BANKING NEWS FLASH October 01, 2014
Table of Contents Sales & Marketing ................................................................................................................. 3 Finance ................................................................................................................................. 7 Technology .......................................................................................................................... 10 Strategy .............................................................................................................................. 15
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Sales & Marketing Citibank introduces chequeless banking account in US September 24, 2014 | BBR http://retailbanking.banking-business-review.com/news/citibank-introduces-chequeless-bankingaccount-in-us-240914-4382768 Citibank has introduced a new banking account, Access Account, which does not offer cheques to customers The Access Account can be opened at lower monthly charges of $10. This also may be avoided if the customer has one qualifying bill payment or direct deposit in a statement period or maintain a monthly balance of at least $1,500. The account does not allow for any overdrafts by which the users can avoid paying overdraft fee. The launch comes at a time when a survey in the US reveals that the usage of cheques for performing banking transactions is declining with better adoption of online and mobile banking channels. Citibank US retail banking head Will Howle said: “The new Citibank Access Account provides customers with a simple way to manage their finances. “We designed the account with two trends in mind. Many customers, particularly those active with our online or mobile banking options, no longer have a need for paper checks. “At the same time, we know many customers are also looking for the reassurance that will come with an account that eliminates overdraft fees.” Customers can get access to the new Access Account at Citibank’s online platform, any branch or at the bank’s ATMs. The accound holders can view their bank balances, transfer funds, pay bills and enrol in estatements and banking alerts. Citi community development global director Bob Annibale said: “The Access Account provides a debit card, easy ATM and Citibank branch access and a powerful digital platform, while addressing needs of some customers, particularly first-time and younger consumers, by reducing the risks of overdrawn accounts and coinciding fees.”
ICICI Bank unveils new product ‘NRI Advantage’ in India September 24, 2014 | BBR http://www.banking-business-review.com/news/icici-bank-unveils-new-product-nri-advantagein-india-240914-4384105 ICICI Bank, India’s largest private sector bank, today announced the launch of ‘NRI Advantage’, a new product benefit for its NRI customers.
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It is available to NRI Premia, NRI Pro and NRI savings account holders. NRI Advantage has been designed with the objective of catering to the various non-financial needs of the NRI customers pertaining to India. It entitles customers to handpicked, exclusive discounts/special offers. These exclusive offers on various products/services are centered around the important needs of NRIs, hence ensuring their relevance. Mr. Rajiv Sabharwal, Executive Director, ICICI Bank, said, “At ICICI Bank, we constantly innovate to create opportunities to serve our customers better. We serve 1.5 million NRI customers across more than 150 countries and process over five million NRI transactions annually. This servicing experience has helped us gain invaluable insights into the lifestyle of NRIs and we have employed this understanding, to choose the various offers under ‘NRI Advantage’. With this unique product benefit, we are confident that we will be providing our customers with a better value in the market creating a marked differentiation.” NRI Advantage delivers a suite of benefits customized to cater to the prime needs of an NRI related to India with the following associations: Healthcare Needs: Special offers on preventive health check- up at select locations of Apollo Hospitals, a healthcare organization based in India; Dental Care Needs: Discounted offers on dental treatments through Apollo White Dental, a dental chain based in India; Gifting family & friends: Discounted offers on sweets and assorted gifts through Ghasitaram Gifts, an online gifting portal that delivers in India as well as overseas; Assistance for service needs in India: Discounted offers on services through YourManInIndia (A TTK Service), an online service that provides support for tasks based in India on the behalf of NRIs; and India based shopping needs: Discounted offers on apparel by Indian designers through Pernia’s Pop Up Shop, an online shopping portal that delivers in India as well as overseas.
European Banking Federation partners with EC3 to fight cybercrime September 23, 2014 | BBR http://www.banking-business-review.com/news/european-banking-federation-partners-withec3-to-fight-cybercrime-230914-4382397 The European Banking Federation (EBF) and Europol’s European Cybercrime Centre (EC3) have agreed to work together to prevent cyber crimes in the financial sector. The two organizations have signed a memorandum of understanding for exchange of expertise, statistics and other strategic information. EC3 head Troels Oerting said: “We have agreed to intensify mutual cooperation.... to jointly enhance our ability to prevent, prosecute and disrupt cybercrime against the financial sector. “This is more than a ceremonial gesture - this is the establishment of a trusted relationship aimed at achieving tangible results that will make life more difficult for criminals and life easier for the banking sector and all of us who use these important services.”
