BANKING NEWS FLASH June 02, 2014
Table of Contents Sales & Marketing ................................................................................................................. 3 Finance ................................................................................................................................. 7 Technology .......................................................................................................................... 11 Strategy .............................................................................................................................. 16
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Sales & Marketing UBS Joins Scrum of Lenders Pushing Mortgages to the Well-Heeled May 27, 2014 | BBR http://www.nationalmortgagenews.com/news/origination/ubs-joins-scrum-of-lenders-pushingmortgages-to-the-well-heeled-1041859-1.html UBS Wealth Management Americas, an arm of Switzerland’s largest bank, has joined the growing list of lenders in the United States gunning for mortgage volume through the wealth management channel. The bank, which caters to high-net-worth ($1 million to $10 million in assets) and ultra-high-networth (over $10 million) clients, sees mortgage lending as a key area for expansion. “Lending is critical to the future growth of WMA,” Bob McCann, the CEO of UBS Americas, said this month at an investor presentation. “In fact, it is one of the single biggest opportunities we have at UBS Americas.” UBS is making this push at a time when jumbo mortgages are one of the few hot spots in residential originations. The nation’s top banks are focused on originating jumbo and interest-only mortgages to wealthy borrowers and keeping these loans on their balance sheets. Such loans to high net worth individuals tend to have very low defaults, but competition for those borrowers is intense. Mortgage balances at UBS Americas mushroomed from $100 million in 2009 to $6.4 billion at the end of 2013. UBS wants to double its advisor penetration in mortgages, which the firm defines as the percentage of advisors originating more than one mortgage in a 12-month period. That figure is currently 26%, up from 8% in 2009. The firm has far to go in order to catch up to its rivals, according to McCann. “I believe that number is 60% at our competitors who are more established in the mortgage market. So our goal is to reach a penetration level of 50%,” he said. The push into the U.S. mortgage business is an about-face for UBS, which fled the industry after suffering big losses on residential assets during the financial crisis. “We literally lost the ability in October 2009 to underwrite a mortgage. We were not underwriting any mortgages. And from mid-March 2010 to today, we’ve gone from having $100 million to $6.7 billion,” said McCann, who has overseen the firm’s wealth management business in the Americas since October 2009. The firm has about 7,000 financial advisors. Andrew Welsch is the associate editor of On Wall Street, a sister publication to National Mortgage News.
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Dime Savings Bank introduces new mobile banking product May 26, 2014 | BBR http://bankingtechnology.banking-business-review.com/news/dime-savings-bank-introducesnew-mobile-banking-product-260514-4276769 The Dime Savings Bank of Williamsburgh, the wholly-owned subsidiary of Dime Community Bancshares, Inc., reported the launch of its new mobile banking product, Dime Mobile Banking, which allows users to pay bills, transfer funds, and check on account status from the convenience of their smartphone. In addition, the mobile deposit capability allows users to photograph their checks and then transmit the deposit to the bank through their mobile device. For iPhone®, iPad® and Android™ devices, the free Dime Mobile Banking apps are now available at the Apple App Store(SM) and Google Play™ Store. For more details, please visit our website, www.dime.com. “With the activation of mobile banking, Dime now offers a full suite of digital banking channels for customers who prefer to bank from their home, at the job or on the move,” said Terence Mitchell, Chief Retail Banking Officer. “Dime Mobile Banking clearly strengthens our position in the marketplace,” he added. Prior to the launch, Dime generated excitement about mobile banking through “Coming Soon” teaser announcements in customer statements, on the dime.com website, and via email. Beginning on May 27, 2014, Dime will move into a full-scale branch rollout and market promotion. Featuring the headline “Say ‘Hello’ to your money,” branch promotional material and signage will make a colorful splash, announcing the arrival of Dime Mobile Banking. “We are utilizing two life-size mobile banking characters positioned to greet customers upon arrival, and a wide variety of supporting signage,” said Larry Kinitsky, Senior Vice President - Marketing. “In addition, we have designated mobile banking experts at each branch, dressed up in colorful ‘Say “Hello” to your money’ t-shirts, who will encourage customers to sign up for mobile banking.” Around each Dime branch trade area, mobile billboards will be used to create awareness about Dime mobile banking. Dime Mobile Banking is a continuation of the Bank’s strategy to extend Dime’s eBanking platform to include online banking, mobile banking, bill pay and remote deposit, and to increase remote access usage with existing customers. In late 2013, the Bank successfully implemented a major conversion of its online banking system and branch automation software
