BANKING NEWS FLASH October 31, 2014
Table of Contents Sales & Marketing ................................................................................................................. 3 Finance ................................................................................................................................. 5 Technology ............................................................................................................................ 7 Strategy ................................................................................................................................ 9
2|Sutherland Insights Banking News Flash Oct 31, 2014
Sales & Marketing Washington Trust signs for ACL GRC October 28, 2014 | Finextra http://www.finextra.com/news/announcement.aspx?pressreleaseid=57364 ACL today announced that Spokane-based Washington Trust, a community bank offering personal, small business, and commercial banking, has chosen ACL GRC to establish a risk-based approach to its auditing processes. The internal audit team will use the audit and risk management software system alongside data analysis engine ACL Analytics Exchange to improve audit productivity and quality.
South Korea resumes attempts to sell minor stake in Woori Bank October 28, 2014 | BBR http://retailbanking.banking-business-review.com/news/south-korea-resumes-attempts-to-sellminor-stake-in-woori-bank-281014-4418483 The South Korean government is reportedly planning to sell its minor stake in Woori Bank, a subsidiary of Woori Finance, in an effort to privatize the local lender.The Financial Services Commission's (FSC) Public Fund Oversight Committee is expected to divest an estimated 18% of the 26.97% of the government's stake in the bank, Yonhap News Agency reported.Held by Korea Deposit Insurance Corp, the stake would be sold to multiple investors through an open bidding process, which is scheduled to close on 28 November.
Peoples Bancorp completes acquisition of North Akron Savings Bank October 27, 2014 | BBR http://www.banking-business-review.com/news/peoples-bancorp-completes-acquisition-ofnorth-akron-savings-bank-271014-4417602 Peoples Bancorp Inc. ("Company"), parent company of Peoples Bank, National Association ("Peoples Bank"; collectively with the Company, "Peoples"), announced today that it has completed its acquisition of Akron, Ohio-based North Akron Savings Bank ("North Akron") effective as of the close of business on October 24, 2014, in a cash and stock transaction with a total value of approximately $20.1 million, or $7,655 per share. Eighty percent of the consideration was paid in the Company's common stock and the remainder was paid in cash. The Company and North Akron had first announced that they had entered into an agreement to merge in April of this year. As a result of the merger, North Akron's four full-service banking locations located in Akron, Cuyahoga Falls, Munroe Falls and Norton, Ohio will operate as branches of Peoples Bank.
3|Sutherland Insights Banking News Flash Oct 31, 2014
China launches new AIIB bank in Asia October 24, 2014 | BBR http://www.banking-business-review.com/news/china-launches-new-aiib-bank-in-asia-2410144415511 China has launched a $50bn Asian Infrastructure Investment Bank (AIIB), which is claimed to be the new rival to multilateral lenders, the World Bank and Asian Development Bank (ADB). The programme was attended by Chinese finance minister Lou Jiwei and delegates from 21 countries, including India, Thailand and Malaysia. In an inaugural speech, China President Xi Jinping was quoted by Reuters as saying that the new bank would use the best practices of the World Bank and the ADB. "We have also to learn from the World Bank and the Asian Development Bank and other existing multilateral development institutions in their good practices and useful experiences," Jinping added.The AIIB is expected to commence operations in 2015, in which China will be the largest stake holder with an interest of about 50%. The bank aims to give project loans to developing nations. Initially, several European states, as well as Australia, Indonesia and South Korea showed interest in the plans to create the bank.However, these countries have opted out from.
Ecobank introduces Premier Banking service in Accra, Ghana October 20, 2014 | BBR http://retailbanking.banking-business-review.com/news/ecobank-introduces-premier-bankingservice-in-accra-ghana-201014-4410425 Ecobank Ghana has introduced a new Premier Banking service that is designed as per the customers’ unique requirements and lifestyles. The move came after several customers sought the lender to provide tailored deposit, cash management and credit products and services, dedicated relationship manager, seven-days-a-week financial advisory service and others.Under the new service, the bank will offer its premium customers with Premier Banking Automated Teller Machine (ATM) cards, which will be different from the cards normally used by other customers.
4|Sutherland Insights Banking News Flash Oct 31, 2014
Finance Barclays sets aside £500m for currency rigging fine October 30, 2014 | The Telegraph http://www.telegraph.co.uk/finance/newsbysector/epic/barc/11197333/Barclays-sets-aside500m-for-currency-rigging-fine.html Barclays has become the first British bank to put aside money for currency rigging fines, earmarking £500m for settlements as watchdogs on both sides of the Atlantic probe allegations of foreign exchange manipulation. The bank is one of six expected to settle with the Financial Conduct Authority (FCA) as early as November, while US, Hong Kong, and Swiss authorities are also investigating allegations that traders rigged the $5 trillion a day market.