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EC3 will provide data on threats to financial institutions while banks can report any new malware or payment fraud instances to EC3. The EBF represents around 4,500 banks from 32 national banking federations in Europe. EBF CEO Wim Mijs said: “International cooperation between banks and law enforcement bodies is essential because it is clear that criminals know no borders.”
ICICI Bank introduces four new mobile banking apps in India September 23, 2014 | BBR http://retailbanking.banking-business-review.com/news/icici-bank-introduces-four-new-mobilebanking-apps-in-india-230914-4382448 ICICI Bank has launched four new mobile banking apps to offer its customers in India an enhanced banking experience. The ICICI Store app will enable customers to easily view all Mobile apps introduced by ICICI group in one place. The customers can initiate a transaction before visiting a branch, connect with a service executive over video call and view their transactions over the last 30 days on their mobile phones. The new apps are available for download on Google Play store and shall shortly be available on the Apple app store. ICICI Bank MD and CEO Chanda Kochhar said: “We continue to leverage technology to provide a world-class banking experience to our customers. ICICI Bank has pioneered many innovative solutions for its customers like internet, mobile, Tab and Touch banking among others. “With these new mobile banking applications, we will offer our customers a unique and unparalleled experience in their interactions with the Bank.” The bank launched the country’s first mobile banking application, ‘iMobile’ in 2008. In June, it became the first bank to cross the milestone of Rs10bn worth of transactions in a month. The key highlights of the apps being launched are: ICICI Store: It’s an app store designed to give users an aggregate view of all mobile banking applications, launched by the ICICI Group. This store, which is the first among banks in India, will facilitate easy selection, download and upgrade of the ICICI Group apps. Insta Banking: A first-of-its-kind app in the country, it aims to reduce time spent in filling up paper work for commonly used transactions in a bank branch. Using this app, a customer can process his desired transactions any time, upto seven days prior to visiting the branch. When the customer visits a branch to complete the transaction, it will be executed on priority. A host of financial and nonfinancial transactions can be initiated on the app, namely cash deposit, cash withdrawal, request for demand draft, updation of personal information like communication address, PAN and email id among others.
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Video Banking: This mobile app enables the Bank’s Wealth and NRI customers to carry out a video chat with the customer care executives round-the-clock on all days from anywhere. Using the app, the customers can resolve their day-to-day banking queries and get information related to products and offers. mPassbook: This app helps customers to view their recent savings, credit card and PPF account transactions on their mobile phone itself. The users can receive real-time updates of transactions and also add remarks on the transactions for easy tracking. This app will show the transactions even without mobile internet services. These initiatives follow an array of digital initiatives by the Bank, including cardless cash withdrawal, ‘iLoans’ for accessing loan account details, ‘iTrack’ for tracking dispatches, ‘Pockets by ICICI Bank’ the world’s most comprehensive banking application on Facebook, iMobile for Windows phones and an upgraded internet banking platform that provides customised and personalised views. The Bank has also redesigned a website to offer a seamless experience across devices like desktops, mobiles and tablets
BNP Paribas Fortis and Six partner to offer payment services to businesses in Belgium September 19, 2014 | BBR http://payments.banking-business-review.com/news/bnp-paribas-fortis-and-six-partner-to-offerpayment-services-to-businesses-in-belgium-190914-4378142 BNP Paribas Fortis has partnered with Six Payment Services to provide various payment services from terminals to acquiring services to merchants in Belgium Through the partnership, BNP and Six aim to break the monopoly of Bancontact/Mister Cash (BC/MC), which dominated the Belgium payment markets for a long time. The partners will combine BNP’s merchant base of 180,000 with Six’s expertise in acquiring services. As part of the deal, the duo will launch payment terminals that will accept BC/MC debit cards and all credit cards. Six said in a statement: “The merchant will benefit from simple, fast and secure payments at a competitive pricing for card transactions accepted via fixed, portable or mobile payment terminals.” The partnership will allow Six to expand its footprint in Europe. SIX Payment Services market development head Luc Holper said: “We observe the evolution of the payment market: throughout Europe, banks are moving toward Acquiring, which is traditionally a core competence of Six. “BNP Paribas Fortis was our partner of choice in Belgium, its huge branch network is an ideal gateway to addressing merchants on a broad level.” BNP Paribas Fortis director marketing Gunter Uytterhoeven said: “Merchants will enjoy the benefits of having a single partner for all of their payments and collections needs. “This new partnership will be a key element to support the BNP Paribas Fortis service range and complements the innovative services that were launched earlier this year.”