ANZ receives licence to operate subsidiary in Thailand May 26, 2014 | BBR http://retailbanking.banking-business-review.com/news/anz-receives-licence-to-operatesubsidiary-in-thailand-260514-4276329 Thailand’s Ministry of Finance has granted an approval to the Australia and New Zealand Banking Group (ANZ) to establish a subsidiary in the country
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The permission takes the lender a step closer to earning a long-sought-after full banking licence, while expanding its network in South East Asia where it has a presence in Cambodia, Laos, Vietnam and Myanmar. An unnamed ANZ spokesman was quoted by The Sydney Morning Herald as saying that the full banking licence is expected to be awarded next year, and also noted that the lender would continue to operate from its subsidiary office in the meantime. “The development of a presence in Thailand is an important step for ANZ given the size of Thailand’s economy, its importance as a regional manufacturing centre and Thailand’s connection to other countries in our network, including the greater Mekong and the rest of Asia,” the spokesman added. A Thai Finance Ministry source was quoted by The Bangkok Post as saying that the licence was granted by the former finance minister Kittiratt Na-Ranong prior to his ouster from the office this month following a Constitutional Court decision. Thailand, which is currently witnessing violent protests aimed at ousting the existing government, has taken applications from foreign lenders for licences, which would allow them to establish up to 20 branches and 20 off-premises ATMs in the country, according to the news agency. The other foreign lender to have secured approval to operate a subsidiary was Japan-based Sumitomo Mitsui Trust Bank. ANZ has been seeking to expand in Thailand as part of its super-regional strategy, which requires the lender to source 25 to 30% of its earnings from the Asia Pacific region, Europe and the US combined by 2017, as reported by BBC News
Mashreq launches new instant savings account May 23, 2014 | BBR http://assetmanagement.banking-business-review.com/news/mashreq-launches-new-instantsavings-account_4275727 UAE-based financial services company Mashreq has launched a new savings account that motivates customers to save regularly to help realize their financial goals and ambitions. With DreamSaver account, the customers have the flexibility to select the ‘dream’ and choose the tenure & savings option to meet the stated objective, without having to worry about the economic climate and the impact it will exert on their savings. In addition, the customers can withdraw up to 100% of the savings at any point without any penalty, unlike other traditional products that penalize clients on early exit. Mashreq Personal Banking Head Tooran Asif said the DreamSaver account provides customers with an option to choose their investment horizon on the basis of their envisaged financial goal. “The digital experience & the convenience we offer in operating this account is what will define the future of banking,” Asif added. The account offers customers the ability to save anytime and anywhere, as they will have the option to use online banking through MashreqOnline, as well as Mashreq’s mobile banking platform, Snapp and save on the go.
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Dream Saver account can be set up by an existing Mashreq customer using ‘online banking.’
MoneyGram introduces Cash to ATM service in Bulgaria May 19, 2014 | BBR http://payments.banking-business-review.com/news/moneygram-introduces-cash-to-atmservice-in-bulgaria-190514-4270567 MoneyGram, a leading global money transfer and payment services company, and DSK Bank are making money transfers more convenient for customers in Bulgaria with the introduction of “Cash to ATM” service. The new service allows DSK Bank debit card holders to receive MoneyGram transfers in BGN at more than 850 DSK Bank ATM terminals. “With the launch of the service, MoneyGram strengthens its commitment to Bulgarian customers by offering convenient cash pick up,” says Massimo Canovi, vice president Southern Europe at MoneyGram. “DSK Bank provides services for over 3 million customers, reaching nearly every Bulgarian family, who will now have convenient access to funds sent from loved ones around the world.” “Building our relationship with MoneyGram and adding Cash to ATM service, allows DSK Bank to expand its product portfolio, and directly respond to our customers’ needs,” says Emil Hristov, executive manager Bank Operations at DSK Bank. “We are always striving to offer reliable, efficient and innovative services and we hope to continue to build trust among our clients.” Bulgaria is one of Europe’s largest recipients of remittances. According to the World Bank, remittances from Bulgarians working abroad totaled $1.6 billion in 2013. The most active corridors for sending money transfers to the country are Spain, the United Kingdom, Germany, Greece, Italy, the USA and Turkey
