Citigroup\u00a0reportedly made repeated breaches of a Federal Reserve rule limiting intercompany transactions.
\nThose breaches led to errors in the banking giant\u2019s internal liquidity reporting, Reuters\u00a0reported\u00a0Wednesday (July 31), citing an internal document from Citi.
\nAccording to the report, the Fed\u2019s Regulation W requires banks to restrict transactions such as loans to the affiliates under their control to protect depositors whose funds are insured up to $250,000 by the government.
\nReuters notes that the infractions come as regulators criticize problems with Citi\u2019s risk management and internal controls, and with the Federal Reserve and Office of the Comptroller of the Currency (OCC) fining the bank\u00a0$136 million\u00a0two weeks ago for a lack of progress on compliance.
\nA spokesperson for Citi told PYMNTS the bank was not confirming the details of Reuters report.
\nThe report included a statement from Citi saying the bank was “fully committed to complying with laws and regulations and have a strong Regulation W framework in place to ensure prompt identification, escalation and remediation of issues in a timely manner.\u201d
\nCiti was also fined\u00a0$400 million in 2020\u00a0after regulators found \u201congoing deficiencies\u201d in its handling of risk management and internal controls.
\nThe bank\u2019s \u201csubsequent reaction to the breaches resulted in liquidity reporting inaccuracies,\u201d according to the internal document at the center of the Reuters report.
\nIn other Citi news, PYMNTS on Wednesday spoke with\u00a0Debo Sen, head of payments at Citi Services, about the state of the instant/real-time payment space for the series, \u201cWhat\u2019s Next in Payments: The Halftime Report.\u201d
\nShe highlighted the rapid adoption of these new payment rails in regions such as Asia-Pacific (APAC) and Latin America, with India and Brazil leading the way. In India,\u00a0about 85%\u00a0of all payments are now real time, due to the Unified Payments Interface (UPI) system, a sign of the country\u2019s advances in digital payments infrastructure.
\nBrazil is a close second, with\u00a0nearly 80%\u00a0adoption. However, this trend is not limited to emerging markets, Sen added, noting that the U.S. and the European Union are also putting forth regulations and building infrastructure to support real-time payments.
\n\u201cThe interesting thing is there is always a lot of conversation as to whether\u00a0instant payments will cannibalize\u00a0other methods of payment \u2014 but in fact, it is digitizing cash in those economies and eliminating cash in many cases,\u201d Sen told PYMNTS.
\nThe post Report: Citi Allegedly Broke Fed\u2019s Intercompany Transaction Limits appeared first on PYMNTS.com.
\n", "content_text": "Citigroup\u00a0reportedly made repeated breaches of a Federal Reserve rule limiting intercompany transactions.\nThose breaches led to errors in the banking giant\u2019s internal liquidity reporting, Reuters\u00a0reported\u00a0Wednesday (July 31), citing an internal document from Citi.\nAccording to the report, the Fed\u2019s Regulation W requires banks to restrict transactions such as loans to the affiliates under their control to protect depositors whose funds are insured up to $250,000 by the government.\nReuters notes that the infractions come as regulators criticize problems with Citi\u2019s risk management and internal controls, and with the Federal Reserve and Office of the Comptroller of the Currency (OCC) fining the bank\u00a0$136 million\u00a0two weeks ago for a lack of progress on compliance.\nA spokesperson for Citi told PYMNTS the bank was not confirming the details of Reuters report.\nThe report included a statement from Citi saying the bank was “fully committed to complying with laws and regulations and have a strong Regulation W framework in place to ensure prompt identification, escalation and remediation of issues in a timely manner.\u201d\nCiti was also fined\u00a0$400 million in 2020\u00a0after regulators found \u201congoing deficiencies\u201d in its handling of risk management and internal controls.\nThe bank\u2019s \u201csubsequent reaction to the breaches resulted in liquidity reporting inaccuracies,\u201d according to the internal document at the center of the Reuters report.\nIn other Citi news, PYMNTS on Wednesday spoke with\u00a0Debo Sen, head of payments at Citi Services, about the state of the instant/real-time payment space for the series, \u201cWhat\u2019s Next in Payments: The Halftime Report.\u201d\nShe highlighted the rapid adoption of these new payment rails in regions such as Asia-Pacific (APAC) and Latin America, with India and Brazil leading the way. In India,\u00a0about 85%\u00a0of all payments are now real time, due to the Unified Payments Interface (UPI) system, a sign of the country\u2019s advances in digital payments infrastructure.\nBrazil is a close second, with\u00a0nearly 80%\u00a0adoption. However, this trend is not limited to emerging markets, Sen added, noting that the U.S. and the European Union are also putting forth regulations and building infrastructure to support real-time payments.\n\u201cThe interesting thing is there is always a lot of conversation as to whether\u00a0instant payments will cannibalize\u00a0other methods of payment \u2014 but in fact, it is digitizing cash in those economies and eliminating cash in many cases,\u201d Sen told PYMNTS.\nThe post Report: Citi Allegedly Broke Fed\u2019s Intercompany Transaction Limits appeared first on PYMNTS.com.", "date_published": "2024-07-31T13:32:33-04:00", "date_modified": "2024-07-31T18:19:45-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2023/10/Citi-1.jpg", "tags": [ "bank regulation", "banking", "Banks", "Citi", "Citigroup", "federal reserve", "News", "Office of the Comptroller of the Currency", "PYMNTS News", "regulations", "risk management", "What's Hot", "Banking" ] }, { "id": "https://www.pymnts.com/?p=2019238", "url": "https://www.pymnts.com/news/banking/2024/csi-unveils-developer-portal-for-community-banks/", "title": "CSI Unveils Developer Portal for Community Banks", "content_html": "Financial software provider CSI has debuted a developer portal for community banks.
\n\u201cIn addition to a growing list of integrated fintechs and integrators, CSI community banks and developers now have access to new documentation methods, resources and standardizations that simplify the implementation process and accelerate time to value,\u201d the company said in a news release Tuesday (July 30).
\nThat means these banks can consider more application programming interfaces (APIs) across account opening, payments, document services and other applications, to onboard solutions to open new lines of revenue, streamline back-office operations and enhance their engagement with account holders.
\nAccording to the release, the portal includes updated technical and application guides along with test environments that let both parties better understand data communication and associated business rules.
\n\u201cCommunity banks competing in today\u2019s market require the right combination of flexibility, speed and efficiency that can meet the needs of their account holders without a significant tech investment,\u201d said David Culbertson, CEO and president of CSI.\u00a0\u201cOur Developer Portal is designed to meet all three of those needs with the scaffolding community banks need to reduce the burden of adoption.\u201d
\nPYMNTS examined bank/FinTech collaborations earlier this year, noting they were born out of a growing demand by digitally-savvy consumers for frictionless banking experiences.
\n\u201cBanks are starting to realize the speed at which technology has changed the world,\u201d James Butland, vice president of payments and U.K. managing director at Mangopay, told PYMNTS for the series \u201cWhat\u2019s Next in Payments: What is a Bank? The Changing Landscape of Banking and Financial Services.\u201d
\n\u201cThe challenge that a traditional bank has, is that they sit on 150, 200 years of legacy infrastructure and probably 60 years of legacy technology. So, banks have found it difficult to innovate quickly,\u201d Butland added.
\nMeanwhile, PYMNTS spoke recently with Ken Gayron, CSI\u2019s chief financial officer, about the role of the CFO in today\u2019s world.
\n\u201cBeing a modern CFO is about using your analytical and financial skills to partner with the business, ensuring it makes the best decisions with the right financial lens. At the same time, you have to drive efficiency through automation and process improvement so that you can scale profitably and maintain a competitive advantage,\u201d Gayron said.
\nThe post CSI Unveils Developer Portal for Community Banks appeared first on PYMNTS.com.
