BANKING NEWS FLASH August 01, 2014
Table of Contents Sales & Marketing ................................................................................................................. 3 Finance ................................................................................................................................. 8 Technology .......................................................................................................................... 12 Strategy .............................................................................................................................. 16
2|Sutherland Insights Banking News Flash Aug 01, 2014
Sales & Marketing BNP Paribas to acquire majority stake in DAB Bank for €354m August 01, 2014 | BBR http://primebrokerages.banking-business-review.com/news/bnp-paribas-to-acquire-majoritystake-in-dab-bank-for-354m-010814-4331891 BNP Paribas has reached joint understanding with UniCredit Bank's management board for the acquisition of 81.39% stake in German online investment brokerage firm, DAB Bank for €354m Fully compliant with BNP's 2014 to 2016 Business Development Plan, the acquisition is expected to give a strong boost to the company in the development of its digital banking and brokerage business in Europe. In addition, the transaction would enable the group to nearly double the number of German clients in the segment to 1.4 million clients and reach €58bn assets under management (AuM). DAB Bank operates in Germany and Austria, with 567,000 and 67,000 clients, respectively. BNP Paribas Germany head and Germany management board chairman and Camille Fohl said: "The purchase of DAB Bank is a unique opportunity for us to further develop in Germany. "It enables us to significantly increase and broaden our client and deposit bases in this country, contributing to the development of our German businesses in line with our strategic plan for this market." BNP Paribas COO and domestic markets head François Villeroy de Galhau said: "This acquisition will be instrumental in supporting the growth of our digital bank and brokerage in Europe. "Since the successful launch of our own digital bank Hello bank! last year, we have been eager to grow further in this field. We plan to continue to develop this successful initiative." BNP already has an online banking and brokerage services unit in Germany, called Cortal Consors, which serves 790,000 private clients and employs 800 people on a full-time-basis. BNP Paribas Germany Retail activities coordinator and Cortal Consors Germany CEO Kai Friedrich said: "This operation is very positive for the clients of Cortal Consors and DAB Bank, which will benefit from the combined expertise of both companies." The transaction remains subject to approval by UniCredit Bank's supervisory board and will include customary regulatory and antitrust approval conditions.
3|Sutherland Insights Banking News Flash Aug 01, 2014
Lloyds Bank launches 2014 Student Account July 31 , 2014 | BBR http://www.banking-business-review.com/news/lloyds-bank-launches-2014-student-account310714-4330960 Lloyds Bank has announced the launch of its 2014 Student Current Account, available to new and existing customers from Monday 4 August 2014. The account features a number of money saving benefits including a free NUS extra card for three years, which could save savvy students an average of £525[i] a year at over 170 high street and online brands. The account offers: A tiered interest and fee-free Planned Overdraft of up to £2,000 (up to £1,500 in years one to three and up to £2,000 in years four to six). A free NUS extra card for three years[ii], giving students access to exclusive discounts, offers and competitions from over 170 brands and retailers on the high street and online, including Amazon, Apple, ASOS, Co-operative Food and Odeon. Use of 'Everyday Offers' rewarding student account holders with cashback on their everyday spend at selected retailers, helping their money go further A range of ways to manage their money with our Mobile Banking app and Pay a Contact services. Access to a student credit card to help build credit, with up to 56 days interest-free credit on purchases when paying the balance back in full and on time each month. There is also a limit of at least £500 & extra protection when you shop online. Phillip Robinson, Director of current accounts for Lloyds Bank said: "As a leading provider of student accounts, we appreciate the challenge students face with their finances. We have designed an account to help students make their money go further and to make sure they are in a position to feel in control of their finances when it matters most, both now and in the future." Students will also be able to benefit from the new Lloyds Bank Mobile Banking app, making banking on the go easier, providing a variety of features, including the ability to view accounts balances, pay bills and transfer money between accounts. They can also use it to pay their friends using just their friend's mobile number. The new app will also feature "Everyday Offers," which was launched last year to reward the bank's current account holders. Customers are able to simply select participating retailers to earn cashback on their everyday spending. Offers are tailored to individual customers and when an offer is activated, customers receive cash back at the end of the next month. A number of high street names are involved, including Jamie's Italian, Morrison's and O2.
