BANKING NEWS FLASH November 01, 2013
Table of Contents Sales & Marketing ................................................................................................................. 3 Finance ................................................................................................................................. 7 Technology .......................................................................................................................... 11 Strategy .............................................................................................................................. 16
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Sales & Marketing NTT DOCOMO, MasterCard to launch iD/PayPass payments services in 50 countries October 30, 2013 | BBR http://payments.banking-business-review.com/news/ntt-docomo-mastercard-to-launchidpaypass-payments-services-in-50-countries-301013 NTT DOCOMO, INC., a personalized mobile solutions provider for smarter living, and MasterCard, a technology company in the global payments industry, today announced the upcoming commercial launch of iD/PayPass-branded payments via DOCOMO’s iD™ mobile credit payment system. The launch opens up some 1.2 million MasterCard PayPass acceptance locations in over 50 countries to iD users beginning February 5, 2014. Payments with iD/PayPass will be available to DOCOMO subscribers using smartphones equipped with a contactless chip for Osaifu-Keitai™ (mobile phones with wallet functions) via near field communication (NFC). Current iD users can simply tap their smartphone over a reader device to make payments at MasterCard PayPass affiliate merchants outside Japan using either local currency or yen, eliminating the need to carry cash in an unfamiliar local currency. The iD/PayPass payment feature uses PayPass technology, a worldwide payment standard deployed by MasterCard via contactless IC chips. In Japan, DOCOMO subscribers will be able to use its proprietary iD system for mobile credit payments via some 500,000 iD reader devices offered by affiliate merchants. Customers will be able to experience iD/PayPass payments during a special pre-launch campaign offered by DOCOMO in Hawaii during the JAL Honolulu Marathon 2013 in December.
Aquiline plans to divest global payment provider Clear2Pay October 28, 2013 | BBR http://payments.banking-business-review.com/news/aquiline-plans-to-divest-global-paymentprovider-clear2pay-281013 Aquiline Capital Partners, a New York-based private equity firm, is planning to divest Clear2Pay, a Belgian financial services technology company that delivers global solutions for secure and timely electronic payments.
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Sources familiar with the matter were quoted by Reuters as saying that Aquiline made a strategic investment of €50m in Clear2Pay in December 2009, to fund its next stage of growth and potential strategic acquisitions. The transaction provided the US PE firm joint control of the company with its management. Established in 2001, Clear2Pay is a unique, one-stop-shop for flexible, scalable and cost-efficient global payment technologies. The company delivers its clients the modern architecture and software necessary to accommodate all of their payment systems and modify their market propositions efficiently. Aquiline has not appointed a bank to manage the sale process, although it is expected that the deal might be valued approximately €400m. Clear2Pay offers payments for banks and financial institutions, serves clients including ING Groep, Banco Santander and Bank of New York Mellon Corp, according to its website. The sources told the news agency that the possible bidders for Clear2Pay could include Oracle Corp or SAP AG, or financial services oriented technology providers like Fiserv.
Paychex Announces Partnership with Biz2Credit for New Small Business Loan Resource Center October 24, 2013 | BBR http://retailbanking.banking-business-review.com/news/paychex-announces-partnership-withbiz2credit-for-new-small-business-loan-resource-center-241013 Paychex, Inc., a leading provider of payroll, human resource, insurance, and benefits outsourcing solutions for small- to medium-sized businesses, has partnered with Biz2Credit, a leading online credit resource for small businesses, to offer the Paychex Small Business Loan Resource Center, an online resource that gives business owners access to more than 1,200 lenders offering a variety of loan options that fit businesses’ specific financing needs. "Through our partnership with Biz2Credit and our new loan resource center, Paychex is underscoring its commitment to helping small businesses succeed by giving them access to the funds they need to start, grow, and manage their business," said Frank Fiorille, Paychex senior director of risk management. "Because insufficient capital is a leading cause of small business failure, we're excited to partner with a company like Biz2Credit that has made it easier for business owners to secure the loans that keep their doors open, and their businesses thriving."
