INVESTMENT MANAGEMENT
Wells Fargo & Company | December 14, 2021
Wells Fargo & Company (NYSE: WFC) and HSBC Bank plc today announced an agreement to use a blockchain-based solution for the netting and settlement of matched foreign exchange (FX) transactions. Through this agreement, Wells Fargo and HSBC will jointly use a shared settlement ledger to process US dollar, Canadian dollar, British pound sterling and Euro transactions with plans to extend the platform to settle additional currencies in the near future. Utilizing blockchain technology, this solution provides each bank with ongoing real-time transparency of settlement status for matched FX transactions in the applicable currencies. It will enable both parties to utilize Payment-vs-Payment (PvP) settlement netting in an efficient manner, which will reduce settlement risks and associated costs of processing FX transactions.
We are pleased to announce that we will be utilizing blockchain technology for the first time in the settlement process of cross-border payments. We are extremely excited to be collaborating with HSBC on a project which places both organizations at the forefront of blockchain innovation. We believe this will be the first step of many utilizing transformative technology across our industry in the years ahead.”
Mark Jones, co-head of Macro, Wells Fargo Corporate & Investment Bank.
The shared, private ledger enhances settlement speed and efficiency by using blockchain technology, applied under the framework of an agreed rulebook, to optimize PvP netting opportunities between Wells Fargo and HSBC. The banks will be able to net bilateral payment obligations and settle on a pre-agreed cadence multiple times per day within the flexibility of the settlement windows enabled by this technology. The offering builds on HSBC’s FX Everywhere platform which has settled over three million intrabank trades worth over $2.5tn since going live in 2018. Based on the results of this arrangement, the parties hope to expand the system to add more participants and to introduce a central Financial Market Infrastructure (FMI) provider to administer the platform rulebook.
Commenting on the announcement, Mark Williamson, global head of FX Partnerships & Propositions at HSBC said: “As financial services continue to digitize the store of payment and value on blockchain, we are delighted to work with Wells Fargo in the adoption of this important cross-border digital backbone for the confirmation and settlement of Foreign Exchange trades. We are excited to continue to grow the FX Everywhere network whilst ensuring that we are well placed to transact in new forms of regulated digital currencies such as Central Bank Digital Currencies.”
The platform runs on Baton Systems’ blockchain inspired proprietary CORE distributed ledger technology and is governed by the Baton rulebook. The platform enables participants to efficiently settle bilateral cross border obligations across multiple onshore and offshore currencies, coupled with the added flexibility of extended settlement windows to optimize PvP risk reduction opportunities. Wells Fargo’s depth of USD liquidity and strong franchise in the Americas complements HSBC’s strength in Europe and Asia’s emerging markets.
The FX and payments markets continue to prioritize reducing settlement risk, utilizing PvP risk reduction tools, on-us settlement and payment netting mechanisms. Recent global industry body statements on these topics include the FX Global Code’s settlement risk principles 35 and 50, the Financial Stability Board’s G20 roadmap for enhancing cross-border payments, and the Committee on Payments and Market Infrastructures Stage 2 report to the G20.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a leading financial services company that has approximately $1.9 trillion in assets, proudly serves one in three U.S. households and more than 10% of small businesses in the U.S., and is the leading middle market banking provider in the U.S. We provide a diversified set of banking, investment, and mortgage products and services, as well as consumer and commercial finance, through our four reportable operating segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management. Wells Fargo ranked No. 37 on Fortune’s 2021 rankings of America’s largest corporations. In the communities we serve, the company focuses its social impact on building a sustainable, inclusive future for all by supporting housing affordability, small business growth, financial health, and a low-carbon economy. News, insights, and perspectives from Wells Fargo are also available at Wells Fargo Stories.
Read More
FINTECH
Flaist | November 02, 2020
The fintech startup, Flaist, has delivered another examination instrument controlled by the Flaist Digital Experience stage that permits monetary associations to more readily comprehend the settings of their customers' aims and feelings.
This is the first fintech stage that permits banks and money related gatherings to foresee future customer conduct and adjust their reactions to customers utilizing investigation.
The author and CEO of Flaist, Krish Gopalan, says this new investigation will spare budgetary gatherings time and cash, while likewise permitting them to more readily serve their customers.
“These analytics give all financial organizations an advantage with customer service,” said Gopalan. “Banks can now better understand customer insights and identify how to respond to customers before the transaction even occurs.”
Flaist Analytics Detect Sentiment Enabling Improved Customer Service
Gopalan says the new progressed investigation can identify customer notion progressively to enable money related foundations to perceive any disappointment with administrations, empowering more excellent reactions to customer protests.