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Finance JPMorgan to fund establishment of financial solutions lab May 30, 2014 | BBR http://bankingtechnology.banking-business-review.com/news/jpmorgan-to-fund-establishmentof-financial-solutions-lab-300514-4281616 JPMorgan Chase & Co. and the Center for Financial Services Innovation (CFSI) announced their collaboration on the Financial Solutions LabSM, a new $30 million, five-year initiative that brings together social entrepreneurs and leading experts in technology, behavioral economics and design to improve financial capability. This cross-industry initiative intends to catalyze the development of innovative, technology-enabled strategies, products and services that align with consumers’ financial needs. “Living outside the financial mainstream puts financial security further out of reach for one out of every four American households that rely on high-cost, non-bank services to manage their finances[1],” said Bruce McNamer, Chief Executive Officer of the JPMorgan Chase Foundation. “The Financial Solutions Lab will bring together the best and brightest to identify innovative solutions that help consumers increase savings, improve credit and build assets.” Identifying Solutions Over the course of the next five years, the Financial Solutions Lab will host a series of competitions for social entrepreneurs to identify products and services designed to help consumers improve their financial health. Leading ideas will be able to be supported with capital, technical assistance and third-party evaluation. “CFSI has spent the last decade understanding the financial needs and behaviors of consumers and has a strong track record of seeding promising innovations that help to address them,” said Jennifer Tescher, CEO of CFSI. “Now that financial capability has become the norm, this Lab is the opportunity to scale powerful ideas that will impact millions of Americans.” In a new white paper released by the University of North Carolina at Chapel Hill and JPMorgan Chase, evidence from a broad set of research highlights that financial insecurity is a problem not limited to individual households, but also has consequences for employers, taxpayers, and the economy. Families living paycheck to paycheck experience even greater financial insecurity when they live outside the financial mainstream. They lack opportunities to save and build credit, which are critical building blocks for stability and economic mobility. For example, 71 percent of children born to high saving, low-income parents move up from the bottom income quartile over a generation. However, experts estimate that fewer than 10 percent of working households are positioned for a financially secure retirement and more than half of Americans lack an emergency savings fund.[3] As a result, individuals and households are increasingly vulnerable to financial setbacks that limit their economic mobility. The Financial Solutions Lab intends to promote the development of products and services to tackle these challenges and promote opportunities for households to improve financial stability, financial security, and - eventually - economic mobility.
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Cross-Sector Collaboration The Financial Solutions Lab will assemble a team of technology experts, leading nonprofits and consumers advocacy groups, behavioral economists and academics to provide ongoing guidance, share best practices and support the development of scalable financial solutions based on the Financial Solutions Lab’s winning innovations. ideas42 and IDEO.org will serve as strategic advisors, and together with JPMorgan Chase, will be instrumental partners in the Financial Solutions Lab’s design, implementation and capacity. “We need to put consumers’ needs at the center of the design process and offer solutions that have sustained long term impact,” said Patrice Martin, co lead and creative director at IDEO.org. “So far, efforts to address financial insecurity have largely focused on increasing awareness and knowledge,” said Josh Wright, Executive Director, ideas42. “But research has shown the need to identify strategies that help consumers overcome these barriers to promote better financial behavior. By leveraging behavioral insights, we hope to create scalable, sustainable products and services to promote financial security.” Ongoing Measurement and Evaluation The Financial Solutions Lab will establish criteria for measuring impact in order to continuously evolve efforts to help individuals households achieve greater financial security and contribute realtime learnings to the broader field of financial capability
Biggest banks to pay up to 15m euros for ECB supervision May 28, 2014 | The Business Times http://www.businesstimes.com.sg/breaking-news/world/biggest-banks-pay-15m-euros-ecbsupervision-20140527 The eurozone’s biggest banks will face an annual bill of up to 15 million euros (US$20 million) apiece for being supervised by the European Central Bank, the ECB said on Tuesday. The ECB said in a statement that the costs incurred in its new role as Europe’s sole banking supervisory - which it takes over in November - are expected to amount to 260 million euros in 2015. As part of the new Single Supervisory Mechanism (SSM), the ECB will directly supervise up to 130 institutions classified as “significant” with assets in excess of 30 billion euros. Smaller, less significant banks will remain under the remit of the national supervisory authorities
FCA fines Barclays over failure surrounding the London Gold Fixing May 23, 2014 | BBR http://policiesandregulatorycompliance.banking-business-review.com/news/fca-fines-barclaysover-failure-surrounding-the-london-gold-fixing-230514-4276017 The Financial Conduct Authority (FCA) has fined Barclays Bank Plc (Barclays) £26,033,500 for failing to adequately manage conflicts of interest between itself and its customers as well as systems and controls failings, in relation to the Gold Fixing.
