Cannabis Businesses Continue to Struggle with Banking Issues

JEAN-GABRIEL FERNANDEZ | June 18, 2019 | 61 views

Even in states where it is legal the possession, distribution or sale of marijuana remains illegal under federal law which means any contact with money that can be traced back to state marijuana operations could be considered money laundering and expose a bank to significant legal operational and regulatory risk the American Bankers Association explains. Banks can be held liable if they hold money that was illegally obtained, and as selling cannabis is still considered a federal crime cannabis businesses is a liability for banks. Cannabis growers and retailers can and often are denied the right to open a bank account, but they are not the only ones. Landlords, employees, service providers, as well as anyone indirectly tied to any kind of cannabis business can potentially be denied service. The rift between federal and state law has left banks trapped between their mission to serve the financial needs of their local communities and the threat of federal enforcement action,” the American Bankers Association adds.

Spotlight

Desjardins

Desjardins Group is the leading cooperative financial group in Canada and the fifth largest cooperative financial group in the world with assets of $227 billion. It has been rated one of Canada’s top 100 employers by Mediacorp Canada.

OTHER ARTICLES
CORE BANKING

3 Reasons CFOs Should Care About Investing in Cloud Based Banking

Article | July 13, 2022

Consumers today want fast, seamless, and effective services at their fingertips. In a world of virtualization, these demands keep bank C-levels on their feet. What better than cloud technology to address these demands? Cloud computing uses the internet to access data stored on external servers. Traditionally, banks have been slow adopters of technology and for good reasons. The risks involved in becoming a heavily cloud-dependent organization aren’t few. And banking institutions too, take their own time to assess risks. Despite this, cloud computing in banking presents a glowing opportunity for financial institutions to transform their operations. On-premise banking infrastructure no longer cuts it. It cannot meet modern challenges that require banks to access applications via the internet. Moving to the cloud isn’t a not an easy bargain, but one with many paybacks that bank CFOs must take note of. In this article we talk about the intricacies of switching from on-premise to the cloud in a modern context. We also talk about how CFOs can regulate costs and drive long-term financial strategies using the cloud. Ironclad Security Security is a serious concern for banks when moving to the cloud. Although 90% of banks use cloud computing for non-core processes, core services remain on the premise and off the cloud. This leaves a huge opportunity unused. With the unique security challenges so common to banking institutions, CFOs can advocate for specialized security enforcement solutions inside and outside the cloud that can meet rigorous security parameters. Fraud detection- It is important to mention here that public clouds are known to be more secure than on-premise infrastructure. This is thanks to the layers of protection that the cloud can be equipped with. Cloud-based banking also offers seamless fraud detection and protection by assessing large amounts of data from a variety of sources. It empowers banking institutions to stay ahead of the curve when anticipating discrepancies beforehand. Blockchain integration- Blockchain is the latest in technological innovation to provide ground-breaking use cases. In cloud banking services, blockchain is outgrowing its cryptocurrency ecosystem. It can be used to add a layer of security to data and cloud architecture. Richer Analytical Insights, Better Financial Reporting Cloud services for banks arm banking and financial institutions with the ability to breakdown data silos across the organization. This leads to centralizing data and generating 360-degree insight for analytics. Data insights have been proven to transform decision-making, operational efficiencies, and organizational processes. The most significant advantage, however, is product and consumer analytics. Product analytics- A reduction in product deployment cycles is just one of the many advantages that cloud computing in banking has to offer. It simplifies product testing in a way that enables organizations to test new solutions and to meet market demands and challenges while thinking on their feet. One of the most significant advantages is the easy facilitation of cloud banking possibilities that can empower customers of both traditional and non-traditional financial services. Consumer analytics- The cloud offers a hyper-flexible platform that is ideal for processing tremendous amounts of real-time data. For instance, when the cloud replaced an investment bank’s legacy banking infrastructure, it yielded an enormous boost in analytics. The transformation enabled trading teams to explore new strategies, execute experiments, and adopt analysis of data points they did not have before. Barclays, a premier banking institution, was able to free up resources for its risk analysis team by implementing a cloud-based automation process. This is further helping banks and financial firms tailor products that align with consumer demand while also balancing financial risks in a volatile market. Companies that do not make customer experience a priority will struggle and quickly fall behind.” Jeff Pedowitz, President and CEO at The Pedowitz Group Agility in Developing and Scaling New Product Offerings Agility is not just a buzzword in business. Today’s processes need to be lean and simplified to support growth in a fast-changing market. Cloud computing empowers organizations to be nimble in reacting to competitive market landscapes. In addition, accompanied by the power of data, modern financial institutions can go further than they would have anticipated in designing solutions. The wide-berth of opportunities posed by cloud computing for financial services can help create a highly competitive, agile, and scalable financial organization. Constraints to Look Out for When Switching to Cloud Computing for Banks While cloud banking services provide a new vista for banking and financial services, the transition to cloud banking may not be simple. The banking sector is evolving, and the demonstrated capabilities of the cloud come with a significant challenge that senior leaders must take into account. Migration Costs- The upfront cost of using cloud computing in banking is high. This may keep many banking and financial services’ organizations, especially smaller ones, from truly leveraging the cloud for open banking. A thorough financial analysis and planning is required to attain an equilibrium in cost through cloud banking services. Skill Shortage in Cloud- According to an Accenture study, 41% of organizations rank a shortage of cloud skills as one of the top three barriers to adopting the cloud. Achieving a balance of in-house and third party cloud talent is key. A great example of this was demonstrated by the banking industry itself when it transitioned from brick-and-mortar operations to digital and from websites to mobile. Compliance Concerns- Meeting security regulations and banking compliance codes is another significant challenge for cloud banking. Although regulatory authorities are increasingly supporting the cloud transformation, many banking institutions are cautious when it comes to exposing critical moving parts to regulation and the risk of non-compliance. To Round Off The cloud offers modern technology that is ready to scale at a day’s notice. With agility on offer, cloud computing in finance is much more than just an on-demand access to computing resources. Banking technology services are poised for a revolution, and cloud banking will play a major role in it. The points covered in this article discuss the immediate benefits that the cloud can offer. But as consumer demands and expectations undergo a whirlwind of activity, banking and financial services must join the bandwagon. They will need to assess how to leverage the cloud for their specific needs in a way that increases ROI and creates a sustainable, thriving organization. Frequently Asked Questions What are some storage options for cloud computing in finance? Public cloud storage is easily scalable as well as economical while private cloud storage offers complete control and greater scalability. Hybrid cloud storage offers the best of both worlds with significant user control and simplified customizations. Banks can explore a combination of cloud storage solutions that align with their security needs. What are the types of cloud banking services used by banking institutions? The types of cloud banking services that banks can opt for include: Software-as-a-Service (SaaS) Infrastructure-as-a-Service (IaaS) Platform-as-a-Service (PaaS) How many banks are now using the cloud? An IBM banking multicloud survey revealed that over 91% of banking and financial institutions were already actively using cloud technology.

