Deutsche Bank releases part two in its series of ISO 20022 migration guides

Deutsche Bank has released its second guide to the ISO 20022 migration. As Part 1 of the Guide emphasised, banks should not consider the migration to ISO 20022 as just “another IT project” and it’s equally important that corporates do not make the mistake of writing it off as just “another bank project”. So whether it’s a global bank implementing seismic changes, or a small corporate taking more modest steps, all market participants need to be regularly updated and ensure they are moving in the right direction.

Guide to ISO 20022 migration: Part 2” offers guidance for picking a successful route for migration and securing the full benefits of ISO 20022. Further Guides are planned as the journey continues.

Why Southeast Asia’s global trade moment has arrived: BNY Mellon in Asia Outlook

Southeast Asia is not only thriving as a manufacturing centre, it is likely to  benefit hugely from China-U.S. trade tensions. In an article for Asia Outlook, Arnon Goldstein, Regional Head of Relationship Management APAC, and Joon Kim, Global Head of Trade Finance Product and Portfolio Management, BNY Mellon Treasury Services discuss how its banking sector will need to keep pace – and may need external help to leverage the potential opportunities.

To read the full article, please click here

How is regulation driving a banking transformation? Deutsche Bank explores in new whitepaper

Deutsche Bank has released the second edition of its white paper, “Regulation driving banking transformation”. The paper assesses the impact of three key trends in the financial industry: Can the increased product offerings and upscaled customer service of Fintechs alter the incumbent players’ business models and even the financial market structure itself? As BigTechs turn their attention to financial services, should regulators be more vigilant when it comes to competition and data protection rules? Is regulatory clarity setting a path for the development and evolution of the crypto assets market?

The paper calls for a regulatory environment that supports the safe and robust development of each trend – concluding that regulation will play a key role in shaping the face of this newly emerging landscape, defining the trajectory of change.

The news was covered by: TMI, The Asset, TXF, The Paypers, Business Money, Trade Finance Global, The Corporate Treasurer, TRF news, FS tech

BNY Mellon discuss the results of their global survey into the trade finance gap in GTR

The global trade finance gap stands at a staggering US$1.5tn, according to latest figures. And to compound matters further, for many institutions, trade finance rejections are in fact increasing. Indeed, a new global report from BNY Mellon, “Overcoming the Trade Finance Gap: Root Causes and Remedies”, has found that trade finance rejection rates are rising in a third of the institutions surveyed.

In an article for GTR, Joon Kim, Global Head of Trade Finance Product and Portfolio Management at BNY Mellon Treasury Services, provides an outline of the results of the bank’s recent global survey on the trade finance gap – including what participants believe to be the most effective ways of narrowing the gap.

To read the full article, please click here

Sustainability-linked loans are taking off, says S&P Global Ratings, covered by the specialist press

The sustainable finance space, comprised of the green and sustainability-linked loan markets, is booming. Although the green loan market still dominates, sustainability-linked loans (SLLs) – which tie the pricing of a loan to an entity’s performance on environmental, social, and governance (ESG) criteria – are quickly catching up. Indeed, the SLL market grew nearly sevenfold to US$36.4 billion in 2018.

In a recent report, S&P Global Ratings considers the proliferation of the SLL market and the growing trend of linking ESG performance to loan margins to explicitly align pricing with achieving sustainability performance targets (SPTs), as well as the obstacles facing the SLL market; namely, transparency and disclosure.

Following outreach by Moorgate, the report was covered by Climate Change News, Banking Dive, Euractiv, and Sustainable Business News.

BRI is a lesson in patience for financial institutions, says Commerzbank in The Asset

Writing for The Asset, Commerzbank’s Agnes Vargas and Hans Krohn assess the opportunities that the Belt and Road Initiative (BRI) may bring for Europe’s small- and medium-sized enterprises, and how they can engage with the project.

While the “first phase” of the BRI – the construction of large-scale infrastructure – largely excludes SMEs across Central Europe, it is the “second phase” – financing and trade opportunities along these revived trading corridors – for which international financial institutions should be preparing.

Given the enormity and volume of the infrastructure projects defining the first phase, it is likely to be some years until these projects will link to enable the second phase’s transcontinental trade flow. So for the time being, European SMEs should treat the BRI as a lesson in patience. In the meantime, advise Vargas and Krohn, financial institutions should take advantage of the time they have to prepare.

To read the full article, please click here (requires subscription).

 

Natixis’ Hansjörg Patzschke urges banks to promote the development of green finance in Börsen-Zeitung article

Writing for Börsen-Zeitung, Hansjörg Patzschke, Natixis’ Senior Country Manager for Germany and Austria, outlined the crucial role that banks play in supporting the fight against climate change.

Patzsche explains that banks and regulators should put in place concrete and achievable goals to support the transition to a low-carbon economy, as well as working work hand-in-hand with all actors to promote the further development of green finance. 

To read the article, please click here.

Natixis’ CEO François Riahi discusses the bank’s Green Weighting Factor in IFR interview

Natixis is launching a new framework – its Green Weighting Factor – to measure how green its corporate and investment banking products and lending are, affecting the internal risk weightings it applies to loans and potentially staff pay.

“We are going through all our portfolio of loans to have a taxonomy on what is the impact on the climate and some other factors of the loans,” explained Natixis Chief Executive, François Riahi, at the bank’s recent green finance conference in Paris.

Natixis will internally apply a higher risk weighting on loans to high-carbon emission industries, which depresses the return on the capital achieved. Conversely, green loans will get a reduced risk weighting, improving the internal calculation of its profitability.

To read the full article click here. (paywall)

Natixis Payments and Visa launch Xpollens “Payments in a box”, integrate Apple Pay, covered by the specialist press

Natixis Payments and Visa have partnered to launch Xpollens, the first end-to-end “Payments in a Box” offer that integrates a full range of innovative payment solutions for Fintechs, corporates and retailers.

Xpollens helps these players integrate a full range of payment services, from payment cards to instant payments through customer accounts. The integration of Apple Pay will help answer high demand for greater control, functionality and better user experience. Apple Pay will be available as soon as Xpollens’ solution goes live.

The news was covered by Finextra, PYMNTS, Fintech Finance, The Paypers, Ecommerce News, Infoplay, Fintech Insight.

Natixis’ Eric Arnould and Anne-Christine Champion discuss the growing interest in renewables financing in Global Capital interview

Investors are increasingly interested in renewables financing and the growth of so-called “green unicorns”, explain Natixis’ Global Head of Equity Capital Markets, Eric Arnould and Global Head of Real Assets, Anne-Christine Champion.

Speaking to Global Capital at the Natixis Renewable Energy Forum, Champion indicated that activity has substantially picked up over the last year,  with a growing appetite for green, renewable projects and sustainable assets.

Arnould also noted the potential to develop a European hub for renewable energy financing. “The US is likely going to be the centre for high tech listings for some time, but I think Europe can take the lead in renewable energy,” he added.

To read the article in full, please click here (paywall).