The implementation of Europe’s second Payment Services Directive (PSD2) has unlocked a number of new open banking solutions, such as Request to Pay (RtP). This new solution combines SEPA payments (both classic and instant) with PSD2’s provision for licensed third parties to access and service accounts held by other banks to allow payment service providers (PSPs) and merchants to receive payments on behalf of their customers in a lean and efficient manner.
With markets now adjusting to the changes, these solutions are quickly being put into practice. MultiSafepay, an online payments specialist and one of the pioneers of e-commerce in the Netherlands, is one of the first to take the initiative, participating in a pilot scheme for Deutsche Bank’s innovative open-banking RtP solution, which is now being rolled out to a series of merchants in Germany, with plans to enable it across Europe and beyond.
Read the full case study here.
Writing for BRINK, Hunter Xiong – Head of the Belt and Road Office at Deutsche Bank – explains how, with the necessary protections in place, and the right agreements and partnerships, the opportunities for continued and sustainable development of the BRI are numerous.
Continued backing from China’s state-owned banks will be critical in helping affirm the BRI’s strength and stability, but it is the growing interest from global banks and investors that will provide the required support to fund the initiative, writes Xiong.
Read the full article here.
Despite being mooted more than a decade ago, widespread regulation mandating banks to adopt real-time cash-balance liquidity reporting has not materialised. With the exception of a handful of the world’s largest banks, few have taken it upon themselves to adopt these processes. Yet beneath this meagre enthusiasm lies a wealth of evidence that real-time liquidity reporting can offer significant benefits that extend well beyond simply monitoring intraday positions. The cost and effort of adoption, meanwhile, is negligible compared to other ongoing bank projects.
In an article for The International Banker, Deutsche Bank’s Andreas Hauser, Senior Business Product Manager, Real-time Reporting and Innovation Cash Clearing, Cash Management, argues that now is the time to revive this momentum for real-time reporting and take action.
The article can be read here.
Change is afoot across the global payments landscape. Pinging on the radars of market participants for some time, the fast-approaching November 2021 migration of the world’s primary payment market infrastructures (MIs) to the ISO 20022 financial messaging standard is now looming large.
The new standard affects all banks with many-to-many relationships in the correspondent banking space and all users of payments and cash management messages (MT categories 1, 2 and 9). While the project does not extend to corporate-to-bank traffic and is not mandatory for market infrastructures operating a closed user group in FIN (MI-CUG) formats, the implications for corporates will nevertheless be significant.
This is not simply “another IT project” for banks, nor is it “just another bank project” for corporates. In the coming months, all market participants will need to take appropriate steps to assess and prepare for the upcoming transition.
The article can be viewed here.
The flourishing data economy, the emergence of FinTech and BigTech firms in the traditional banking space and the growth of the crypto-assets market all promise a new era for the financial industry, bringing new competition, improved client service and innovative financial products. Regulations will play a key role in shaping the face of this newly emerging landscape, argues Deutsche Bank’s Polina Evstifeeva in an article for The International Banker.
The article can be read here
The switch to ISO 20022 lays the foundation for greater payment processing efficiency and interoperability, improved customer experience, streamlined compliance procedures, and the capability to deliver new services. The scope of this transition is enormous, so it will not happen overnight or be without its challenges.
Fortunately, these challenges are being met head on. Throughout 2019 several steps forward have been made, with the release of numerous usage guidelines as well as the development of new Swift tools to help facilitate the transition.
But with all this change, keeping abreast of the latest developments and understanding the key points for consideration has proved testing even for seasoned professionals. So, how can market participants ensure they are prepared for ISO 20022? Christian Westerhaus, head of cash products, cash management, corporate bank at Deutsche Bank, explores.
The article can be read here.
In a global supply chain, each supplier, regardless of size, can form a critical link. But as trade tensions escalate and macroeconomic conditions worsen, global supply chains – and the suppliers that underly them – are looking increasingly vulnerable. If a link in the supply chain breaks, production lines can grind to a halt – a particular worry for the large buyers that sit atop this global process.
To foster stability across supply chains, and to help suppliers optimise their working capital, companies are increasingly turning to payables finance, a supply chain finance technique. Through payables finance, large corporate buyers can extend or maintain existing supply payment terms and suppliers can access financing at a rate that reflects the risk of its highly creditworthy buyer.
But as demand for payables finance grows, how is the industry adapting to meet it? Christian Hausherr, Chair, Global Supply Chain Finance Forum and Head of Product Management, Trade Finance and Supply Chain Finance, Deutsche Bank, explores in an article for TXF.
The article can be read here (behind paywall)
The EIU, supported by Deutsche Bank, has released its latest report: “A Quantum Leap: Building a data-driven treasury”. The report, based on a survey of 300 senior corporate treasury executives from around the world, sought to identify what being a data-driven treasury means and key considerations when developing a data strategy. In turn, 44% of respondents to the EIU survey indicate that cloud computing will be the most important technology for treasurers over the next five years, followed by big data analytics (42%) and artificial intelligence (37%).
“Treasury Management Systems deployed in the cloud offer a host of benefits, including a wider and more dynamic view of financial positions, automatic access to the latest analytical tools and an ability to more easily collaborate with stakeholders, reducing the need for data collection and input by treasury,” says Ole Matthiessen, Global Head of Cash Management, Deutsche Bank. “It has taken some time for risk-averse treasurers to accept the security and robustness of cloud-based solutions, but we are now witnessing a change in mindset.”
The news was covered by: Crowdfund Insider, The Paypers, cryptocryptonews, CTMfile, Der Treasurer, Asset Servicing Times, Finextra, The Global Treasurer, TMI
Demand for payables finance programmes has continued to grow in recent years, fuelled not only by working capital concerns, but also by the need for greater stability, as supply chains navigate an increasingly volatile economic environment. As an expanded base of anchor buyers, including non-investment-grade companies, move into the market for payables finance, however, the creation and implementation of robust industry standards will be important to ensuring the solution develops sustainably. In an article for TRF News, Deutsche Bank’s Christian Hausherr explores how payables finance is adapting to meet these ever-evolving demands.
To read the full article, please click here
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