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
In a special report on AI and technology in operations by P&I, Matthew Seymour, CEO of RiskFirst, describes some of the challenges of technology adoption and standardisation in the asset servicing industry. The report examines how the ongoing development of technologies – such as blockchain and AI – could not only drive efficiencies but also serve as a catalyst, encouraging all market participants to speak the same transactional language.
Seymour noted, however, that “cooperation among major players in the industry isn’t a given”. He said: “The biggest challenge is the vested interest of financial services market participants. Accepting AI will require some to change their businesses. Right now, the collection of data is a real gold mine for some companies. Their concern about maintaining or growing their data businesses, at the same time as AI and blockchain, will make data more accessible to everyone, will make the adoption of new technology more measured while firms assess how this will affect their business models. It’s not just technology adapting to business, but business adapting to technology.”
To read the full article, please click here. (Please note, this article lies behind a paywall).
UK-based consultancy PwC and financial technology provider RiskFirst are reinforcing their relationship with a new agreement, which will benefit clients by bringing online pensions platform Skyval, and RiskFirst’s PFaroe platform closer together.
Skyval was launched jointly by PwC and RiskFirst in 2013 in response to a growing need for more accurate, reliable and up-to-date pension plan information. Under the new agreement, Skyval and PFaroe are being brought onto the same underlying platform, making it easier to exchange information, thereby facilitating closer working relations across all plan stakeholders.
Following Moorgate’s outreach, Wealth Advisor, Financial IT, Fintech Finance, The Business Journal, Digital Journal, and Yahoo Finance covered the news.
RiskFirst and STOXX Ltd, the operator of Deutsche Börse Group’s index business and a global provider of innovative and tradable index concepts, have announced the launch of the new iSTOXX RiskFirst LDI index family. The innovation – released on 23rd April 2018 – provides independent benchmarks for liability-driven investments (LDI), providing a new solution to the governance and accuracy issues that have typically challenged the £1 trillion market.
Matthew Seymour, CEO of RiskFirst commented that RiskFirst’s flagship product, PFaroe, “is rapidly becoming an industry standard for the modelling of pension plans and therefore offers us unique insight into the behaviour of pension plan cash flow profiles at a very granular level. When combined with STOXX’s extensive experience in designing innovative and objective investment benchmarks, the result is a set of indices that deliver great value to UK pension plans.”
Moorgate disseminated the announcement, and news of the partnership and launch of the iSTOXX RiskFirst LDI index family was covered by the following specialist publications: Professional Pensions, Wealth Adviser, Institutional Asset Manager, International Finance, Financial IT, AlphaQ, etfexpress, ETF Strategy, Global Capital, Global Investor, Mondovisione, LeapRate, Digital Journal, Fintech Roundup and ITbriefing.net.
Writing for The Paypers’ 2018 edition of its “B2B Fintech: Payments, Supply Chain Finance and E-Invoicing Market Guide”, BNY Mellon’s Karen Braithwaite, Head of Global Product Management, Treasury Services and Carl Slabicki, Director, Immediate Payments, Treasury Services, discuss the momentum behind the adoption of real-time payments (RTP) across the world.
Sparked by client demand for a payment service that meets modern expectations for speed, together with technological advancements and the influx of fintechs entering the marketplace, countries across the globe are transforming their domestic transaction capabilities by implementing new real-time payment rails. What’s more, with the potential for such systems to be connected to other initiatives, such as SWIFT gpi, blockchain technology, ISO 20022 standardisation and mobile transactions, there is scope for added reach, efficiencies and value that could further revolutionise the payments sector.
To read The Paypers’ “B2B Fintech: Payments, Supply Chain Finance and E-Commerce Market Guide”, please click here. The article is featured on pp. 34-35.
In a commentary article for International Banker, Sindhu Vadakath, Senior Product Manager, Global Payment Services and Asia Payments, Treasury Services, BNY Mellon, takes a look at the introduction of the Second Payment Services Directive (PSD2) and the impact it will have on the core of traditional banking.
