Category: Commercial Banking

Banking

Commercial Banking vs. Private Banking: What’s the Difference?

Author ByCFI.co

Are you stuck between choosing a private bank or a commercial bank? There are so many options and services to sift through when you’re considering the kind of bank that you want to give your business to.

If you’re feeling confused, you’ve come to the right place. We’re going to tell you the differences that you need to know between private banking and commercial banking. We’re confident that you’ll be able to choose the perfect bank for you after reading everything we have to share.

Commercial Banking vs. Private Banking

There are a few main categories that we’re going to discuss when it comes to the differences between commercial banking and private banking:

  • Deals
  • Lifestyle expectations, hours you’ll put in
  • Popularity
  • Money

We’ll discuss other, smaller details as well, but we note these categories to hold the main differences between the kinds of banks.

What Is Commercial Banking?

Commercial banks offer loans, investment opportunities, deposit services, and more to businesses and individuals. In addition, commercial banks serve governments and other entities. 

Many commercial banks function as chain locations, meaning that a commercial bank may have locations across the world. Others may stick to certain regions.

The banks are considered commercial because they are publicly traded and they are required to be chartered by the state and/or federal authorities.

Commercial banks offer personal and business trust services as well. This means that they will be able to provide extra services that you might be looking for in a bank.

Some commercial banks dabble in private banking, which we’ll discuss later. By having a section or branch of private banking, commercial banks can reap the benefits of the private sector and expand their reach to those consumers who are better fit for the world of private banking.

Who Should Use Commercial Banking?

Commercial banks are more targeted towards the general population. If you consider yourself to be just another citizen in terms of wealth, you should look towards a commercial bank for your banking needs.

A commercial bank will give you everything you need while catering to your needs and the needs of just about everyone else.

Commercial banks conquer in terms of numbers because of how many people they are built to service. Commercial banks are made to take care of most of the consumers in an area, meaning that they are likely to handle anything that you may want or need to do with your money.

How to Choose a Commercial Bank

If you think commercial banking is for you and you’re looking to choose a commercial bank, you should focus on the services they offer. The commercial bank that you’re looking at may offer loans, investment opportunities, credit accounts, and more.

Plus, you might find that your commercial bank has a special savings account with a great interest rate or a checking account that you can open for your child.

Before you go to choose your commercial bank, you need to look at what kind of services and offers you want from the bank that you’re using. Talk with several different representatives about what the best services are and what kind of services you can take advantage of as a customer there.

What Is Private Banking?

Private banking is a whole new world to those of us who have only been involved in commercial banking.

These kinds of banks focus on wealth management for the extremely rich. This means that they’re more focused on growing money and ensuring that money is kept safe.

While a commercial bank does keep your money safe, private banks are famous for being locked down at all times when it comes to the money in the back.

Who Should Use Private Banking?

Those who have high net worths should invest in private banking. Yes, we do mean it when we say “invest.” Because private banks work with customers who are more likely to pay more fees and keep more money in the bank so that they can get the services that the private bank offers.

If you’re a high-net-worth individual who wants a bank that has estate planning, personalized banking, tax services, and money advisory services, the world of private banking is for you.

How to Choose a Private Bank?

If you think that you would fit into the world of private banking and you’d like to join a private bank, you should focus on the services they have and the money that they want in the bank. In addition, you might want to keep an eye on the fees even if you don’t care for tiny charges like those.

When you’re choosing your private bank, you should talk with several different places and talk about what kinds of services they have as well as how much it would cost to have those services available to you.

Your bank may charge a membership fee for access to these kinds of services, but they may also charge in addition to an already existing membership fee.

The banks that you’re considering should have a full list of any fees that they have. Be sure to pick this up or look this up when you’re considering joining a bank. Even if you don’t care about small charges, you should watch out for large charges that may come your way.

More on the World of Finance

Whether you think that you’d thrive more in the world of commercial banking or the world of private banking, we’re confident that you’ll be able to choose the right bank for you if you focus on your personal financial needs. By looking at what you need and what services you’d like, you’ll be able to find a bank that works the best for you.

If you’re looking to learn more about banking and finances, we invite you to check out the rest of our blog. We have a plethora of information about banking and everything you need to know about it to thrive and succeed.

Banking

5 Things You NEED To Do With Your Money Once You Turn 20

Author ByCFI.co

When you’re young and carefree, it’s easy to neglect your finances. A lot of young people don’t know how to manage their money and end up getting into debt.

