trend towards consolidation was being driven to some extent by market fragmentation, with many small software vendors competing for business. At the same time, many companies were still deploying proprietary applications that now appeared obsolete given the speed of evolution in this market and the costs involved. Wincor Nixdorf already generates net sales of more than €300 million within the Software segment. Of the Group's global workforce of approx. 9,000 people, around 1,500 staff members focus on software development and associated Professional Services, such as process analysis, integration and customizing services, training, and maintenance. Regions: Asia accounts for strongest growth in fiscal 2012/2013 In Germany, net sales were slightly down on the previous year at €567 million (2011/2012: €572 million). Accordingly, reflecting the pattern of stronger growth in other regions, Germany's share of the Group's total net sales contracted further to 23% (2011/2012: 24%). In Europe (excluding Germany), net sales were up 7% on the previous year at €1,216 million (2011/2012: €1,134 million). As a proportion of total net sales for the Group, the contribution made by Europe (excluding Germany) was unchanged at 49% (2011/2012: 49%). Thus, Europe retained its position as Wincor Nixdorf's strongest sales market. The Asia/Pacific/Africa region outpaced all the others to achieve 9% growth. Net sales rose to €418 million (2011/2012: €385 million). The overall contribution of Asia/Pacific/Africa to the Group's net sales total was 17% (2011/2012: 16%). Net sales in the Americas rose by 5% to €264 million (2011/2012: €252 million). Expressed as a percentage of the Group's total net sales, the figure remained unchanged at 11% (2011/2012: 11%). Segments: Growth in business with banks Net sales generated in the Banking segment rose to €1,614 million (2011/2012: €1,524 million). This corresponds to a year-on-year increase of 6%. EBITA for this segment improved by 49% to reach €103 million (2011/2012: €69 million). Net sales achieved within the Retail segment increased by 4% to €851 million (2011/2012: €819 million). Segment EBITA declined by 9% to €29 million (2011/2012: €32 million). Substantial growth in Hardware business - Software/Services business also expands The Group's return to growth was mainly due to a substantial increase in Hardware sales. Total consolidated net sales of Hardware rose by 8% to €1,185 million (2011/2012: €1,100 million). The main factor behind this significant increase was a very strong performance from the Banking Hardware business in the emerging markets. As a result, the share of total Group net sales generated from the Hardware business showed a slight year-on-year increase to 48% (2011/2012: 47%). Net sales of Software/Services were up 3% at €1,280 million (2011/2012: 1,243 million). The slowdown in growth compared to the previous years is attributable to a slightly more subdued performance from Managed Services and Outsourcing. Overall, the share of total Group net sales generated from the Software/Services business was 52% (2011/2012: 53%).
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Lower headcount At the end of the fiscal year, Wincor Nixdorf employed 8,826 people worldwide, 231 fewer than at the end of the previous year (2011/2012: 9,057). The headcount in Germany stood at 3,774, down by 34 compared to the previous year (2011/2012: 3,808). The number of staff employed outside of Germany also contracted, in this case by 197 to 5,052 (2011/2012: 5,249). R&D expense increases year on year Wincor Nixdorf invested in new technologies and the development of new products over the course of the fiscal year just ended. Expenditure relating to research and development (R&D) stood at €99 million - €9 million above the level of the previous year (2011/2012: €90 million). Software-related R&D accounted for approx. 30% of this figure. The R&D ratio stood at 4.0% (2011/2012: 3.8%). Dividend proposal: €1.48 per share Wincor Nixdorf remains committed to its existing dividend policy of distributing around 50% of its profit for the period as a dividend. Compared to the previous year, the dividend proposed to the Supervisory Board for the reporting period has been raised by 41% to €1.48 per share (2011/2012: €1.05). The proposed dividend was calculated on the basis of a profit of €88 million for the fiscal year.