Read More

How Open Banking is Uncovering the Shroud of Consumer Experience

Article | May 19, 2022

The future of financial services is here, and transparency is at the core of the evolution. While technology, as with other industries, is at the center of the transformation, the unfolding face of finance is fueled by more than just innovation in technology. Putting the Consumer at the Heart of Banking Open banking is the latest advancement to come out of the crucible of technology and growing consumer demands. Open banking is the practice of enabling third-party financial solutions providers complete access to the consumer financial data stored by banks and non-banking financial institutions. This is executed with the help of application programming interfaces, or APIs. The concept of open APIs has been around in the form of standard web APIs that provide limited access to consumer data to IT departments of financial institutions (FIs). How Open Banking Aims to Raise the Bar? Currently, several process challenges are hampering customers’ banking experiences across the board. Some of these include lack of proactive customer service, lengthy resolutions, and delayed support. Open banking will get the ball rolling for new and small banks to compete with larger, established banking institutions. The increase in competition, transparency, freedom, and clarity is aimed at empowering consumers to seek out comparisons and customizations in financial services. For instance, through open banking solutions, consumers can easily access details on interest rates, banking fees, and other costs associated with a financial product or service. What’s in it for Financial Institutions? Any new financial and banking concept must be lucrative for it to be sustainable. So, it wouldn’t be unwise to ask how it benefits financial institutions of all shapes and sizes. While the open banking practice is customer-centric at heart, it has several benefits for everyone, from large corporations to small banks. Increasing Traction for a Wider Range of Products and Services Open banking will offer next-generation analytics capabilities that will set the ball rolling for banking institutions to cross-sell their products. By storing and managing all banking data on one platform, organizations will be able to optimize business resources while personalizing cross-selling and upselling offers to customers. Garnering Clear Insights to Inform New and Better Business Decisions Consumer research will no longer be needed for rolling out new products and services. With a holistic view of the banking customers’ data at hand, FIs can drum up their investments and make better business decisions. Gaining an Edge Over Competitors with Much Lesser Market Research Open banking allows fintech companies and other financial institutions access to data. But in addition, it also allows institutions to communicate with each other, which means being able to diversify and offer financial products that are a departure from the usual offering. Even then, FIs will be able to mold their solutions to meet the most urgent challenges of customers. Preparing for the Inevitable Disruption Whether or not you’re looking to adopt the open banking system, it is on a path towards disruption in financial services. Where FIs have been traditionally closed in order to maintain security, open banking is delivering iron clad security and privacy without the restrictions. Getting a peek into a rich set of consumer data is the best way to create valuable offering that uplifts traditionally banking service to be innovative and customer-centric and thus sustainable and effective.