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Finance CFPB Hits Flagstar Bank Over Failure to Follow New Servicing Rules September 29, 2014 | National Mortgage News http://www.nationalmortgagenews.com/news/regulation/cfpb-hits-flagstar-bank-over-failure-tofollow-new-servicing-rules-1042752-1.html Michigan-based Flagstar Bank will be required to pay $37.5 million in restitution and fines over regulatory allegations it blocked struggling homeowners from receiving foreclosure relief, the Consumer Financial Protection Bureau said Monday. In a consent order issued by the agency, the CFPB said the $9.9 billion-asset Troy, Mich. bank violated mortgage servicing rules that took effect in January. Flagstar was cited for, among other things, taking too long to process applications for foreclosure relief and finalizing permanent loan modifications; failing to inform borrowers when their application was incomplete; and denying loan modifications to qualified borrowers. Flagstar has agreed to pay $27.5 million to about 6,500 consumers affected by these practices and another $10 million penalty to the CFPB. “Because of Flagstar’s illegal actions and unacceptable delays, struggling homeowners lost the opportunity to save their homes,” said CFPB Director Richard Cordray in a press release. “The bureau has been clear that mortgage servicers must follow our new servicing rules and treat homeowners fairly. Today’s action signals a new era of enforcement to protect consumers against the cost of servicer runarounds.” The CFPB said its examination of Flagstar revealed that from 2011 to the present, the servicer “failed consumers” in “every step in the foreclosure relief process.” In 2011 alone, Flagstar had 13,000 active loss mitigation applications but only 25 full-time employees and a third-party vendor who was reviewing those applications, the CFPB said. As a result, it took up to nine months for staff to review one application, after the documents supporting it had expired, which led to the bank closing the application. The mortgage servicing rule requires a servicer to review a loss mitigation application within 30 days if it receives a complete application more than 37 days before a foreclosure sale. Flagstar was cited for violating this rule, among other citations. The CFPB also said Flagstar’s loss mitigation call center had an average call wait time of 25 minutes and the abandonment rate averaged almost 50%. The servicer was also cited for not letting borrowers know when documents were missing in order to complete a mitigation application nor did it specify why it denied an application. The CFPB also said Flagstar “routinely miscalculates” the income of borrowers who may have qualified for a modification. “Flagstar’s failures as a mortgage servicer hurt homeowners,” the CFPB said. “In many cases, Flagstar deprived borrowers of the ability to make an informed choice about how to save or sell their home, caused borrowers to drop out from the loss mitigation process entirely, and drove borrowers into foreclosure.”
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Flagstar has been barred from acquiring servicing rights for default loan portfolios until it can prove it is in compliance with the new servicing standards
Barclays to pay £38m fine for breaching CASS regulations September 24, 2014 | BBR http://www.banking-business-review.com/news/barclays-to-pay-38m-fine-for-breaching-cassregulations-240914-4383564 Barclays Bank has accepted to pay a fine of £38m to Financial Conduit Authority (FCA) for breaching CASS regulations As per the charge, Barclays’ Investment Bank Division had failed to protect client’s custody assets worth £16.5bn during the period from November 2007 to January 2012, placing clients under risk of incurring extra costs, delays or losing their assets. FCA enforcement and financial crime director Tracey McDermott said: “Barclays failed to apply the lessons from our previous enforcement actions, numerous industry-wide warnings, and exposed its clients to unnecessary risk. “All firms should be clear after Lehman that there is no excuse for failing to safeguard client assets.” According to FCA, Barclays had failed to adopt FCA-imposed client asset rules and requirements while opening 95 custody accounts in 21 countries and also failed to set up legal arrangements. Barclays Spokesperson said: “In this matter Barclays fell short of what is expected under the CASS Regulations. “Barclays identified and self-reported to the FCA the issues giving rise to the FCA’s findings and we accept their conclusion. Barclays has subsequently enhanced its systems to resolve these issues and to ensure we have the requisite processes in place. No client has suffered any loss as a consequence of this weakness in our processes which existed prior to January 2012.” FCA markets director David Lawton said: “Safeguarding client assets is key to maintaining market confidence if firms fail, Barclays lack of focus on the rules was unacceptable. “Our on-going scrutiny of firms’ compliance reflects the importance of the regime, which protects custody assets worth £10 trillion held in the UK.