Finra fines TD Ameritrade and SG Americas $1.8 million for transaction reporting failures November 06, 2013 | Finextra http://www.finextra.com/news/announcement.aspx?pressreleaseid=52615 The Financial Industry Regulatory Authority (FINRA) announced today that it has fined TD Ameritrade Clearing, Inc. $1,150,000 and SG Americas Securities, Inc. $675,000 for failing to report or accurately report certain large options positions and for related supervisory deficiencies. Thomas Gira, Executive Vice President, FINRA Market Regulation, said, "It is essential that regulators receive accurate, timely and complete information about large options positions, particularly those positions that involve accounts trading in concert, because this information is necessary to conduct market surveillance and to protect the integrity of the marketplace." FINRA found that from May 2007 to January 2010, TD Ameritrade failed to properly aggregate certain reportable positions as acting-in-concert, which impacted nearly 4,100 accounts and resulted in the firm failing to report approximately 1.4 million positions. In addition, TD Ameritrade failed to establish and maintain reasonable supervisory procedures and supervisory systems to ensure compliance with rules applicable to the accurate reporting of options positions.
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In a separate case, FINRA found that from December 2007 to January 2013, SG Americas failed to report over-the-counter (OTC) options positions in approximately 500,000 instances; failed to report the counter-party for OTC options positions or incorrectly reported its customers' OTC options positions in more than 600,000 instances; and failed to report or misreported OTC index options positions in more than 900,000 instances. Additionally, SG Americas failed to establish and maintain reasonable supervisory procedures and supervisory systems to ensure compliance with rules applicable to the accurate reporting of options positions. In concluding these settlements, TD Ameritrade and SG Americas neither admitted nor denied the charges, but consented to the entry of FINRA's findings.
HSBC Q3 PBT up 30% to $4.53bn November 05, 2013 | BBR http://retailbanking.banking-business-review.com/news/hsbc-q3-pbt-up-30-to-453bn-051113 London-based global lender HSBC has reported pretax profit (PBT) of $4.53bn for the third quarter of 2013, up by 30% compared to $3.48bn during the comparable period earlier year. For the third quarter ended on 30 September 2013, its reported revenue stood at $15.1bn, 3.5% higher than in the same period in 2012. Commenting on the financial result, HSBC group chief executive Stuart Gulliver said that revenue was stable in the third quarter, influenced by the mixed global macroeconomic picture set against a backdrop of its continuing implementation of Global Standards and ongoing regulatory uncertainty. "Our home markets of the UK and Hong Kong contributed more than half of the Group's underlying profit before tax. Hong Kong performed well in the quarter, reflecting broad-based revenue growth. "The ongoing recovery of the US housing market and increased investor appetite may provide further opportunities to accelerate the run-down of our US Consumer Mortgage and Lending portfolio," Gulliver added. A strong performance at the bank's Hong Kong and North American operations assisted the bank to thwart a decrease in revenue in HSBC's Latin America and Asia Pacific divisions. The lender said that the pretax profit at its investment-banking business decreased to $1.85bn from $2.25bn, due to weaker corporate fixed-income revenue. Headquartered in London, the group serves customers operating from nearly 6,600 offices in 80 nations and territories in Europe, Hong Kong, Rest of Asia-Pacific, North and Latin America, and the Middle East and North Africa.
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BNP Paribas Q3 net profit rose marginally to EUR1.36bn November 01, 2013 | BBR http://commercialbanking.banking-business-review.com/news/bnp-paribas-q3-net-profit-rosemarginally-to-eur136bn-011113 French lender BNP Paribas has reported a net profit of €1.36bn, for the third quarter of 2013, with marginal increase of 2.4% compared to €1.33bn in the same period last fiscal. The increase was backed by lower costs, despite a slide in investment banking revenue. Europe's third-largest listed bank by assets, said that the group's revenues stood at €9.28bn, down by 4.2% compared to the third quarter 2012. For the third quarter ended on 30 September 2013, its retail banking posted a gross operating income of €1.4bn, up by 4.2% compared to the same period earlier year. BNL banca commerciale (BNL bc) gross operating income was €365m, down by 1.4% compared to the same quarter a year ago. Belgian Retail Banking revenues were up by 0.4% compared to the third quarter 2012, at €842m. BancWest posted €208m in pre-tax income, and €556m in revenues, with a decrease of 3.8% and 4.5% respectively compared to the third quarter of 2012. Investment Solutions' revenues, which summed up €1.54bn, were up 5% compared to the third quarter 2012. Revenues from Insurance rose by 6.2%, while revenues from Wealth and Asset Management were up overall 3.8% despite a decrease in average outstanding at Asset Management. Revenues from Securities Services increased by 5.5%, due to rise in the number of transactions and assets under custody. Corporate and Investment Banking (CIB) revenues were €2.03bn, were down 10.7%, while revenues from Fixed Income stood at €780m, down by 27.1% compared to the third quarter of 2012. Revenues from Advisory and Capital Markets stood at €1.26bn, down by 15.5% due to low client activity in fixed income and despite the good performance of equities and advisory