Read More

Blockchain and Its Most Useful Applications in Finance

Article | May 26, 2022

Blockchain technology is notable for its transparent database, safe data, decentralized network, and cryptographic transactions. By incorporating blockchain into existing banking procedures, FinTech firms have advanced even further. The powerful blockchain technology notably stores and records information on identities, assets, transactions, money and asset swaps in a secured network. Interestingly, the data is stored in blocks, each with a storage capacity of 1 MB. Having said that, Blockchain capabilities have contributed a new dimension to the Fintech scene, evolved as a technological revolution, provided enormous potential, and resulted in substantial changes to business structures and operations. Furthermore, they have piqued the interest of both start-ups and financial application development firms in investigating the demand for blockchain. Principles of Blockchain Blockchain, aside from being safe, gives true democracy and equality to financial institutions overseas. Blockchain has grown as a tremendous possibility for banking services to give billions of people the best and most convenient financial operations worldwide. Behind the successful virtue of blockchain, what are the core principles based on which blockchain is in demand nowadays? Find out the core in the following: Peer-based communication Computational logic A distributed database Permanent records Consensus protocol Distributed ledger All of the above principles of blockchain are successfully catering to the financial industry. Useful Blockchain Applications in Finance Blockchain applications gained popularity after the digital transformation of the finance industry. Some of the applications have assisted finance in shifting its operations to a more efficient and effective path. Based on these blockchain applications, Accenture predicts that embracing blockchain will save banks $8 billion in costs by 2025, a 27 percent decrease from 2019. Reduced costs of transactions Secured digital identity management A global network having no geographic limitations Crypto lending Regulatory compliance New crowdfunding models KYC Verification Maximizing Benefits and Minimizing Dilemmas Blockchain technology applications in finance have shown maximum benefit and have minimized a lot of financial glitches that existed before. To stay abreast, the legacy system of financial deeds is becoming increasingly rare, as most financial institutes and banks implement the technology globally. According to a Deloitte analysis, revenue from business blockchain applications is expected to reach $19.9 billion by 2025, giving considerable prospects for growth in blockchain FinTech. While talking about the transformation to the blockchain, automation played a crucial role in reshaping critical financial, operational risk and finance systems on a cloud platform. Most financial organizations now store their data on the blockchain, eliminating inefficiencies such as input failures, duplication, fraud, and other issues. The combination of automation and data empowers faster financial services that is likely to enable more effective financial services and client experiences in the future.

Read More
FINTECH

Can Blockchain Revolutionize the Banking System?