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These failures continued from 2004 to 2013. On 28 June 2012, former Barclays trader Daniel James Plunkett exploited the weaknesses in Barclays’ systems and controls to seek to influence that day’s 3:00 p.m. Gold Fixing and thereby profited at a customer’s expense. As a result of Plunkett’s actions, Barclays was not obligated to make a US$3.9m payment to its customer, although it later compensated the customer in full. Plunkett’s actions boosted his own trading book by US$1.75m (excluding hedging). The FCA has fined Plunkett £95,600 and banned him from performing any function in relation to any regulated activity. Tracey McDermott, the FCA’s director of enforcement and financial crime, said: “A firm’s lack of controls and a trader’s disregard for a customer’s interests have allowed the financial services industry’s reputation to be sullied again. Plunkett has paid a heavy price for putting his own interests above the integrity of the market and Barclays’ customer. Traders who might be tempted to exploit their clients for a quick buck should be in no doubt - such behaviour will cost you your reputation and your livelihood
Fannie Sells Risk of High-LTV Pool Same for Same Price as Low-LTV May 21, 2014 | National Mortgage News http://www.nationalmortgagenews.com/news/risk-management/fannie-sells-risk-of-high-ltvpool-same-for-same-price-as-low-ltv-1041833-1.html Fannie Mae sold $1.6 billion of risk-sharing debt to investors who today accepted the same yields on securities that wager on the default rates of riskier mortgages as on bonds tied to safer loans The government-backed mortgage giant agreed to pay a floating rate of 2.6 percentage points more than a borrowing benchmark on both $644.5 million of notes tied to homeowners with at least 20% equity in their properties, as well as $225.8 million linked to borrowers with as little as 3%. A pair of senior-ranking bonds each linked to one of the two loan pools will both pay spreads of 0.95 percentage point, the Washington-based company said today in an emailed statement. Fannie Mae will get less loss relief with some of the bonds. The junior securities linked to riskier loans carry 0.65% of credit enhancement, or protection for investors, compared with 0.3% for those tied to the safer mortgages, according to a report by Fitch Ratings. That means more loans must default before Fannie Mae can reduce the principal owed to bondholders. The bond protection will also be erased at a slower pace on the debt if defaults accelerate. “What we tried to do was factor in both the higher expected default rates” and that the riskier loans carry separate mortgage insurance usually paid for by borrowers that “we’re going to get the benefit of,” Laurel Davis, vice president for credit risk transfer at Fannie Mae, said in a telephone interview. The structural difference means defaults must exceed 3.6% in the first 10 years for the bonds tied to riskier loans to bear losses, compared with 2% for the other debt, Davis said.
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The deal represented the first tied to mortgages with higher loan-to-value ratios as Fannie Mae and rival Freddie Mac seek to share more of their losses with investors and insurers to protect taxpayers. Loans with more than 80% LTVs made in 2007 “have experienced approximately 1.5x higher defaults than those with LTVs between 60% and 80%,” the focus of earlier risk-sharing deals, Fitch said. The riskiest type of bonds tied to such safer loans sold in a $966 million deal by Freddie Mac in April offered a spread of 3.6 percentage points more than the one-month London interbank offered rate. It’s a “good time” for the firms to begin selling risk-transfer bonds tied to borrowers with higher loan-to-value ratios because the loans are becoming a bigger share of the market as refinancing drops after a surge in interest rates, leaving a greater proportion of mortgages for home purchases, Davis said
EC charges JPMorgan, HSBC and Credit Agricole with EURIBOR rate rigging May 21, 2014 | BBR http://retailbanking.banking-business-review.com/news/ec-charges-jpmorgan-hsbc-and-creditagricole-with-euribor-rate-rigging-210514-4272695 JPMorgan, HSBC and Credit Agricole have been charged by the European Commission (EC) for violation of the European Union (EU) antitrust rules by conspiring to manipulate the Euro Interbank Offered Rate (EURIBOR). The Brussels-based regulator said in a statement that the three banks may have participated in a collusive scheme that aimed to distort the normal course of pricing components for the EURIBOR. “If established, such behaviour violates Article 101 of the Treaty on the Functioning of the European Union (TFEU) and Article 53 of the European Economic Area (EEA) Agreement that prohibit anticompetitive business practice,” the statement added. The Commission had opened proceedings against the banks in March 2013 and the investigation is underway under the standard cartel procedure. The banks could face penalties of up to 10% of their annual turnover if found guilty in breach of EU anti-trust rules. A JP Morgan spokesman said the bank has cooperated fully with the EC throughout its investigation, and intends to fight the allegations. A Credit Agricole spokesman said: “The commission has just announced it has sent out the objections, we shall examine the content as soon as we have received the documents.” A HSBC spokesman said: “We intend to defend ourselves vigorously.” Having levied fines amounting to €1.04bn on Barclays, Deutsche Bank, RBS and Societe Generale as part of the same investigation in December 2013, the EC is also planning to soon charge ICAP for suspected manipulation of the yen Libor financial benchmark. Commenting on ongoing Libor investigation against ICAP, European Competition Commissioner Joaquin Almunia said: “In the coming days or weeks, we will probably issue a new statement of objections against the broker.”