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Through the Paychex Small Business Loan Resource Center, small business owners have access to lenders and a variety of business loans and other small business financing products, including U.S. Small Business Administration (SBA) loans, micro-loans, commercial real-estate loans, and business lines of credit, among others. A pioneer in the loan industry, Biz2Credit uses the latest technology to match borrowers to financial institutions based on each company's unique profile in a safe, efficient, and price-transparent environment. "We are pleased to partner with an industry leader like Paychex to introduce financing options to the 570,000 businesses they serve throughout the country," said Rohit Arora, CEO of Biz2Credit. "Although things have improved since the depths of the recession, it is by no means easy for small business owners to secure financing today. Through our partnership with Paychex, we can bring options to light that they may not have known existed, or how to gain access to," Arora added. "Biz2Credit helps streamline the process, saving valuable time, effort, and cost in order to get small business owners the best financing options available today." With the new Paychex loan center, business owners can quickly and easily find the best loan options available to them by providing a few brief details about their business and filling out a single application that matches their criteria against more than 1,200 lenders. They then have the option of working with a dedicated Biz2Credit loan specialist to explore their options and select a loan with confidence
National Bank Holdings Corporation Launches New Government and NonProfit Banking Specialty Unit October 22, 2013 | BBR http://commercialbanking.banking-business-review.com/news/national-bank-holdingscorporation-launches-new-government-and-non-profit-banking-specialty-unit-221013 National Bank Holdings Corporation (NYSE: NBHC) announced today the addition of a new commercial banking line of business with the launch of a government and non-profit specialty banking unit. The team will be led by industry veteran, Tim David, who joins the company from CoBiz Financial where he founded and was the head of their public finance business. Based in Greenwood Village, Colorado, the new government and non-profit specialty unit will place an emphasis on the regions within the NBH Bank, N.A. footprint, which includes Colorado, Kansas, Missouri and Texas. Tim has over 15 years of experience in the industry, with an emphasis on banking government and non-profit entities. Prior to founding the CoBiz Financial public finance business, Tim founded the Denver-based public finance specialty unit for Wells Fargo's Denver Regional Business Banking Team. Joining Tim David is Brian Martorella from Wells Fargo Government and Institutional Banking, who also brings extensive industry experience and a proven track record in government and non-profit banking.
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"We are pleased to add another commercial capability to our company. Under Tim David's leadership, we will focus on fulfilling the financing and treasury management needs of clients in the government and non-profit segments across our markets. The launch of this business is another key step we have taken in 2013 to broaden our commercial capabilities and better serve our commercial clients through specialty offerings," said Tim Laney, President and CEO of National Bank Holdings Corporation
Verifone partners with AmEx to offer membership rewards points October 22, 2013 | BBR http://cards.banking-business-review.com/news/verifone-partners-with-amex-to-offermembership-rewards-points-221013 American Express (AmEx) and VeriFone Systems have formed a new alliance to allow eligible Card Members to use membership rewards points from AmEx for their fare in NYC taxi cabs, in real-time. With the launch of the new offering, VeriFone taxi cabs can accept Membership Rewards points, similar to credit card payments. VeriFone's in-taxi devices equipped with the new program can process more than 200,000 payments a day in more than 7,000 cabs across New York City. As soon as an American Express card member swipes an eligible card enrolled in the membership rewards program, an on-screen prompt offering the option will pop-up to use points for their ride fare, including tip and tolls. American Express digital partnerships and development senior vice president Leslie Berland said, "Our world-class Membership Rewards program is valued by our most loyal and engaged Card Members and merchants."
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Finance JPMorgan signs $5.1bn settlement with FHFA, Fannie and Freddie October 28, 2013 | BBR http://retailbanking.banking-business-review.com/news/jpmorgan-reaches-51bn-settlementswith-fhfa-fannie-and-freddie-281013 JPMorgan Chase has agreed to pay $5.1bn in settlements to the Federal Housing Finance Agency (FHFA), Freddie Mac and Fannie Mae, to resolve all the litigation related to mortgage-backed securities (MBS) sold to the companies between 2005 and 2007. Under the terms of the agreement, JPMorgan will pay $4bn to FHFA as conservator for Freddie and Fannie and an additional $1.1bn to settle the charges pertaining to the single-family mortgages purchases from 2000 to 2008. FHFA acting director Edward DeMarco said, "The satisfactory resolution of the private-label securities litigation with JPMorgan Chase provides greater certainty in the marketplace and is in line with our responsibility for preserving and conserving Fannie Mae's and Freddie Mac's assets on behalf of taxpayers." "This is a significant step as the government and JPMorgan Chase move to address outstanding mortgage-related issues," DeMarco added. In August 2013, media sources reported that the US Federal Housing Finance Agency (FHFA) demanded a $6bn fine from JP Morgan Chase, to settle cases over sale of bad mortgage bonds to government-backed finance companies. The federal housing regulator accused the bank of willingly selling the subprime loans packaged into securities to Fannie Mae (FNMA) and Freddie Mac (FMCC) inspite of being aware that the assets were toxic in nature. Both Fannie Mae and Freddie Mac went bankrupt during the financial crisis of 2008, due to the high exposure of faulty RMBS and were subsequently injected with nearly $187.5bn by the US government to keep them running. Subsequently, FHFA filed a total of 18 lawsuits against financial companies demanding $200bn in 2011. Citigroup and General Electric have already settled the matter with the FHFA, while BofA and HSBC are on the verge of settling the matter.