\n", "content_text": "Financial software provider CSI has debuted a developer portal for community banks.\n\u201cIn addition to a growing list of integrated fintechs and integrators, CSI community banks and developers now have access to new documentation methods, resources and standardizations that simplify the implementation process and accelerate time to value,\u201d the company said in a news release Tuesday (July 30).\nThat means these banks can consider more application programming interfaces (APIs) across account opening, payments, document services and other applications, to onboard solutions to open new lines of revenue, streamline back-office operations and enhance their engagement with account holders.\nAccording to the release, the portal includes updated technical and application guides along with test environments that let both parties better understand data communication and associated business rules.\n\u201cCommunity banks competing in today\u2019s market require the right combination of flexibility, speed and efficiency that can meet the needs of their account holders without a significant tech investment,\u201d said David Culbertson, CEO and president of CSI.\u00a0\u201cOur Developer Portal is designed to meet all three of those needs with the scaffolding community banks need to reduce the burden of adoption.\u201d\nPYMNTS examined bank/FinTech collaborations earlier this year, noting they were born out of a growing demand by digitally-savvy consumers for frictionless banking experiences.\n\u201cBanks are starting to realize the speed at which technology has changed the world,\u201d James Butland, vice president of payments and U.K. managing director at Mangopay, told PYMNTS for the series \u201cWhat\u2019s Next in Payments: What is a Bank? The Changing Landscape of Banking and Financial Services.\u201d\n\u201cThe challenge that a traditional bank has, is that they sit on 150, 200 years of legacy infrastructure and probably 60 years of legacy technology. So, banks have found it difficult to innovate quickly,\u201d Butland added.\nMeanwhile, PYMNTS spoke recently with Ken Gayron, CSI\u2019s chief financial officer, about the role of the CFO in today\u2019s world.\n\u201cBeing a modern CFO is about using your analytical and financial skills to partner with the business, ensuring it makes the best decisions with the right financial lens. At the same time, you have to drive efficiency through automation and process improvement so that you can scale profitably and maintain a competitive advantage,\u201d Gayron said.\nThe post CSI Unveils Developer Portal for Community Banks appeared first on PYMNTS.com.", "date_published": "2024-07-30T14:02:20-04:00", "date_modified": "2024-07-30T14:02:20-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2023/12/CSI-FinTech.jpg", "tags": [ "APIs", "banking", "Banking Software", "Banks", "community banks", "CSI", "financial institutions", "financial software", "FinTechs", "News", "PYMNTS News", "What's Hot", "Banking" ] }, { "id": "https://www.pymnts.com/?p=2017886", "url": "https://www.pymnts.com/news/banking/2024/uks-open-banking-milestone-what-10-million-users-mean-for-uks-financial-services-future/", "title": "UK\u2019s Open Banking Milestone: What 10 Million Users Mean for UK\u2019s Financial Services Future", "content_html": "While open banking starts to gain traction in the U.S., across the pond the banking and payments sector is celebrating milestones. Last week it celebrated ten million active users. Is that a good number? Consider two facts before you answer. One: Ten million users is 15% of the entire U.K. population. If 15% of the U.S. population was using open banking, that would be about 50 million users. Two: Just 18 months ago that U.K. number was only six million open banking users.
\nSo, is ten million a good number? PYMNTS put the question to Marion King, chairperson and trustee of the U.K.\u2019s Open Banking Ltd regulatory and advocacy group. And while she\u2019s certainly not resting on any laurels, she\u2019s satisfied that the government-mandated direction from the country\u2019s top-tier financial institutions to make data sharing and new payment options available will lead to more success in the short term. Part of that momentum, she told PYMNTS, will come from the next tier of banks and their business customers.
\n\u201cIt\u2019s a very good number,\u201d King said. \u201cWe\u2019re seeing really strong double-digit growth. And I think this is just the beginning, because you need to remember that this is only measured from the nine banks that were involved in the Competition and Market Authority\u2019s initial open banking effort \u2014 so it could actually be higher. So double digit growth month on month is very positive, and I think it shows pent-up demand for secure data exchange as we move forward with all of this.\u201d
\nMoving forward from the 10 million-user milestone started at a \u201cStrategy Summit\u201d on July 26 with several analysts, banks, neobanks and government regulatory agencies. At that meeting Andy Sacre, head of payments for U.K. neobank Monzo, told the audience that around six million of Monzo\u2019s customers have used open banking \u2014 sharing their data to get better credit card rates, paying their tax bill, or connecting other bank accounts to their Monzo app so they can see everything in one place. Those are just some of the use cases King believes have made open banking in the U.K. a viable commercial proposition.
\n\u201cOne of the biggest use cases we have is the ability for people to pay their tax bills through their bank account without sharing any account details,\u201d King said. This feature bypasses traditional card systems, offering a secure and direct payment method. The U.K.\u2019s HM Revenue and Custom\u2019s agency (its version of the IRS) collected over \u00a33 billion at the beginning of the year from tax returns using this method.
\nAnother significant application is in the SMB sector, where open banking facilitates the integration of accounting packages, minimizing manual systems and supporting real-time cash flow management. King also pointed out the not-for-profit sector is also benefiting, with organizations like Salad Money leveraging open banking to offer secure loans to those traditionally underserved by the banking system.
\nIn the U.S. companies like Trustly are moving open banking forward, as are Visa and Mastercard with their API strategies. A PYMNTS Intelligence report, produced in conjunction with Trustly, found that nearly half of U.S. respondents are highly willing to use open banking\u00a0for at least one type of expense, including monthly bills, groceries or subscriptions.\u00a0Despite high interest in this method, it comes in third place behind paying via manual input of their account and routing numbers and using bill pay services offered by their banks. The study found open banking providers must confront an awareness gap: 44% of non-users said they were not familiar with the payment method.
\nLooking across the Atlantic, King suggested four cornerstone strategies to catalyze open banking in the U.S.:
\n1. Regulatory Framework: Compel data sharing among financial institutions to ensure participation and ecosystem viability.
\n2. Economic Model: Develop a model that makes data access economically sustainable, ensuring it supports innovation and compensates data providers appropriately.
\n3. Technical and Data Standards: Establish uniform standards to maintain service quality and reliability.
\n4. Broad Participation: Encourage wide participation across financial entities to enhance service accessibility and utility.
\n\u201cThese elements are crucial for creating a thriving open banking environment that benefits all stakeholders,\u201d King said.
\nBut while 10 million is a good number, the U.K.\u2019s roadmap to expand open banking usage to 20 million revolves around increasing participation across the economy and launching innovative payment methods like variable recurring payments. VRPs, by Open Banking U.K.\u2019s definition, are payments that let customers safely connect authorized payments providers to their bank accounts so that they can make payments on the customer\u2019s behalf, in line with agreed limits. VRPs offer more control and transparency than existing alternatives such as Direct Debit payments.
\n\u201cThese enhancements put more control into the hands of consumers, aligning with our goals of transparency and user empowerment,\u201d King said.
\nKing is optimistic about the role of Big Tech in open banking, citing Apple\u2019s integration of open banking features in the U.K. as a pioneering example. \u201cBig Tech\u2019s engagement will significantly boost user volumes, provided we maintain a strong commercial framework,\u201d she noted.
\nAs for ongoing challenges, King emphasizes the importance of continuous attention to fraud prevention and consumer protection, ensuring that as user numbers grow, the system remains secure and trustworthy.
\n\u201cIt’s not just about financial services, it\u2019s about fostering a data-sharing economy that benefits everyone. The U.K.\u2019s approach, combining mandated participation with voluntary contributions, creates a model that others, including the U.S., could learn from,\u201d King said.
\nShe also mentioned the support from the new Labour government in the U.K., expressing optimism about their enthusiasm for open banking and the broader implications of data-sharing policies. King highlighted that the Labour Party has already initiated a standalone bill for smart data and digital identity, which includes open banking, demonstrating their commitment to advancing these initiatives.
\nWith government support and strategic industry collaboration, King is confident that open banking in the U.K. will not only reach but potentially exceed the 20 million user milestone. \u201cWe\u2019re setting the foundation for a future where financial services are more inclusive, innovative, and securely integrated into our daily lives,\u201d King said.
\nThe post UK’s Open Banking Milestone: What 10 Million Users Mean for UK\u2019s Financial Services Future appeared first on PYMNTS.com.