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Technology Al Hilal Bank deploys Infosys Finacle E-banking solution May 30, 2014 | BBR http://bankingtechnology.banking-business-review.com/news/al-hilal-bank-deploys-infosysfinacle-e-banking-solution-300514-4281790 Al Hilal Bank , one of the fastest-growing banks in the UAE, has announced that it has successfully implemented the award-winning Infosys Finacle e-Banking solution from their technology partner, Infosys. The new solution enables Al Hilal to provide a full range of internet banking services to its corporate customers in an intelligent and seamless manner, without compromising security. It also allows the bank to roll out new functionalities on a regular basis and build upon existing products to provide an enhanced banking experience, all at reduced costs. Al Hilal Bank has seen significantly improved business volumes following the implementation of the Finacle solution. The initiative was recently named ‘Best Self Service Banking Project in the Middle East for 2014’ by The Asian Banker. The solution empowers users to exercise real-time control over finances across channels and banking accounts. With this solution, Al Hilal can now offer fast, easy and anywhere banking, with a rich user experience to enable all segments of corporate customers to bank online. Some of the key corporate banking activities supported by the solution are account services, transfers, bulk payments, file upload for transactions, beneficiary management, and advanced reporting. The Infosys Finacle e-banking solution reduces service delivery costs through the automation of functions such as online service requests, payments and salary processing. It also features enhanced security such as two-factor authentication, transaction signing, and one-time passwords. Moreover, the solution helps reduce the time spent facilitating the opening of online accounts and other critical customer requests. Another benefit is the provision of real-time information and alerts covering account details as well as financial news, market updates, exchange rates, and stock quotes. “The adoption of the latest and best banking technologies is a priority for Al Hilal Bank, in keeping with our spirit as a progressive Islamic bank. The Infosys Finacle e-banking platform enables us to provide a customized, multi-channel experience for our corporate customers. This new and secure internet banking capability is a reflection of our continued focus on making banking as convenient, as technology-enabled and as cost effective as possible for our valued customers,” said Mohammed Jamil Berro, Group CEO, Al Hilal Bank. “Corporate banking customers demand real-time, holistic views of their balances across the group so that their liquidity positions can be effectively identified and optimized. By leveraging the Finacle platform, Al Hilal Bank has improved how it interacts, serves and markets to its corporate customers,” added Venkatramana Gosavi, Vice President and Regional Head - Growth Markets, Finacle, Infosys
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FirstBank selects Fundtech’s CASHplus to grow commercial treasury business May 29, 2014 | BBR http://bankingtechnology.banking-business-review.com/news/firstbank-selects-fundtechscashplus-to-grow-commercial-treasury-business-290514-4280373 Fundtech, a market leader in global transaction banking solutions, announces that FirstBank, a $2.2 billion bank headquartered in Tennessee, has selected Fundtech’s CASHplus to grow its commercial treasury business. The bank uses Fundtech’s payments solution for wire transfers, and chose CASHplus based on its positive experience with Fundtech as well as with the cash management product’s scalability, mobile and tablet delivery channels, and overall user experience. FirstBank sought to enhance its corporate treasury offering, and turned to Fundtech to provide a solution that could scale to accommodate its growing corporate treasury business, while continuing to service its business customers of all sizes. An out-of-the-box, highly configurable cash management solution, CASHplus provides a full suite of banking and payment functionality. Using a single dashboard across all delivery channels, it gives customers the ability to personalize dashboards and client screens, create shortcuts and set up favorites. The ability to create these tailored offerings allows banks to deepen their customer relationships and to improve overall customer satisfaction. “CASHplus allows us to service all bank and corporate market segments using a single set of interfaces across all delivery channels,” says Wade Peery, Senior Vice President, Director of Treasury Services at FirstBank. “This means we can provide even our smallest customers with a world-class solution that will grow with their business. Meanwhile, it will help us to achieve our objective to significantly expand our small, medium and large corporate businesses.” “In today’s competitive environment, banks must ensure that their customers are able to access a broad selection of services,” says Kyle McGaffey, Head of Sales, Americas, Fundtech. “By providing enhanced and differentiated services to corporate customers, banks are able to increase their competitive advantage and ultimately grow their customer base.”
Equity Bank unveils MVNO strategy and rollout plan May 27, 2014 | BBR http://www.banking-business-review.com/news/equity-bank-unveils-mvno-strategy-and-rolloutplan-270514-4278218 Equity Bank has unveiled its Mobile Virtual Network Operator (MVNO) strategy and rollout plan that is set to launch in July 2014. Equity Bank has hailed their MVNO as the ‘next big thing’: Equity 3.0. The Equity MVNO accords Equity Bank the opportunity to continue its mission of furthering financial inclusion and innovative service offerings for all Kenyans by presenting their financial services offering on to a single platform which will make banking services more accessible, flexible convenient and more affordable.