UBS to pay a record €1.1bn bond in France over money laundering charges September 23, 2014 | BBR http://www.banking-business-review.com/news/ubs-to-pay-a-record-11bn-bond-in-france-overmoney-laundering-charges-230914-4381587 Swiss bank UBS will pay a staggering €1.1bn ($1.41bn) bond to the French Government over money laundering charges, after a court dismissed its appeal against an earlier ruling.
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The authorities have been investigating the bank’s role in encouraging its wealthy French customers to open accounts outside the country to evade taxes. The parent company in Switzerland is also being investigated. The €1.1bn in bail was imposed on UBS in July and was ordered to pay by 30 September. The bank appealed against it in a court saying that the amount was ‘unprecedented and unwarranted’. UBS plans to appeal the decision in the supreme court in addition to taking it up at the European Court of Human Rights. “UBS is very disappointed at the decision which fails to take into account the arguments put forward at the hearing. “We continue to believe that this is a highly politicized process that from the beginning of the investigation has not followed elementary facets of the rule of law,” the bank said in a statement. In July, UBS agreed to pay €300m to settle similar charges in Germany. It was fined €10m last year by French banking regulator and paid $780m to the US authorities in 2009 on money laundering charges. The court ruling comes at a time when French President Francois Hollande has begun cracking down on tax evaders after one his ministers was found to be holding an undeclared overseas bank account for two decades
UK banks to pay ‘hundreds of millions’ in VAT post EU ruling: KPMG September 19, 2014 | BBR http://www.banking-business-review.com/news/uk-banks-to-pay-hundreds-of-millions-in-vatpost-eu-ruling-kpmg-180914-4377628 A new rule imposed by the European Court of Justice will force global financial institutions operating in the UK and Europe to pay hundreds of millions of pounds in additional value added tax (VAT), according to a report by KPMG. The ruling is mainly expected to impact banks and insurance firms, which have branches in the UK and are headquartered outside and vice versa. Under the current practice, local branches and their overseas establishments are being considered as a single taxable person for VAT within Europe. But they will now be required to pay additional VAT of 20% for receiving services at its branches from main establishments situated outside the EU. KPMG UK financial services indirect tax head Richard Iferenta said: “What this ruling does is, at a stroke, add hundreds of millions of pounds to the annual cost of financial institutions doing business in the UK and other EU member states. “Furthermore with the UK’s position as a global financial services centre and the consequential level of inward investment into the UK by foreign financial services business that flows from that, the financial impact of the judgement may be felt hardest in the UK. “Financial institutions are likely to examine their VAT grouping arrangements and which services they are buying in from outside the EU. Some may decide to change their existing models as a result.”
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Technology JPMorgan reports redemption of $1.7bn of fixed/floating rate subordinated notes September 19, 2014 | BBR http://payments.banking-business-review.com/news/jpmorgan-reports-redemption-of-17bn-offixedfloating-rate-subordinated-notes-190914-4379253 JPMorgan Chase today announced that the following series of fixed/floating rate callable subordinated notes will be redeemed on the redemption dates indicated: The entire outstanding principal amount of each of these series of notes will be redeemed. The amount payable upon redemption of each series will be 100% of the principal amount of the notes, plus accrued and unpaid interest thereon (if any) to, but not including, the redemption date. Notices of these redemptions will be dispatched through the relevant clearing systems within the notice periods provided for each series of notes. Payment of the redemption amount will be paid upon presentation and surrender of the notes at the offices of The Bank of New York Mellon at One Canada Square, London E14 5AL, England (in the case of the first two series of notes listed above) and 111 Sanders Creek Parkway, East Syracuse, New York 13057 (in the case of the last series of notes listed above). These redemptions are not expected to have a material impact on JPMorgan Chase’s earnings.