4|Sutherland Insights Banking News Flash Aug 01, 2014
As part of Everyday Offers, "It's on Us," a scheme running since November, randomly selects customer transactions which are then repaid back into their current account. Whether it's a night out on the town or a night in with a takeaway - one thousand purchases a week are repaid up to the value of ÂŁ500. Students can also benefit from the 'Ask the Experts' range of discussions, hosted by experts in the field of Finance, strengthening the Bank's commitment to increase financial awareness across all ages. Ask the Experts provides impartial help and information to customers and non customers alike on topics important to them, in a relaxed environment. In addition, students can sign up to Save the Change. This ensures that every time a student uses their Lloyds Bank debit card, the amount will be rounded up to the nearest pound and the difference transferred to a preferred Lloyds Bank savings account. Spending little and often can therefore make a big change to students' finances
ASIC fines RBS for Australian Bank Bill Swap Rate misconduct July 23, 2014 | BBR http://policiesandregulatorycompliance.banking-business-review.com/news/asic-fines-rbs-foraustralian-bank-bill-swap-rate-misconduct-230714-4324439 ASIC accepted an enforceable undertaking (EU) from The Royal Bank of Scotland plc and The Royal Bank of Scotland N.V. (RBS) in relation to potential misconduct involving the Australian Bank Bill Swap Rate (BBSW). RBS will also make a voluntary contribution of $1.6 million to fund independent financial literacy projects in Australia. This is the third outcome ASIC has achieved as part of its ongoing enquiries in relation to the BBSW submission process. UBS AG and BNP Paribas have each entered into EUs and paid a $1 million voluntary contribution (refer: 13-366MR and 14-014MR). Following ASIC enquiries, RBS reported to ASIC that it had found evidence of conduct seeking to influence its BBSW submissions, based on how the submissions may benefit RBS's derivatives positions. RBS had withdrawn from the BBSW submissions panel on 30 April 2012. RBS also reported to ASIC that it had found limited instances of communications discussing trading of Reference Bank Bills with reference to the setting of BBSW. As a result of the information provided by RBS and ASIC's enquiries, ASIC is concerned that RBS may not have complied with its obligations under the Corporations Act by reason of its conduct in relation to the BBSW rate set process. The EU requires RBS to ensure its contribution to Australian interest rate benchmark settings is in accordance with its obligations under the United States Commodity Futures Trading Commission (CFTC) Orders. RBS is also required to undertake certain remedial measures with respect to its trading in Reference Bank Bills. An Independent Compliance Expert will be required to review and report on RBS's compliance with the EU in respect of these remedial measures. ASIC will make public the outcome of that review
5|Sutherland Insights Banking News Flash Aug 01, 2014
Transfast, YES Bank launch instant money transfer service in India July 18, 2014 | BBR http://payments.banking-business-review.com/news/transfast-yes-bank-launch-instant-moneytransfer-service-in-india-180714-4321413 TRANSFAST, a leading international money transfer company, and YES BANK, India's fourth-largest private-sector bank, launched a first-of-its-kind, instant money transfer service to banks across India. This service operates via the National Payments Corporation of India (NPCI) core platform. TRANSFAST is the first money transfer company worldwide to be live with NPCI's Immediate Payment Service (IMPS) capability for international money transfers. This enables TRANSFAST customers to make instant deposits -- both online at TRANSFAST.com and at agent locations -- to Indian banks from the Americas, Europe, and Asia. Instant transfers are available 24x7x365, even on holidays and during non-banking hours. Samish Kumar, CEO of TRANSFAST, stated: "Together with our partner, YES BANK, we are the first money transfer company that offers instantaneous bank deposits via NPCI. With our continued investment in technology, TRANSFAST offers customers an unparalleled combination of value, convenience, and service. " Arun Agarwal, Group President International Business Division, MNC and Transaction Trade Banking of YES BANK stated "YES BANK is proud to partner with TRANSFAST.com in introducing this innovative technology to transfer money to India at lightning speed. This service will provide great convenience to our customers around the world and provide an instant credit confirmation to them for deposits into their recipients' accounts. This initiative reinforces YES BANK's commitment to provide a superior banking experience for our customers.
Lloyds close to resolving Libor rigging scandal with US and UK regulators July 16, 2014 | BBR http://retailbanking.banking-business-review.com/news/lloyds-close-to-resolving-libor-riggingscandal-with-us-and-uk-regulators-160714-4319111 Lloyds Banking Group is close to signing an agreement with the US and UK regulators to resolve probe into its alleged attempts to manipulate the London Interbank Offered Rate (LIBOR). Unnamed sources with knowledge of the matter were quoted by The Wall Street Journal as saying that the negotiations between the bank and the regulators have accelerated recently. A final agreement is expected to be reached in the next few weeks, the sources added, without disclosing the size of the financial penalty the bank is likely to pay to the US Commodity Futures Trading Commission, and the UK Financial Conduct Authority, among others. The 25% UK-taxpayer owned lender joins several other banks to settle allegations or pay penalty for alleged rigging of Libor, and other benchmark rates.