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The bank has invested heavily in time, infrastructure and resources to prepare for this service offering. Platforms, technology and knowledge of customer needs and aspirations have combined to prepare for aggregation of the “Big Data” that Equity believes will enable it to create a true eeconomy - for the benefit of all Kenyans. A service that is a first for Kenya and a first for Africa. Alongside this investment, Equity has also developed important partnerships that will not only enable the process, but also help to drive costs down. Notably, a strategic partnership with Airtel will support Equity’s delivery of MVNO services without the capital investment required by traditional mobile operators. These lower costs will be passed onto Equity Bank members via innovative, affordable, next generation products and services. “New skills combined with new systems and cutting edge innovation will yield immense benefits that we will pass to our members,” says Dr. James Mwangi, CEO of Equity Bank Group, “In this venture of enhancing our mobile banking offering, we are, as always, driven by our focus of making financial services convenient, accessible, affordable and inclusive.” As the host and partner operator for Equity Bank, Airtel said it is delighted to be the mobile operator that is pioneering this innovation in the Kenyan Telecoms Industry. The company stated that the MVNO services will run on the excess capacity on its network, ensuring that it maintains seamless quality experience to its consumers. Airtel Kenya CEO Adil Youssefi congratulated Equity Bank on the move to pioneer the MVNO initiative in Kenya saying that “The launch of MVNOs is in line with Airtel Kenya’s innovation and differentiation agenda. We believe that the entry of the MVNOs into the market will stimulate and sustain overall market growth through a new range of innovative products and service propositions that will give more choice and value to Kenyans. Additionally, their entry into the market will increase the uptake of mobile services in key segments such as mobile commerce and data thereby accelerating the inclusion of all Kenyans into the mobile revolution for sustained economic development of the country”. In preparation for roll out, Equity Bank has put in place adequate human resource and technology to ensure efficient service delivery. A 300 seat customer contact center fully integrated with voice and social media is now operational 24 hours 7 days a week and staff have undergone intense training on effective customer service and experience. To further enhance the speed and cope with anticipated increase in volume of transactions from the MVNO, the Bank’s recently implemented Oracle Supercluster is now fully activated and operational. The system is capable of supporting more than one million transactions per second concurrently from cards and mobile transactions and core banking transactions. The system is now fully enabled for enhanced payment processing and expanded acquisition strategies including mobile transactions. In addition, the recently rolled out integrated and robust IT platform and Tier 4 data centre provide comprehensive business functionality, immense transactional power and capability, high availability and reliability and supports enhanced customer experience. Equity Bank has taken the strategic direction of bringing full mobility to banking - all the while simplifying the payments and transaction process - enabling greater inclusion for all Kenyans. With the new MVNO service, Equity bank will provide the most secure banking platform delivered via the mobile phone. Pricing strategies will reduce the middlemen layers of fee associated with mobile money transactions - saving money for individual Kenyans and the Kenyan economy as a whole. Mobile transfers will be charged at 1% of the transaction value compared to the prevailing market charges of 16%. The charges will be capped at Ksh 25 per transaction. Additionally, instant loans will be available at a maximum of 2% per month compared to the 7.5% per month offered in the market.
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Equity MVNO will simply mirror all its banking services into the mobile phone. By linking the account to the mobile phone, customers can apply for loans, move money into and from their bank accounts and pay bills. In addition, through Equity banks’ multi-channel connectivity, customers will be able to carry out cross border transactions from their mobile phones. They will receive international remittances onto their accounts and access through their mobile phone numbers, Equity Agents, ATMs or branches. Equity Bank staff will begin trialing the MVNO service today as the final round of testing before the service goes live to the public in July 2014. Said Dr. Mwangi, “We feel that innovations and technology have given us a perfect opportunity to continue our tradition of rewarding our customers with control and freedom of choice. All our customers will receive their sim cards ready for use as soon as we roll out.” In addition, Dr Mwangi said that ahead of the full market launch in July, Equity Bank was inviting all Kenyans above 18 years who wish to enjoy the enhanced mobile phone banking to open an Equity Bank account instantly on their phones. “Today we are opening up this possibility through our new Equity Bank Hapo Hapo service that enables you to open an account on your phone by simply dialing *247#, enter your national ID number and you will receive your account number and Pin instantly,” explained Dr Mwangi. The account opening process has been dignified and simplified as one can now open an Equity Bank account on their phone irrespective of their mobile telco operator
Liberbank to use Accenture’s core banking applications May 20, 2014 | BBR http://bankingtechnology.banking-business-review.com/news/liberbank-to-use-accentures-corebanking-applications-200514-4272033 Liberbank has signed a ten-year contract with Accenture (ACN) to transform and optimize its core banking applications as part of the bank’s strategy to increase operational efficiency and business agility and optimize return on technology investments. The agreement will help Liberbank gain greater operational flexibility by optimizing its technology costs, implementing a more efficient delivery model based on service-level standards, and ensuring access to innovation and upgrades based on new market trends. The two companies have created a joint venture to deliver the services, which include development and maintenance of existing and new core banking applications that support Liberbank’s entire banking operations - from deposits to client account, credit and bank guarantee processing operations - as well as its customer relationship management and information management systems. “This agreement is a major step forward in the technology transformation that Liberbank needs to undertake to better serve its customers,” said Orlando Sánchez Jardón, Chief Operating Officer, Liberbank. “It will allow Liberbank to implement core banking processing best practices and benefit from latest technologies. Accenture’s long-term commitment and its leadership position in core banking services make it the ideal business partner for this highly strategic initiative for Liberbank.”