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Rabobank may face a penalty of $1bn over Libor scandal October 23, 2013 | BBR http://commercialbanking.banking-business-review.com/news/rabobank-may-face-a-penalty-of1bn-over-libor-scandal-231013 Global regulators from the US, UK and Netherlands are likely to impose a $1bn monetary penalty on Dutch lender Rabobank for its alleged role in the Libor interest rates fixing scandal. The market watchdogs claimed that the bank manipulated Libor and other benchmark interbank lending rates between 2006 and 2009, which has engulfed a dozen or more major financial organizations globally, reported Financial Times. Sources familiar with the development were quoted by the news agency as saying that the announcement is expected to be made as early as next week. Libor, which is also known as the London interbank offered rate, and Euribor are lending benchmark for the banks in the European region, whose valuations directly affects the value of trillions of dollars of financial deals between banks and other institutions. In June 2012, the British lender Barclays paid £290m in fines to the UK and US regulators, while In December, the UK FSA and the US CFTC and the US DoJ fined Swiss lender UBS $1.5bn, for fixing London interbank offered rate. In February 2013, RBS reimbursed £390m to settle with the CFTC, DoJ and FSA for relating to civil and criminal charges, while interdealer brokerage Icap agreed to pay £14m to the FCA and £41m to the CFTC in September
Morgan Stanley Q3 2013 revenues increased to $7.9bn October 21, 2013 | BBR http://www.banking-business-review.com/news/morgan-stanley-q3-2013-revenues-increased-to79bn-211013 Morgan Stanley (MS) has reported net revenues of $7.9bn for the third quarter of 2013, compared to $5.3bn during the comparable period last fiscal. For the current quarter period, ended on 30 September 2013, income from continuing operations applicable to Morgan Stanley stood at $888m, or $0.44 per diluted share, against a loss of $1bn, or a loss of $0.55, during the same period a year ago. Morgan Stanley chairman and CEO James Gorman said, "Our results point to the increased consistency, strength and balance we are deriving from our business model."
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"Our strategy to combine a world class investment bank with the stability of the largest U.S. wealth management franchise and strong investment management is enabling us to deliver exceptional advice and execution for our clients as well as stronger returns for our shareholders." Institutional Securities reported $371m pre-tax income from continuing operations, against a pretax loss of $1.9bn, while net revenues stood at $3.7bn compared to $1.5bn, during the corresponding period, earlier year. Wealth Management reported pre-tax income from continuing operations of $668m, compared to $247m, while net revenues were $3.5bn, against $3.2bn, during the year ago quarter. Investment Management reported pre-tax income from continuing operations of $300m compared to $198m. Morgan Stanley's Tier 1 capital ratio under Basel I stood at nearly 15.3% and Tier 1 common ratio was approximately 12.6% at 30 September 2013
BofA Q3 2013 net income rose to $2.5bn October 18, 2013 | BBR http://retailbanking.banking-business-review.com/news/bofa-q3-2013-net-income-rose-to-25bn181013 Global banking company, Bank of America (BofA) has reported an increased net income of $2.5bn for the third quarter of 2013, compared to $340m during the same period last fiscal. Bank of America CEO Brian Moynihan said, "This quarter, we saw good loan growth, improved credit quality and record deposit balances. Our customers and clients continue to do more business with us. "The economy and business climate will improve even more quickly as conditions normalize, and we are well positioned to benefit from that." Consumer and Business Banking reported net income of $1.8bn, up by 32%, from $1.3bn during the year-ago quarter, driven by higher revenue, lower provision expense and lower noninterest expense. For the quarter period ended on 30 September 2013, its consumer real estate services reported a net loss of $1bn, against a net loss of $857m for the same period earlier year. Global Wealth and Investment Management net income increased by 26% to $719m, compared to $571m during the comparable period a year ago, which reflects strong revenue performance and low credit costs. Global Banking posted net income of $1.13bn, slightly down from $1.15bn during the year-ago quarter, as an increase in revenue was offset by higher provision for credit losses.