6|Sutherland Insights Banking News Flash Aug 01, 2014
An unknown Lloyds spokesman said the company continues to receive requests for information from a number of government agencies with regard to their investigations into interbank offered rates, including LIBOR. "We are co-operating with those investigations. If required the group would update the market as appropriate," the spokesman added. Meanwhile, a Financial Conduct Authority representative was not available for comment, reported Reuters. Lloyds is one of the banks whose employees are alleged to have worked with brokers who were helping a former UBS and Citigroup trader, Tom Hayes, manipulate rates, according to people familiar with the investigation
7|Sutherland Insights Banking News Flash Aug 01, 2014
Finance BofA fined $1.3bn over mortgage loans fraud July 31, 2014 | BBR http://retailbanking.banking-business-review.com/news/bofa-fined-13bn-over-mortgage-loansfraud-310714-4331143 A New York state judge has imposed around $1.3bn in penalties to Bank of America (BofA) for fraud over a loan production program by its unit, Countrywide Financial. The US District Judge Jed Rakoff ruling comes after a federal jury found last year the Countrywide Financial as liable for committing fraud when it created the 'High Speed Swim Lane' (HSSL) or 'Hustle' program, to accelerate the production and sale of loans to state-backed mortgage companies Fannie Mae and Freddie Mac. The ruling also ordered former Countrywide Financial executive Rebecca Mairone, who led the program, to pay $1m. Rakoff said: "While the HSSL process lasted only nine months, it was from start to finish the vehicle for a brazen fraud by the defendants, driven by a hunger for profits and oblivious to the harms thereby visited, not just on the immediate victims but also on the financial system as a whole." Rakoff ruled that the Fannie Mae and Freddie Mac paid around $3bn to Countrywide for 17,611 mortgage loans. The penalty is below the $2.1bn sought by the US Government as the parties agreed that more than half the loans sold were risky mortgages. BofA spokesperson said: "We believe that this figure simply bears no relation to a limited Countrywide programme that lasted several months and ended before Bank of America's acquisition of the company. "We're reviewing the ruling and will assess our appellate options." The case was initiated after a former Countrywide executive Edward O'Donnell issued a complaint over alleged fraud
Goldman Sachs likely to pay $1.25bn for mortgage settlement July 28, 2014 | BBR http://retailbanking.banking-business-review.com/news/goldman-sachs-likely-to-pay-125bn-formortgage-settlement-280714-4327653 Goldman Sachs Group may end up paying up to $1.25bn to US regulators to settle allegations of selling faulty residential mortgage-backed securities (RMBS) to Fannie Mae and Freddie Mac in lead up to the financial crisis
8|Sutherland Insights Banking News Flash Aug 01, 2014
A source familiar with the matter was quoted by The Wall Street Journal as saying that the bank is currently negotiating a settlement with the Federal Housing Finance Agency (FHFA). The final amount of any agreement remains fluid, the source added. Both Goldman Sachs and the FHFA refused to comment on the report. FHFA had filed 18 lawsuits against Goldman and other banks in the US District Court for the Southern District of New York in 2011 accusing them of mis-selling about $200bn in mortgagebacked securities. Goldman is accused of selling nearly $11.1bn in mortgage-backed securities to Fannie and Freddie, while projecting a false picture of the loans, Bloomberg reported citing FHFA's lawsuit. The agency has so far recovered $16.1bn in agreements with some of the banks, including Morgan Stanley, which agreed to pay $1.25bn to resolve the claims in February. However, Goldman, along with HSBC, Nomura and Royal Bank of Scotland Group, is yet to settle FHFA mortgage-related lawsuits. While Goldman Sachs and HSBC are scheduled to face trial on 29 September, a trial in the Nomura case is due on 26 January 2015
Morgan Stanley to pay $275m to settle SEC RMBS probe July 25, 2014 | BBR http://retailbanking.banking-business-review.com/news/morgan-stanley-to-pay-275m-to-settlesec-rmbs-probe-250714-4326626 Morgan Stanley has agreed to pay $275m to settle allegations that its entities misled investors in a pair of residential mortgage-backed securities (RMBS) securitization The US Securities and Exchange Commission (SEC) has charged Morgan Stanley, Morgan Stanley ABS Capital I, and Morgan Stanley Mortgage Capital for misstating the delinquency history of loans included in RMBS they underwrote, sponsored, and sold before financial crisis. In an asset-backed securities offering, federal regulations under the securities laws seek the disclosure of delinquency information for the mortgage loans serving as collateral. SEC Enforcement Division Complex Financial Instruments Unit chief Michael Osnato said: "The delinquency status of mortgage loans in an RMBS securitization is vital information to investors because those loans are the primary source of funds by which they potentially can recover and profit from their investments. "Morgan Stanley understated the number of delinquent loans behind these securitizations during a critical juncture of the financial crisis and denied investors the full extent of the facts necessary to make informed investment decisions." Morgan Stanley spokesman Mark Lake was quoted by Reuters as saying: "We're pleased to settle the matter."