Article | May 16, 2022

Today, we live in a world where a new wave of technological transformation occurs on a regular basis. Each day, we are exposed to new buzzwords and a plethora of news. Additionally, cryptocurrency or blockchain is a buzzword in the business world. Blockchain is well known for its critical function in cryptocurrency systems such as bitcoin, in ensuring the security and decentralization of transaction records. Cryptocurrency has been around for more than a decade. However, countless controversies and discussions continue to swirl around cryptocurrency. Some say it is a new-age currency, while others refer to it as a hoax. Nonetheless, one thing is certain: We cannot afford to be indifferent to this movement. An Overview of Blockchain Technology As the name suggests, it creates a chain of blocks where each block contains a transaction ledger and the link of the subsequent transaction. This explanation might remind you of the data structure of a traditional “linked list.” However, blockchain has a more complex system, where a child block will be chained with a parent block hash while supporting the benefits of linked lists like the flexibility of dynamic data structures. A major differentiating factor for the blockchain lies in its distributed architecture. The blockchain creates an extensive network of peer-to-peer nodes that store the transaction ledger in the form of a block in multiple data systems. These data systems can be decentralized across various data centers, which creates the chain of transactions on each of the data systems when a single transaction is initiated. Limitations of the Current Banking System As we all know, current financial sectors across the globe work on centralized data platforms. Moreover, any of the transactions between two entities are managed by a central entity, which could be like the Federal bank in the U.S. This leads to the limitations of the system, like limited working hours for interbank transactions. Although countries such as India have enabled interbank transactions (RTGS) 24x7 for all 365 days to overcome the limitation, and yet, it is difficult to implement in several different states due to infrastructure or operational issues. Similarly, international transactions are managed by a single entity, SWIFT. This gives the power in the hands of a few people to manage the international economy by way of sanctions. These situations were seen during the recent Ukraine-Russia crisis. These sanctions lead to the deflation of the local currency and high inflation in the local market, which worst affects the normal citizens of the state. Moreover, when we have a centralized ecosystem for the banks, it leads to a lack of transparency and balance sheet manipulation. In particular, these malpractices in the banking system can lead to a nationwide or worldwide economic crisis, particularly in some extreme cases like Lehman Brothers’ fall. Implementation Approach & Benefits There could be several ways to implement a decentralized payment system. However, we can discuss one of the possible implementations. All the entities, which could be banks or even central banks of a country, participating in the implementation can either set up their own infrastructure or subscribe to and integrate with the services enabled by other entities. However, the bigger question lies in the exchange values. When we try to implement payment systems between two entities, the major challenge is the exchange value. For transactions within a country, the solution will be very simple, to use the local currency or a fiat currency coin. In the U.S., USDF consortium has implemented an interbank payment system using stable coins, a fiat currency coin. This implementation has not only helped the banks to overcome the “Fed’s working hours” limitation but also brought down the cost of transactions. As we write this paper, several countries, such as the UK and India, have been planning to launch a govt-backed crypto / digital coin. It would ease such implementations in the future. Whenever we extend the blockchain implementation across borders, the challenge of identifying a central exchange currency arises. In such a situation, we can use a fiat crypto coin, which would be pegged by gold value. This will not only create an alternative system for payments but also reduce the dependency on a specific currency, as well as contribute to the decentralization of economic power. Additionally, since these multi-node clusters are maintained at different data centers as well as the messages exchanged are not just encrypted but also follow the hashing sequences, it would be very difficult to hack the entire network. This feature adds an extra layer of data security. A blockchain-based decentralized banking system can also resolve issues like accounting manipulation. When all the bank level balance sheets are maintained with central banks or similar government entities, it would be less likely to have an unnoticed crisis due to account manipulations. Besides, auditor appointments will be managed by government-owned entities and not by banks. Challenges of Using Blockchain As we know, blockchain, being a decentralized multi-node system, every node will hold the transaction ledgers for transactions across the network. This characteristic can subsequently lead to high data storage requirements and high carbon footprints. However, a significant challenge lies in replacing the currently stabilized “centralized financial system.” Bottomline As we see the increasing popularity of cryptocurrencies, we hope to see blockchain making a larger penetration in the global financial and banking systems, although it seems to be making baby-steps at present.

Read More

Spotlight

Desjardins

Desjardins Group is the leading cooperative financial group in Canada and the fifth largest cooperative financial group in the world with assets of $227 billion. It has been rated one of Canada’s top 100 employers by Mediacorp Canada.

Related News

CORE BANKING

Rêv Partners with Searchlight Capital Partners to Acquire Netspend Consumer Business