PSD2 requires banks to share their closely guarded customer data, opening the gates for the first time to third-party payment providers (TPPs), thus disrupting banks’ long-held monopoly on the payments sector. With an aim to improve transparency, customer rights and service, as well as the costs linked to the end-to-end payments process, the legislation allows TPPs to harness customer data to create cutting-edge products that can viably compete with bank offerings.
But this data-sharing, of course, is not without its risks – especially as TPPs cannot claim the same historical reputation for security and familiarity as their bank counterparts. As such, collaboration between these industry players is key to ensure a smooth roll-out of an efficient and secure payments service for customers in the new era of open banking.
Please note, access to this article requires a subscription. To subscribe to International Banker, please click here.
As part of a series of articles celebrating the 20th anniversary of GTNews, Daniel Verbruggen, Michael Bellacosa, Fred DiCocco and Matt Wells from BNY Mellon Treasury Services, come together to discuss the pivotal developments in the payments industry across the last two decades.
Increased regulation resulting from events such as 9/11 and the 2008 global financial crisis have seen a shift in banks’ focus to meeting not only business objectives, but also governmental objectives. Regulations, together with increased client demands and technological advancements, have spurred banks to enhance their offerings to provide greater transparency and convenience – in keeping with the digital expectations of a modernising world.
More recently, the adoption of real-time payment systems, along with electronic banking applications and cryptocurrencies have particularly shaken the foundations of the traditional banking space, and have thrown the gates wide open to non-bank market entrants. With open banking legislation coming into effect at the beginning of 2018, the payments landscape is only set to become increasingly fast-paced and competitive, as banks strive to remain relevant and continue to meet the evolving needs of their clients.
To read the full article, please click here.
PNC Institutional Advisory Solutions, part of the asset management branch of the Pittsburgh-based PNC Financial Services Group, has adopted RiskFirst’s digital solution PFaroe – to help structure better solutions, improve reporting efficiency and deepen engagement with its defined benefit (DB) pension plan clients. PFaroe will allow increased interactivity with clients, provide forecasting tools to model potential investment strategies, and support the co-ordination and configuration of funded status-based and interest rate-based ‘glide paths’ – as well as automating and enriching report quality for its clients.
PFaroe, launched in 2009, is RiskFirst’s core product, and seeks to enhance the management of defined benefit pension plans and endowments and foundations. With PFaroe already used as a tool for over 1,800 pension schemes, with more than US$750 billion of liabilities, the technology has already achieved market leading status in the UK, with an expanding client base in the US.
The news was covered by the following in the specialist press: Benefits and Pensions Monitor, PlanAdviser, International Securities Services (ISS), RiskTech Forum, Fintech Finance, Finextra, Fintech Insight, Financial IT.
Increased banking regulations and higher compliance costs have led to a culture of de-risking, where many banks have been forced to withdraw from perceived “riskier” markets – with local businesses in developing Asia being particularly affected. Indeed, Asia and the Pacific bears 40% of the US$1.5 trillion global trade finance gap, representing the difficulty that SMEs in the region have in accessing the financing they need.
In a recent article for Asia Outlook, Dominic Broom, Global Head of Trade Business Development, Treasury Services, BNY Mellon, discusses how technology could help banks to address the issue of de-risking. To most effectively develop technological solutions to close the trade finance gap, Dominic says, requires innovation and collaboration between all the players in the trade finance ambit.
To read the full article, please click here and go to page 16.
The rapid growth of fintech influence, increasingly sophisticated technological capabilities, growing client expectations, and new regulatory requirements, are fuelling the need for modernised payment systems. Undoubtedly, the payments space is experiencing a period of rapid evolution, with technology presenting opportunities for the industry to transform how transactions are processed.
In a commentary article for Global Banking & Finance Review, BNY Mellon’s Fred DiCocco, Global Head of Cash Management Business Development, Treasury Services, explains how through industry cooperation – with banks at the fore – new technology can be channeled for a revolutionised payments space, supporting innovations such as blockchain and SWIFT’s global payments innovation (gpi) initiative.
The full article can be read here (page 112-115).