9|Sutherland Insights Banking News Flash Aug 01, 2014
Called Morgan Stanley ABS Capital I Inc. Trust 2007-NC4 and Morgan Capital I Inc. Trust 2007-HE7, the securitizations were believed to be collateralized by mortgage loans with an aggregate principal value balance of more than $2.5bn. The two deals' offering documents said less than 1%of their loan pools' principal balances were delinquent as of each securitization's cut-off date, but were much higher in reality. SEC said in a statement: "With the exception of these loans, Morgan Stanley represented as of each securitization's closing date that no payment under any mortgage loan was more than 30 days delinquent at any time since origination. "On the contrary, approximately 17 percent of the loans in the HE7 securitization had been delinquent at some point since origination, and in the NC4 securitization approximately 4.5 percent of the loans were currently delinquent rather than the disclosed 1 percent." Morgan Stanley has agreed to pay $160,6m in disgorgement, $17.9m in prejudgment interest, and a $96.3penalty, without admitting or denying the allegations
Lloyds likely to pay up to ÂŁ300m to settle Libor rigging probe July 25, 2014 | BBR http://retailbanking.banking-business-review.com/news/lloyds-likely-to-pay-up-to-300m-tosettle-libor-rigging-probe-250714-4327215 Lloyds Banking Group has reportedly agreed to pay up to ÂŁ300m to US and UK regulators to settle an investigation into its alleged attempts to manipulate the London Interbank Offered Rate (LIBOR). Three people with the knowledge of matter were quoted by The Financial Times as saying that the lender is expected to announce the settlement before declaring its first-half results on 31 July. The settlement is expected to include penalties paid to the UK Financial Conduct Authority (FCA), as well as the US Department of Justice (DoJ) and the Commodity Futures Trading Commission (CFTC). Meanwhile, the bank confirmed that it is in late-stage settlement discussions with a number of agencies. "The settlements remain to be agreed and LBG expects they will include the payment of penalties. LBG will update the market on these issues as appropriate." Both FCA and CFTC refused to comment, while DoJ could not immediately be reached for comment on the report. The 25% UK-taxpayer owned lender joins several other banks to settle allegations or pay fines for alleged rigging of Libor, and other benchmark rates. Lloyds is one of the banks whose employees are alleged to have worked with brokers who were helping a former UBS and Citigroup trader, Tom Hayes, manipulate rates, according to people familiar with the investigation, as reported earlier by The Wall Street Journal.
10 | S u t h e r l a n d I n s i g h t s B a n k i n g N e w s F l a s h A u g 0 1 , 2 0 1 4
BofA offers $13bn to settle residential mortgage disputes July 17, 2014 | BBR http://www.banking-business-review.com/news/bofa-offers-13bn-to-settle-residential-mortgagedisputes-170714-4319720 Bank of America (BofA) has reportedly offered to pay $13bn to the US regulators to resolve the longrunning defective residential-mortgage-securities sale investigation Sources familiar with the negotiations were quoted by The Wall Street Journal as saying that a meeting between the bank lawyers and the US Department of Justice (DoJ) aimed at settling the matter ended without any progress. While the bank is offering $13bn, including cash and consumer relief, the DoJ seeks heftier cash penalty, the sources added. In addition, the DoJ disagrees with the bank's proposal to pay a bigger portion of the fine in so-called soft money, and instead wants the lender to significantly increase the cash penalty portion. The North Carolina-based bank offered to pay at least $12bn to resolve an US investigation into its alleged sale of private-label mortgage-backed securities in the run-up to the 2008 financial crisis, as reported by the news agency last month. The US would have to decide whether to file a lawsuit against the bank in the wake of a failure to reach a settlement. BofA's Merrill Lynch unit is suspected of issuing about $965bn of mortgage loans packaged into private-label mortgage debt to investors between 2004 and 2008. A BofA representative declined to comment on the report. In a related development, the bank agreed to pay $650m to settle the defective mortgage-backed securities litigation with US commercial insurer, American International Group (AIG)
11 | S u t h e r l a n d I n s i g h t s B a n k i n g N e w s F l a s h A u g 0 1 , 2 0 1 4
Technology Societe Generale Wolters Kluwer’s risk management and regulatory reporting solution July 28, 2014 | BBR http://riskmanagement.banking-business-review.com/news/societe-generale-wolters-kluwersrisk-management-and-regulatory-reporting-solution-280714-4328451 Wolters Kluwer Financial Services announced that one of the largest European financial services groups, Société Générale Private Banking, has selected its Risk Management and Regulatory Reporting solution to help facilitate compliance with the Capital Requirements Directive IV in Belgium. The solution platform will provide the bank with capital, counterparty credit and liquidity risk analyses, as well as automated reporting of the COREP XBRL returns, in line with CRDIV expectations, the European implementation of the global directive, Basel III. Société Générale Private Banking has also previously implemented Wolters Kluwer Financial Services' Risk Management and Regulatory Reporting solution to address its Basel II requirements in Belgium. The French institution, which has also implemented the Regulatory Reporting solution for Singapore and Hong Kong regulatory returns, decided to continue its partnership with Wolters Kluwer Financial Services in Belgium to help meet the new Basel III requirements. "Ensuring our IT infrastructure is as robust and efficient as possible is essential to meeting new regulatory requirements such as CRDIV, but also helps us to strengthen our business while optimizing performance," said