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Technology Jack Henry & Associates announces iPad compatible banking November 15, 2013 | BBR http://bankingtechnology.banking-business-review.com/news/jack-henry-associates-announcesipad-compatible-banking-151113 Jack Henry & Associates, Inc. (NASDAQ:JKHY), a leading provider of technology solutions and payment processing services primarily for the financial services industry, announced today the formal launch of PointMobility(SM), the real-time retail and commercial banking iPad App that provides anywhere, anytime functionality. PointMobility leverages capabilities available with the company's goDough(速) mobile banking solution and introduces new commercial banking capabilities. The PointMobility tablet App supports traditional in-branch and online transactions such as balance inquiries, funds transfers between accounts, electronic bill payments, alerts, transaction viewing; and accommodates all account types, including checking, certificates-of-deposit, money markets, loans, and lines-of-credit. Commercial functionality includes the ability to release wires and ACH batches, and manage positive pay exception items. Initially available for the iPad and iPad Mini, the real-time App uses the same login credentials and multi-factor authentication required for online banking access and authentication, is configured to match established bank branding, and is efficiently managed with an intuitive back office application. According to Bryna Butler, vice president, market and e-Strategies officer for Ohio Valley Bank, "A contemporary and evolving mobile strategy is important to our customers and for our bank's competitive positioning. Tablet banking is the next logical extension of our mobile strategy and we believe it will continue to evolve into a high-demand access and delivery channel. Tablet banking provides our retail and commercial customers with an extremely reliable and secure banking service that provides virtually anytime, anywhere access and an intuitive user experience. Expanding our mobile strategy with this new self-service channel also helps us retain and attract loyal customers, and provides another competitive distinction in the markets we serve." According to John Venzon, general manager of Internet Solutions for Jack Henry & Associates, "Internet, mobile, and now tablet banking are strategic services that financial institutions must offer to attract and retain convenience-driven retail and lucrative commercial customers in today's highly competitive financial services industry. We are uniquely positioned to leverage our mobile functionality to deliver proven tablet banking to further enhance customer convenience, selfsufficiency, and service. We expect our PointMobility tablet App will generate strong adoption rates consistent with goDough since bank customers now expect virtually every online banking service to be delivered via the mobile and tablet channels."
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TSB Bank goes live with RealMe identity service November 11, 2013 | BBR http://onlinebanking.banking-business-review.com/news/tsb-bank-goes-live-with-realmeidentity-service-111113 TSB Bank in New Zealand has introduced RealMe identity service app, a service that allows the bank’s clients to prove their identity. Developed by New Zealand's Department of Internal Affairs and NZ Post, RealMe allows customers to open accounts remotely through their mobile phones. TSB Bank is the first bank in New Zealand to go live with the government's RealMe service that enables proof of identity online to a high degree of confidence. The application also allows people to login into multiple government services with a single username and password. Internal Affairs minister Chris Tremain said banks can use RealMe to meet the requirements for electronic identity verification set out under the new Anti-Money Laundering and Countering Financing of Terrorism legislation. "From today, people with a RealMe verified account can join TSB Bank using RealMe on their [my]bank iPhone app (with Android to follow shortly). "There's no need to supply identity documents during the sign up process to prove who you are. You can do it all from the mobile app with the RealMe service," Tremain added.
FICO to Protect Axis Bank Customers Against Transactional Fraud November 06, 2013 | BBR http://retailbanking.banking-business-review.com/news/fico-to-protect-axis-bank-customersagainst-transactional-fraud FICO (NYSE:FICO), a predictive analytics and decision management software company, announced that Axis Bank, India’s third largest private sector bank, has chosen FICO® Falcon® Fraud Manager to enable detection and prevention of fraud in its growing consumer banking portfolio, including credit and debit cards, ATM transactions and the merchant acquiring business. Axis is the largest Indian national bank to adopt the FICO solution, and will be using the latest version, FICO Falcon 6, to protect its credit and debit card accounts. The solution enables the bank to detect potential fraud at the transaction level in real time and take appropriate action to prevent it.