\n", "content_text": "While open banking starts to gain traction in the U.S., across the pond the banking and payments sector is celebrating milestones. Last week it celebrated ten million active users. Is that a good number? Consider two facts before you answer. One: Ten million users is 15% of the entire U.K. population. If 15% of the U.S. population was using open banking, that would be about 50 million users. Two: Just 18 months ago that U.K. number was only six million open banking users. \nSo, is ten million a good number? PYMNTS put the question to Marion King, chairperson and trustee of the U.K.\u2019s Open Banking Ltd regulatory and advocacy group. And while she\u2019s certainly not resting on any laurels, she\u2019s satisfied that the government-mandated direction from the country\u2019s top-tier financial institutions to make data sharing and new payment options available will lead to more success in the short term. Part of that momentum, she told PYMNTS, will come from the next tier of banks and their business customers. \n\u201cIt\u2019s a very good number,\u201d King said. \u201cWe\u2019re seeing really strong double-digit growth. And I think this is just the beginning, because you need to remember that this is only measured from the nine banks that were involved in the Competition and Market Authority\u2019s initial open banking effort \u2014 so it could actually be higher. So double digit growth month on month is very positive, and I think it shows pent-up demand for secure data exchange as we move forward with all of this.\u201d\nMoving forward from the 10 million-user milestone started at a \u201cStrategy Summit\u201d on July 26 with several analysts, banks, neobanks and government regulatory agencies. At that meeting Andy Sacre, head of payments for U.K. neobank Monzo, told the audience that around six million of Monzo\u2019s customers have used open banking \u2014 sharing their data to get better credit card rates, paying their tax bill, or connecting other bank accounts to their Monzo app so they can see everything in one place. Those are just some of the use cases King believes have made open banking in the U.K. a viable commercial proposition. \n\u201cOne of the biggest use cases we have is the ability for people to pay their tax bills through their bank account without sharing any account details,\u201d King said. This feature bypasses traditional card systems, offering a secure and direct payment method. The U.K.\u2019s HM Revenue and Custom\u2019s agency (its version of the IRS) collected over \u00a33 billion at the beginning of the year from tax returns using this method.\nAnother significant application is in the SMB sector, where open banking facilitates the integration of accounting packages, minimizing manual systems and supporting real-time cash flow management. King also pointed out the not-for-profit sector is also benefiting, with organizations like Salad Money leveraging open banking to offer secure loans to those traditionally underserved by the banking system.\nLooking Across the Pond\nIn the U.S. companies like Trustly are moving open banking forward, as are Visa and Mastercard with their API strategies. A PYMNTS Intelligence report, produced in conjunction with Trustly, found that nearly half of U.S. respondents are highly willing to use open banking\u00a0for at least one type of expense, including monthly bills, groceries or subscriptions.\u00a0Despite high interest in this method, it comes in third place behind paying via manual input of their account and routing numbers and using bill pay services offered by their banks. The study found open banking providers must confront an awareness gap: 44% of non-users said they were not familiar with the payment method.\nLooking across the Atlantic, King suggested four cornerstone strategies to catalyze open banking in the U.S.:\n1. Regulatory Framework: Compel data sharing among financial institutions to ensure participation and ecosystem viability.\n2. Economic Model: Develop a model that makes data access economically sustainable, ensuring it supports innovation and compensates data providers appropriately.\n3. Technical and Data Standards: Establish uniform standards to maintain service quality and reliability.\n4. Broad Participation: Encourage wide participation across financial entities to enhance service accessibility and utility.\n\u201cThese elements are crucial for creating a thriving open banking environment that benefits all stakeholders,\u201d King said.\nBut while 10 million is a good number, the U.K.\u2019s roadmap to expand open banking usage to 20 million revolves around increasing participation across the economy and launching innovative payment methods like variable recurring payments. VRPs, by Open Banking U.K.\u2019s definition, are payments that let customers safely connect authorized payments providers to their bank accounts so that they can make payments on the customer\u2019s behalf, in line with agreed limits. VRPs offer more control and transparency than existing alternatives such as Direct Debit payments.\n\u201cThese enhancements put more control into the hands of consumers, aligning with our goals of transparency and user empowerment,\u201d King said.\nKing is optimistic about the role of Big Tech in open banking, citing Apple\u2019s integration of open banking features in the U.K. as a pioneering example. \u201cBig Tech\u2019s engagement will significantly boost user volumes, provided we maintain a strong commercial framework,\u201d she noted.\nAs for ongoing challenges, King emphasizes the importance of continuous attention to fraud prevention and consumer protection, ensuring that as user numbers grow, the system remains secure and trustworthy.\n\u201cIt’s not just about financial services, it\u2019s about fostering a data-sharing economy that benefits everyone. The U.K.\u2019s approach, combining mandated participation with voluntary contributions, creates a model that others, including the U.S., could learn from,\u201d King said. \nShe also mentioned the support from the new Labour government in the U.K., expressing optimism about their enthusiasm for open banking and the broader implications of data-sharing policies. King highlighted that the Labour Party has already initiated a standalone bill for smart data and digital identity, which includes open banking, demonstrating their commitment to advancing these initiatives. \nWith government support and strategic industry collaboration, King is confident that open banking in the U.K. will not only reach but potentially exceed the 20 million user milestone. \u201cWe\u2019re setting the foundation for a future where financial services are more inclusive, innovative, and securely integrated into our daily lives,\u201d King said. \nThe post UK’s Open Banking Milestone: What 10 Million Users Mean for UK\u2019s Financial Services Future appeared first on PYMNTS.com.", "date_published": "2024-07-29T04:00:21-04:00", "date_modified": "2024-07-28T23:03:19-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/open-banking-UK.jpg", "tags": [ "EMEA", "Featured News", "international", "Marion King", "News", "Open Banking", "PYMNTS News", "U.K.", "United Kingdom", "Banking" ] }, { "id": "https://www.pymnts.com/?p=2017091", "url": "https://www.pymnts.com/news/banking/2024/three-big-shifts-for-banking-from-pymnts-intelligences-embedded-finance-and-baas-report/", "title": "Three Big Shifts for Banking From PYMNTS Intelligence\u2019s Embedded Finance and BaaS Report", "content_html": "As the financial services landscape rapidly evolves, traditional banks and financial institutions (FIs) find themselves at a pivotal juncture. The emergence of embedded finance and banking-as-a-service (BaaS) is revolutionizing the industry, pushing banks to adapt or risk being outpaced by nimble competitors from the Big Tech and FinTech sectors.
\nA recent PYMNTS Intelligence report, \u201cEmbedded Finance and BaaS: From Marketing Buzz to Banking Bedrock,\u201d in collaboration with NCR Voyix, shows the integration of application programming interfaces (APIs) is transforming financial services by embedding them into daily digital interactions.
\nWith 41% of financial institutions adopting embedded finance solutions and 48% enhancing their BaaS capabilities, banks are responding to digital demands and competitive pressures. Despite this progress, challenges such as outdated systems, regulatory hurdles, and security risks remain barriers.
\nDespite the potential, only 79% of global banks foresee banking becoming deeply integrated into daily activities, indicating that many are still in the initial stages of adopting these technologies.
\nIssues such as legacy systems, fragmented technological infrastructure, and evolving regulatory requirements can slow progress. The growing adoption of these technologies reflects a broader industry shift toward more agile and integrated financial services, positioning banks to better compete with emerging digital and FinTech players.
\nIn the U.K., two-thirds of banking executives cite over 10 types of barriers, with a notable absence of a unified internal strategy being a major concern.
\nEuropean FIs are also grappling with inadequate API security measures, with only 24% having consolidated security solutions for their web and API interfaces. These systemic and security-related issues highlight the complexities banks must navigate to successfully implement modern, cloud-based systems.
\nAdditionally, the rapid pace of technological change and evolving consumer expectations further complicates the transition, requiring banks to balance innovation with robust security and regulatory compliance.
\nStrategic partnerships with FinTechs are emerging as a crucial strategy for banks and community credit unions to innovate and overcome digital transformation hurdles.
\nExamples include HSBC UK\u2019s integration of Ember\u2019s tax services via APIs, and EBizCharge\u2019s partnership with Lendica to streamline SMB credit access.\u00a0
\nThese partnerships enable banks to tap into specialized expertise and innovative solutions that may be beyond their in-house capabilities. By leveraging FinTechs\u2019 agility and technological advancements, traditional institutions can accelerate their digital transformation journeys and offer more tailored, user-centric services. This approach also helps mitigate the risks associated with in-house development, such as prohibitive costs and extended time frames.
\nThe evolving landscape of BaaS is facing shifts as regulatory scrutiny intensifies, the focus sharpens on core banking functions, and the sector experiences a wave of consolidation, according to payments executives. This trifecta is reshaping the industry and setting the stage for a more refined and robust BaaS ecosystem.