Bart Folens, Head of Finance at Société Générale Private Banking. "Wolters Kluwer Financial Services has proved to be a trusted provider of integrated risk management and regulatory reporting solutions to our business. It is this trust, along with their expertise and track record of delivery, that we opted for its solution and services once again." "The new requirements directed at financial institutions by Basel III place significant burden on manual IT systems and infrastructure; but automated technology is only part of the solution," says Clive Pedder, managing director EMEA at Wolters Kluwer Financial Services. "In-depth knowledge of these requirements, at both the global and local level, combined with on-hand consulting services, helps ensure that institutions optimizing our Basel III risk and regulatory reporting solution are provided with the necessary means to help them work towards full compliance." Wolters Kluwer Financial Services' solution for Basel III provides institutions with a single platform enabling risk management and regulatory metrics through an integrated data layer. To find out more information on the Risk Management and Regulatory Reporting solution for Basel III
12 | S u t h e r l a n d I n s i g h t s B a n k i n g N e w s F l a s h A u g 0 1 , 2 0 1 4
ING Vysya chooses Mindtree as strategic digital partner July 25, 2014 | BBR http://bankingtechnology.banking-business-review.com/news/ing-vysya-choses-mindtree-asstrategic-digital-partner-250714-4327219 Mindtree, a global technology services company, announced that it has been selected by ING Vysya, a premier private sector bank, as a strategic digital partner for its next generation mobility program. As part of this program Mindtree will help ING Vysya deliver multi-channel and multi-platform banking experience to its customers while creating a digital roadmap designed to help the bank penetrate untapped markets with a simple yet differentiated service. The first phase of the engagement saw Mindtree conceptualize, design and develop a retail banking hybrid mobile application to drive efficiency and engagement across multiple channels including Android, Windows, BlackBerry, J2ME and Website based platforms. This application provides a comprehensive retail banking experience to customers. It brings exclusive features, such as multi balance meter, shopping and deals, gift cards and cheque scan making it more engaging and relevant to customers. Aniruddha Paul, CIO, ING Vysya said, "Our digital roadmap will help us level the playing field with our larger competitors by creating innovative and path breaking solutions for our customers. We are glad to select Mindtree as one of our key Digital Partner. Their domain and technology expertise with a clear strategic intent is critical in our journey towards mobility. We see large opportunities in developing these kind of applications for the rest of our business." Gaurav Johri, Senior Vice President and Head of Banking Financial Services and Insurance, Mindtree said, "ING Vysya has been our strategic client for over 9 years. It is imperative for banks to have a well thought digital strategy blueprint to enable rapid go-to-market and also provide superior customer experience. We are excited to partner with ING Vysya in its journey to be the industry leader in digital banking
Malauzai, Trusteer partner to strengthen mobile banking application security July 23, 2014 | BBR http://bankingtechnology.banking-business-review.com/news/malauzai-trusteer-partner-tostrengthen-mobile-banking-application-security-220714-4324447 Malauzai Software , a provider of mobile banking SmartApps for community financial institutions, has teamed up with Boston-based Trusteer, an IBM company, to provide an integrated solution that is being used by Wyomissing, Pa.-based Customers Bancorp, Inc. to strengthen the security of its mobile banking application. With the rate of mobile malware on the rise, this solution provides end users with an additional layer of security by integrating Trusteer's Mobile SDK security solution into Malauzai's SmartApps. With Trusteer's Mobile SDK embedded into a SmartApp, the device is scanned to identify a broad range of risks, including: •
Jailbroken (iOS) and Rooted (Android) devices
13 | S u t h e r l a n d I n s i g h t s B a n k i n g N e w s F l a s h A u g 0 1 , 2 0 1 4
•
Missing Operating System (OS) security patches
•
Risky application configurations and permissions
•
Malware infections
•
Unsecured Wi-Fi access
Once the scan is complete, a mobile risk score is determined. Customers Bancorp uses this result to secure mobile banking transactions. Risk data is provided to the mobile banking app and can be used to restrict account functionality based on device risk levels. For example, users can be required to pass stronger step-up authentication. Once users have logged in, the bank can use the risk score to restrict access to specific data or functionality and delay approval of specific transactions. "One of the biggest hurdles to mobile banking adoption is account holder concern around security," said Warren Taylor, executive vice president of Customers Bancorp. "With more people using their mobile device to manage finances, fraudsters have turned their attention to this channel. The relationship between Trusteer and Malauzai provides our customers with one of the most secure mobile banking solutions available. This offering will help us grow mobile banking adoption and provide our customers with solutions they can't find elsewhere." "Consumers are relying on their mobile devices more and more, which increases the need for these devices to be secured strongly against cyber threats and online fraud," said Yaron Dycian, Executive VP of Products, Services, and Security at Trusteer, an IBM company. "Malauzai is demonstrating its strong dedication to community banking institutions and their customers by partnering with Trusteer to further enhance the security of SmartApps by enhancing their fraud detection and prevention tools."