Maybank Singapore enhances the customer centricity with SunTec’s Xelerate September 30, 2014 | Financial IT http://www.financialit.net/news/view/maybank-singapore-enhances-the-customer-centricitywith-suntec-s-xelerate/24038 Maybank, South East Asia’s fourth largest bank by assets, has announced its deployment of SunTec’s Xelerate to further enhance the customer centricity of its products and services. This will see the bank introduce more innovative product bundles that are tailored to the needs of its retail customers in Singapore. Xelerate, SunTec’s innovative product suite, is designed to maximise revenue while minimising risk. The deployment in Singapore took place in a record time of 3.5 months, integrating multiple legacy systems with Xelerate. With Maybank looking to extend its client-focused business model across the region, SunTec’s Xelerate will help automate and improve its processes to satisfy the needs of its large customer base. It has also enabled Maybank to enhance its customer proposition by offering an extended range of products and services. At the same time, financial advisors are better equipped to offer their customers more relevant deals based on accurate customer data available across multiple business lines and channels. In addition, Maybank uses Xelerate to provide exclusive interest rates, credit card deals and promotions to match the needs of different customer segments. Such offers allow Maybank to grow their deposits and increase card spend, fee income across various customer segments. Xelerate provides greater visibility into customer credit, debit and savings transactions which improves product offerings to
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customers, prevents revenue leakage for the bank while enhancing customer experience. Mr Lim Hong Tat, CEO of Maybank Singapore and Head of Community Financial Services of Maybank Group commented: “Customers expect more personalised products and services. With SunTec’s technology and expertise on board at Maybank, we will be able to better serve our customers through our customer-centric strategies across multiple lines of business not only in Singapore but across the region as well. This is an important step in our goal to becoming a leading regional financial services provider and offering our customers a seamless banking experience across the region.” Nanda Kumar, CEO of SunTec Group said: “We are delighted to support one of Asia’s largest financial services groups in delivering a modern banking experience to millions of customers. This project shows why bespoke banking products are as important as ever for the world’s leading banks in helping them enhance the bank-client relationship.”
The Bank of Russia Recognizes NSD and NCC as Systemically Important Infrastructure for Russian Financial Market September 29, 2014 | Financial IT http://www.financialit.net/news/view/the-bank-of-russia-recognizes-nsd-and-ncc-assystemically-important-infrastructure-for-russian-financial-market/24035 The Central Bank of the Russian Federation has recognized National Settlement Depository (NSD), Russia’s central securities depository, and National Clearing Centre (NCC) as systemically important infrastructure for Russia’s financial market. NSD has been recognized by the Bank of Russia as a systemically important central securities depository, a systemically important settlement depository and a systemically important repository. NCC has been recognized as a systemically important central counterparty. Alexander Afanasiev, CEO of Moscow Exchange, said: “The assignment of a status of systemically important infrastructure for the financial market to two companies of the Moscow Exchange Group – National Settlement Depository and National Clearing Center – emphasizes the special role that they play in ensuring the stability of Russia’s financial system. Both organizations already have special statuses and require special regulation: in 2013, the regulator assigned the status of a central securities depository to NSD, and the status of a qualified counterparty to NCC. The aggregate value of securities on deposit with NSD amounts to RUB22.9 trillion; the NCC’s asset value exceeds RUB860 billion, and the average daily value of clearing operations stands at approximately RUB1.2 trillion. We realize the high degree of responsibility placed on the Moscow Exchange Group to ensure domestic financial market infrastructure functioning and to provide for the newest and high quality services to Russian and international investors. The assigned special status also means that the regulator will pay even closer attention to our activities; this provides an additional guarantee on the reliability and transparency of our companies’ operations in the interests of all market participants.” Eddie Astanin, Chairman of the Executive Board, NSD, pointed out:
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“The assigned status of systemically important infrastructure means the highest level of NSD’s responsibility to both the regulator and the market. I can say with certainty that NSD will comply with this status in respect to reliable functioning, risk management, financial stability and a competitive product and service range.” Alexey Khavin, Chairman of the Executive Board, NCC, added: “The status granted to NCC as systemically important infrastructure for the financial market will require from us more effort towards improving the risk management system. This news for market participants is one more guarantee of the reliability and financial stability of NCC as a partner functioning as a central counterparty.”
