In an article for the International Banker, Deutsche Bank explores the interplay between innovation and regulation

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


ICC United Kingdom’s press release on how international regulation is affecting SMEs is covered by the specialist press

Regulatory requirements are having unintended repercussions on SME business growth, indicates the latest ICC Global Trade Survey. Some 87% of banks respondent to the survey reported that complying with counter-terrorism and international sanctions regulations is a “major challenge” with respect to their ability to offer trade finance.

Well-meaning regulations are inhibiting access to trade finance for SMEs, says Chris Southworth, ICC United Kingdom Secretary General, causing inadvertent consequences in the real economy.

The news was covered in Trade Finance Global and Business Post Nigeria.

PSD2 regulation is a catalyst for innovation, says Deutsche Bank in Banking Technology

PSD2 comes into force on 13 January 2018. It aims to open up the European payments market to greater competition and transparency, but Christian Schaefer, global head of payments, cash management, Deutsche Bank, believes its effect will be more far-reaching.

Writing for Banking Technology magazine, Schaefer suggests it is no exaggeration to say that the result will be a fundamental reshaping and renewal of the European payments and wider financial services markets over the next two to five years, with a host of new players and a range of innovative and tailored services being offered to customers, who will be the prime beneficiaries of these changes.

After becoming compliant by the January implementation date, the next step on this journey is Europe’s financial institutions developing or buying in third party account interfaces to comply with PSD2, says Schaefer. These may either be dedicated third party interfaces, or customer interfaces suitably modified to be PSD2-compliant. Both routes – dedicated interface and modified direct access – require careful consideration.

Read the full article here.

Falcon’s Emma Clark discusses Australia’s non-bank lending boom in Financier Worldwide

Despite credit growth returning to Australia since the global financial crisis, long-term factors, such as the consolidation of banks and Basel III’s risk-weighted capital framework, continue to pose barriers for businesses looking to access funding.

Certainly, Australia’s oligopoly of banks has been well-documented. According to EY, almost 90 percent of corporate funding in the country is provided by just four major banks, compared with 54 percent in Europe and 16 percent in the US.

Writing for Financier Worldwide, Emma Clark, Falcon’s Global Head of Marketing & Corporate Affairs, explains how changing regulatory and economic conditions are paving the way for a number of non-bank lenders to enter the market, each offering competitive and flexible alternatives to traditional funding sources.

Read the full article here.

Do not place PSD2 on the back burner, says Deutsche Bank in FTSE Global Markets

On January 13th, 2018, the new European Directive on Payment Services in the Internal Market (PSD2) comes into effect, marking the next stage of the European payments market’s transformation. Christian Schaefer, global head of payments, Cash Management, Deutsche Bank, explains the implementation hurdles and opportunities in an article for FTSE Global Markets magazine – and sets out why financial institutions should strive to be PSD2-ready, sooner rather than later.

Admittedly, while there are significant time and resource investments required to become PSD2-ready, the benefits for both PSUs and PSPs should become evident from day one, says Schaefer. Even so, becoming PSD2-ready should not be seen as merely as an exercise in regulatory compliance. It brings many advantages that can grant banks and fintechs new revenue streams and opportunities to enhance their client offerings.

Institutions making the TPP interface operational in time for the effective date can also be among the first to implement Open Application Programming Interface (API) capabilities – allowing them to offer new, innovative products tailored to the evolving needs of their existing (and prospective) clients.

Read the full article here.

Deutsche Bank discusses a new age in payments in Finextra

It will be regulation-led, but make no mistake: 13th January 2018 will see the start of a deep-rooted and long-term transformation of the European payments market. This is when PSD2, the new European Directive on Payment Services in the Internal Market, comes into force. While this prospect initially caused concern to some in traditional financial institutions, most are now embracing it as a timely and necessary stimulus to the industry to future-proof itself against a new age in payments and banking services.

Writing for Finextra, Shahrokh Moinian, global head of cash products, cash management, Deutsche Bank, suggest that, given the clear benefits to customers, banks should therefore not delay getting PSD2-ready and instead participate in the consultations and act on the early drafts of the European Banking Authority’s Guidelines immediately in order to ensure smooth implementation projects.

Read the full article here.

BNY Mellon’s Daniel Verbruggen joins the debate on the future of transaction banking in FX-MM

From managing the demands of regulatory compliance, to navigating the opportunities and threats presented by financial technology, it takes a lot to thrive in the fast-changing transaction banking sector.

FX-MM asks BNY Mellon’s Daniel Verbruggen, Head of Relationship Management Europe, Treasury Services, his thoughts on how blockchain and real-time payments hold the potential to forever alter the transaction banking landscape.

Verbruggen explains that “the digital revolution is well underway, and banks need to be at the forefront of innovation if they are to meet the evolving needs of the market and their clients. There are two fundamental elements that banks need to focus on when it comes to investment in new technologies: flexibility and client-centricity.”

The full article can be read here (subscription is required).

FX-MM uncovers how Polish banks are adapting to increasing regulation and new technological developments at BNY Mellon-hosted roundtable

The financial landscape continues to evolve at a rapid rate. Following a BNY Mellon-hosted roundtable, FX-MM reports how a number of Polish banks are adapting to increasing regulation, new emerging technologies, as well as a growing number of non-bank actors.

Participants include Monika Aminiova, Cash Management Business Development Manager, Treasury Services EMEA, BNY Mellon, who explains that throughout change, “the value-added proposition for different underlying clients and sectors must be at the centre of strategy.”

The full article can be read here (subscription is required).

BNY Mellon’s Daniel Verbruggen speaks to EMEA Finance on the value of local-global bank partnerships

A growth in regulatory requirements and in the cost of compliance, have had a massive impact on the traditional correspondent banking model, with many global banks now reconsidering their relationships with regional and local banks from a compliance, credit and operational risk perspective.

However in an interview with EMEA Finance, Daniel Verbruggen, managing director, head of relationship management Europe, treasury services, BNY Mellon, explains that “local-global partnerships are a powerful means for banks to share expertise and capabilities in order to provide the very best for end-clients, and generate mutual benefits for both parties.”

Indeed, a number of global banks are still looking to support under-served markets due to local banks’ expertise, as well as ability to navigate local market regulations.

The full article can be read here.