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Global Markets registered a higher net loss of $778m, versus a loss of $276m in the year-ago quarter, while its revenue increased by 3%, from the year-ago quarter to $3.4bn. All Other reported net income of $643m, compared to a net loss of $1.6bn for the same period a year ago, primarily driven by lower negative FVO adjustments of $152m in the third quarter of 2013
Knight Capital to pay $12m fine to SEC to settle trading violations October 17, 2013 | BBR http://custodyandclearing.banking-business-review.com/news/knight-capital-to-pay-12m-fine-tosec-to-settle-trading-violations-171013 The US Securities and Exchange Commission (SEC) has imposed a monetary penalty of $12m on Knight Capital, now part of KCG Holdings, for violating trading regulations in August 2012. A software glitch on 1 August 2012 at Knight Capital sent over 4 million unintentional orders in 140 stocks listed in the New York Stock Exchange in 45 minutes time, which caused sudden increase in stock prices and a raise in trading volume. Due to the software problem, Knight traded more than 397 million shares and acquired several billion dollars in unwanted positions, and sustained $460m in losses. During the probe, the US financial watchdog found that the company had not implemented required safeguards measures to tackle the risks posed by its access to the markets, and as a result, failed to prevent the entry of millions of erroneous orders. In addition, Knight Capital also did not undertake adequate reviews of the effectiveness of its controls. SEC enforcement division co-director Andrew Ceresney said that the market access rule is essential for protecting the markets, and Knight Capital's violations put both the firm and the markets at risk. "Given the rapid pace of trading in today's markets and the potential massive impact of control breakdowns, broker-dealers must be held to the high standards of compliance necessary for the safe and orderly operation of the markets," Ceresney added. Without admitting or denying the SEC findings, Knight Capitalagreed to settle the order, which requires the firm to cease and desist from committing or causing these violations. Furthermore, the company, which was merged with Getco in July 2013, will appoint an independent consultant to review its procedures to ensure future compliance with the market access rule
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Technology Islami Bank Bangladesh Limited Goes Live on ElectraCard Platform in Record Time October 31, 2013 | BBR http://bankingtechnology.banking-business-review.com/news/islami-bank-bangladesh-limitedgoes-live-on-electracard-platform-in-record-time ElectraCard Services (ECS), a leading provider of software and processing solutions for electronic payment systems today announced the go-live of Islami Bank Bangladesh Limited (IBBL), with the new electra iTx series suite. ECS ensured that the migration of debit cards and ATMs from legacy platform onto the electra platform was executed in a span of only 4 weeks -- making this one of the fastest EFT switch migration. Established in 1983, IBBL is the first Islamic bank in South-East Asia having the largest branch network among the private sector banks in Bangladesh. The electra iTx series platform is a next generation PA-DSS certified secure transaction platform, built from the ground-up on open standards and industry best-practices to support the service oriented architectures (SOA) that are fast becoming the technology backbone of today's leading organizations. This is a game changing technology that allows the user to control their application and EFT environment. It also helps to reduce the time to market for integration and to roll out new services. ECS implemented the next generation financial transaction switch for ATM driving as well as a fullfledged card management solution for IBBL. With the new payments processing system IBBL will be able to rapidly expand its ATM network, start VISA速 issuance and acquiring, and add new delivery channels, BNAs and kiosks. This will in effect drive the bank's objective of enhancing productivity and innovation-led customer experience in all its operations. ECS partnered with Biometic.BD, a leading IT company in Bangladesh to extend localized support and help deliver a solution that meets the specific requirements of the Bangladesh market. "We are delighted to partner with one of the oldest and finest banks in Bangladesh," said Mr. Ramesh Mengawade, CEO, ElectraCard Services. "We understand the banking demands of a fast growing and emerging market, whose customers expect the latest and best in technology and security. It is important to preempt customer expectations and cater to a futuristic and dynamic market. Islami Bank Bangladesh Limited selected electra as its payment platform to strengthen its retail payment services with a comprehensive, secure and scalable solution."