But as a young adult, you’re actually in a great position to set good financial habits for life. Making savvy decisions from when you turn 20 can build solid foundations for a financially healthy future. 

Let’s dig a little deeper. Here’s our list of top money management tips to consider when you’re 20 years old. 

1. Get Into Good Habits With Your Money 

You’re only going to be able to start saving once you’re spending less than you earn. So the first step towards financial security is setting up a watertight method to track and manage your expenses. 

You need to have a clear view of your fixed expenses such as rent and council tax, and also a firm grip on your variable expenses such as fuel, food shopping, and utility bills. Then you can set a budget for discretionary expenses like nights out with friends and clothes purchases. 

After you have a system set up, you can manage your cash flow and track your spending, to ensure you’re staying within your budget. A popular method to manage this is by setting up a zero-based budget, where you allocate every penny of your income to a specific expense or savings goal.

By adopting this method, you should prevent yourself from getting into debt. But if it’s too late for that, you should focus on clearing your debts. Limit your credit card spending; you should only use your credit card enough to establish a decent credit score. Once your short-term debt is clear, you can make a start on clearing your student debt. 

A final good habit to set up is to automate all your payments. It’s good to set up your direct debit payments to go out near the beginning of the month, so you have a clear view of what you have leftover for discretionary spending, once all the bills are paid. 

2. Start Saving Now! 

You’re never too young to start thinking about savings. You should start out by building an emergency fund, then work towards having 3-6 months of expenses set aside. Having a reasonable liquid cash reserve will prevent you from getting into debt in emergency situations. 

You might want to set up separate savings goals for big purchases, such as your first car, so you have the money upfront rather than having to take out a loan. Longer-term savings goals are also worth considering, such as a deposit on a house, paying for postgraduate education or saving for your children’s future. 

In terms of saving for retirement, the earlier you start, the more benefits you will reap. You should aim to be putting at least 10% of your income into a pension fund.

3. Protect Yourself 

You should make sure that you have all the insurance you need to protect yourself from future problems. Car insurance of course is a necessity if you have a car, but you should also consider pet insurance if relevant, as vets’ bills can be very high.

You may want to invest in health insurance and also income protection insurance. If you have children, you’ll also want to look at life insurance. It’s not the most exciting topic to be thinking about, but there are benefits to setting up insurance policies while you’re young and insurers see you as less risky. 

4. Invest in Yourself 

When you get your first job, it’s easy to just feel grateful to have found employment, especially in today’s challenging economic circumstances. But you should still negotiate your salary to make sure you’re being paid what you’re worth. 

You might also want to plan for further education and training. Lifelong learning has many benefits, not just for your career but for your own happiness and sense of fulfilment. 

You could also look into setting up a side hustle to earn some extra money to put against those savings targets. Perhaps you have a hobby that you could make some money out of? Maximizing your income is a great way to grow your savings. 

5. Think Long-Term

There’s never a better time than what you turn 20, to be thinking long term. Establishing your wealth goals and prioritising them when you’re young is critical to long-term financial security.

Once you’ve paid off your debts and you have enough liquid cash saved up to pay for any emergencies and planned future purchases, now’s the time to think about investing. It’s a good idea to start investing as early as possible, by putting money into something other than your retirement plan.

But perhaps you don’t really know what to do with your money? It might be wise to hire a financial advisor to help you choose the right kind of fund to invest your money in. It’s sensible to get some advice about the best investment bank options before you decide where to put your hard-earned cash. 

You need to make sure that your money is working for you, wherever you choose to keep it. You could see which providers have won banking awards, to help you choose the best banking services. 

The longer your money is in an investment fund, the higher the returns are likely to be. So choosing the best bank while you’re young is a good long-term strategy to build wealth. 

Seize The Moment!

The sooner you take control of your finances, the better. Your 20s are the perfect time to establish good habits and routines around money to set you up for long-term financial security.

Building wealth takes time, so starting young will reap long-term benefits. It’s never too early to educate yourself. Check out our informative articles on wealth management to expand your knowledge and help you to make the best decisions about how to manage your money.   

Banking

5 Key Differences: Commercial Bank vs. Investment Bank

Author ByCFI.co

Are you looking into what type of bank will be perfect for you? Deciding between a commercial bank vs. investment bank can be a complicated question. 

Luckily, we’re here to help. Keep reading, and we will discuss the five key differences between commercial banks and investment banks. 