MasterCard net revenue up 13% in Q3 October 30, 2014 | Finextra http://www.finextra.com/news/announcement.aspx?pressreleaseid=57417 MasterCard Incorporated (NYSE:MA) today announced financial results for the third quarter of 2014. The company reported net income of $1 billion, up 15%, and earnings per diluted share of $0.87, up 19%. In each case, growth rates are reflective of both as-reported and adjusted for currency, and are versus the year-ago period. Acquisitions had a $0.02 dilutive impact on earnings per diluted share.
Digital-only Atom Bank seeking to raise £20 million October 30, 2014 | Finextra http://www.finextra.com/news/fullstory.aspx?newsitemid=26647 British digital banking startup Atom Bank is bidding to raise £20 million from private investors ahead of a planned launch next year, Sky News is reporting. Created by former Metro Bank chairman Anthony Thomson and ex-first direct CEO Mark Mullen, Atom is hoping to take advantage of the shift in banking from branches to mobile and online channels. The upstart bank has already secured a six-figure investment from Newcastle-based Middleton Enterprises and hired Paul Hanks from Steria as its first CTO, and Edward Twiddy, director of the North East Local Enterprise Partnership (LEP) as chief innovation officer. Fitch has assigned the senior unsecured notes issue due April 2020 a final rating of BBB-.
5|Sutherland Insights Banking News Flash Oct 31, 2014
Deutsche Bank loses $116 million in Q3, replaces chief financial officer October 29, 2014 | The Economic Times http://articles.economictimes.indiatimes.com/2014-10-29/news/55558828_1_deutsche-bankstefan-krause-bank-assets Deutsche Bank lost 92 million euros ($116 million) in the third quarter as the bank faced ongoing financial burdens from lawsuits, new regulations and its effort to shed risky past investments. Germany's biggest bank also said Wednesday that it would move its chief financial officer, Stefan Krause, to a new job in charge of strategy and replace him with a Goldman Sachs executive.
Ashok Leyland ties up with Bank of Maharashtra for CV finance October 24, 2014 | Firstbiz http://firstbiz.firstpost.com/corporate/ashok-leyland-ties-bank-maharashtra-cv-finance106040.html Truck manufacturer Ashok Leyland today said it has tied up with state-run Bank of Maharashtra to provide finance to its commercial vehicle buyers and also deepen reach. Under the Memorandum of Understanding (MoU), the Pune-headquartered bank will extend retail financing to the Hinduja Group company's customers, a statement said. The tie-up will help Ashok Leyland extend its reach as it will give it an access to 1700 branches of Bank of Maharashtra, it added. "This tie-up will help our customers get greater access to finance, especially in the West and South India, given Bank of Maharashtra's extensive network and reach," Ashok Leyland's chief financial officer Gopal Mahadevan said. Interestingly, the tie-up comes at a time when most of the banks, especially those from the private sector space, are wary about their exposures to the commercial vehicle space.
6|Sutherland Insights Banking News Flash Oct 31, 2014
Technology US Bank launches new online payment solution October 30, 2014 | BBR http://www.banking-business-review.com/news/us-bank-launches-new-online-paymentsolution-301014-4422249 U.S. Bank today announced a new version of its Access Online Payment Plus payment instruction file that simplifies business-to-business electronic payment and calls for little-to-no technology investment. The Payment Plus basic payment instruction file transmits payment instructions from the customer to U.S. Bank though a simple CSV (comma separated value) file that is easy to use and fast to set up.Because it requires the completion of substantially fewer information fields than the standard payment instruction file, typical users won't need dedicated IT resources to program it.
Wells Fargo launches $10m cleantech innovation incubator October 28, 2014 | Finextra http://www.finextra.com/news/announcement.aspx?pressreleaseid=57369 Wells Fargo (WFC) today launched the Innovation Incubator (IN2) program, a $10 million environmental grant for clean technology startups funded by the Wells Fargo Foundation and coadministered by the Energy Department's National Renewable Energy Laboratory (NREL) to foster the development of early stage clean technologies for commercial buildings. The program is the first of its kind within the banking industry.
Philippines' Bank of Makati implements Infosys Finacle core banking tech October 28, 2014 | Finextra http://www.finextra.com/news/announcement.aspx?pressreleaseid=57350 Bank of Makati, Inc. (BMI), which recently transitioned into a savings bank, has implemented the Infosys Finacle core banking solution to transform customer experience and drive growth, at reduced costs. This deployment will enable BMI to better promote its business and housing loan products nationwide, and also aggressively expand its customer base and loan volumes. It will also help BMI to procure business from the large pool of motorcycle loan borrowers by issuing special ATM cards, thereby converting them into retail banking customers.
7|Sutherland Insights Banking News Flash Oct 31, 2014
PostFinance goes live with new digital banking platform powered by Backbase October 24, 2014 | BBR http://www.banking-business-review.com/news/postfinance-goes-live-with-new-digital-bankingplatform-powered-by-backbase-241014-4415967 Swiss-based bank PostFinance has successfully launched their new digital banking platform, fully based on Backbase digital banking technology. Backbase, the omni-channel digital banking specialist, announced today that their client, PostFinance, has successfully launched their new online banking platform based on Backbase technology. PostFinance is one of the largest banks in Switzerland and is recognized as the most innovative and dedicated to providing a superior customer experience.