\n\u201cThe regulators are now awake,\u201d\u00a0Thredd CEO\u00a0Jim McCarthy\u00a0told PYMNTS. \u201cAt the end of the day, it\u2019s the banks that sponsor these banking-as-a-service programs that will be the ones that are impacted \u2026 so they will take this all quite seriously.\u201d
\nAmias Gerety, a partner at\u00a0QED Investors, added to PYMNTS: \u201cIf you want your business to survive, you have to figure all this out.\u201d
\nMeanwhile, during a conversation for the \u201cWhat\u2019s Next in Payments\u201d series, Ingo Payments CEO\u00a0Drew Edwards\u00a0told PYMNTS\u2019 CEO\u00a0Karen Webster, \u201cregulatory orders and regulatory scrutiny have taken a front seat in the industry. We\u2019ve gone through a bunch of these cycles over the last 23 years, but this regulatory environment is back to where the bank sponsorship [model] is getting tighter and more difficult.\u201d
\nThe post Three Big Shifts for Banking From PYMNTS Intelligence\u2019s Embedded Finance and BaaS Report appeared first on PYMNTS.com.
\n", "content_text": "As the financial services landscape rapidly evolves, traditional banks and financial institutions (FIs) find themselves at a pivotal juncture. The emergence of embedded finance and banking-as-a-service (BaaS) is revolutionizing the industry, pushing banks to adapt or risk being outpaced by nimble competitors from the Big Tech and FinTech sectors.\nA recent PYMNTS Intelligence report, \u201cEmbedded Finance and BaaS: From Marketing Buzz to Banking Bedrock,\u201d in collaboration with NCR Voyix, shows the integration of application programming interfaces (APIs) is transforming financial services by embedding them into daily digital interactions. \nWith 41% of financial institutions adopting embedded finance solutions and 48% enhancing their BaaS capabilities, banks are responding to digital demands and competitive pressures. Despite this progress, challenges such as outdated systems, regulatory hurdles, and security risks remain barriers. \nDespite the potential, only 79% of global banks foresee banking becoming deeply integrated into daily activities, indicating that many are still in the initial stages of adopting these technologies.\nObstacles to Digital Transformation\nIssues such as legacy systems, fragmented technological infrastructure, and evolving regulatory requirements can slow progress. The growing adoption of these technologies reflects a broader industry shift toward more agile and integrated financial services, positioning banks to better compete with emerging digital and FinTech players.\nIn the U.K., two-thirds of banking executives cite over 10 types of barriers, with a notable absence of a unified internal strategy being a major concern. \nEuropean FIs are also grappling with inadequate API security measures, with only 24% having consolidated security solutions for their web and API interfaces. These systemic and security-related issues highlight the complexities banks must navigate to successfully implement modern, cloud-based systems.\nAdditionally, the rapid pace of technological change and evolving consumer expectations further complicates the transition, requiring banks to balance innovation with robust security and regulatory compliance.\nStrategic FinTech Partnerships\nStrategic partnerships with FinTechs are emerging as a crucial strategy for banks and community credit unions to innovate and overcome digital transformation hurdles. \nExamples include HSBC UK\u2019s integration of Ember\u2019s tax services via APIs, and EBizCharge\u2019s partnership with Lendica to streamline SMB credit access.\u00a0\nThese partnerships enable banks to tap into specialized expertise and innovative solutions that may be beyond their in-house capabilities. By leveraging FinTechs\u2019 agility and technological advancements, traditional institutions can accelerate their digital transformation journeys and offer more tailored, user-centric services. This approach also helps mitigate the risks associated with in-house development, such as prohibitive costs and extended time frames. \nThe evolving landscape of BaaS is facing shifts as regulatory scrutiny intensifies, the focus sharpens on core banking functions, and the sector experiences a wave of consolidation, according to payments executives. This trifecta is reshaping the industry and setting the stage for a more refined and robust BaaS ecosystem.\n\u201cThe regulators are now awake,\u201d\u00a0Thredd CEO\u00a0Jim McCarthy\u00a0told PYMNTS. \u201cAt the end of the day, it\u2019s the banks that sponsor these banking-as-a-service programs that will be the ones that are impacted \u2026 so they will take this all quite seriously.\u201d\nAmias Gerety, a partner at\u00a0QED Investors, added to PYMNTS: \u201cIf you want your business to survive, you have to figure all this out.\u201d\nMeanwhile, during a conversation for the \u201cWhat\u2019s Next in Payments\u201d series, Ingo Payments CEO\u00a0Drew Edwards\u00a0told PYMNTS\u2019 CEO\u00a0Karen Webster, \u201cregulatory orders and regulatory scrutiny have taken a front seat in the industry. We\u2019ve gone through a bunch of these cycles over the last 23 years, but this regulatory environment is back to where the bank sponsorship [model] is getting tighter and more difficult.\u201d\nThe post Three Big Shifts for Banking From PYMNTS Intelligence\u2019s Embedded Finance and BaaS Report appeared first on PYMNTS.com.", "date_published": "2024-07-26T04:00:28-04:00", "date_modified": "2024-07-25T19:47:21-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/embedded-finance-baas.jpg", "tags": [ "Amias Gerety", "APIs", "application programming interfaces", "Baas", "banking", "Banking-as-a-Service", "digital transformation", "Drew Edwards", "embedded finance", "Featured News", "FinTechs", "Ingo Payments", "jim mccarthy", "NCR Voyix", "News", "PYMNTS Intelligence", "PYMNTS News", "QED Investors", "The Data Point", "Thredd", "Banking" ] }, { "id": "https://www.pymnts.com/?p=2016368", "url": "https://www.pymnts.com/news/banking/2024/wells-fargo-wont-renew-naming-rights-on-philadelphia-sports-arena/", "title": "Wells Fargo Won\u2019t Renew Naming Rights on Philadelphia Sports Arena", "content_html": "The Wells Fargo Center sports arena in Philadelphia will have a new name late next year.
\nThe bank\u2019s naming rights contract with the arena expires in August 2025, and Wells Fargo will not review it, Bloomberg reported Wednesday (July 24).
\n\u201cWells Fargo regularly reviews and adjusts our overall sponsorship strategy,\u201d the bank said in the report. \u201cAs such, we have made the business decision not to renew the naming rights contract to the Wells Fargo Center.\u201d
\nThe bank acquired the sponsorship as part of its merger with Wachovia bank a decade ago, according to the report.
\nWells Fargo has ended some other sponsorships as well. Last year, it took its name off a PGA Tour event. This year, it did the same with an office tower\u00a0in Jacksonville, Florida, the report said.
\nThe Wells Fargo Center, which is the home of the Flyers hockey team and the 76ers basketball team, is owned by media and telecom giant Comcast, per the report.
\n\u201cWe are grateful for our long-standing relationship with Wells Fargo and look forward to working with a new partner as we continue to bring the best sports and entertainment experience to fans in the Philadelphia region,\u201d Comcast\u2019s Spectacor unit said in the report.
\nThis report comes at a time when Wells Fargo, like other financial institutions, is navigating an ongoing digital shift and a challenging macro environment.
\nDuring a July 12 earnings call, Wells Fargo CEO Charlie Scharf said: \u201cOur efforts to transform Wells Fargo were reflected in our second quarter financial performance. However, the economy is slowing and there are continued headwinds from still elevated inflation.\u201d
\nIn terms of consumer spending and credit trends, Wells Fargo also said that it has seen improvements in the metrics on card performance that have come in tandem with credit tightening.
\nThe bank\u2019s 30-plus-day delinquency rate for the card segment was 2.7% in the June period, where that rate had been 2.3% a year ago. It moved downward from the 2.9% rate logged in the first quarter.
\nThe post Wells Fargo Won\u2019t Renew Naming Rights on Philadelphia Sports Arena appeared first on PYMNTS.com.