1) Services

First, its important to consider the services the two provide. They offer different things. 

If you’re looking to underwrite new debt and equity securities, selling securities, pilot mergers and acquisitions, reorganizations, and or broker trades, then an investment bank is for you. 

On the other hand, if you’re in the market for individual loans, small business loans, checking and savings accounts, and or certificates of deposit, then you’re looking for a commercial bank. Most people are probably most familiar with commercial banking for their checking and savings accounts. 

Have you figured out precisely what services you are looking for? Large scale or small scale? 

Great, now that we’ve got that covered, let’s look at what kind of expenses and fees we are looking at. 

2) Expenses and Fees

While the dollar amount isn’t a distinguishing factor, it does show some differences. The fees are how the banks make their income. 

Investment banks typically deal with more significant dollar amounts due to having bigger corporations as clientele and higher monetary amounts in investments. Commercial banks handle basic financial transactions, which can get higher in monetary amounts, but usually equally a lesser amount of money. 

Investment banking comes with a set of fees due to the level of risk involved. The fees differ from firm to firm, but some of the potential fees could include:

  • Retainer fees
  • Upfront fees
  • Expense reimbursement
  • Success fees 
  • Minimum fees
  • Engagement fees

So what does this all cost? A monthly retainer typically doesn’t go lower than $5,000 a month. The retainer is what secures the investment bank and covers their cost as well as the risk they are taking on. 

Commercial banks also have their own sets of fees. They typically range much lower than that, though. 

Commercial bank fees vary based on account fees, safe-deposit box fees, and late fees. Some examples of potential account fees could be:

  • Monthly maintenance charges
  • Minimum balance fees
  • Overdraft fees
  • Non-sufficient funds charges

You’ll also run into more fees when it comes to loans, but it depends on the different kinds you’re considering. 

Now that we’ve got that covered, who exactly uses which type of bank?

3) Types of Clientele

Are you looking at banking options for an institution or for yourself? 

Well, big investment banking clientele can vary depending on the scope of need or based on the client. Some examples of big investment banking clientele are:

  • Corporations
  • Pension funds
  • Other financial institutions
  • Governments
  • Hedge funds

Large investment banks can also serve as financial advisors or brokers for institutions or companies. 

An investment bank could also offer retail operations for smaller individual clients.

If you’re reading that and saying, “Nope, not me!” Then you could line up with the commercial bank clientele more so than the investment bank.

The clientele of commercial banks primarily comes from individuals using personal checking and savings accounts, or through personal loans. Basically, ordinary people who are looking for standard bank needs. 

Through loans and earning interest income from investments, commercial banks make their money to provide new business loans. 

You now know what services are offered, how much it could cost, and if you fit their clientele. Did you consider the regulations that come with commercial banking and investment banking?

Don’t worry. We’re covering that next. 

4) Regulations 

All banks have some set of regulations to follow. 

Government authorities like the Federal Reserve and the Federal Deposit Insurance Corporation regulate commercial banks.

Commercial banks are insured so they can maintain customer account protection. For example, some can cover up to $250,000 deposits. 

Investment banks aren’t regulated nearly as much as commercial banks. The Securities and Exchange Commission governs them. This means their clients have less protection, but and gives the bank more operational independence. 

Because of the regulation difference, investment banks have higher risks associated with them. When you use an investment bank, you assume the risk, whereas commercial banks work in the interest of their clients. 

5) Banking Examples

You may be thinking great, now I know some difference, but can you help me out with some examples?

You got it! 

Have you heard of JPMorgan Chase, Goldman Sachs, Morgan Stanley, Credit Suisse, or Deutsche Bank? These are examples of large investment banks. 

Commercial banks in the United Kingdom could include HSBC, Royal Bank of Scotland, Lloyds TSB, Barclays, and Santander. 

Some banks could combine the functions of a commercial or investment bank. This could aid in the sales of an IPO or increased trading. 

This isn’t crucial to dive into, but worth noting. 

Some of the employees you can expect to run into in a commercial bank include tellers, sales associates, trust officers, loan officers, branch managers, and technical programmers. Whereas in investment banking, you’ll probably deal with an investment banker directly. 

So, Where Do You Go From Here?

Now when you ask the question commercial bank vs. investment bank, you have the ability to make an educated decision.  

From offering different services to helping different types of clientele, the kind of bank you choose will be a choice you make based on your unique set of needs at the time. Luckily, you have plenty of resources to turn to. 