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Mr. Mohammad Abdul Mannan, Managing Director, Islami Bank Bangladesh Limited said, "Thanks to ECS we have a world-class technology platform combined with their collaborative approach which made a big difference towards our speed to market. They met our need for a modern and secure solution that could meet the entire payment requirements seamlessly and strengthen our business offerings." Leveraging electra, IBBL will be empowered to create a differentiated customer experience through personalized offerings, bundled products and enriched segment specific portfolio. The solution's proven scalability and support for true 24X7 availability added to its keen understanding of the banking context in South Asia will power the bank's ambitious growth plans
US Bank, Mitek to unveil mobile photo balance transfer tool in November October 29, 2013 | BBR http://bankingtechnology.banking-business-review.com/news/us-bank-mitek-to-unveil-mobilephoto-balance-transfer-tool-in-november-291013 Global diversified financial conglomerate US Bank has joined hands with Mitek Systems, to launch Mitek's Mobile Photo Balance Transfer capability for its mobile banking customers in November. Mitek, which specializes in mobile imaging for financial transactions, enables users to remotely deposit cheques, pay bills, get insurance quotes, and transfer credit card balances by taking a photo with their smartphones and tablets. Using the new tool, US Bank customers can click a photo of a credit card payment coupon and send it to the bank to apply for a balance transfer to a US Bank credit card. US Bank senior vice president and mobile banking head Niti Badarinath said that the bank recognizes the power of mobile imaging and its ability to enhance its customers' experience by giving them new and innovative ways to access and manage their banking relationship. "This is our third innovative mobile imaging service, following DepositPointTM, mobile check deposit and Mobile Photo Bill Pay, which was launched in March 2013," Badarinath added. In order to eliminate manual "snap" of the picture, the bank will launch a new tool named Mitek MiSnap in the first quarter of 2014, which will automatically capture the best possible photo. As of 30 September 2013, US Bancorp (USB) had $361bn in assets, and manages 3,088 banking offices in 25 states and 4,937 ATMs. It offers banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions.
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Tetrad Bank of Zimbabwe Selects Infosys Finacle as its Banking Transformation Partner October 24, 2013 | BBR http://bankingtechnology.banking-business-review.com/news/tetrad-bank-of-zimbabwe-selectsinfosys-finacle-as-its-banking-transformation-partner-241013 Tetrad Investment Bank, a leading merchant banking services provider in Zimbabwe, announced that they have chosen Infosys Finacle as their technology partner. Finacle will power Tetrad Bank's Core Banking, Wealth Management, Customer Relationship Management (CRM), Online banking, Mobile Banking and Alerts capabilities in its evolution from a merchant bank to a top-tier commercial bank in the region. The suite of solutions will enable Tetrad Bank to automate banking operations, expand reach through multiple new channels and launch targeted offerings to retail customers. It will also help the bank scale its services to meet the needs of its growing retail customer base. Highlights Tetrad Investment Bank is in the process of converting from a merchant bank to a commercial bank, for which it needed a robust, scalable and future-ready core banking and surround solutions suite. The Finacle solution will enable the bank to broaden its services spectrum and address retail banking needs of its customers. In addition to delivering all-round retail banking capabilities, the solution will seamlessly interface with existing applications in the bank, ensuring no loss of business continuity. Tetrad Investment Bank's manual processes will be optimized by the straight-through processing (STP) of the solution. It will also enable scalability to meet future growth in customers, transactions and accounts. Tineyi Mawocha, Managing Director, Tetrad Investment Bank said: "As one of the last merchant banks in Zimbabwe, we are now in the process of converting to a commercial bank. We are pleased to have Infosys Finacle as our partner for enabling our banking system. We are confident that this partnership will help us provide convenient and innovative solutions to our customers as well as widen our product range. After a rigorous evaluation of multiple other core banking vendors, Finacle was chosen for its superior features, functionality, flexibility, history of implementation successes in Africa, and reliable after-sales service." Venkatramana Gosavi, Regional Head, Growth Markets, Infosys Finacle:
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Tetrad is our first core banking customer in Zimbabwe and we are committed to supporting the bank's transition to a full services commercial entity to deliver value to its customers. With Finacle, the bank will be able to launch new products and services much faster and provide world-class service to their clients. This partnership is a strong reflection of Finacle's flexibility in catering to the needs of diverse markets and institutions, particularly in the African region."
