All articles by Dan Jones
Dan Jones
BBVA chairman González calls for new multi-channel approach
Francisco Gonzlez, the chairman of BBVA, Spains second-largest bank by assets, has said that banks must switch to new retail business models combining in-branch assistance with virtual platforms if they are to emerge from the financial crisis as industry leaders. Gonzlez, speaking at a conference in Spain, said that banking clients, previously rather passive, are now much better informed and therefore more powerful They naturally demand better products and services at better prices, greater conveniences and more personalised attention for their banking needs
ING Direct launches financial education game in the US
ING Direct USA has redesigned its Planet Orange website around the theme of financial education as it attempts to help foster a new generation of financially savvy children in the US. Citing its own research showing that nine out of 10 parents and teachers would highly recommend that the website, www.orangekids.com, be used at home and in the classroom, ING noted that the space-themed website comes equipped with lesson plans and teacher tutorials designed for children aged 6 to 11 Visitors to the site will also be given the opportunity to earn and spend their own virtual currency, Obux.
S&P warns over $213 billion of troubled Russian banking assets
Russias leading banks are likely to feel the force of the economic downturn in the shape of as much as $213 billion in bad assets on their books, ratings agency Standard & Poors (S&P) has cautioned. Sberbank and VTB are likely to be particularly badly affected because of their dominance of the Russian banking landscape, S&P warned The two institutions account for almost half of domestic credit to the private sector, according to S&P.
Western Union extends money transfer service across the globe
US payments processor Western Union, the worlds largest remittance firm, has launched its Digital Vendor Program, designed to extend the reach of its Western Union Money Transfer programme by collaborating with mobile platform providers across Latin America, Africa, the Middle East and Africa. Four providers Sybase 365 from the US, South Africas Fundamo, India-based mChek and Singaporean firm Utiba Pte have become the first to sign up to the new programme, Western Union said It added that by certifying such vendors it would reduce integration costs and accelerate go-to-market activities for banks and mobile operators by creating standard technical deployments.
Santander aims to repeat 2008 performance
Spains Santander will strive to match its 2008 financial performance despite the headwinds which continue to face the bank in 2009, chairman Emilio Botn said at the banks annual general meeting in June. Botin said that Santanders diversified, retail-focused business model would again stand it in good stead in the coming year, citing the banks strong local presence in nine or 10 main markets as justification for Santanders continued expansion in 2008, when it purchased Alliance & Leicester and part of Bradford & Bingley in the UK, Sovereign in the US and GEs consumer finance business in Germany. The banks integration of an earlier acquisition, Banco Real in Brazil, is exceeding expectations due to the Brazilian economys relative outperformance of its international peers, Botin noted.
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Cards and Payments Europe 2009 Award Winners
The 22nd annual Cards & Payments Europe conference and awards, organised by Cards International, the sister newsletter to RBI, has announced the winners of its 2009 industry awards At an awards ceremony held in Prague on the evening of 18 June, Turkeys AsyaCard was crowned Best New Credit Card Product Launch while Net and Standard Chartered Bank India picked up the awards for the best prepaid and debit card launches respectively. Best Innovation in a Loyalty Programme category resulted in a tie between Fiserv and Welcome Real-time.
FICO CEO Mark Greene on the company’s credit-scoring advances
With banks looking to refine their lending criteria still further in the wake of the financial crisis, leading US decision management firm FICO which used to be branded Fair Isaac is well positioned to strengthen its already considerable market presence, says the companys CEO, Mark Greene Dan Jones speaks to him.Having rolled out FICO 08, the latest version of the credit scoring model that is used as an industry standard in the US 91 of the largest 100 financial institutions use FICO scores and beyond, FICO is now looking at how it can further help banks mitigate their exposure to existing and future credit risks. The importance of the FICO score has only increased given the current risk aversion being seen in most major markets
Shinsei and Aozora confirm merger talks
Aozora Bank and Shinsei Bank have confirmed merger talks are ongoing between the lenders which, if concluded, will create the sixth-largest bank in Japan by assets Such a deal would give the loss-making Aozora access to Shinseis retail deposits to ease its capital needs and could provide Shinsei with a boost of Tier 1, or core capital. Local media have speculated since April about a tie-up between Aozora, majority-owned by US private equity giants Cerberus and Shinsei, one-third owned by rival JC Flowers, but the banks remained silent about a possible marriage until making brief statements on 24 June saying they were in talks.
Rebuilding a culture of risk awareness
With risk management in the spotlight now more than ever, two separate reports assessing industry opinions show that while awareness of existing problems has increased, doubts remain over the speed and effectiveness of potential reforms to the international banking system Dan Jones reports.Two separate surveys of senior executives from retail banks and other financial institutions have summed up the prevailing sentiments of the financial services industry: that risk management strategies are inadequate and must be reformed as a matter of urgency.
Getting ATMs to run advertising
Dan Jones spoke to i-designs CEO, Ana Stewart, and BAs global media manager, Anna West, about the strategies behind the campaign.UK airline British Airways (BA) and ATM advertising software provider i-design have renewed an advertising partnership which will see BA target business and leisure travellers across three UK banking networks via two different adverts each month