\n", "content_text": "The Wells Fargo Center sports arena in Philadelphia will have a new name late next year.\nThe bank\u2019s naming rights contract with the arena expires in August 2025, and Wells Fargo will not review it, Bloomberg reported Wednesday (July 24).\n\u201cWells Fargo regularly reviews and adjusts our overall sponsorship strategy,\u201d the bank said in the report. \u201cAs such, we have made the business decision not to renew the naming rights contract to the Wells Fargo Center.\u201d\nThe bank acquired the sponsorship as part of its merger with Wachovia bank a decade ago, according to the report.\nWells Fargo has ended some other sponsorships as well. Last year, it took its name off a PGA Tour event. This year, it did the same with an office tower\u00a0in Jacksonville, Florida, the report said.\nThe Wells Fargo Center, which is the home of the Flyers hockey team and the 76ers basketball team, is owned by media and telecom giant Comcast, per the report.\n\u201cWe are grateful for our long-standing relationship with Wells Fargo and look forward to working with a new partner as we continue to bring the best sports and entertainment experience to fans in the Philadelphia region,\u201d Comcast\u2019s Spectacor unit said in the report.\nThis report comes at a time when Wells Fargo, like other financial institutions, is navigating an ongoing digital shift and a challenging macro environment.\nDuring a July 12 earnings call, Wells Fargo CEO Charlie Scharf said: \u201cOur efforts to transform Wells Fargo were reflected in our second quarter financial performance. However, the economy is slowing and there are continued headwinds from still elevated inflation.\u201d\nIn terms of consumer spending and credit trends, Wells Fargo also said that it has seen improvements in the metrics on card performance that have come in tandem with credit tightening.\nThe bank\u2019s 30-plus-day delinquency rate for the card segment was 2.7% in the June period, where that rate had been 2.3% a year ago. It moved downward from the 2.9% rate logged in the first quarter.\nThe post Wells Fargo Won\u2019t Renew Naming Rights on Philadelphia Sports Arena appeared first on PYMNTS.com.", "date_published": "2024-07-24T19:34:51-04:00", "date_modified": "2024-07-24T19:34:51-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/wells-fargo-center.jpg", "tags": [ "76ers", "banking", "charlie scharf", "Comcast", "Flyers", "naming rights", "News", "Philadelphia sports", "PYMNTS News", "Spectacor", "wells fargo", "Wells Fargo Center", "What's Hot", "Banking" ] }, { "id": "https://www.pymnts.com/?p=2014648", "url": "https://www.pymnts.com/news/banking/2024/emirates-nbd-says-middle-easts-digital-first-approach-forces-treasury-management-change/", "title": "Emirates NBD Says Middle East\u2019s Digital-First Approach Forces Treasury Management Change", "content_html": "The payments landscape is a global one, meaning winning innovations have boundless room to scale.
\nIt also means that geographical positioning can help with strategically driving forward various innovations.
\n\u201cThe Middle East has always been a very unique trade corridor, placed right in the middle of the world, which facilitates transactions across the West and the East,\u201d Anith Daniel, head transaction-banking at Emirates NBD, told PYMNTS.
\nHe added that the unique position of the UAE as a trade hub has helped it act as an engine in driving advancements in payment technologies, as well as play a role in defining the rising importance of corporate treasuries.
\nHistorically, investment in treasury and finance management was not a priority for many companies and ranked relatively low on the capital expenditure totem pole. However, the post-COVID-19 environment has underscored the critical role of liquidity management and efficiency.
\nTreasurers are now more focused on adopting advanced technologies such as SWIFT SCORE (Standardised Corporate Environment) APIs and sophisticated front-end systems to enhance liquidity management and streamline operations, said Daniel.
\nAs he explained, this shift is also influencing banks, which are repositioning themselves to offer more technologically advanced cash management solutions.
\n\u201cMost of our conversations, especially when we talk about APIs, don\u2019t just happen with the treasury or the finance managers; they actually happen with the CIOs and the CTOs as well, because they have to get convinced,\u201d Daniel said, noting that he anticipates a significant uptick in the space as corporate treasuries seek greater efficiency and integration with their enterprise resource planning (ERP) systems.
\nThe push toward single-platform, bank-agnostic solutions will likely drive the adoption of APIs among corporates in the near future, he added.
\nAccording to Daniel, the UAE\u2019s robust infrastructure, including world-class airports and ports, facilitates seamless trade and business operations. This strategic positioning has attracted a diverse array of businesses and nationalities to the UAE, creating a vibrant ecosystem where cross-border transactions are the norm.
\nThe UAE government\u2019s own supportive stance on business operations, including streamlined government approvals and advanced infrastructure, has been instrumental in fostering this growth.
\nAs a result, the government\u2019s initiatives have significantly propelled the growth of digitally focused FinTech companies, virtual asset service providers and crypto companies in the region. This digital-first approach has created an environment where new FinTech entrants can easily set up and scale their operations.
\n\u201cEvery government department is monitored on their digital effectiveness,\u201d Daniel said.
\nThe focus on digital services extends to all facets of the government and banking sectors, ensuring that businesses and individuals can conduct their affairs with ease. This has not only enhanced the efficiency of business operations but also attracted FinTech innovators looking to leverage the UAE\u2019s conducive environment for digital finance.
\n\u201cFinTechs can start and ramp up quite easily \u2026 and from the banking side, we get to see what they want \u2014 we learn from their experiences in other parts of the world, and then cater to what they specifically need from our markets and build based on their requirements,\u201d Daniel explained.
\nWhen it comes to payments, the priorities and requirements have remained consistent: speed, cost-effectiveness, full-value transfers, beneficiary validation and security.
\n\u201cIt\u2019s been a hub of ever-growing payments growth,\u201d Daniel said, emphasizing that customers\u2019 expectations for instantaneous payments, minimal charges and secure transactions drive the payments agenda.
\nThe rise of regional payment networks and the growing adoption of tokenization are seen as pivotal in meeting the expectations of modern end-users.
\nTokenization, in particular, is viewed by Daniel as the next evolutionary step in payment technology. It promises 24/7 transaction capabilities and finality of payments, addressing some of the limitations of traditional banking rails. While still in its nascent stages, he added that tokenization is a key area of investment for forward-thinking banks in the region.
\n\u201cWe\u2019re nowhere close to getting tokenization at scale, but we think it is likely to be the future in the next three to five years,\u201d Daniel said.
\nThe integration of artificial intelligence (AI) in banking and payments is another major trend.
\nDaniel discussed the establishment of an advanced analytics center of excellence at Emirates NBD, which focuses on leveraging data and AI for insights and efficiency. While regulatory constraints around data localization pose challenges, the bank is committed to exploring the potential of AI and machine learning in areas such as fraud prevention and customer experience enhancement.
\nInstant payments are a game-changer for the payments industry, providing immediate transaction finality and enhancing the customer experience.
\n\u201cBank customers really look forward to having finality. Meaning, if I make a payment, I need to be aware that it\u2019s reached the beneficiary that I\u2019m intending it for,\u201d Daniel said. \u201cPayments is usually a black hole: they initiate, then they don\u2019t know what happened with that payment till somebody confirms that yes, the beneficiaries got it.\u201d
\n\u201cInstant means different things to different people and different markets. Instant is immediate, or it could be up to one hour after, three hours is also deemed as instant in some markets, or it\u2019s near instant,\u201d he added, noting that the eventual goal is to facilitate seamless cross-border transactions by integrating with other countries\u2019 instant payment networks.
\nThe post Emirates NBD Says Middle East\u2019s Digital-First Approach Forces Treasury Management Change appeared first on PYMNTS.com.