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FICO速 Falcon速 Fraud Manager is regarded as the most accurate and comprehensive solution for detecting payment card fraud. Used by more than 9,000 financial services organizations worldwide, FICO Falcon Fraud Manager protects more than 2.5 billion card accounts, including more than 50 million in the Asia Pacific region. Over the past 20 years, FICO Falcon Fraud Manager has saved US card issuers more than $10 billion and APAC issuers more than $1.7 billion. "We have proactively opted for FICO Falcon Fraud Manager to further secure our customer's transactions, unimpeded by any online threats," said Jairam Sridharan, head of Consumer Lending and Payments, Axis Bank. Dan McConaghy, president for FICO in Asia Pacific, said, "Fraud management is an essential component of the analytic arsenal that defines a best-practice lending operation. By introducing FICO Falcon Fraud Manager, Axis Bank, as one of the largest and fastest-growing banks in India, is helping spur the entire industry to greater consumer protection and growth."
BBVA deploys Broadridge PROactive Operational Control Solutions November 04, 2013 | BBR http://bankingtechnology.banking-business-review.com/news/bbva-deploys-broadridgeproactive-operational-control-solutions-041113 Broadridge Financial Solutions announced that BBVA Group has selected the PROactive Reconciliation and PROactive Control for Investigations solutions to automate reconciliations processing for its Corporate & Investment Banking and Asset Management divisions. Following a successful implementation period, both divisions are now live with the Broadridge solutions. BBVA has embarked on a strategic redesign of its operating model to reduce financial risk and improve operational efficiency. Major factors influencing the bank's decision to select PROactive were its advanced functionality and user-friendly design and the flexibility of platform deployment offered by Broadridge. The system is currently provided on-site through web-browser technology, but there is the potential for the bank to opt for a hosted solution in the future. BBVA needed a reconciliations solution that could increase operational control and enable more efficient processing on a single, standard platform. Automating its reconciliation and investigation processes has improved accessibility to reconciliations data and has increased transparency. Enhanced monitoring and management of exceptions is also reducing operational risk. Throughout the project, Broadridge collaborated with local consultancy firm, Lynx S.p.A., whose regional expertise and established relationship with BBVA helped ensure that the bank's specific requirements were fully understood and clearly defined. "The success of this project to date is the result of a very collaborative effort," said Roberto de la Cruz Martinez, Director, Lynx S.p.A. "The project was managed through a dedicated, specialist team working in close alignment with the bank's central operation, from initial capture of requirements, through testing and into production. Meticulous planning and our close working relationship have produced a very positive result."
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BBVA's strategic vision is to create a centralized global reconciliations hub at the enterprise level and support its various lines of business around the world. The bank was also able to expand its usage of PROactive by building additional asset management reconciliations in parallel with the implementation for the Corporate & Investment Banking business. Jose Contin, General Manager, EMEA and Americas for Broadridge's PROactive solutions, said, "With BBVA's commitment to PROactive, we continue to accelerate the roll-out of our solution into the banking and capital markets across the EMEA region, and we are delighted to welcome on board our largest client in Spain. The speed with which the bank has gone live is further proof of the solution's quality and of our ability to deploy in an efficient and effective manner, on time and within budget."
Bank of Singapore selects Ullink OMS November 01, 2013 | BBR http://bankingtechnology.banking-business-review.com/news/bank-of-singapore-selects-ullinkoms-011113 Ullink, provider of low-latency connectivity and trading solutions for the financial community, today announced that Bank of Singapore had selected Ullink’s connectivity and order management systems to enhance the bank’s trading infrastructure. This decision was the result of an extensive evaluation process involving a number of prominent vendors. The entire setup is provided as a service (ASP), where Ullink hosts and manages the infrastructure in colocation at SGX, Singapore's Stock Exchange. As Asia's leading private banking operating in a very competitive environment, Bank of Singapore is always looking at ways to further improve its clients' experience. Using Ullink, Relationship Managers will now be able to update their clients in real time on the status of their trade orders. Trade executions will be entirely electronic, preventing communication errors and saving considerable time, while enabling clients' trade instructions to be executed in a matter of milliseconds. Being co-located with SGX will also ensure optimal performance, safety, and availability of the system. "We are looking forward to building a long-term partnership with Bank of Singapore, and our new office in Singapore is part of this commitment to the region and to the community," added Philippe Thomas, Head of Asia at Ullink. "We are glad to continue our expansion in this region by helping our customers move on, to a new generation of trading systems."