Lloyds Bank launches first real-time online appointment booking system September 29, 2014 | BBR http://onlinebanking.banking-business-review.com/news/lloyds-bank-launches-first-real-timeonline-appointment-booking-system-290914-4388545 Lloyds Bank has launched a new online booking system to help customers make face to face branch appointments online or on their mobile phone. Online customers can select a branch and appointment time of their choice. The real time online booking service allows people to book a face-to-face appointment, amend an existing appointment and then receive SMS and email reminders. As the system is ‘real-time’ it means that the system will always be up-to-date. Appointments can be booked for the next day and up to three weeks in advance and people will be able to choose from alternate branches and times if their local branch is busy at the time they desire. The new innovation will save people time as well as being more convenient avoiding the need to come into branch to make an appointment. Adrian Bryant, Digital Director for Lloyds Bank says: “The new online appointment booking system will give customers convenient access to our branches. There are some things that some people just prefer to do face to face. So we’re using technology to improve that process for everyone while recognising people’s varying needs. Online bookings are just one of the many ways that we are using technology to help our customers and bring to life our multi-channel offering.”
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TPBank, Vietnam has chosen iCreate for establishing Enterprise MIS, Financial and Risk Analysis September 24, 2014 | Financial IT http://www.financialit.net/news/view/tpbank--vietnam-has-chosen-icreate-for-establishingenterprise-mis--financial-and-risk-analysis/24017 TPBank, a prominent Vietnam financial services institution, has signed up with iCreate, a Banking Decision Sciences firm, for establishing an enterprise MIS, Financial Reporting and Risk Analysis framework. TPBankis recognized for deploying innovative technology and industry-leading best practices to enhance customer experience. This decision comes in the wake of rising regulatory pressures in the region and the bank’s focus on enhancing customer experience, growth, and profitability. After several solution evaluations, TPBankdecided to lay the foundation for addressing the bank’s current and future MIS and Risk challenges by opting for a DW-MIS platform of global standards. As a part of the bank’s larger information management strategy, iCreate will help TPBankdevelop a Central Data Repository that will leverage iCreate’s proven Banking-specific Data Warehouse, for generating enterprise MIS, Financial Reporting and Risk Analysis. iCreate will establish and activatea sophisticated,future-ready information ecosystem that will help TPBankmanage their data for accurate, reliable and timely decision making for information consumers at the leadership level.iCreate’spremier partner in Vietnam, Net Vision was actively involved in the deliberations leading to the decision. Speaking on the occasion Bui Quang Cuong, CIO, TPBanksaid, “It is our vision to be a digital banking and services leader in Vietnam by constantly raising the bar on customer experience. This translates to transforming our information management capabilities, which requires establishing a robustdecision enablement and risk management framework. We chose iCreate for theircomprehensiveunderstanding of our information management challenges, as well as theiradvanced technology and experience in banking-specific information management systems.” Vivek Subramanyam, CEO, iCreate added, “I am happy that iCreate has been chosen as the strategic partner as TPBank lays the foundation forEDW and Reporting. I look forward to TPBankleveraging our experiential understanding of banking information management as well as our Analytics, Risk and Compliancesolutions built using global best practices.”
U.S. Bank unveils new mobile solution for treasury management September 17, 2014 | Financial IT http://www.financialit.net/news/view/us--bank-unveils-new-mobile-solution-for-treasurymanagement/23990 U.S. Bank Mobile SinglePoint clients can now access banking functionality while away from the office with an iPhone or iPad app. The new apps provide clients access to select tools that allow them to manage critical banking functions such as wire transactions, book transfers and password resets anytime, anywhere. This is an extension of U.S. Bank SinglePoint®, the web portal to U.S. Bank’s suite of treasury management services, and SinglePoint Essentials for small businesses.