Rev, Searchlight Capital and Netspend | August 08, 2022

Rêv Worldwide, Inc., an international fintech company, and Global Payments, a leading worldwide provider of payment technology and software solutions, announced that Rêv, in partnership with funds advised by Searchlight Capital Partners, L.P., has entered into a definitive agreement to acquire the Netspend consumer business from Global Payments in an all cash transaction valued at $1 billion. The acquisition brings back Netspend’s founders, Roy and Bertrand Sosa, who also founded Rêv. The Sosa brothers look to leverage the strategic assets of the two entities to build a global, high growth company that delivers on a mission of financial empowerment and product innovation. For Searchlight, this transaction represents another exciting partnership with dynamic fintech entrepreneurs while also being able to support growth and innovation for consumer financial services to underserved markets. With this sale, Global Payments delivers on its commitment to divest itself from Netspend’s consumer business, allowing the company to focus on its core B2B operations and growth opportunities with Rêv as a partner. Since the Sosas founded Netspend in 1999, the company’s consumer business has developed into a clear industry leader in the prepaid and debit card space serving millions of customers nationwide, processing hundreds of billions of dollars of cardholder purchases, and established the largest retail partner network with over 130,000 locations nationwide where consumers can load their prepaid and debit card products. Netspend’s consumer products are also available online via direct-to-consumer mobile and web channels. “We’ve gone full circle, launching programs with partners around the globe in our journey to provide innovative financial services to underserved mass markets. We are very excited by the opportunity to partner with the Netspend consumer team and Searchlight as we deliver new products, expand into new markets and add more value to customers across the world,” - Roy Sosa, Chairman and Chief Executive Officer, Rêv Christopher Cruz, Partner, Searchlight, added “The characteristics of this investment are rare to find. Combining an industry leading operation in Netspend’s consumer business with modern platform technology and digitally native solutions from Rêv unlocks great growth potential by meeting the needs of a significant and sizable market. We look forward to partnering with Roy, Bertrand, and the Rêv team as they continue their mission to financially empower underserved consumers through fintech innovation.” According to a recent industry report, the global market for Prepaid Cards, estimated at US$1.6 Trillion in the year 2020, is projected to reach US$2.7 Trillion by 2026, growing at a CAGR of 9.6% over the analysis period. Leveraging its proprietary multi-currency payments and loyalty product platform, Rêv provides mobile-first payment solutions and offers banking-as-a-service capabilities for partners around the world, such as Etihad Airways, Itaú Private Bank, LATAM Airlines; as well as direct-to-consumer branded products owned and managed by Rêv, such as the recently launched X World Wallet currently available in the U.S. For Bertrand Sosa, President of Rêv, “The market opportunity for Netspend’s consumer business has always been massive, as evidenced by the history of growth the company has experienced. Now we have a chance to expand upon it globally by leveraging unique synergies we bring along with our entrepreneurial spirit.” The transaction is expected to close in the first quarter of 2023 subject to relevant regulatory approvals, and customary closing conditions. Jefferies LLC is serving as lead financial advisor, and Nomura Securities International, Inc. is serving as financial advisor to Rêv. Paul, Weiss, Rifkind, Wharton & Garrison LLP is representing Searchlight, Gunderson Dettmer is advising Rêv. Evercore is serving as financial advisor to Global Payments, and Wachtell, Lipton, Rosen & Katz is representing Global Payments in the transaction. About Rêv Rêv is a fintech company, founded by prepaid debit industry pioneers Roy and Bertrand Sosa, dedicated to delivering innovative payment experiences to consumers worldwide. Its solutions are powered by the company’s proprietary multi-currency and multi-language payments processing platform. With vast experience pioneering a number of payment industry firsts, Rêv is focused on the international banking & travel sectors. Rêv has partnered with companies across the globe to launch products in North America, Latin America, Europe, the Middle East, and Asia-Pacific. About Searchlight Searchlight is a global private investment firm with over $10 billion in assets under management and offices in New York, London and Toronto. Searchlight seeks to invest in businesses where its long-term capital and strategic support accelerate value creation for all stakeholders. About Netspend Netspend is a leading provider of payments and financial solutions for consumers and businesses. From prepaid and debit card solutions to digital account and money movement services, Netspend has a broad suite of products and technologies that deliver exceptional experiences for its customers and business partners. About Global Payments Global Payments Inc. is a leading payments technology company delivering innovative software and services to customers globally. Our technologies, services and team member expertise allow us to provide a broad range of solutions that enable our customers to operate their businesses more efficiently across a variety of channels around the world. Headquartered in Georgia with approximately 25,000 team members worldwide, Global Payments is a Fortune 500® company and a member of the S&P 500 with worldwide reach spanning over 170 countries throughout North America, Europe, Asia Pacific and Latin America.

Read More

CORE BANKING,FINANCIAL MANAGEMENT

FinTech Automation Partners with Mastercard for Open Banking

FinTech Automation and Mastercard | August 08, 2022

FinTech Automation announces it has been selected as one of the technology partners for open banking within Mastercard’s Engage partner network. The Engage program has developed a network to provide businesses easy access to technology partners that can quickly build and deploy open banking solutions for payments and lending decisioning at scale. With the rapid adoption of open banking (i.e., consumer-permissioned data access) and digital tools across financial services experiences, FTA has been selected by Mastercard as one of the premier technology partners to spur innovation through access to its open banking platform, from lending to payments to financial management. “As we move from the information to the digital age, how we move information is as important as the data itself, Mastercard and FinTech Automation are key to that movement.” -David Park, CEO at Fintech Automation FTA allows firms to build a fully digital financial hub with little to no code and, through open banking, allows businesses to establish direct consumer-permissioned connections with their customers’ bank accounts. Through these consumer-permissioned connections, businesses can verify accounts for payments and payouts, check balances to reduce payment failures and cut fraud by confirming bank account ownership. This has vastly improved the payment experience for both the businesses and their customers. Mastercard is excited to be partnering with FinTech Automation on deployment of open banking solutions that are designed with security at the center and will help to meet consumers’ financial needs and enable choice, Together, we can enable innovation that will increase financial inclusion and expand access to digital services across the globe,said Andy Sheehan, EVP, U.S. open banking at Mastercard. FinTech Automation’s inclusion in the Engage partner network translates into fewer contracts, faster customer access, enhanced data security, and heightened overall flexibility to better leverage Mastercard’s robust open banking services. About FinTech Automation FinTech Automation is a Dallas, TX-based financial technology company dedicated to building a fully digital financial experience with little to no code. The FTA UniFi Platform is the foundational component - or building blocks - to help our clients drive innovation and business growth without worrying about the technology that supports it. The UniFi platform offers banking, payments, compliance, and wealth management Software as-a-Service applications, which are integrated with over 40 partners to offer analytics, databases, open banking, tools for application development, artificial intelligence, machine learning, and robotic process automation.