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Strategy Discover Financial Services announces an alliance with Smartlink Network to expand acceptance in Vietnam November 15, 2013 | BBR http://cards.banking-business-review.com/news/discover-financial-services-announces-analliance-with-smartlink-network-to-expand-acceptance-in-vietnam-151113 Discover Financial Services (DFS) and Smartlink Card., JSC, a leading domestic payments network in Vietnam, today announced a strategic alliance that will give Discover and Diners Club International (DCI) cardholders the ability to use their cards at more than 16,000 ATMs in Vietnam via a network of local commercial banks. The long-term agreement will further increase transaction volume on the international domestic payment network while giving Discover and DCI cardholders more consumer cash access points in Vietnam. "Discover's relationship with Smartlink captures the true essence of our global expansion strategy, which is to leverage our unique set of assets to grow volume and support the growth of local leading international networks," said Diane Offereins, President of Payment Services at Discover. "With Vietnam poised as an emerging market with large economic growth, we feel confident that we've found a strong partner and will continue to explore additional opportunities with Smartlink in the future." Mr. Dao Minh Tuan - Chairman of the Board of Smartlink Card., JSC said, "The strategic alliance with Discover reinforces Smartlink's continuous efforts to diversify its card-payment services for banks and promote Vietnam's card-payment market development. Based on this strategic alliance, Smartlink will provide banks an effective international connection and the opportunity to use Discover's payment products." Currently Smartlink is inter-connected with 51 banks and financial institutions, of which 40 banks are Smartlink members. It is a leading Network with more than 16,000 ATMs and 100,000 point-of-sale terminals, which supports payment activities for 55 million local debit cards in market. During the first nine months of 2013, Smartlink processed more than 70 million transactions, valued at 2.7 billion USD.
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Nigeria’s FirstBank acquires West African operations of ICB November 12, 2013 | BBR http://retailbanking.banking-business-review.com/news/nigerias-firstbank-acquires-west-africanoperations-of-icb-121113 Nigeria’s FirstBank has acquired 100% equity stake in West African businesses of International Commercial Bank Financial Group Holdings (ICBFGH) of Switzerland, for an undisclosed amount. ICB's West African operations has 28 branches, of which 17 are in Ghana, 5 in Guinea, 4 in Gambia and 2 in Sierra Leone, and currently employ more than 600 people. According to First Bank, the new deal will enhance its balance sheet by 1.32%. First Bank's conditional sale and purchase agreement with ICBFGH includes acquisition of ICB Ghana, ICB Sierra Leone, ICB Guinea and ICB Gambia. FirstBank chief executive officer Bisi Onasanya said the acquisition of ICBGFH assets in Ghana, Guinea, Gambia and Sierra Leone fulfils the first stage of our ambitions to steadily build a broader and more diverse footprint across Africa. "We are committed to developing a multi-local business model that broadens our geographic revenue base while providing enhanced service delivery to our new customers," Onasanya added. The transaction will consolidate First Bank's position as a major corporate and retail banking financial institutions in sub-Saharan Africa, and is in line with its growth plans. It provides a platform for regional growth as the bank expands its operations to capitalize on opportunities across the continent, while expanding its geographic footprint to cover 10 markets internationally. The combined entity will be incorporated into the international banking operations of FirstBank, which are headquartered in Lagos, Nigeria.
RBS accelerates Citizens' sale and aims to divest fully by 2016 November 05, 2013 | BBR http://retailbanking.banking-business-review.com/news/rbs-accelerates-citizens-sale-and-aimsto-divest-fully-by-2016-051113 British lender Royal Bank of Scotland Group (RBS) is planning to launch a partial IPO of its US business, namely RBS Citizens Financial Group, during the second half of 2014, with an aim to fully divest it by 2016.