For instance, if a customer needs to realize why they're paying late charges, Gopalan says the examination will identify their discontent and offer suitable answers for improve their customer experience.
Flaist Analytics Understand the Context and Intention of Customer Needs
Flaist's investigation can likewise decide the setting of a customer's needs, and encourage monetary foundations on the most proficient method to accomplish ideal customer fulfillment.
“Knowing the customer’s context is critical for a financial institution’s success,” says Gopalan. “Collecting data on the customer’s preferences and needs can also help financial organizations understand the context of their demands. If they know why the questions are being asked, they can ensure better responses.”
For instance, when customers have inquiries for the bank, they expect answers upheld with reason, alongside steps to accomplish this ideal monetary position. Gopalan says the setting wherein the inquiries are being posed would now be able to be perceived from information gathered on the customer.
Why Financial Institutions Need Advanced Analytics for Customer Service
Bill Eagan, previous Managing Director with JP Morgan and Lehman Brothers and now Goto Market Advisor for Flaist, says banks and monetary foundations are understaffed during this pandemic as more customers decide to use telephone lines and online talks for their customer administration needs.
He says the examination are altered for these occasions to guarantee that banks comprehend the unique situation and opinion of the clients so as to offer better assistance.
“The introduction of our new analytics in the banking industry can now help banks understand the intentions and the sentiment of their customers, to provide a very personalized experience to each individual,” said Eagan. “When most customers call their banks, they’re met with unfriendly and cold automated messages but with the analytics, the customers would feel at ease and stay confident that their banks understand their needs better. These analytics can reduce customer service IT costs by up to 25 percent, while also increasing loyalty and revenue.”
The investigation apparatus is important for the Flaist Digital Experience stage that offers a wide scope of AI-as-a-Services APIs and Microservices that have been reason worked for Banking use cases. The attachment and play arrangement cuts improvement time for the banks giving them a bit of leeway of speed to market to give an upgraded customer experience across computerized stages.
About Flaist
Flaist is a Silicon Valley based Fintech startup that aims to democratize the digital transformation process for Banks and Financial Institutions through technology. Flaist brings together technologists, bankers, data scientists and security experts who have built enterprise products for multiple startups and multi-billion dollar organizations like Citibank, Mastercard, HPE, ArcSight, and Oracle. Flaist services are plug and play meaning Banks can fast track their digital transformation journeys to provide customers with an amazing experience through their AI-based digital initiatives.
Read More
PAYMENTS
PrimeRevenue | October 20, 2021
PrimeRevenue, Inc., the leading provider of technology-enabled B2B payments and working capital solutions, announces its newest innovation: The PrimeRevenue SurePay platform. As the first tool of its kind, the SurePay platform streamlines B2B payment services to enable easy and accessible early and on-time payment solutions for the entire supply chain.
Since 2003, PrimeRevenue's core offering has historically focused solely on early payment solutions such as supply chain finance, dynamic discounting, and accounts receivable finance. As the global business landscape evolves, PrimeRevenue has developed additional solutions that address a broader range of B2B payment needs.
The SurePay platform ensures every supplier gets paid on time, every time by simplifying the B2B payments ecosystem. Customers can consolidate their entire supplier base onto one simple-to-use payments tool, eliminating cumbersome and manual processes that are costly, time-consuming, and error prone. As a result, clients save costs and streamline AP/AR processes.
"The PrimeRevenue SurePay platform automates the AP/AR payment process, so once approved invoices hit our system, the platform handles the rest," said Gavin Cicchinelli, COO of PrimeRevenue. "Suppliers can confidently manage their cash flow with an intuitive platform that provides comprehensive reporting, transparency into invoice approval status, visibility into upcoming payments, automated remittance advice reporting, and so much more."
Global businesses face many payment challenges, from jurisdictional payment regulations and lack of standardized payment terms to the administrative burden that comes with managing multiple ERP systems or payment platforms.
At its core, PrimeRevenue has always been a payments company. As we grow, a natural evolution for PrimeRevenue is to expand into a new sphere of B2B payments. For us, that means developing innovative solutions that serve the entire supply chain – regardless of industry, jurisdiction, currency, or early payment offering."
PJ Bain, CEO of PrimeRevenue
About PrimeRevenue
As a pioneer in global B2B payments, the PrimeRevenue SurePay platform connects the entire supply chain by improving working capital and automating digital payments. Thousands of companies around the world leverage one streamlined platform to increase payment visibility, enhance control, and improve cash flow. PrimeRevenue is headquartered in Atlanta, with offices in London, Prague, Hong Kong, and Melbourne.
Read More