The Depository Trust & Clearing Corporation (DTCC) and Euroclear have taken the first steps towards the creation of a global collateral processing utility with the announcement that they plan to create a UK-based joint venture, DTCC-Euroclear Global Collateral.
While banks want to root out fraudulent activity as much as governments do they “need to take the temperature down”, said Bob Werner, global head of financial crime compliance and group general manager at HSBC. Speaking at a panel session on trends in financial crime compliance, Werner said: “Every time something goes wrong we don’t need the scalp of a regulator or the scalp of a banker.”
Argentina’s Banco Macro will use the Mambu cloud as the basis for a new business unit, which will offer loans to micro-enterprises and small businesses. The aim is to provide a lifeline to areas that have historically lacked access to financial services.
Rising political tensions and the increasing use of sanctions are making companies think twice about relying on long global supply chains, said John Calverley, head of economic research at Standard Chartered. Firms may decide that rather than hedging their bets with production, they will keep it closer to home, he said during a roundtable session yesterday.
The threat of banks de-risking and exiting regions and businesses in fear of sanctions-related fines is upon us, said Juan Zarate, the ex-deputy national security advisor for combating terrorism to US President George W Bush. Zarate was speaking at a Standard Chartered session yesterday morning about his new book, Treasury Wars: The Unleashing of a New Era of Financial Warfare.
The debut of SAP’s Financial Services Network at Sibos last year led many to see it as a threat to Swift’s plans for corporate connectivity.
From Senegal to the Seychelles, and Botswana to Uganda, new demands and new opportunities are emerging in Africa, but there are still challenges.
In a recently published white paper on intraday liquidity reporting*, Swift urges financial institutions to initiate programs now to address serious challenges with regard to data availability, centralisation, aggregation and interpretation in meeting Basel Committee guidelines. Greater industry collaboration will also help to accelerate moves towards cost effective and sustainable models and solutions.
The growth of peer to peer lending demonstrates that there is an alternative to the traditional lending model of banks. But can crowd funders ever replace the incumbents and do they enjoy long-run advantages or face being co-opted?