\n", "content_text": "The payments landscape is a global one, meaning winning innovations have boundless room to scale.\nIt also means that geographical positioning can help with strategically driving forward various innovations.\n\u201cThe Middle East has always been a very unique trade corridor, placed right in the middle of the world, which facilitates transactions across the West and the East,\u201d Anith Daniel, head transaction-banking at Emirates NBD, told PYMNTS.\nHe added that the unique position of the UAE as a trade hub has helped it act as an engine in driving advancements in payment technologies, as well as play a role in defining the rising importance of corporate treasuries.\nHistorically, investment in treasury and finance management was not a priority for many companies and ranked relatively low on the capital expenditure totem pole. However, the post-COVID-19 environment has underscored the critical role of liquidity management and efficiency.\nTreasurers are now more focused on adopting advanced technologies such as SWIFT SCORE (Standardised Corporate Environment) APIs and sophisticated front-end systems to enhance liquidity management and streamline operations, said Daniel.\nAs he explained, this shift is also influencing banks, which are repositioning themselves to offer more technologically advanced cash management solutions.\n\u201cMost of our conversations, especially when we talk about APIs, don\u2019t just happen with the treasury or the finance managers; they actually happen with the CIOs and the CTOs as well, because they have to get convinced,\u201d Daniel said, noting that he anticipates a significant uptick in the space as corporate treasuries seek greater efficiency and integration with their enterprise resource planning (ERP) systems.\nThe push toward single-platform, bank-agnostic solutions will likely drive the adoption of APIs among corporates in the near future, he added.\nEmbracing Digitization and Supporting FinTechs as Catalysts for Growth\nAccording to Daniel, the UAE\u2019s robust infrastructure, including world-class airports and ports, facilitates seamless trade and business operations. This strategic positioning has attracted a diverse array of businesses and nationalities to the UAE, creating a vibrant ecosystem where cross-border transactions are the norm.\nThe UAE government\u2019s own supportive stance on business operations, including streamlined government approvals and advanced infrastructure, has been instrumental in fostering this growth.\nAs a result, the government\u2019s initiatives have significantly propelled the growth of digitally focused FinTech companies, virtual asset service providers and crypto companies in the region. This digital-first approach has created an environment where new FinTech entrants can easily set up and scale their operations.\n\u201cEvery government department is monitored on their digital effectiveness,\u201d Daniel said.\nThe focus on digital services extends to all facets of the government and banking sectors, ensuring that businesses and individuals can conduct their affairs with ease. This has not only enhanced the efficiency of business operations but also attracted FinTech innovators looking to leverage the UAE\u2019s conducive environment for digital finance.\n\u201cFinTechs can start and ramp up quite easily \u2026 and from the banking side, we get to see what they want \u2014 we learn from their experiences in other parts of the world, and then cater to what they specifically need from our markets and build based on their requirements,\u201d Daniel explained.\nWhen it comes to payments, the priorities and requirements have remained consistent: speed, cost-effectiveness, full-value transfers, beneficiary validation and security.\n\u201cIt\u2019s been a hub of ever-growing payments growth,\u201d Daniel said, emphasizing that customers\u2019 expectations for instantaneous payments, minimal charges and secure transactions drive the payments agenda.\nThe Future of Payments in the Middle East\nThe rise of regional payment networks and the growing adoption of tokenization are seen as pivotal in meeting the expectations of modern end-users.\nTokenization, in particular, is viewed by Daniel as the next evolutionary step in payment technology. It promises 24/7 transaction capabilities and finality of payments, addressing some of the limitations of traditional banking rails. While still in its nascent stages, he added that tokenization is a key area of investment for forward-thinking banks in the region.\n\u201cWe\u2019re nowhere close to getting tokenization at scale, but we think it is likely to be the future in the next three to five years,\u201d Daniel said.\nThe integration of artificial intelligence (AI) in banking and payments is another major trend.\nDaniel discussed the establishment of an advanced analytics center of excellence at Emirates NBD, which focuses on leveraging data and AI for insights and efficiency. While regulatory constraints around data localization pose challenges, the bank is committed to exploring the potential of AI and machine learning in areas such as fraud prevention and customer experience enhancement.\nInstant payments are a game-changer for the payments industry, providing immediate transaction finality and enhancing the customer experience.\n\u201cBank customers really look forward to having finality. Meaning, if I make a payment, I need to be aware that it\u2019s reached the beneficiary that I\u2019m intending it for,\u201d Daniel said. \u201cPayments is usually a black hole: they initiate, then they don\u2019t know what happened with that payment till somebody confirms that yes, the beneficiaries got it.\u201d\n\u201cInstant means different things to different people and different markets. Instant is immediate, or it could be up to one hour after, three hours is also deemed as instant in some markets, or it\u2019s near instant,\u201d he added, noting that the eventual goal is to facilitate seamless cross-border transactions by integrating with other countries\u2019 instant payment networks.\nThe post Emirates NBD Says Middle East\u2019s Digital-First Approach Forces Treasury Management Change appeared first on PYMNTS.com.", "date_published": "2024-07-23T04:00:51-04:00", "date_modified": "2024-07-24T22:39:00-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/Emirates-NBD.jpg", "tags": [ "Anith Daniel", "B2B", "B2B Payments", "banking", "Commercial Banking", "commercial payments", "Connected Economy", "Digital Banking", "digital first banking", "digital transformation", "EMEA", "Emirates NBD", "Featured News", "financial management", "FinTechs", "Middle East", "News", "PYMNTS News", "treasury management", "UAE", "working capital", "Banking" ] }, { "id": "https://www.pymnts.com/?p=2014165", "url": "https://www.pymnts.com/news/banking/2024/occ-banks-unprepared-for-cyberattacks-and-other-risks/", "title": "OCC: Banks Unprepared for Cyberattacks and Other Risks", "content_html": "A U.S. banking regulator has reportedly determined that many lenders aren\u2019t prepared for risks.
\nAs Bloomberg News reported Sunday (July 21), a confidential assessment by the Office of the Comptroller of the Currency (OCC) said 11 of the 22 large banks it oversees have \u201cinsufficient\u201d or \u201cweak\u201d management of so-called operational risk, whether that means\u00a0 cyberattacks or mistakes by employees.
\nThe report, citing sources familiar with the matter, said this determination led the OCC to rate the banks at three or lower on a five-point management scale, a sign that U.S. regulators are worried about banking risks after three high-profile failures in 2023.
\nThe OCC\u2019s operational risk assessments are part of a larger scoring metric known as the CAMELS rating, which stands for six measures of operations: capital adequacy, asset quality, management, earnings, liquidity and sensitivity to market risk.\u00a0
\nAs noted here last year, the \u201cdowngrading of banks\u2019 CAMELS rating can have far-reaching implications. \u2026 It affects banks\u2019 deposit insurance premiums, audits and their ability to engage in certain activities. Downgraded lenders may be barred from making deals and denied emergency liquidity from the Federal Reserve.”\u00a0
\nThe report comes amid a period of heightened concern over cybersecurity, exacerbated last week by what has been described as \u201cthe worst IT outage in history,\u201d in which a single software update issued by security firm CrowdStrike inadvertently crippled Microsoft\u2019s systems, impacting the computer systems of more than half of all Fortune 500 companies.
\nDays earlier, an hourslong outage at Swift affected the Bank of England and the European Central Bank, disrupting high-value transactions across Europe, with the European Central Bank reporting that its settlements system was affected.
\n\u201cAs the dust settles, the focus worldwide is shifting towards learning from these incidents and strengthening the resilience of global IT infrastructure to withstand future challenges,\u201d PYMNTS wrote last week. \u201cAt the same time, businesses and organizations are reassessing their reliance on centralized cloud services and considering diversifying their IT infrastructure to mitigate the risk of similar disruptions.\u201d
\nThat\u2019s to say nothing of the recent wave of intentional hacks by cybercriminals, a situation that \u2014 as PYMNTS wrote recently \u2014 spotlights a need for a shift \u201cfrom a purely preventive approach\u201d\u00a0to one that balances prevention with robust response and recovery.\u00a0
\n\u201cIt is essentially an adversarial game; criminals are out to make money, and the [business] community needs to curtail that activity. What\u2019s different now is that both sides are armed with some really impressive technology,\u201d Michael Shearer, chief solutions officer at Hawk AI, said in an interview with PYMNTS.
\n\u00a0
\nThe post OCC: Banks Unprepared for Cyberattacks and Other Risks appeared first on PYMNTS.com.