WestPac New Zealand plans to introduce Sony Smartwatch application October 18, 2013 | BBR http://onlinebanking.banking-business-review.com/news/westpac-new-zealand-plans-tointroduce-sony-smartwatch-application-181013 Westpac New Zealand is planning to launch an application for Sony SmartWatch, which will allow customers to check their balances from their wrists. Based on WestPac's Cash Tank application, the smartwatch offering enables users to verify their balances without verification, as reported by Finextra. A statement given to local press by Westpac digital head Simon Pomeroy was quoted by the news portal as saying that, "This development offers unrivalled convenience for customers and helps answer the most frequently asked question in banking, 'What's my balance?' at the touch of their wrist." The application, which will initially work with Sony's Android-linked watches, also provides account alerts and money transfers between accounts. In due course, the bank will also roll out smartwatch application, which will be compatible with other devices. Meanwhile, WestPac's owned lender Australia's St George Bank recently said that it has also developed a smartwatch app prototype which allows customers check account balances
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Credit Union ONE Selects DNA from Fiserv October 17, 2013 | BBR http://bankingtechnology.banking-business-review.com/news/credit-union-one-selects-dnafrom-fiserv-171013 Fiserv, Inc. (NASDAQ: FISV), a leading global provider of financial services technology solutions, today announced that Credit Union ONE, based in Ferndale, Mich., has selected the DNA™ account processing platform from Fiserv to increase efficiency and implement its long-term growth strategy. Leaders at the $810 million asset credit union cited the DNA platform's easy integration, highly configurable feature-set and innovative DNAcreator™ toolkit as key to its decision. "We mark our 75th anniversary this year by partnering with Fiserv -- an investment that will help us create remarkable member experiences for years to come," said David Breuer, senior vice president and Chief Information Officer, Credit Union ONE. "The open architecture and robust functionality of DNA will enable us to fulfill our member value proposition by providing highly customized products and services through the real-time channels they demand -- anytime, anywhere. With the efficiencies we gain from DNA, we'll be able to focus our resources on developing strategic, growthoriented solutions with DNAcreator. Fiserv gives us the tools and the confidence we need to take our technology, members and staff firmly into the future." Recognized by industry-leading analysts for its technology, user experience and breadth of functionality, DNA from Fiserv is the first open, person-centric core banking platform built for collaboration. DNA was completely rewritten using Microsoft's leading .NET Framework for a stateof-the-art core platform that banks and credit unions can rely on for the long-term. With DNA, Credit Union ONE benefits from 24/7 real-time processing, robust retail, mortgage and commercial banking capabilities, and a 360 degree view of its retail and business relationships. The unique customization and extensibility opportunities made possible by DNAcreator and DNAappstore™ played a key role in Credit Union ONE's decision to select DNA. With the DNAcreator development toolkit, the credit union's technical staff can create seamlessly integrated, custom core extensions called DNAapps™ that add new functionality, screens and processes to DNA. Credit Union ONE can sell its DNAapps to other financial institutions as well as purchase those created by others through the DNAappstore -- the first collaborative online marketplace for custom core applications. "Credit Union ONE's selection of DNA demonstrates this progressive credit union's commitment to service excellence and product innovation," said Steve Cameron, president, Open Solutions Division, Fiserv. "As a strategic account processing platform, DNA will serve as a foundation upon which Credit Union ONE can grow and adapt to changing member needs, new technology trends and an increasingly competitive marketplace." In addition to DNA, Credit Union ONE will implement tMagic™ for integrated teller capture, Prologue™ for financial management, ConvergeIT® for interactive voice response and WireXchange® for wire transfer processing. Credit Union ONE is an existing client of the Raddon Financial Group, a consulting and research group of Fiserv
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Strategy Visa and Blue Label Mexico partner to boost electronic payments October 31, 2013 | BBR http://payments.banking-business-review.com/news/visa-and-blue-label-mexico-partner-toboost-electronic-payments-311013 Visa has inked an agreement with Blue Label Mexico, a joint venture between baking firm Grupo Bimbo and Blue Label Telecoms, a prepaid airtime provider, to allow retailers to accept debit and credit card payments in the country. More than 700,000 small merchants across Mexico will provide Grupo Bimbo, Visa and Blue Label with a unique opportunity to expand the acceptance of electronic payments to small merchants in the country. Starting from September 2013, a specially trained team specialized in merchant activation has begun rolling out the installation of mobile payment terminals at merchants across Mexico. Apart from providing airtime top-up and bill payment services, the new terminals will allow small retailers to accept Visa and non-Visa card payments. The joint initiative will boost the number of mobile payment terminals and acceptance of electronic payments in small retail locations across Mexico, thus offering customers with an alternative payment option. Meanwhile, Visa has teamed up with Planet Payment, an international payment processing services provider, to create a processing platform that enables merchants in Mexico to accept, process and reconcile card payments. Visa solutions global executive Elizabeth Buse commented, "Our work with Grupo Bimbo and Blue Label is a great example of how Visa can partner with merchants to eliminate the inefficiencies of cash while bringing the convenience of electronic payments to more consumers."