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“In today’s world, managers have their mobile devices handy wherever they go, and U.S. Bank is committed to providing the latest innovative technologies to make completing these vital banking functions seamless,” said Mary Burchette, senior vice president for U.S. Bank Global Treasury Management Group. “The Mobile SinglePoint apps allow users to approve a variety of transactions while away from the office – at home, in an airport lounge or while traveling overseas.” U.S. Bank piloted the app earlier this year with a select group of clients, whose feedback helped shape the functionality of the apps. “This technology allows us to virtually take the office computer along with us wherever we go,” said Deitra Mangrum, treasury manager for Equity Residential, an early adopter of Mobile SinglePoint. “The Mobile SinglePoint iPhone app is convenient and easy to use. It provides a great business benefit.” The Mobile SinglePoint app allows for easy-to-navigate experiences designed specifically for the iPhone and iPad, things clients come to expect. Mobile SinglePoint is a secure way to bank; the same security features that protect the SinglePoint full site are built into the Mobile SinglePoint service. U.S. Bank SinglePoint is a registered trademark of U.S. Bank National Association
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Strategy Alibaba gets clearance to open private bank in China September 30, 2014 | BBR http://www.banking-business-review.com/news/alibaba-gets-green-signal-to-set-up-privatebank-in-china-300914-4389332 The China Banking Regulatory Commission (CBRC) has given clearance to e-commerce giant Alibaba to set up a new private bank in the country To be named Zhejiang MYbank, the bank will be established in Hangzhou of the eastern province of Zhejiang. Alibaba, through its subsidiary Zhejiang Ant Small and Micro Financial Services Group, will hold a 30% share in the bank. Other major shareholders would be Shanghai Fosun Industrial Technology Development with a 25% stake; a subsidiary of Wanxiang Group with 18% and Ningbo Jinrun Asset Management with 16%. The Chinese regulator requires the companies to establish their banks within six months and apply to start operations. In addition to Alibaba, two other firms including JuneYao Group and Shanghai Metersbonwe Fashion and Accessories have got approval from CBRC to jointly set up a bank in Shanghai. The approval follows the announcement made by the government in March to reform the banking sector, which is dominated by four state-owned banks. China previously had only two private banks, Minsheng and Ping An. In late July, the CBRC approved the establishment of three private banks including Webank, funded by Chinese Internet giant Tencent.
Riverside Community Bank plans to change name to Illinois Bank & Trust September 24, 2014 | BBR http://onlinebanking.banking-business-review.com/news/riverside-community-bank-plans-tochange-name-to-illinois-bank-trust-240914-4384123 Riverside Community Bank, a subsidiary of Heartland Financial USA, announced today that it will change its name to Illinois Bank & Trust. Additionally, the bank announced plans to merge with its sister bank, Galena State Bank and Trust Co., located in Galena, IL. The new name will be implemented in November for the Riverside locations and in January 2015 for the Galena locations. The new name will unite both entities and serve clients under a common brand, fostering opportunities to expand the bank’s presence in the state.
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Currently, Riverside Community Bank serves the Rockford, IL market from four locations with additional offices in Sterling, Seaton and Rock Falls, IL. Galena State Bank has two locations in Galena, IL with additional offices in Elizabeth and Stockton. The combined Illinois Bank & Trust will serve northwestern and west central Illinois from 11 locations with assets of more than $800 million. Steven E. Ward, President and CEO said, “As the banking industry has experienced continued consolidation, it has been the goal of our parent company, Heartland Financial USA, Inc., to operate one bank charter per state to better serve our customers and expand into new market areas. As a result of our banks’ successful growth in Illinois, we are in a position to expand our footprint in the state. Though the name is new, our business practices and principles will remain the same. Our attributes of financial strength and value-added services, combined with our expansion and long heritage in the State of Illinois, all lead to this change.” “Our customers will continue to count on the same employees they know and trust, the same solid community support, superior face-to-face personal service, and competitive financial products,” added Ward. “Customers in each of the bank’s markets will be notified of the change in coming days,” said Ward. “The major change customers will see is the bank’s new name and logo on buildings, our website and statements. We anticipate the transition to be complete in the first quarter of 2015.” “We believe our clients will find the new name reflects a solid and time-tested community banking organization that serves consumer, small business, commercial and wealth management markets. We will continue to provide services that compete head-to-head with our competitors -- while offering our traditional personal service that customers value in community banking,” concluded Ward
Belgian bank KBC to close Antwerp Diamond Bank after sale process fails September 22, 2014 | BBR http://commercialbanking.banking-business-review.com/news/belgian-bank-kbc-to-closeantwerp-diamond-bank-after-sale-process-fails-220914-4380668 Belgian banking and insurance company KBC will run-down the operations of its subsidiary Antwerp Diamond Bank (ADB) after an unsuccessful attempt to sell it to China’s Yinren Group. ADB business is being closed in accordance with the terms set forth by the European Commission as part of KBC’s bailout during the economic slowdown. KBC borrowed €7bn in 2009. The run-down will be undertaken through the absorption of ADB into KBC. During the process, no new loans will be granted or no new business made. KBC had discussions with at least 100 potential buyers before Chinese construction company Yinren Group agreed to buy ADB in December last year. The deal did not fructify as Yinren failed to submit a comprehensive file to the Belgian regulator, the National Bank of Belgium, within the agreed timeframe. The bank said in a statement: “Even after receiving a final three-month extension to make a submission, Yinren Group has failed to submit a comprehensive file to the National Bank of Belgium.