If you’re interested in learning more about the finance and banking world head to CFI.co.

Banking

UnionBank, Lazada and Mastercard launch the Philippines’ first e-commerce credit card

Author ByCFI.co Blogger

Add to card everything you love with exclusive online shopping rewards

Manila, Philippines, August 8 – Union Bank of the Philippines (UnionBank) and Lazada Philippines, together with Mastercard, have launched the all new UnionBank Lazada Credit Card, the country’s first e-commerce credit card that makes online shopping even more rewarding.

UnionBank, Lazada and Mastercard launch the Philippines’ first e-commerce credit card

The new UnionBank Lazada Credit Card is the only credit card that allows cardholders to directly earn up to 6x Lazada wallet credits from their online spend at Lazada – the highest earning rate among other credit cards in the market.

Every P200.00 spend at Lazada purchases earns cardholder with P6.00 Lazada credits. Meanwhile, cardholder earns P1.00 for every P200.00 on all other purchases outside Lazada.

“As the country’s leading digital bank, we’re truly excited about this new partnership because we believe the new UnionBank Lazada Credit Card will enable us to serve the growing needs of Filipino shoppers in this rapidly changing digital economy,” said UnionBank president and CEO Edwin Bautista.

During these uncertain times, UnionBank Lazada Credit Card gives customers a new safe and secure payment option for their online transactions. As another testament to UnionBank’s digital banking technology, the UnionBank Lazada credit card also introduces a new virtual credit card – which cardholders can use for online transactions without waiting for the physical card to be issued.

The cardholder will receive the virtual card, activate and use it to make online purchases immediately once application is approved. The virtual card can be viewed safely through the UnionBank Online app, with security controls including biometrics and one-time-password (OTP).

A physical card will also be delivered to cardholders for their face-to-face, point-of-sale transactions.

“It is a privilege to collaborate with UnionBank as we work towards creating a secure and inclusive digital economy in the Philippines. With more people turning to the Lazada platform to meet their needs, the new UnionBank Lazada Credit Card will empower Filipino customers to get more value from their purchases as they embrace a cashless digital lifestyle,” said Ray Alimurung, Lazada Philippines’ Chief Executive Officer. 

“We’re excited to partner with Lazada Philippines and launch this newest co-brand credit card with the highest earn rate of up to 6X rewards at Lazada. Especially in this digital age and in the backdrop of limited mobility due to the global pandemic, more and more shopping is done online, and this card is the perfect product to use at Lazada. The more you shop at Lazada, the more you earn credits,” added Ana Delgado, UnionBank Consumer Finance Center head.  “I invite everyone to experience how UnionBank Lazada Credit Mastercard makes adding to cart and checking out a rewarding experience. So add to card now!”

“Mastercard is pleased to partner with the country’s multi-awarded digital bank and the top e-commerce platform in Southeast Asia to deliver more value to Filipino e-customers. The UnionBank-Lazada Credit Card is a demonstration of Mastercard’s global expertise in co-brands and its continuing commitment to bringing digital solutions that enable a seamless and secure shopping experience online,” said Rowell del Fierro, country manager in the Philippines for Mastercard.

On top of that, cardholders need not compute for any point conversion. Earned rewards are in the form of peso value credits, plus earned credits can be conveniently transferred to the cardholder’s Lazada Wallet using their UnionBank Online app with just a few clicks, anytime, anywhere.

Enjoy exclusive shopping benefits at Lazada with the new UnionBank Lazada Credit Card! Get P5,000 Lazada Wallet credits as a welcome gift when application is approved for a UnionBank Lazada Credit Mastercard (Terms & Conditions apply).  Enjoy free monthly shipping of up to P50.00 and free discount vouchers of up to P250.00 during their Mega Sales (birthday sale, mid-year sale, 9.9, 11.11. 12.12). Special discounts and exclusive sales also await cardholders from Lazada.

Apply now and start a new digital shopping experience at Lazada with the new UnionBank Lazada Credit Card at www.unionbankph.com or www.lazada.com.ph. Get ready to #AddToCard everything you love at Lazada’s 8.8 Shop Local Bounce Back Sale on August 6-8 and show your support to homegrown brands!

Banking

UBX appoints new Chief Investment Officer

Author ByCFI.co Blogger

In line with its strategy to explore and invest in companies and platforms of the future, UBX—the Fintech and Corporate Venture Capital arm of Union Bank of the Philippines (UnionBank) — is announcing the appointment of Matthew Kolling as the company’s Chief Investment Officer (CIO).