Heritage Financial agrees to acquire Washington Banking for $265m October 24, 2013 | BBR http://retailbanking.banking-business-review.com/news/heritage-financial-agrees-to-acquirewashington-banking-for-265m-241013 Heritage Financial (HFWA) has inked a definitive agreement to acquire Washington Banking (WBCO) in Oak Harbor, in a cash and stock transaction, valued at approximately $265m.
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As per the terms of the transaction, for each share of Washington Banking, its shareholders will receive 0.89000 shares of Heritage common stock and $2.75 in cash. Following consummation, Washington Banking's shareholders will own nearly 46% of the combined company, while Heritage's shareholders will take 54%. Post-transaction, Heritage and Washington Banking will integrate their operations and the united company will have $3.3bn in total assets, $2.9bn in total deposits and $2.3bn in total loans, as of 30 September 2013. The integrated banking company will operate 73 bank branches across Washington and Oregon from Bellingham, Washington to Portland, Oregon. Heritage Financial Brian Vance said, "Together we will be positioned to realize important synergies and be better positioned to benefit from future growth opportunities and generate enhanced financial performance for our shareholders." Washington Banking branches will be rebranded as Heritage Bank in all markets, with the exception of six branches in Whidbey Island markets that will continue to operate using the Whidbey Island Bank name. The transaction is anticipated to conclude during the first half of 2014, pending regulatory and Heritage and Washington Banking shareholders' approvals, and satisfaction of certain customary closing conditions. DA Davidson & Co and Sandler O'Neill + Partners, acted as financial advisor and provided a fairness opinion to Heritage and Washington Banking, respectively
MoneyGram Expands Relationship with CIMB Banking Group October 22, 2013 | BBR http://payments.banking-business-review.com/news/moneygram-expands-relationship-withcimb-banking-group-221013 MoneyGram (NASDAQ: MGI), a leading global money transfer company, and CIMB Bank Singapore have reached an agreement to offer international money transfer services at the CIMB Bank Currency Exchange outlets at Resorts World Sentosa and the Marina Bay Cruise Centre, bringing increased accessibility of funds transfer services to customers. CIMB Bank Singapore is part of the CIMB Group, a leading ASEAN universal bank with the most extensive retail branch network in the region of more than 1,000 branches. The addition of CIMB Bank Singapore to the MoneyGram agent network presents incremental growth opportunities for MoneyGram.
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"Adding CIMB Bank Singapore to our network is an important step for us as we provide more access to affordable money transfer services to those who rely on funds transfer services for their daily needs," said Grant Lines, senior vice president, APAC, Southeast Asia and Middle East at MoneyGram. According to the World Bank, an estimated $6.6 billion in remittances flowed out of Singapore in 2011. To meet the growing demands for a reliable money transfer service, MoneyGram has recently expanded in the region, in top corridors including India, Bangladesh and the Philippines. "We are pleased that our relationship with MoneyGram will widen the range of remittance services on offer at our Currency Exchange outlets and allow us to better cater to customer segments that require such services," said Coreen Kwan, head of retail banking, CIMB Bank Singapore. The addition of the two CIMB Bank Currency Exchange outlets increases the MoneyGram network in Singapore. Customers can easily send or receive money at any of these locations by submitting the relevant 'send' or 'receive' form and providing photo identification to complete the transfer
KKR to expand European credit business with Avoca Capital acquisition October 21, 2013 | BBR http://assetmanagement.banking-business-review.com/news/kkr-to-expand-european-creditbusiness-with-avoca-capital-acquisition-211013 Global investment firm KKR has reached an agreement to purchase European credit investment manager Avoca Capital, for an undisclosed sum, to expand its credit business in the region. Avoca Capital, which has nearly $8bn in assets under management, invests across five strategies, including European loans and bonds, credit opportunities, long/short credit, convertible bonds and structured and illiquid credit. KKR co-founders and co-CEOs Henry Kravis and George Roberts said in a joint statement that Avoca has a very strong track record, an entrepreneurial management team and excellent capabilities that are complementary to its European senior and liquid credit. "This acquisition will enable us to expand our credit platform to offer a full spectrum of credit opportunities globally for our clients," Kravis and Roberts added. Avoca co-founders Alan Burke and D贸nal Daly commented, "This transaction creates a broad based credit business that will be at the forefront of the developments in European credit markets in the years to come." Post-completion of the transaction, KKR will have nearly $28bn in credit assets in its multi-strategy credit platform operating globally in San Francisco, New York, Dublin, London and Sydney.