Ion Bank continues NCR interactive video technology use July 22, 2014 | BBR http://bankingtechnology.banking-business-review.com/news/ion-bank-continues-ncrinteractive-video-technology-use-210714-4323308 Ion Bank, a community bank serving customers in Connecticut, is increasing its use of interactive video technology from NCR Corporation, the global leader in consumer transaction technologies. Since the bank introduced the technology in its Wallingford location in 2012, Ion Bank customers have responded positively to use of the technology that lets them perform a full range of teller transactions with a live teller via video. In response, Ion Bank has added four additional NCR Interactive Teller units to two branches in Waterbury and Oxford. With NCR Interactive Teller, a live teller takes remote control of the device while engaging the customer over two-way video, providing a personalized experience. The solution provides live teller services for clients who want the human touch, and also offers more services than can be conducted on an ATM or other self-service devices. For instance, customers can perform secure transactions without using a traditional ATM card and, like branch tellers, remote tellers can provide cash beyond ATM limits, assist in mortgage payments, transfers, and more.
14 | S u t h e r l a n d I n s i g h t s B a n k i n g N e w s F l a s h A u g 0 1 , 2 0 1 4
Ion Bank's interactive tellers work out of the New Haven Road location in Naugatuck and can support customers at any of the bank's six Interactive Teller units. Video collaboration and transaction processing can both reduce operating costs by centralizing tellers across multiple branches, while still connecting customers and tellers in a face to face, highly personal engagement. This expansion of NCR Interactive Teller has also freed branch staff to focus on the service needs of customers visiting the branch. "Our customers have responded enthusiastically to this technology," said Dawn D. Orsini, Vice President of Retail Banking, Ion Bank. "This is a great opportunity to give our customers the added convenience of longer banking hours. Our interactive Tellers enable us to leverage the latest technology with the traditional banking experience. It was a natural step to expand our use of this technology to additional locations throughout our service area." Through Interactive Teller, Ion Bank is able to extend teller service hours even after the branch is closed, now offering teller availability from 8 a.m. to 8 p.m. Monday through Friday and 8 a.m. to 3 p.m. Saturday, an additional 27 hours of banking services per week. "NCR Interactive Teller is changing the way consumers bank and helping our customers meet the needs of the consumer," said Jed Taylor, vice president and general manager, NCR Interactive Services. "Through assisted-service technology such as Interactive Teller, consumers are banking at times convenient to them while maintaining a personal touch with their bank." Assisted service allows consumers to receive all the benefits of self-service convenience and accessibility with the added benefit of personal staff interaction. Of the more than 100 financial institutions that have implemented assisted-service strategies globally, 98 percent chose NCR
Ten financial institutions deploy Mitek MiSnap Mobile Auto Capture July 16, 2014 | BBR http://www.banking-business-review.com/news/ten-financial-institutions-deploy-mitek-misnapmobile-auto-capture-160714-4319155 Mitek, the leading innovator of mobile imaging for financial transactions, announced that ten leading financial institutions have now deployed its new mobile auto capture technology, Mitek MiSnap with Mobile Deposit. Mitek MiSnap eliminates user error by providing real-time feedback until a suitable image is detected, at which point it automatically captures the image. This technology is now the mobile capture component of Mitek's award winning Mobile Deposit. The use of mobile check deposit is growing rapidly. The recent Federal Reserve survey showed that 38 percent of mobile bankers have used their phone to deposit a check in the past 12 months, up from 21 percent in 2012. The improvement in the user experience as a result of Mitek MiSnap will accelerate the popularity of this low cost, self service deposit channel. "Since offering Mobile Deposit Capture six months ago, adoption and usage has been great. We've processed about a quarter of a million deposits using the mobile deposit technology so far this year. We're also seeing about 6,500 new users per month. We believe Mitek MiSnap has played a key role in this product's success. We've had feedback from some customers that this is the best image capture technology they've ever used," said Jeff Kaufman, President of Retail Services at FirstBank. Mitek MiSnap is available through Mitek partners including: Cachet, Ensenta, FIS, Fiserv, Fundtech, Jack Henry, NCR, Transcentra and others
15 | S u t h e r l a n d I n s i g h t s B a n k i n g N e w s F l a s h A u g 0 1 , 2 0 1 4