\n", "content_text": "A U.S. banking regulator has reportedly determined that many lenders aren\u2019t prepared for risks.\nAs Bloomberg News reported Sunday (July 21), a confidential assessment by the Office of the Comptroller of the Currency (OCC) said 11 of the 22 large banks it oversees have \u201cinsufficient\u201d or \u201cweak\u201d management of so-called operational risk, whether that means\u00a0 cyberattacks or mistakes by employees.\nThe report, citing sources familiar with the matter, said this determination led the OCC to rate the banks at three or lower on a five-point management scale, a sign that U.S. regulators are worried about banking risks after three high-profile failures in 2023.\nThe OCC\u2019s operational risk assessments are part of a larger scoring metric known as the CAMELS rating, which stands for six measures of operations: capital adequacy, asset quality, management, earnings, liquidity and sensitivity to market risk.\u00a0\nAs noted here last year, the \u201cdowngrading of banks\u2019 CAMELS rating can have far-reaching implications. \u2026 It affects banks\u2019 deposit insurance premiums, audits and their ability to engage in certain activities. Downgraded lenders may be barred from making deals and denied emergency liquidity from the Federal Reserve.”\u00a0\nThe report comes amid a period of heightened concern over cybersecurity, exacerbated last week by what has been described as \u201cthe worst IT outage in history,\u201d in which a single software update issued by security firm CrowdStrike inadvertently crippled Microsoft\u2019s systems, impacting the computer systems of more than half of all Fortune 500 companies.\nDays earlier, an hourslong outage at Swift affected the Bank of England and the European Central Bank, disrupting high-value transactions across Europe, with the European Central Bank reporting that its settlements system was affected.\n\u201cAs the dust settles, the focus worldwide is shifting towards learning from these incidents and strengthening the resilience of global IT infrastructure to withstand future challenges,\u201d PYMNTS wrote last week. \u201cAt the same time, businesses and organizations are reassessing their reliance on centralized cloud services and considering diversifying their IT infrastructure to mitigate the risk of similar disruptions.\u201d\nThat\u2019s to say nothing of the recent wave of intentional hacks by cybercriminals, a situation that \u2014 as PYMNTS wrote recently \u2014 spotlights a need for a shift \u201cfrom a purely preventive approach\u201d\u00a0to one that balances prevention with robust response and recovery.\u00a0\n\u201cIt is essentially an adversarial game; criminals are out to make money, and the [business] community needs to curtail that activity. What\u2019s different now is that both sides are armed with some really impressive technology,\u201d Michael Shearer, chief solutions officer at Hawk AI, said in an interview with PYMNTS.\n\u00a0\nThe post OCC: Banks Unprepared for Cyberattacks and Other Risks appeared first on PYMNTS.com.", "date_published": "2024-07-21T19:51:56-04:00", "date_modified": "2024-07-21T19:53:29-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/OCC-1.jpg", "tags": [ "bank regulation", "banking", "banking risks", "Banks", "CAMELS rating", "cyberattacks", "Cybersecurity", "News", "OC&C", "Office of the Comptroller of the Currency", "PYMNTS News", "What's Hot", "Banking" ] }, { "id": "https://www.pymnts.com/?p=2013441", "url": "https://www.pymnts.com/news/banking/2024/european-central-bank-swift-outage-affected-real-time-gross-settlement-system/", "title": "European Central Bank: Swift Outage Affected Real-Time Gross Settlement System", "content_html": "The outage at Swift that affected the Bank of England also impacted the European Central Bank.
\nThe outage, which lasted for several hours on Thursday (July 18), disrupted high-value transactions across Europe, the Financial Times (FT) reported Thursday.
\nThe European Central Bank said its settlements system was affected by the Swift outage, according to the report.
\nSwift\u2019s problem caused less trouble for the European Central Bank than for the Bank of England because eurozone banks are less likely than U.K. ones to rely on the system, per the report.
\nIn an operational status page on its website, the European Central Bank said that the cutoff times of some operations of its real-time gross settlement system (RTGS), T2, were delayed Thursday due to \u201cthe earlier issue impacting Swift.\u201d
\nT2 settles payments related to the monetary policy operations of the Eurosystem and bank-to-bank and commercial transactions, according to the bank\u2019s website.
\nSwift posted an operational update on Thursday that said that all Swift services were operating as normal after experiencing an operational incident that delayed the processing of services that it provides to some of its customers earlier in the day. It added that the incident \u201cwas not cyber-related.\u201d
\n\u201cWe are in contact with our customers to support them in mitigating the adverse consequences on their operations and in turn on their own customers\u2019 transactions,\u201d Swift said in the update. \u201cSwift takes any operational incident extremely seriously, is conducting a full investigation and apologizes for the disruption caused.\u201d
\nAs PYMNTS reported earlier Thursday, the Bank of England said that a global payments issue had been resolved after affecting the United Kingdom\u2019s high-value payment system, CHAPS, and delaying house purchases and other high-value and time-sensitive payments.
\nThe bank added that retail payments systems for cash points, card payments and bank transfers were unaffected by the payments issue.
\n\u201cWe are pleased to confirm that the third-party supplier has restored service following their earlier issues, and CHAPS payments are settling as normal,\u201d the Bank of England said in a Thursday press release. \u201cWe expected that all payments received by the bank today will be settled by the end of the day.\u201d
\nThe post European Central Bank: Swift Outage Affected Real-Time Gross Settlement System appeared first on PYMNTS.com.
\n", "content_text": "The outage at Swift that affected the Bank of England also impacted the European Central Bank.\nThe outage, which lasted for several hours on Thursday (July 18), disrupted high-value transactions across Europe, the Financial Times (FT) reported Thursday.\nThe European Central Bank said its settlements system was affected by the Swift outage, according to the report.\nSwift\u2019s problem caused less trouble for the European Central Bank than for the Bank of England because eurozone banks are less likely than U.K. ones to rely on the system, per the report.\nIn an operational status page on its website, the European Central Bank said that the cutoff times of some operations of its real-time gross settlement system (RTGS), T2, were delayed Thursday due to \u201cthe earlier issue impacting Swift.\u201d\nT2 settles payments related to the monetary policy operations of the Eurosystem and bank-to-bank and commercial transactions, according to the bank\u2019s website.\nSwift posted an operational update on Thursday that said that all Swift services were operating as normal after experiencing an operational incident that delayed the processing of services that it provides to some of its customers earlier in the day. It added that the incident \u201cwas not cyber-related.\u201d\n\u201cWe are in contact with our customers to support them in mitigating the adverse consequences on their operations and in turn on their own customers\u2019 transactions,\u201d Swift said in the update. \u201cSwift takes any operational incident extremely seriously, is conducting a full investigation and apologizes for the disruption caused.\u201d\nAs PYMNTS reported earlier Thursday, the Bank of England said that a global payments issue had been resolved after affecting the United Kingdom\u2019s high-value payment system, CHAPS, and delaying house purchases and other high-value and time-sensitive payments.\nThe bank added that retail payments systems for cash points, card payments and bank transfers were unaffected by the payments issue.\n\u201cWe are pleased to confirm that the third-party supplier has restored service following their earlier issues, and CHAPS payments are settling as normal,\u201d the Bank of England said in a Thursday press release. \u201cWe expected that all payments received by the bank today will be settled by the end of the day.\u201d\nThe post European Central Bank: Swift Outage Affected Real-Time Gross Settlement System appeared first on PYMNTS.com.", "date_published": "2024-07-18T21:20:51-04:00", "date_modified": "2024-07-18T21:20:51-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/SWIFT.jpg", "tags": [ "Bank of England", "banking", "european central bank", "News", "PYMNTS News", "real-time gross settlement system", "settlements system", "SWIFT", "Swift outage", "T2", "What's Hot", "Banking" ] }, { "id": "https://www.pymnts.com/?p=2012572", "url": "https://www.pymnts.com/news/banking/2024/barclays-us-consumer-bank-launches-savings-product-with-tiered-rates/", "title": "Barclays US Consumer Bank Launches Savings Product With Tiered Rates", "content_html": "Barclays US Consumer Bank has launched a savings product that provides higher rates on higher balances.
\nThe new Barclays Tiered Savings product aims to offer customers additional value and bolster the bank\u2019s deposits portfolio, the company said in a Tuesday (July 16) press release.
\n\u201cOur goal is to offer pricing flexibility that rewards higher balance customers who want the convenience of saving online with competitive interest rates,\u201d James Capolongo, head of banking at Barclays US Consumer Bank, said in the release.
\nThe product offers tiered pricing and makes it simpler for customers to earn higher rates and reach their financial goals, according to the release.
\nBarclays\u2019 online experience allows consumers to open an account, deposit funds or checks remotely, view account balances, and link to other U.S. financial institutions, per the release.
\nHaving high-yield savings accounts offers banks a way to cross-pollinate revenue streams as diverse as credit cards and investment products, PYMNTS reported in 2022. The net interest margin can help fund those initiatives.
\nFinTechs, too, have found that high-yield accounts help them unlock a relatively cheaper source of capital. Having cheaper capital in hand can in turn boost balance sheet strength and fund operations as deposits reach critical mass.
\nPYMNTS Intelligence has found that savings accounts may be a key battleground in the competition between banks and neobanks.
\nTwenty-five percent of consumers would switch from their banks for savings accounts, according to \u201cPersonalization Beyond Traditional Banking to Build Financial Wealth,\u201d a PYMNTS Intelligence and NCR collaboration.