Read More

CORE BANKING,MOBILE BANKING

Monument Bank and Persistent Partner in the Creation of New Digital Banking Infrastructure

Monument Bank and Persistent | August 03, 2022

Monument Bank, UK's first neo bank focused on the needs of the ~4.8 million 'mass affluent', has partnered with Persistent Systems, a Global Digital Engineering provider to build a bespoke, cloud-native digital banking platform for lending and deposit services to support Monument's ongoing operations. Monument's target clients are usually pressed for time and often feel underserved and undervalued by other banking providers. Monument's mission is to help its clients prosper and optimise their time by offering smart, efficient and flexible solutions. Persistent was engaged in the designing and planning of Monument's technology systems and subsequently helped construct the Bank's bespoke systems architecture using a flexible building block approach. This approach enables new components to be added and swapped over time to take advantage of the latest innovations, allowing Monument to choose and integrate multiple SaaS based core component technologies. Monument is dedicated to providing exceptional, high-value customer service, enabled by a host of innovative, industry verticalised, cloud technology solutions. Persistent has been instrumental in advancing the Bank's strategic goals by helping to build the Bank's architecture that combines services with an adaptable, cloud-based platform, including components to provide core banking, CRM, payment services, AML/KYC, general ledger and regulatory reporting. Monument is focused on the 'mass affluent' client market, which includes business professionals, entrepreneurs, and property investors. Having received its full banking license in November, Monument quickly launched its property investment lending and an initial range of savings products using advanced in-app capabilities for client interactions. It will continue to enhance its range of products and services to serve the evolving needs of its mass affluent clients. "Monument's ambition has always been to create a significant financial institution for the mass affluent market in the UK, recognising the future opportunities to better serve the needs of the mass affluent in other jurisdictions." -John Saunders, Chief Commercial Officer, Monument Bank. Becoming a bank was a huge challenge but we were delighted to achieve this during a pandemic. It requires significant investment of both time and money to accomplish and it didn't make sense for us to take on the journey alone. We wanted a solutions partner to help us bring Monument to life and it was evident from our discussions with the Persistent team that they not only had a very strong understanding of the banking ecosystem, but were willing to build a strong partnership with us from the get-go. As a result, we have built an integrated ecosystem and platform that not only supports Monument, but also has the potential to power other banks in the future and with a partner like Persistent, we can rapidly enable that, saidSteve Britain, Chief Operating Officer, Monument Bank. Customers today want simple and seamless experience. Modern, improved and automated process plays a crucial role in meeting these expectations. Neo banks such as Monument can provide a tailored, specialised offering, giving their customers the flexibility and services they need. However, the architecture required to deliver simple and seamless experiences is complex, which calls for a trusted partner to help engineer and integrate the technology that makes it possible. Our 'digital mosaic' approach enables technology solutions that simplify processes and offer flexibility to the customers. Thus, allowing Monument to accelerate its development and focus on building a substantial mass affluent business, saidJaideep Dhok, SVP & General Manager, Banking, Financial Services & Insurance, Persistent. About Monument The company takes its name from the Monument, a globally recognised commemoration of the Great Fire of London and celebration of the rebuilding of the capital. It represents the end of the old era and a transition to modernity and the future as wooden buildings were replaced with the newer, stronger structures that are now synonymous with the City's longevity and security. And many people don't appreciate the Monument was also built to serve as a giant telescope to enable a level of vision that didn't exist previously. About Persistent With over 21,500 employees located in 18 countries, Persistent Systems is a global services and solutions company delivering Digital Engineering and Enterprise Modernization. Persistent was named to the Forbes Asia Best Under a Billion 2021 list, representing consistent top-and bottom-line performance as well as growth.

Read More

CORE BANKING

Rêv Partners with Searchlight Capital Partners to Acquire Netspend Consumer Business