Strategy Evercore to establish a european debt advisory business July 30, 2014 | BBR http://assetmanagement.banking-business-review.com/news/evercore-to-establish-a-europeandebt-advisory-business-300714-4329825 Evercore announced that it is expanding its investment banking capabilities in London through the formation of a new European dedicated debt advisory business. The business will be led by Swag Ganguly who joins the firm as a Senior Managing Director from Rothschild in London; he will be supported by Mark Craig who joins as a Managing Director from Lloyds Bank in London. This new business expands the services that Evercore can provide to existing and new clients in Europe and will form a core part of our offering in conjunction with strategic and mergers and acquisitions advice. The new team further strengthens our market-leading restructuring and debt advisory group which has over 30 professionals in New York and London. They will work closely with our already established restructuring team in London and our debt advisory team in the US. "The addition of a dedicated debt advisory capability in London is an important and natural extension of our investment banking advisory business globally," said Ralph Schlosstein, President and Chief Executive Officer of Evercore. "We now have 115 investment banking professionals in Europe who have been involved in some of the largest and most complicated transactions announced in recent years. Debt advisory is becoming an integral component of mergers and acquisitions advice and also is increasingly valuable to our clients seeking debt financing. We are delighted to welcome such highly experienced individuals in Swag and Mark to build this business for us in London." "Capital advisory business in its various forms has been an important source of growth for Evercore in Europe over recent years," said Andrew Sibbald, Chief Executive of European Investment Banking at Evercore. "With the arrival of Swag and Mark, we will be able to serve our clients more effectively with a dedicated debt advisory capability to complement our existing restructuring, public and private equity advisory activities."
JPMorgan close to selling One Equity Partners July 23, 2014 | BBR http://privateequity.banking-business-review.com/news/jpmorgan-close-to-selling-one-equitypartners-230714-4323953 US-based financial services company JPMorgan Chase is reportedly close to selling half its stake in the portfolio of its private equity business, One Equity Partners Sources with the knowledge of matter were quoted by The Wall Street Journal as saying that the bank is in advanced talks with Lexington Partners and Carlyle Group's AlpInvest Partners to sell half of nearly $4.5bn in investments One Equity manages for the bank.
16 | S u t h e r l a n d I n s i g h t s B a n k i n g N e w s F l a s h A u g 0 1 , 2 0 1 4
The potential buyers are likely to commit cash to One Equity's next buyout fund as part of the anticipated deal, the sources added, without disclosing the amount and whether other investors may join the buyers. During a conference call last week, JPMorgan chairman and chief executive James Dimon had told that a deal would be signed soon and also noted that the bank may not sell all of its interests in One Equity funds. The New York-based bank has been holding discussions with various buyers of second-hand privateequity investments since revealing that One Equity would become independent in June 2013. Founded in 2001, One Equity was originally integrated to Chicago-based Bank One, and was inherited by JPMorgan as part of its 2004 acquisition of Bank One. Kept as in-house buyout arm, One Equity has to date managed about $14bn in total investments and committed capital for JPMorgan, as reported by RTT News. JPMorgan reported $36m in second-quarter revenue from One Equity last week, which is very less compared with $410m posted a year earlier, according to the news agency. Commenting on results, Dimon said: "It hasn't earned much money in the last few quarters." One Equity sale forms part of JPMorgan's efforts to focus more on its core businesses
BBVA to acquire Spain’s bailed-out Catalunya Banc for €1.2bn July 22, 2014 | BBR http://retailbanking.banking-business-review.com/news/bbva-to-acquire-spains-bailed-outcatalunya-banc-for-12bn-220714-4322916 Spanish banking group Banco Bilbao Vizcaya Argentaria (BBVA) has agreed to acquire the Spain’s bailed-out Catalunya Banc for approximately €1.2bn Acquired through an auction held by the Orderly Bank Restructuring Fund (known as FROB), Catalunya Banc has 1.5 million customers and €63bn in assets, and is expected to have a positive impact on the Group's results from 2016. The transaction expands BBVA's Spanish loan portfolio by 14%, deposits by 23% and its customer base by 18%. BBVA chairman and CEO Francisco González said: "This deal shows we are extremely confident in the current economic recovery. "This acquisition is good for BBVA and for Catalunya Banc, and helps strengthen the Spanish financial system." FROB said in a statement that the deal with BBVA does not include any state-funded protection against additional losses on assets. The deal also includes some guarantees, the statement added without disclosing the amount.