UBX CIO Matthew Kolling
UBX CIO Matthew Kolling

As CIO, Kolling will be managing UBX’s Corporate Venture Capital (CVC) fund. He will also play a key role in raising capital for UBX while assisting the company in key corporate transactions, including the structuring of joint ventures and acquisitions.

Prior to his appointment at UBX, Kolling has been Head of Venture Investments at Aboitiz & Company since 2019, wherein he had been working with UBX on investment portfolio decisions. Before that, he held senior positions in Private Equity, Venture Capital, and Investment Banking at firms such as Providence Equity Partners and Morgan Stanley in New York.

Kolling has more than 20 years of experience in managing investments and deals in the Technology and Telecommunications industries and is active in Venture Capital and startup communities in the Philippines and the Southeast Asian region. He currently chairs the Manila Angel Investors Network, among others.

“We at UBX are excited to welcome Matt as our new CIO. We firmly believe that Matt will be instrumental in driving value creation opportunities, both within the CVC fund and our corporate ventures. We look forward to working with him as we fulfill UBX’s vision of a future where banking services are embedded into everyday experiences that matter,” said UBX president and CEO John Januszczak.

Meanwhile, UnionBank president and CEO Edwin Bautista said, “The addition of world-class talents in our pool reinforces our strategy to future-proof the organization and our business as we prepare for many new opportunities that come with the changing times.”

Banking

First Head of Fintech Strategy & Commercialisation Named at Shawbrook Bank

Author ByCFI.co Blogger

UK fintech market veteran, Stuart Doignie, has been appointed as Shawbrook looks to scale-up and evolve its specialist SME lending proposition

Stuart Doignie Head of Fintech Strategy & Commercialisation

Specialist SME lender, Shawbrook Bank, has started the new decade by appointing its first Head of Fintech Strategy and Commercialisation.

Stuart Doignie, who is well known within the fintech industry, joins Shawbrook’s Business Finance Division as the Bank aims to become the UK’s SME lender of choice.

Mr. Doignie has held several senior roles within the fintech space and his appointment signals Shawbrook’s intent to adopt new technologies as it looks to evolve its specialist SME lending proposition.

As Head of Fintech Strategy & Commercialisation, his primary focus will be on the adoption of technology to advance the specialist SME lender’s own infrastructure but also to support the development of new products and to leverage wider initiatives such as Open Banking.

He said: “I’ve witnessed first-hand how technology is disrupting the SME finance landscape, particularly in the un-secured space.

“The really interesting challenge now is to see how technology can help business owners’ access more sophisticated forms of funding.

“With such a diverse range of specialist SME lending products, I believe Shawbrook is perfectly placed to become one of the first institutions to demonstrate how fintech can be deployed to transform not just distribution but funding solutions too.”

Well known across the fintech industry after holding senior roles including Head of SME at Starling Bank, Chief Risk Officer at ezbob and most recently Chief Commercial Officer at OpenPayd – a leader in the Banking-as-a-Service market – Mr. Doignie has helped pioneer the use of smart technology to provide new finance solutions for small and medium-sized enterprises throughout his career.

His first task at Shawbrook will be to source and deploy a leading cloud-based commercial lending platform. This platform will enable the Bank to develop and scale-up both established and recently launched products including Commercial Loan, Development Finance, Growth Capital and Unitranche.

Neil Rudge, Managing Director of Shawbrook’s Business Finance division, said: “As a specialist lender, focused entirely on UK SMEs, we’ve built a suite of funding products over recent years to address a breadth of needs.

“We’ll be making a number of investments in technology during 2020 to help us rapidly evolve and develop these products, reduce friction in their delivery, and reach more SMEs through slicker distribution.”

He added: “With Stuart’s experience and knowledge across the fintech sector, we’re well placed to create a truly scalable and unique tech infrastructure.”

Banking

UnionBank’s ‘Tech Up, Pilipinas’ drive resonates at Singapore Fintech Festival

Author ByCFI.co Blogger

Only Phl banking exhibitor since 2018 draws VIPs

Visitors are drawn to the two-story UnionBank booth that highlighted revolutionary and socially relevant digital innovations.
Visitors are drawn to the two-story UnionBank booth that highlighted revolutionary and socially relevant digital innovations.