Rev, Searchlight Capital and Netspend | August 08, 2022

Rêv Worldwide, Inc., an international fintech company, and Global Payments, a leading worldwide provider of payment technology and software solutions, announced that Rêv, in partnership with funds advised by Searchlight Capital Partners, L.P., has entered into a definitive agreement to acquire the Netspend consumer business from Global Payments in an all cash transaction valued at $1 billion. The acquisition brings back Netspend’s founders, Roy and Bertrand Sosa, who also founded Rêv. The Sosa brothers look to leverage the strategic assets of the two entities to build a global, high growth company that delivers on a mission of financial empowerment and product innovation. For Searchlight, this transaction represents another exciting partnership with dynamic fintech entrepreneurs while also being able to support growth and innovation for consumer financial services to underserved markets. With this sale, Global Payments delivers on its commitment to divest itself from Netspend’s consumer business, allowing the company to focus on its core B2B operations and growth opportunities with Rêv as a partner. Since the Sosas founded Netspend in 1999, the company’s consumer business has developed into a clear industry leader in the prepaid and debit card space serving millions of customers nationwide, processing hundreds of billions of dollars of cardholder purchases, and established the largest retail partner network with over 130,000 locations nationwide where consumers can load their prepaid and debit card products. Netspend’s consumer products are also available online via direct-to-consumer mobile and web channels. “We’ve gone full circle, launching programs with partners around the globe in our journey to provide innovative financial services to underserved mass markets. We are very excited by the opportunity to partner with the Netspend consumer team and Searchlight as we deliver new products, expand into new markets and add more value to customers across the world,” - Roy Sosa, Chairman and Chief Executive Officer, Rêv Christopher Cruz, Partner, Searchlight, added “The characteristics of this investment are rare to find. Combining an industry leading operation in Netspend’s consumer business with modern platform technology and digitally native solutions from Rêv unlocks great growth potential by meeting the needs of a significant and sizable market. We look forward to partnering with Roy, Bertrand, and the Rêv team as they continue their mission to financially empower underserved consumers through fintech innovation.” According to a recent industry report, the global market for Prepaid Cards, estimated at US$1.6 Trillion in the year 2020, is projected to reach US$2.7 Trillion by 2026, growing at a CAGR of 9.6% over the analysis period. Leveraging its proprietary multi-currency payments and loyalty product platform, Rêv provides mobile-first payment solutions and offers banking-as-a-service capabilities for partners around the world, such as Etihad Airways, Itaú Private Bank, LATAM Airlines; as well as direct-to-consumer branded products owned and managed by Rêv, such as the recently launched X World Wallet currently available in the U.S. For Bertrand Sosa, President of Rêv, “The market opportunity for Netspend’s consumer business has always been massive, as evidenced by the history of growth the company has experienced. Now we have a chance to expand upon it globally by leveraging unique synergies we bring along with our entrepreneurial spirit.” The transaction is expected to close in the first quarter of 2023 subject to relevant regulatory approvals, and customary closing conditions. Jefferies LLC is serving as lead financial advisor, and Nomura Securities International, Inc. is serving as financial advisor to Rêv. Paul, Weiss, Rifkind, Wharton & Garrison LLP is representing Searchlight, Gunderson Dettmer is advising Rêv. Evercore is serving as financial advisor to Global Payments, and Wachtell, Lipton, Rosen & Katz is representing Global Payments in the transaction. About Rêv Rêv is a fintech company, founded by prepaid debit industry pioneers Roy and Bertrand Sosa, dedicated to delivering innovative payment experiences to consumers worldwide. Its solutions are powered by the company’s proprietary multi-currency and multi-language payments processing platform. With vast experience pioneering a number of payment industry firsts, Rêv is focused on the international banking & travel sectors. Rêv has partnered with companies across the globe to launch products in North America, Latin America, Europe, the Middle East, and Asia-Pacific. About Searchlight Searchlight is a global private investment firm with over $10 billion in assets under management and offices in New York, London and Toronto. Searchlight seeks to invest in businesses where its long-term capital and strategic support accelerate value creation for all stakeholders. About Netspend Netspend is a leading provider of payments and financial solutions for consumers and businesses. From prepaid and debit card solutions to digital account and money movement services, Netspend has a broad suite of products and technologies that deliver exceptional experiences for its customers and business partners. About Global Payments Global Payments Inc. is a leading payments technology company delivering innovative software and services to customers globally. Our technologies, services and team member expertise allow us to provide a broad range of solutions that enable our customers to operate their businesses more efficiently across a variety of channels around the world. Headquartered in Georgia with approximately 25,000 team members worldwide, Global Payments is a Fortune 500® company and a member of the S&P 500 with worldwide reach spanning over 170 countries throughout North America, Europe, Asia Pacific and Latin America.