17 | S u t h e r l a n d I n s i g h t s B a n k i n g N e w s F l a s h A u g 0 1 , 2 0 1 4
However, an unnamed FROB source was earlier quoted by Reuters as saying that the guarantees would cover any penalties for breaking insurance contracts likely to be incurred by Catalunya as part of an acquisition. The Bilbao-based BBVA said it would cut its offer by €267m, if it does not have clarity on how Catalunya Banc's deferred tax assets will be treated by the Spanish tax authorities by closing of transaction. The Spanish Government failed twice in its efforts to sell Catalunya Banc, in which it had injected €12.6bn since nationalising the lender in 2011. The Barcelona-based lender last week sold €6.39bn mortgage portfolio to US private equity firm Blackstone. The transaction is expected to be completed during the first quarter of 2015
Julius Baer to acquire Bank Leumi European private banking operations July 21, 2014 | BBR http://www.banking-business-review.com/news/julius-baer-to-acquire-bank-leumi-europeanprivate-banking-operations-210714-4322215 Switzerland-based private bank Julius Baer has signed a strategic cooperation agreement to acquire two European banking operations of Bank Leumi for up to CHF70 m ($78m). The agreement covers acquisition of Luxembourg-based private banking businesses, and the transfer of international private banking clients from Leumi's Swiss banking subsidiary, Leumi Private Bank (LPB) to Julius Baer. Leumi Private Bank (LPB) and Luxembourg-based Bank Leumi, also called Leumi Lux, had approximately CHF5.9bn ($6.5bn) assets under management (AuM) and CHF 1.3bn ($1.4bn) AuM, respectively, at the end of June 2014. Following acquisition, the units are expected to be combined with the local investment advisory business of Julius Baer. The transfer of the client assets of LPB, which currently employs 158 staff in its offices in Zurich and Geneva, is expected to conclude by the end of 2015, with the majority to be transferred by 2014 end or early next year. Meanwhile, the acquisition of Leumi Lux, which currently has 31 employees, is expected to be completed by the end of the first quarter of 2015, subject to regulatory approvals. Both Julius Baer and Leumi are among several Swiss wealth managers being investigated by the US for their alleged role in tax evasion of wealthy US citizens
18 | S u t h e r l a n d I n s i g h t s B a n k i n g N e w s F l a s h A u g 0 1 , 2 0 1 4
Visa launches new online payment service July 17, 2014 | BBR http://payments.banking-business-review.com/news/visa-launches-new-online-payment-service4320304 Visa has introduced a new payment service to help simplify online shopping on any device across Australia, Canada and the US. Dubbed Visa Checkout, the service offers consumers and online retailers an easy and secure method for online payments in just a few clicks using a username and password. Consumers are first required to enrol in Visa Checkout online and register a username and password, and then use any Visa debit or credit card to make purchases from a PC or mobile device without leaving the vendor's website or app. Visa chief executive officer Charlie Scharf said: "Through insights provided by our cardholders, financial institutions and merchant partners, we designed an online payment experience that continues to deliver on this promise, bringing us closer to the simplicity and speed of the 'swipe' in the online world." Some of the vendors planning to use the service include Neiman Marcus, Pizza Hut, Staples, United Airlines, 1-800-FLOWERS, Beyond the Rack, Cineplex Entertainment, Jos. A. Bank, Live Nation, lululemon athletica, MovieTickets.com, Teleflora, Ticketmaster, TigerDirect and Wine Enthusiast. Pizza Hut chief digital officer Baron Concors said: "We're focused on making the digital ordering experience as easy as possible and adding this checkout option with Visa Checkout does just that." The company has also unveiled a new mobile SDK, allowing developers to quickly build and implement a native in-app checkout experience for iOS and Android-based devices.
19 | S u t h e r l a n d I n s i g h t s B a n k i n g N e w s F l a s h A u g 0 1 , 2 0 1 4