Still the lone Philippine banking institution participating at the annual Singapore Fintech Festival (SFF) held at the Singapore Expo last week, Union Bank of the Philippines (UnionBank) again established a powerful presence on the world stage worthy of the visit of well-known dignitaries, the prime minister of Singapore included.   

Replicating its success on its global debut at the SFF last year, UnionBank – thrice honored by Asiamoney as the Philippines’ Best Digital Bank since 2017 – bannered its suite of emerging technologies, along with those of its fintech and thrift subsidiaries UBX and CitySavings, consistent with its relentless drive to extend more affordable and accessible financial services to all Filipinos here and abroad.

Singapore Prime Minister Lee Hsien Loong chats with UnionBank chairman Justo Ortiz as he made a stop at the UnionBank exhibition – the first booth he visited at the SFF. With them are UnionBank president and CEO Edwin Bautista, UBX president and CEO John Januszczak, Platform Development head Ramon Duarte, Human Resource head Michelle Rubio, Transaction Banking head John Cary Ong and Fintech Business Group head Arvie de Vera.
Singapore Prime Minister Lee Hsien Loong chats with UnionBank chairman Justo Ortiz as he made a stop at the UnionBank exhibition – the first booth he visited at the SFF. With them are UnionBank president and CEO Edwin Bautista, UBX president and CEO John Januszczak, Platform Development head Ramon Duarte, Human Resource head Michelle Rubio, Transaction Banking head John Cary Ong and Fintech Business Group head Arvie de Vera.

No less than the Prime Minister of Singapore, Lee Hsien Loong, together with Monetary Authority of Singapore (MAS) managing director Ravi Menon, graced the booth frequented by curious visitors intently asking about the bank’s cutting-edge digital products and platforms and how it benefits the common man. UnionBank has partnerships with OCBC Bank Singapore to pioneer remittance services from the city-state to the Philippines through blockchain-based platforms, and with the MAS for its SME marketplace Business Sans Borders (BSB) that is seen to empower local SMEs to explore and expand internationally.

UnionBank president and CEO Edwin Bautista and chairman Justo Ortiz explained how, through the bank’s comprehensive strategy called “Tech Up, Pilipinas,” it is utilizing technology to promote financial inclusion for sustainable prosperity, particularly of the unbanked and the underserved, who compose around half of the Philippines’ 108 million population. Financial inclusion is a vital component for the realization of the Philippines’ vision to become a G20 country by 2050.

Other dignitaries who visited the UnionBank booth were Philippine Ambassador to Singapore Joseph Del Mar Yap and Bangko Sentral ng Pilipinas (BSP) Govenor Benjamin Diokno, who looked visibly proud of the Filipino ingenuity as he was toured inside the booth by Bautista. The central bank chief thanked UnionBank for raising the Philippine flag at what is dubbed as the biggest fintech summit gathering global innovation and business leaders. Bautista, in turn, said UnionBank’s remarkable showing at the SFF is a testament to its commitment to remain agile and a frontrunner in this digital revolution.

Banking

Cardstream Works With Banking Circle To Create Unique Lending Service

Author ByCFI.co Blogger

Joint white label solution allows Cardstream’s Partners to offer their merchants flexible and affordable business loans

www.bankingcircle.com

London, November 2019 – Independent payment solutions provider, Cardstream, has partnered with Banking Circle to pioneer a unique joint white label lending solution. Each of Cardstream’s more than 200 Partners provides payment services to many hundreds of SME merchants. Now, with the launch of this new initiative, they can offer these merchants access to affordable, flexible business loans which could make the difference between their success or failure.

To help smaller businesses access essential business financing more easily, Banking Circle entered the SME lending sector in 2018, launching Banking Circle Lending and Banking Circle Instant Settlement. These revolutionary new solutions were built in response to an SME study involving more than 500 businesses, which revealed the impact of high interest rates, high arrangement fees and inflexible repayment options when accessing funding through traditional lenders.

Cardstream identified that the Banking Circle Lending solutions would provide an important added-value for its Partners as CEO Adam Sharpe explained:

“Cardstream’s Partners enjoy strong and trusted relationships with the merchants to whom they provide our white labelled payment gateway service under their own trusted brand. Now, with this new service developed with Banking Circle, they can offer loans to any of their merchant customer businesses based on their online payments revenue.

“The loans are risk free to the Partner, who is able to retain a share of the revenue generated if this falls within its business model and merchant agreement. We believe it’s a win-win for both sides.  The Partner enhances its merchant relationships and the merchants have quick access to valuable funding, whether to fill a cashflow gap or to support business growth.”