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“Through this agreement Liberbank will have a more flexible technological model, improved IT efficiencies, and greater access to technological innovation,” said Fernando Rufilanchas, a managing director in Accenture’s Financial Services group. “It will also offer competitive advantages within an industry that is undergoing radical transformation.” As part of the agreement, employees from Liberbank and Accenture will transfer to the new company. The project is supported by Accenture Core Banking Services. Accenture has worked with Liberbank for over 13 years. Most recently, it supported the integration of Liberbank with several saving banks. Accenture also helped implement Alnova, Accenture’s corebanking technology platform, at all the institutions that now comprise Liberbank; that platform supports Liberbank today
alBaraka Bank Tunisia deploys ITSS anti-fraud and log monitoring solution May 20, 2014 | BBR http://riskmanagement.banking-business-review.com/news/albaraka-bank-tunisia-deploys-itssanti-fraud-and-log-monitoring-solution-200514-4272022 ITSS is proud to announce that alBaraka Bank Tunisia is now live with ITSS’ anti-fraud and log monitoring solution called iMLOG. The solution gives any bank the possibility of having full control on the Operational Risks. Any malpractices in the core banking system by transactions as well as any changes in the data outside the application can be captured. iMLOG gives non-stop auditing and the ability to keep data/logs as long as necessary for investigation purposes. Any activity coming from the business and the IT side is under control. All the transactions are analyzed and unusual behaviors can be tracked and take necessary action in real-time. After a thorough analysis of all the solutions available in the world market, alBaraka Bank Tunisia found iMLog to be the most comprehensive proactive security control system. The bank’s Senior Vice President said “we are no longer worried about fraud and making sure the bank’s compliance is always observed, thanks to iMLog”. iMLog works as a whole infrastructure, capable of monitoring and analyzing data in real-time, for any system (T24, Flexcube, Active Directory, AIX, Oracle, IP addresses, Switches, Routers, etc...) enabling continuous audit trails
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Strategy RBS to divest completely in private-equity arm May 30, 2014 | BBR http://www.banking-business-review.com/news/rbs-to-divest-completely-in-private-equity-arm300514-4281583 Royal Bank of Scotland (RBS) Group has reportedly signed an agreement to sell its remaining stake in RBS Special Opportunities Fund (SOF) to an Adams Street Partners-led investor group. Two people with knowledge of the matter were quoted by Bloomberg as saying that the bank has agreed to sell its minority share in the private-equity unit in a £100m deal last month. The investor group is likely to provide new capital for transaction, the people added. However, the spokesmen for both RBS and Chicago-based Adams Street refused to comment on the transaction. First initiated in 2014, the proposed private-equity fund sale makes RBS the latest British bank to divest private-equity holdings in a bid to focus on its main businesses as the regulators pressurize the lenders to boost their capital. Credit Suisse, and HSBC Holdings are two other banks which took similar steps. The bank is also reportedly looking to sell off its US arm Citizens Financial Group, and cut jobs in the wake of tighter US regulations
Ping An Bank, Deutsche Bank sign MoU to expand clearing service cooperation May 21, 2014 | BBR http://bankingtechnology.banking-business-review.com/news/ping-an-bank-deutsche-bank-signmou-to-expand-clearing-service-cooperation-210514-4272971 Ping An Bank (PAB) and Deutsche Bank signed a Memorandum of Understanding expanding their cash management relationship by utilizing Deutsche Bank’s US Dollar (USD) Clearing for Commercial and Treasury Payments Solution via its Autobahn App Market. The Autobahn App Market allows clients like PAB to access real-time information reporting services which, combined with liquidity and investment services, improves forecasting capabilities enabling PAB to maximize earnings from their liquidity flows. Deutsche Bank’s Treasury Clearing Solution is designed to help PAB improve efficiency of intraday cash flows by providing services to control payment prioritization and manage complex payment arrangements. Headquartered in Shenzhen, PAB is a listed commercial bank that provides comprehensive financial services to corporate and individual customers. It was formed after the merger of Shenzhen Development Bank, the first listed commercial bank in China that went public in April 1991, and the former Ping An Bank. PAB has a network of over 500 outlets in China and a representative office in Hong Kong.