Read More

CORE BANKING,FINANCIAL MANAGEMENT

FinTech Automation Partners with Mastercard for Open Banking

FinTech Automation and Mastercard | August 08, 2022

FinTech Automation announces it has been selected as one of the technology partners for open banking within Mastercard’s Engage partner network. The Engage program has developed a network to provide businesses easy access to technology partners that can quickly build and deploy open banking solutions for payments and lending decisioning at scale. With the rapid adoption of open banking (i.e., consumer-permissioned data access) and digital tools across financial services experiences, FTA has been selected by Mastercard as one of the premier technology partners to spur innovation through access to its open banking platform, from lending to payments to financial management. “As we move from the information to the digital age, how we move information is as important as the data itself, Mastercard and FinTech Automation are key to that movement.” -David Park, CEO at Fintech Automation FTA allows firms to build a fully digital financial hub with little to no code and, through open banking, allows businesses to establish direct consumer-permissioned connections with their customers’ bank accounts. Through these consumer-permissioned connections, businesses can verify accounts for payments and payouts, check balances to reduce payment failures and cut fraud by confirming bank account ownership. This has vastly improved the payment experience for both the businesses and their customers. Mastercard is excited to be partnering with FinTech Automation on deployment of open banking solutions that are designed with security at the center and will help to meet consumers’ financial needs and enable choice, Together, we can enable innovation that will increase financial inclusion and expand access to digital services across the globe,said Andy Sheehan, EVP, U.S. open banking at Mastercard. FinTech Automation’s inclusion in the Engage partner network translates into fewer contracts, faster customer access, enhanced data security, and heightened overall flexibility to better leverage Mastercard’s robust open banking services. About FinTech Automation FinTech Automation is a Dallas, TX-based financial technology company dedicated to building a fully digital financial experience with little to no code. The FTA UniFi Platform is the foundational component - or building blocks - to help our clients drive innovation and business growth without worrying about the technology that supports it. The UniFi platform offers banking, payments, compliance, and wealth management Software as-a-Service applications, which are integrated with over 40 partners to offer analytics, databases, open banking, tools for application development, artificial intelligence, machine learning, and robotic process automation.

Read More

CORE BANKING,MOBILE BANKING

Monument Bank and Persistent Partner in the Creation of New Digital Banking Infrastructure

Monument Bank and Persistent | August 03, 2022

Monument Bank, UK's first neo bank focused on the needs of the ~4.8 million 'mass affluent', has partnered with Persistent Systems, a Global Digital Engineering provider to build a bespoke, cloud-native digital banking platform for lending and deposit services to support Monument's ongoing operations. Monument's target clients are usually pressed for time and often feel underserved and undervalued by other banking providers. Monument's mission is to help its clients prosper and optimise their time by offering smart, efficient and flexible solutions. Persistent was engaged in the designing and planning of Monument's technology systems and subsequently helped construct the Bank's bespoke systems architecture using a flexible building block approach. This approach enables new components to be added and swapped over time to take advantage of the latest innovations, allowing Monument to choose and integrate multiple SaaS based core component technologies. Monument is dedicated to providing exceptional, high-value customer service, enabled by a host of innovative, industry verticalised, cloud technology solutions. Persistent has been instrumental in advancing the Bank's strategic goals by helping to build the Bank's architecture that combines services with an adaptable, cloud-based platform, including components to provide core banking, CRM, payment services, AML/KYC, general ledger and regulatory reporting. Monument is focused on the 'mass affluent' client market, which includes business professionals, entrepreneurs, and property investors. Having received its full banking license in November, Monument quickly launched its property investment lending and an initial range of savings products using advanced in-app capabilities for client interactions. It will continue to enhance its range of products and services to serve the evolving needs of its mass affluent clients. "Monument's ambition has always been to create a significant financial institution for the mass affluent market in the UK, recognising the future opportunities to better serve the needs of the mass affluent in other jurisdictions." -John Saunders, Chief Commercial Officer, Monument Bank. Becoming a bank was a huge challenge but we were delighted to achieve this during a pandemic. It requires significant investment of both time and money to accomplish and it didn't make sense for us to take on the journey alone. We wanted a solutions partner to help us bring Monument to life and it was evident from our discussions with the Persistent team that they not only had a very strong understanding of the banking ecosystem, but were willing to build a strong partnership with us from the get-go. As a result, we have built an integrated ecosystem and platform that not only supports Monument, but also has the potential to power other banks in the future and with a partner like Persistent, we can rapidly enable that, saidSteve Britain, Chief Operating Officer, Monument Bank. Customers today want simple and seamless experience. Modern, improved and automated process plays a crucial role in meeting these expectations. Neo banks such as Monument can provide a tailored, specialised offering, giving their customers the flexibility and services they need. However, the architecture required to deliver simple and seamless experiences is complex, which calls for a trusted partner to help engineer and integrate the technology that makes it possible. Our 'digital mosaic' approach enables technology solutions that simplify processes and offer flexibility to the customers. Thus, allowing Monument to accelerate its development and focus on building a substantial mass affluent business, saidJaideep Dhok, SVP & General Manager, Banking, Financial Services & Insurance, Persistent. About Monument The company takes its name from the Monument, a globally recognised commemoration of the Great Fire of London and celebration of the rebuilding of the capital. It represents the end of the old era and a transition to modernity and the future as wooden buildings were replaced with the newer, stronger structures that are now synonymous with the City's longevity and security. And many people don't appreciate the Monument was also built to serve as a giant telescope to enable a level of vision that didn't exist previously. About Persistent With over 21,500 employees located in 18 countries, Persistent Systems is a global services and solutions company delivering Digital Engineering and Enterprise Modernization. Persistent was named to the Forbes Asia Best Under a Billion 2021 list, representing consistent top-and bottom-line performance as well as growth.

Read More

Events