Commonwealth Bank of Australia Opens Innovation Lab October 16, 2014 | Banking System & Technology http://www.banktech.com/innovation/commonwealth-bank-of-australia-opens-innovationlab/d/d-id/1316688 Commonwealth Bank of Australia has became the latest bank to open up an innovation lab. According to the bank, the 690-square-meter lab will act as an "idea incubator and accelerator" focused on developing cutting-edge products, services, and solutions in collaboration with customers, partners, startups, and industry experts. It will be located at Commonwealth Bank Place in downtown Sydney.
8|Sutherland Insights Banking News Flash Oct 31, 2014
Strategy National Australia Bank looks to divest UK banking division October 30, 2014 | BBR http://www.banking-business-review.com/news/national-australia-bank-looks-to-divest-ukbanking-division-301014-4421850 National Australia Bank (NAB) is preparing to sell its troubled UK banking business through a stock market flotation. The move comes as the lender reported around 10% drop in cash earnings to $5.18bn, primarily affected by write-downs and provisions associated with mis-selling of Payment Protection Insurance and interest rate hedging products by the UK unit. NAB chief executive Andrew Thorburn said: "We have an intention to exit the UK, we think there's an opportunity now that probably wasn't there before.
Lloyds set to axe 9,000 jobs and 200 branches by 2017 October 29, 2014 | BBR http://retailbanking.banking-business-review.com/news/lloyds-set-to-axe-9000-jobs-and-200branches-by-2017-291014-4420101 Lloyds Banking Group (LBG) has revealed plans to slash 9,000 jobs and shut down 200 branches over the next three years. The move is undertaken as part of the bank's new three-year strategy focused on generating £1bn a year in savings by 2017, and comes a day after the lender narrowly passed the European Banking Authority's (EBA) stress test.Representing about 10% of LGB's workforce, the latest job cuts are in addition to the 45,000 posts already axed since its multi-billion pound government bailout during the 2008 financial crisis.The 200 branch closure equates to 6% of LGB's network of 2,253, and is expected to primarily affect its urban network, including Lloyds and Bank of Scotland fascias, abandoning its pledge to keep open 'the last branch in town.'
Banque Internationale à Luxembourg opens first branch in Dubai October 28, 2014 | BBR http://www.banking-business-review.com/news/banque-internationale-luxembourg-opens-firstbranch-in-dubai-281014-4418926 Banque Internationale à Luxembourg (BIL), founded in 1856 and the oldest private bank in the Grand Duchy of Luxembourg, today inaugurated its first branch in the United Arab Emirates, located in the Dubai International Financial Centre (DIFC). The launch of the Luxembourg bank's first branch in the UAE is emblematic of the close economic ties that exist between the two countries, particularly in the banking sectors, where the Grand Duchy is supporting the development of Luxembourg's financial centre into becoming the main centre for Islamic finance outside the Middle East. Luxembourg is the largest domicile for Islamic funds in Europe, and the third largest worldwide, after Malaysia and Saudi Arabia.
9|Sutherland Insights Banking News Flash Oct 31, 2014
Barclays India plans to resume hiring for corporate banking and wealth management October 27, 2014 | BBR http://www.banking-business-review.com/news/barclays-india-plans-to-resume-hiring-forcorporate-banking-and-wealth-management-271014-4417362 Barclays India is reportedly planning to resume hiring for its corporate banking and wealth management businesses. The move complements the lender's aims to seize the opportunity as a result of the impending revival in fund raising, and mergers and acquisitions by the Indian firms, The Economic Times reported. Barclays country head Jaideep Khanna was quoted as saying by the financial publication that the bank will continue to serve as a focused wholesale bank with lean operations, preferring to operate as a branch of its parent rather than opting for local incorporation. "We will hire, but we are not planning to enter any new business," Khanna added. "The strategy for Barclays in India is around combined corporate and investment banking operations, which focuses on largest corporates. "We are investing in equities and private wealth business. These will be the planks for growth in India." Barclays, which employes about 300 people in India, recently shut down its retail operations.
India’s Yes Bank eyes entry into credit card business October 21, 2014 | BBR http://www.banking-business-review.com/news/indias-yes-bank-eyes-entry-into-credit-cardbusiness-211014-4412288 India-based Yes Bank is planning to foray into credit card business, with an aim to push its retail banking business. Yes Bank retail & business banking senior group president Pralay Mondal was quoted by Business Standard as saying: "Credit card is one thing that is missing in our portfolio and we would surely like to enter that."But launching a credit card business takes a minimum of eightten months as there are lots of things such as underwriting, marketing etc that one needs to take care of." To enter into credit card business, the lender looks for at least 1.5 million customers as against its current customer base of one million.
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 O c t 3 1 , 2 0 1 4