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“In order to honor the divestment arrangements and deadline agreed with the European Commission, KBC has therefore decided to gradually run down ADB’s business activities.” ADB is a niche bank focusing on the diamond sector and diamond jewellery sector. The 75-year-old bank is the second largest diamond bank in the world, with branches in Antwerp, Dubai, Hong Kong and Mumbai. KBC Group CEO Johan Thijs said: “We regret that a strong brand and a leading player in the diamond banking industry, with a long and rich history, will have to cease operations as a result.”
Hampshire Trust Bank relocates to new headquarters in central London September 19, 2014 | BBR http://commercialbanking.banking-business-review.com/news/hampshire-trust-bank-relocatesto-new-headquarters-in-central-london-190914-4379220 Hampshire Trust Bank (HTB) has announced its move to new headquarters in central London, which will support its continued rapid growth in the commercial lending sector. The new generation bank which specialises in asset finance, commercial finance and property finance, and also offers competitive savings accounts to individuals and businesses, will be located at 131 Finsbury Pavement EC2A, on the corner of Finsbury Square. The 30-year old bank was acquired by a new management team in May 2014 with the backing of Alchemy and has set out to deliver its vision for substantial and sustainable growth effectively and energetically. Since moving to London following the acquisition of the Bank in May 2014 by a new management team backed by Alchemy, the business has expanded rapidly and already outgrown its offices in Cannon Street. Speaking of the move, CEO Mark Sismey-Durrant said; “This relocation signifies an important step on our journey from a small Fareham based bank to a national player with space to expand in our specialist areas. We are committed to supporting the growth of UK businesses through a relationship based approach delivered by industry experts and underpinned by high standards of customer service.”
Axis Bank partners with China Development Bank September 19, 2014 | BBR http://retailbanking.banking-business-review.com/news/axis-bank-partners-with-chinadevelopment-bank-190914-4379241 Axis Bank, India’s third largest private sector bank, today signed a Memorandum of Understanding (MoU) with China Development Bank (CDB), one of the largest policy banks in China. The MoU would help Axis Bank to support its corporate clients by funding them at competitive pricing and also give the Bank an opportunity to work closely with Chinese companies in facilitating them in their domestic requirements in India.
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The MoU was signed by Mr. V Srinivasan, Executive Director - Corporate Banking, Axis Bank and Mr. Zhao Xiaoyu, Executive Vice President, China Development Bank, at a ceremony organized in New Delhi. Commenting on the occasion, Mr. V. Srinivasan, Executive Director - Corporate Banking, Axis Bank said, “Indo-China trade partnership is growing at a robust pace. We at Axis Bank are excited to sign MoU with China Development Bank to tap newer business opportunities, emerging from the world’s second largest economy. Axis Bank’s presence in Shanghai and its wide reach in India will help in providing an end-to-end solution to both Indian and Chinese corporates.” Early this year, as a part of adding value to the banking services in China, Axis Bank opened its Shanghai Branch. The Shanghai branch is engaged in offering various services including accepting public deposits, offering short-to-long-term loans, and comprehensive corporate banking services. As per a report by Ministry 0f Commerce and Industry, China is India’s largest trading partner, with Sino-Indian trade crossing $65.86 billion in FY 13-14 and is at $22.41 billion till June 2014. India and China have pledged to increase bilateral trade to $100 billion by 2015. China Development Bank provides medium to long-term financing facilities that assist in the development of national infrastructure, basic industry, key emerging sectors, and national priority projects. China Development Bank mandate is to promote Chinese Exports to India and also support Chinese Companies, executing projects in India.
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