Anders la Cour, co-founder and Chief Executive Officer of Banking Circle added: “Banking Circle is committed to providing market infrastructure as a real alternative to traditional banking solutions, with the aim of increasing financial inclusion. As part of this, we wanted to deliver a more accessible lending solution for businesses in need of a financial boost.

“Now, through our partnership with Cardstream, more than 200 payment providers have access to our unique lending solution, meaning tens of thousands of small businesses can access the cash they need to expand, restock or simply survive a quiet period. In the past, these SMEs would have been unable to borrow the vital funds, which could have meant letting employees go or even business failure.”

About Banking Circle

Banking Circle is a next-generation provider of mission-critical financial services infrastructure leading the rise of a super-correspondent banking network. Banking Circle empowers banks and financial tech businesses to support customers’ trading ambitions – domestic and global – whilst reducing risk and the operational cost of transactions. Banking Circle solutions are increasing financial inclusion by helping thousands of businesses transact across borders in a way that was previously not possible.

In 2013 Saxo Bank formed a new entity, Saxo Payments A/S, with the purpose of using Saxo Bank’s core capabilities within the non-cash payments market. In October 2015 the company launched the Banking Circle – its ground-breaking product for payments and FX to the Financial Tech industry. In October 2017, the company launched its new identity for Banking Circle, to reflect its position as a financial utility, servicing Financial Tech businesses and banks. In September 2018, Banking Circle was acquired by EQT VIII and EQT Ventures, in partnership with Banking Circle’s founders.

Domiciled  in the European Union, Banking Circle specialises in providing global banking services including accounts, payments, lending and foreign exchange services to financial institutions, including FinTechs, banks, acquirers, payment service providers, FX brokers, money transfer businesses, e-wallets, and alternative payment providers.

About Cardstream

FinTech success Cardstream is the UK’s largest independent provider of white label payment software and services. Its mission is to become the global standard for white label payment provision. Everything the company does is designed to give its partners the freedom, flexibility and control to deliver the unhindered achievement of their business objectives.

Cardstream’s breadth of relationships, advanced portfolio of features and acquirer independence ensures that its partners can build a payment proposition they control and that delivers the maximum financial return.

For further information and inteviews please contcat the Cardstream Press Office:

Leon Lee – Commercial Director

T: 0345 0099575

E: leon.lee@cardstream.com

Banking

Atos and Fintech Circeo develop innovative loan management solution for major worldwide retailer

Author ByCFI.co Blogger

A solution to help run Loan Management from a hybrid cloud leveraging Google Cloud Platform

November 20, 2019 – Atos, a global leader in digital transformation, and Circeo, a leading Fintech in developing next-generation retail loans software, today announce the development of an innovative loan management solution built with Google Cloud Platform. Developed initially for the bank subsidiary of a major worldwide retailer, Atos and Circeo will soon begin bringing the solution to market for other customers.

This offering is based on a hybrid cloud solution which combines Google Cloud Platform (GCP) together with Atos’ expertise in end-to-end cloud orchestration and management, and infrastructure services and support. It enables users to benefit from the advantages of a fully-managed and secure cloud service which is seamlessly integrated with Google Cloud Platform (GCP).

With this joint solution, clients can run Fintech software built on Oracle technologies on hybrid cloud infrastructures, and thereby benefit from elasticity, resilience, innovation and pay-per-use models – without the need to redevelop their existing systems. The Google Cloud Atos partnership ensures that the client benefits from direct, secure and high-performance network connectivity, for faster and optimised access to Google Cloud resources.

This new solution from Atos and Circeo will help the end-customer manage peaks of activity in Loans, particularly during sales and specific events such as black Friday thanks to the elasticity and resilience of GCP.

Circeo is an innovative Fintech delivering a next generation flexible digital lending platform, based in the Cloud, which enables tailor-made financial products to be made within just a few days. It is part of Atos’ FinTech Partner Program and one of Atos’ most dynamic Fintech partners.

“This solution demonstrates the unique value we deliver to our customers thanks to our ambitious Fintech Engagement program which aims to bridge the gap between banks and Fintech.” says Wim Los, SVP, global Head of Atos and Google Cloud enhanced Alliance at Atos. “Developed by Atos and Circeo, it is a framework which will be replicated for other clients, on other markets”.