\nThe report also found that the race to boost savings rates on accounts \u2014 and to lure deposits \u2014 is and has been global in scope.
\nIn this competition, the advantage may go to the traditional financial institutions who have the installed base of clients, the financial firepower, and a host of complementary and adjacent revenue streams that the digital-only startups just don\u2019t have.
\nIn the Tuesday press release from Barclays US Consumer Bank, Capolongo said: \u201cBarclays deposits program has been a significant contributor to the US Consumer Bank for over a decade. The Tiered Savings product will elevate our deposits business by unlocking additional value for our customers and bolstering our successful deposits portfolio.\u201d
\nThe post Barclays US Consumer Bank Launches Savings Product With Tiered Rates appeared first on PYMNTS.com.
\n", "content_text": "Barclays US Consumer Bank has launched a savings product that provides higher rates on higher balances.\nThe new Barclays Tiered Savings product aims to offer customers additional value and bolster the bank\u2019s deposits portfolio, the company said in a Tuesday (July 16) press release.\n\u201cOur goal is to offer pricing flexibility that rewards higher balance customers who want the convenience of saving online with competitive interest rates,\u201d James Capolongo, head of banking at Barclays US Consumer Bank, said in the release.\nThe product offers tiered pricing and makes it simpler for customers to earn higher rates and reach their financial goals, according to the release.\nBarclays\u2019 online experience allows consumers to open an account, deposit funds or checks remotely, view account balances, and link to other U.S. financial institutions, per the release.\nHaving high-yield savings accounts offers banks a way to cross-pollinate revenue streams as diverse as credit cards and investment products, PYMNTS reported in 2022. The net interest margin can help fund those initiatives.\nFinTechs, too, have found that high-yield accounts help them unlock a relatively cheaper source of capital. Having cheaper capital in hand can in turn boost balance sheet strength and fund operations as deposits reach critical mass.\nPYMNTS Intelligence has found that savings accounts may be a key battleground in the competition between banks and neobanks.\nTwenty-five percent of consumers would switch from their banks for savings accounts, according to \u201cPersonalization Beyond Traditional Banking to Build Financial Wealth,\u201d a PYMNTS Intelligence and NCR collaboration.\nThe report also found that the race to boost savings rates on accounts \u2014 and to lure deposits \u2014 is and has been global in scope.\nIn this competition, the advantage may go to the traditional financial institutions who have the installed base of clients, the financial firepower, and a host of complementary and adjacent revenue streams that the digital-only startups just don\u2019t have.\nIn the Tuesday press release from Barclays US Consumer Bank, Capolongo said: \u201cBarclays deposits program has been a significant contributor to the US Consumer Bank for over a decade. The Tiered Savings product will elevate our deposits business by unlocking additional value for our customers and bolstering our successful deposits portfolio.\u201d\nThe post Barclays US Consumer Bank Launches Savings Product With Tiered Rates appeared first on PYMNTS.com.", "date_published": "2024-07-17T17:07:26-04:00", "date_modified": "2024-07-17T17:07:26-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/Barclays-US-Consumer-Bank.jpg", "tags": [ "bank deposits", "banking", "Barclays", "Barclays Tiered Savings", "Barclays US Consumer Bank", "James Capolongo", "News", "PYMNTS News", "saving accounts", "tiered interest rates", "tiered savings accounts", "What's Hot", "Banking" ] }, { "id": "https://www.pymnts.com/?p=2011116", "url": "https://www.pymnts.com/news/banking/2024/lloyds-reportedly-puts-brakes-on-staff-travel/", "title": "Lloyds Reportedly Puts Brakes on Staff Travel", "content_html": "Lloyds is reportedly telling staff to reduce their use of taxis and business class flights.
\nIt\u2019s part of the British banking giant\u2019s attempt to cut costs amid a $5 billion strategic overhaul, the Financial Times (FT) reported Monday (July 15).
\nTo that end, Lloyds is making a \u201cfew adjustments\u201d to its travel policy to slash costs and reduce its carbon footprint, the FT said, citing a memo sent to Lloyds\u2019 corporate and institutional banking staff earlier this month.
\nThe bank is now limiting business class flights to international journeys of more than six hours, while domestic flights should be avoided, the memo said, adding that taxis should only be called when \u201cno other viable or safe method of transportation is available.\u201d
\n\u201cAs we grow and expand our business\u2009…\u2009it\u2019s important that we also keep a tight grip on our costs \u2014 particularly where our personal choices have a great impact,\u201d Nick Laird, Lloyds\u2019 chief operating officer, wrote in the memo. \u201cThe clearest example of that is our travel which has both a financial and environmental cost.\u201d
\nA source told the FT the changes will apply to the bank\u2019s 60,000-member workforce.
\nThe report comes weeks after one by Bloomberg News that another big bank \u2014 HSBC \u2014 was asking its investment bankers to cut their expenses as lenders around the world anticipate interest rate cuts.
\nThe bank is reportedly slowing hiring by leaving positions open or even pausing new hires altogether. It is also encouraging investment bankers to conduct at least three client meetings per day to make the most of work travel.
\nThese moves are happening amid an anticipated uptick in business travel, as PYMNTS wrote earlier this month.
\n\u201cThe runway toward a corporate travel rebound has been in place, and it has been showing up in earnings and other data over the past several months,\u201d that report said.
\nFor example, Delta Air Lines\u2019\u00a0record revenue in its March quarter came in part from demand for business travel, as managed corporate sales climbed 14% year over year.
\nManagement said the trend was poised to continue this summer, with 90% of companies surveyed by the airline saying they expected their travel volumes to increase or stay the same in the June quarter and beyond.\u00a0
\nLikewise, American Express Global Business Travel saw its global multinational customers increase their business travel in the first quarter.
\n\n
The post Lloyds Reportedly Puts Brakes on Staff Travel appeared first on PYMNTS.com.
\n", "content_text": "Lloyds is reportedly telling staff to reduce their use of taxis and business class flights.\nIt\u2019s part of the British banking giant\u2019s attempt to cut costs amid a $5 billion strategic overhaul, the Financial Times (FT) reported Monday (July 15).\nTo that end, Lloyds is making a \u201cfew adjustments\u201d to its travel policy to slash costs and reduce its carbon footprint, the FT said, citing a memo sent to Lloyds\u2019 corporate and institutional banking staff earlier this month.\nThe bank is now limiting business class flights to international journeys of more than six hours, while domestic flights should be avoided, the memo said, adding that taxis should only be called when \u201cno other viable or safe method of transportation is available.\u201d\n\u201cAs we grow and expand our business\u2009…\u2009it\u2019s important that we also keep a tight grip on our costs \u2014 particularly where our personal choices have a great impact,\u201d Nick Laird, Lloyds\u2019 chief operating officer, wrote in the memo. \u201cThe clearest example of that is our travel which has both a financial and environmental cost.\u201d\nA source told the FT the changes will apply to the bank\u2019s 60,000-member workforce.\nThe report comes weeks after one by Bloomberg News that another big bank \u2014 HSBC \u2014 was asking its investment bankers to cut their expenses as lenders around the world anticipate interest rate cuts.\nThe bank is reportedly slowing hiring by leaving positions open or even pausing new hires altogether. It is also encouraging investment bankers to conduct at least three client meetings per day to make the most of work travel.\nThese moves are happening amid an anticipated uptick in business travel, as PYMNTS wrote earlier this month.\n\u201cThe runway toward a corporate travel rebound has been in place, and it has been showing up in earnings and other data over the past several months,\u201d that report said.\nFor example, Delta Air Lines\u2019\u00a0record revenue in its March quarter came in part from demand for business travel, as managed corporate sales climbed 14% year over year.\nManagement said the trend was poised to continue this summer, with 90% of companies surveyed by the airline saying they expected their travel volumes to increase or stay the same in the June quarter and beyond.\u00a0\nLikewise, American Express Global Business Travel saw its global multinational customers increase their business travel in the first quarter.\n \nThe post Lloyds Reportedly Puts Brakes on Staff Travel appeared first on PYMNTS.com.", "date_published": "2024-07-15T16:51:42-04:00", "date_modified": "2024-07-15T16:53:06-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/Lloyds-Bank-1.jpg", "tags": [ "banking", "Banks", "business travel", "corporate travel", "Lloyds", "News", "PYMNTS News", "travel", "What's Hot", "Banking" ] } ] }