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In order to make its US subsidiary an independent institution and pay back to the UK government, RBS will divest the entire operation through further secondary offerings over 2015 and 2016. RBSCFG chairman and CEO Bruce Van Saun said, "We have a clear plan that will facilitate our becoming an independent, standalone bank within three years. "We have benefited from our long association with RBS, and will continue to maintain a strong business relationship with RBS throughout this period and beyond." Citizens, which is the second-largest bank in Rhode Island by deposits, was acquired by RBS in 2008 during the height of financial crisis, which subsequently led to the UK government injecting £45bn to keep it operating. The US business operates in 12 states and had more than 1,400 branches. The divestment process, expected to take two years to complete, might yield £1.5bn to £2bn for the lender based on the recent £8bn book value of the business. Most recently, the 82% UK government owned lender agreed to dispose of 314 branches to a church-backed consortium of investors led by global financial services specialists Corsair Capital and Centerbridge Partners, in a transaction worth £600m ($962.5m).
Jefferies partners with Evans and Partners to boost equities business in Australia November 04, 2013 | BBR http://www.banking-business-review.com/news/jefferies-partners-with-evans-and-partners-toboost-equities-business-in-australia-041113 Jefferies has reached an agreement to distribute Evans and Partners’ equity research services to firms in Australia on a co-branded basis to the company’s institutional clients across the globe. The alliance is likely to be launched in the next few weeks, in which Evans and Partners will also provide local equity broking services to Jefferies. An independent investment house, Evans and Partners offers complete wealth management services for private clients, institutions and corporations. Jefferies has established similar alliances to enhance Jefferies' research offering to its global client base with Mirae Asset Securities in South Korea, Asia Plus in Thailand, Indo Premier in Indonesia and KAF Securities in Malaysia, over the last several months. Jefferies Asia CEO Michael Alexander said that the company is pleased to join forces with Evans and Partners as it expands and strengthens Jefferies' Pan-Asia equities business to meet the evolving needs of its institutional client base.
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"We continue to build out our Pan-Asia equities platform across the region to provide our global clients with best-in-class regional insights coupled with flawless execution and distribution," Alexander added. Evans and Partners executive chairman David Evans commented, "Evans and Partners will benefit from Jefferies' robust global equities platform, and we believe that this new relationship will further strengthen our existing business by leveraging Jefferies' global equity distribution platform." Jefferies' global equity research team comprises 138 analysts covering over 1,600 stocks from research centers in London, Hong Kong, Mumbai, Singapore, Tokyo, Houston, Nashville, New York and San Francisco
Taiwan's CTBC Financial to acquire controlling stake in Tokyo Star Bank for $530m November 01, 2013 | BBR http://retailbanking.banking-business-review.com/news/taiwans-ctbc-financial-to-acquirecontrolling-stake-in-tokyo-star-bank-for-530m-011113 Taiwan-based CTBC Financial Holdings has agreed to acquire 98.16% stake in Tokyo Star Bank from the current shareholders including US investment fund Lone Star, in a transaction valued at approximately NT$15.6bn ($530m). If the proposed transaction materializes, CTBC Financial would be the first foreign lender to take a controlling stake in a Japanese lender. CTBC, the parent company of Taiwan's largest credit-card issuer Chinatrust Commercial Bank, said that the transaction is subject to concerned regulatory approvals in Taiwan and Japan. CTBC senior vice president Rachel Kao was quoted by the Wall Street Journal as saying that the deal is mainly focused on regional wealth management business opportunities. "We hope to provide financial services to Japanese companies as they tap into the Chinese and Southeast Asian markets," Kao told the Journal. In 2011, Lone Star and others gained the control over of Tokyo Star after a fund managed by Japanese private equity firm Advantage Partners failed to repay loans and abandoned ownership of the bank. Tokyo-based lender Shinsei Bank and France's global lender Credit Agricole also own certain stake in Tokyo Star bank.
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Like its peers, CTBC, which already manages a branch in Tokyo, has been seeking to expand its footprint beyond domestic market by penetrating China and Japan. The bank, as part of its global expansion strategy, has inked MOU with several Japanese banks including Miyazaki Bank and Bank of Kyoto, to further bolster its presence in Japan. Tokyo Star, which was created by Dallas-based Lone Star from Tokyo Sowa Bank, manages a network of 31 branches across major cities in Japan with a strong presence in the retail market.
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