“We are glad for this unique opportunity leverage our global partnership with Atos to promote and implement the Atos-Circeo Retail Lending Factory platform” says Laurent Clerc, Founder and CEO at Circeo. “By delivering unique value with Atos, we expand existing client portfolios and onboard new clients into production.”

We’re delighted that Atos and Circeo chose to develop this solution with Google Cloud Platform,” said Rayn Veerubhotla, Director, Partnerships at Google Cloud. “With this solution, customers can modernise their existing infrastructure and begin to take advantage of the core capabilities of Google Cloud.”

Atos was recently recognised as ‘Global breakthrough partner of the year’ by Google Cloud.

About Atos

Atos is a global leader in digital transformation with over 110,000 employees in 73 countries and annual revenue of over € 11 billion. European number one in Cloud, Cybersecurity and High-Performance Computing, the Group provides end-to-end Orchestrated Hybrid Cloud, Big Data, Business Applications and Digital Workplace solutions. The group is the Worldwide Information Technology Partner for the Olympic & Paralympic Games and operates under the brands Atos, Atos Syntel, and Unify. Atos is a SE (Societas Europaea), listed on the CAC40 Paris stock index.

The purpose of Atos is to help design the future of the information technology space. Its expertise and services support the development of knowledge, education as well as multicultural and pluralistic approaches to research that contribute to scientific and technological excellence. Across the world, the group enables its customers, employees and collaborators, and members of societies at large to live, work and develop sustainably and confidently in the information technology space.

Banking

Deutsche Bank Near Bankruptcy, Could Retail Boss Save It?

Author ByCFI.co Blogger

The giant Deutsche Bank is near bankruptcy, and, according to the Financial Times, the only way to save it would be if its retail boss, Manfred Knof, could extract €1.4bn in annual cost savings and increase revenues.

The giant Deutsche Bank is near bankruptcy, and, according to the Financial Times, the only way to save it would be if its retail boss, Manfred Knof, could extract €1.4bn in annual cost savings and increase revenues.

When did it all start?

That the Deutsche Bank is near bankruptcy is now news at all. The rumors started back in 2013 when the investment bank recognized the need for capital. To obtain those funds, they sold shares worth 4,500 euros. But that wasn´t enough and, shortly after that, they offered more shared with a 30% discount. This measure, of course, enraged those who had bought shares before.

Two years after those events, it was pretty clear that the Deutsche Bank lacked money, and it faced a net loss of almost 7,000 million euros, something that hadn´t happened since the 2008 crisis.

What put the Deutsche Bank in this situation?

According to the Professor of Economics and Law William Black, what put the Deutsche Bank near bankruptcy were the mistakes and financial crimes. He literally claimed in March 2018, that the Deutsche Bank (DB) was the “largest criminal enterprise in Germany.”

Professor’s Black words caused a huge impact, and many wouldn´t take his words seriously. However, in mid-October 2019, Chicago Federal Judge John Tharp ruled that ex-DB traders can be prosecuted for alleged “spoofing,” under the wire fraud statute. This decision will enable criminal cases against two former Deutsche Bank metal traders, accusing them of spoofing trades. Allegedly, the two men had been manipulating precious metals markets from 2009 to 2011.

Seeking solutions

In the beginning, the solution to save the Deutsche Bank, the possibility of merging it with the Commerzbank, was considered. Yet, as this other German bank had enough problems on its own, German regulators discarded the possibility since merging two entities, both with huge losses, would worsen the scenario.

Drastic measures to deal with Deutsche Bank near bankruptcy

High hopes were put into the “ruthless” retail boss Manfred Knof management, who is determined to deliver results. The recently announced decisions reducing the Executive Council, performing a rigorous restructure of the investment bank, and cutting down 18,000 job positions up to 2022, are part of the strategy of reducing costs and focusing on the activities of corporate banking, financing, currency exchange, private banking, and asset management.

Regarding most cuts, Deutsche Bank has said that most of them will affect back-office staff and support roles, located in places as distant as Florida, India, the Philippines, and Germany. This massive job cuts raised uncertainty and anxiety in all its employees, although in October 8, 2019, it was announced that the Deutsche Bank had no plans to perform further job cuts.

There´s no doubt those new and drastic measures are being taken trying to maintain the giant Deutsche Bank alive – which rather than near bankruptcy seemed to be standing at the edge of the deepest of the cliffs. Will the efforts be enough? Will “Ruthless Knof” save the monster from extinction?

Could cryptocurrency be the saviour? See also about Vatican facing bankruptcy.