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Under the terms of the agreement, Avoca co-founder and CEO Alan Burke will head KKR's European credit platform and along with Nat Zilkha to assist in driving the future growth of the company's global credit business. Both Alan and Nat will report to Craig Farr, who is responsible for KKR's global credit and capital markets businesses, while Dónal Daly, co-founder and chairman of Avoca, will assume the role of senior advisor to KKR. Following approvals from the concerned regulators, the transaction is likely to complete during the first quarter of 2014
Pepper Group Announces Acquisition of South Korean Savings Bank, Formerly Evergreen Savings Bank October 21, 2013 | BBR http://retailbanking.banking-business-review.com/news/pepper-group-announces-acquisition-ofsouth-korean-savings-bank-formerly-evergreen-savings-bank-211013 Pepper Group (“Pepper”) today announced that it has completed the acquisition of a South Korean mutual savings bank. Founded in 1982, Evergreen Savings Bank has 2 retail branch locations in Ansan and Bundang, close to the South Korean capital in Seoul. The Bank currently has 29 employees, approximately 30,000 active customers, total assets of 186,955,298,473 KRW (US$175.9 Million) (including a corporate loan portfolio), and is primarily funded by customer deposits of 161,838,790,376 KRW (US$152.2 Million). With respect to the application for the purchase of shares in Evergreen Savings Bank (to be renamed "Pepper Savings Bank") by PSB Investment Holdings Pty Ltd (a Pepper Group-controlled entity), the Financial Services Commission ("FSC") in South Korea approved Pepper's application in accordance with Article 10-6 of the Mutual Savings Bank Act and Article 7-4 of the Enforcement Decree of the same Act on 16 October 2013. The mutual savings bank (MSB) sector in South Korea was initially enacted via Government legislation in the early 1970s to facilitate competition in the South Korean banking market, promoting the delivery of traditional retail banking services (eg customer deposits, home loans, personal loans, auto loans, and small business loans) to individual households and small business owners across all regions within South Korea. At its peak, the MSB sector comprised over 300 active mutual savings banks. Real estate lending, particularly project finance loans, led to the downfall of many mutual savings banks when defaults increased following the global financial crisis in 2008. Today, there are less than 100 active mutual savings banks operating in South Korea.
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Pepper Group Co-CEO, Patrick Tuttle, commented: "We have been closely monitoring the mutual savings bank sector in South Korea for more than two years, looking for the right opportunity to invest in an established platform with a sound customer base and balance sheet. After completing detailed financial and legal due diligence on Evergreen Savings Bank, we believe we are acquiring a solid platform from which to launch a more traditional retail banking strategy in South Korea, with a view to taking the Bank back to more grass roots consumer and small business lending, backed by a competitive retail deposit book". As explained by Mike Culhane, Pepper's Co-Group CEO: "This acquisition marks Pepper's first foray into the Asian financial services market. Evergreen Savings Bank, to be renamed "Pepper Savings Bank" from today, is the first mutual savings bank in South Korea to be acquired by an Australian institution. It is also the first regulated retail bank to be owned within the Pepper Group which is an important and exciting milestone for us in the context of our overall strategy". According to Patrick Tuttle: "We have deliberately acquired a relatively small savings bank in terms of branches, employees and total balance sheet size in order to avoid many of the legacy problem loan issues that have been experienced by a number of MSBs in the past few years. We have also identified a world class executive team to be led by Matthew Chang who we strongly believe will deliver best-in-class management expertise to a sector which has faced considerable public and regulatory scrutiny as a result of poor management practices over the past few years. Pepper Group will also leverage its deep international experience in consumer lending, loan servicing, treasury management and risk management to deliver strong corporate governance and regulatory oversight of Pepper Savings Bank's future business activities". Pepper's Korean business is led by Matthew Chang, CEO, who joins Pepper with over 20 years' experience within retail and commercial banking in South Korea and the United States, including holding key executive roles within Standard Chartered First Bank, Korea. Mike Culhane further commented: "This acquisition is highly strategic for Pepper and will enable us to establish a long-term presence in South Korea. The opportunity to establish a retail savings bank, led by a strong local management team, will enable Pepper to leverage its core skills in credit underwriting and asset management in a financial services market with strong regulatory controls and a proven appetite for competitive consumer deposit and lending products".
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