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Mr. Hu Yuefei, Executive Vice President at Ping An Bank, said, “We are delighted to expand our longstanding relationship with Deutsche Bank especially in USD payment clearing for both commercial and treasury payments. We truly believe this will enable us to achieve higher efficiency when providing USD payment services to our corporate and retail clients.” “We are pleased to provide a unique and convenient access point in the Autobahn App Market for PAB and their clients to extract more value from their USD cash flows,” said Nancy So, Asia Pacific Head of Cash Management for Financial Institutions Sales, Deutsche Bank. “Building on our existing relationship, PAB will continue to benefit from Deutsche Bank’s world-class USD clearing platform.”
DIB to acquire 25% stake in Bank Panin Syariah May 20, 2014 | BBR http://retailbanking.banking-business-review.com/news/dib-to-acquire-25-stake-in-bank-paninsyariah-200514-4271403 UAE-based banking and financial services provider Dubai Islamic Bank (DIB) has signed an agreement to acquire a substantial stake in Indonesia’s listed commercial bank, Bank Panin Syariah Under the agreement, the lender will initially buy around 25% stake in Bank Panin Syariah, to subsequently increasing its shareholding to 40% subject to the receipt of relevant regulatory approval, including from the Indonesian Financial Services Authority (OJK). The transaction makes DIB a substantial shareholder in Bank Panin Syariah, which is currently controlled by PT Bank Panin and operates through a network of ten branches, with headquarters at Panin Life Center Building, Jakarta. Bank Panin will remain as controlling shareholder of Bank Panin Syariah, a provider of Islamic banking services, with more than IDR4.3tn ($ 375m) in assets, and an equity base of over IDR998bn ($ 88m) as of March 2014. Earlier this month, DIB chief executive officer Adnan Chilwan was quoted by Reuters as saying that the bank was negotiating the acquisition of a 40% stake in an Indonesian Islamic bank, in an effort to expand its geographical footprint in the Asian country. The deal is expected to be concluded before the end of 2014, and the bank will use its own cash to fund the transaction, Chilwan had noted. The foreign ownership of local lenders is capped at 40% under the Indonesian regulations. Meanwhile, the lender had not disclosed the value of the transaction, which is subject to the regulatory approval. Apart from Indonesia, DIB had also hinted at possible expansion in the Far East, East Africa and the other Persian Gulf countries, as part of its overseas expansion strategy, as reported by The Wall Street Journal
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RBS plans to shut down interest-rate trading operations May 19, 2014 | BBR http://custodyandclearing.banking-business-review.com/news/rbs-plans-to-shut-down-interestrate-trading-operations-190514-4269998 The Royal Bank of Scotland (RBS) is planning to shut down its interest-rate trading operations in a bid to cope with the rising capital and operating expenses The bank has already informed the customers regarding its decision to close both its Rates Prime Broking and Rates OTC Clearing businesses last week. In a statement, the bank attributed the move to “increasing level of capital, operating costs and investment that would be required for business to be globally competitive in a market with extremely thin margins.” The shut down represents a further withdrawal from investment banking services, as RBS, the 81% UK government lender, continues to embark on its cost cutting drive to enable it return on profitability track, The Financial Times reports. RBS’ prime broking business offers margin consolidation and credit efficiency services to customers, while the rates OTC clearing unit helps customers in clearing interest rates contracts that relate to over-the-counter transactions. The move by the lender comes after Barclays announced to cut down its operations in investment banking amidst a sharp decline in fixed income trading worldwide. In addition, RBS is also expected to postpone a four-year push to augment the competitive position of its interest rates business, which was aimed at exploiting new rules around OTC derivatives trading and take on competitors, such as Morgan Stanley and JPMorgan
Lloyds not planning to move from Scotland, says Chairman May 16, 2014 | BBR http://retailbanking.banking-business-review.com/news/lloyds-not-planning-to-move-fromscotland-says-chairman-160514-4268995 London-based Lloyds Banking Group has announced that it has no plans to leave Scotland if the country votes for independence from the rest of the UK. Addressing the shareholders at the Lloyds annual general meeting in Edinburgh, Lloyds Banking Group chairman Norman Blackwell said the bank does not have a corporate view on the upcoming referendum as it is a matter to be decided by the Scottish electorate. “We are not at this point planning any moves because we don’t know what the result will be,” Blackwell added, while admitting that the referendum is creating uncertainties in the banking sector. While the referendum will be held on 18 September, Scotland is expected to officially become independent in March 2016, following a ‘yes’ vote, which gives 18 months to Lloyds to assess its options, as reported by Reuters.
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Blackwell was quoted by the news agency as saying that the bank will work with concerned authorities in the specified period to decide the best course of action. “If they were to vote for independence we will seek to work with relevant authorities to ensure we have a way forward to achieve our core purposes of serving customers across the UK,� Blackwell added. Lloyds, which owns Bank of Scotland and also has registered offices in Edinburgh, already warned that the Scottish independence vote will impact its cost of funding, taxes and compliance costs, according to the news agency
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