All articles by Hugh Fasken
Hugh Fasken
Survey shows rise in CEE assets despite woes
The growth of banking assets in Central and Eastern Europe (CEE) slowed in 2008 but still rose by some 25 percent to stand at 1.77 trillion ($2.47 trillion) by 31 December, the annual CEE Banking Sector Report from Austrias RZB has shown Loan to deposit ratios rose to an average of 83 percent in 2008, the report noted, with most countries ratios matching or exceeding 90 percent similar to ratios seen in the Eurozone.
US-based P2P Prosper back up and running
Nine months after being hit by a government-imposed suspension of service pending registration with the Securities and Exchange Commission, US peer-to-peer (P2P) lender Prosper is back online. The countrys largest P2P player has resumed its operations in 14 states, including California, Georgia, Illinois and New York with other states set to follow. In a statement, Prosper said its website would work in the same way as it did prior to its suspension, with the addition of a secondary market, where lenders can buy and sell Prosper loans notes to each other
PNC targets students with Virtual Wallet
PNC, the fifth-largest US bank by deposits following its $5.6 billion purchase of National City last year, has extended its Virtual Wallet money management and m-banking solution to the student segment of the market, following a successful rollout of the product last August (see RBI 597) Aimed at what the bank calls the next generation of banking customers, Virtual Wallet features a calendar with 360 degree views of the account by day, week or month and lets customers create bill reminders, check balances, see past activities and future payments; it also includes three separate accounts for spending, short-term saving and long-term saving
Yes Bank partners with First Data in ATM plan
Indias Yes Bank will increase its ATM network from an existing 93 to over 3,000 by 2015 after it signed a Memorandum of Understanding with merchant processor First Data for an innovative ATM deployment programme. Under the terms of the deal, First Data will use its extensive ATM capabilities to help Yes Bank identify new ATM locations particularly in high-density consumer locations as well as providing installation and management services
The top ‘superbanks’ get bigger
In the wake of a chaotic period for the banking industry a period which has seen a procession of big-ticket mergers and acquisitions, banking failures and government bail-outs the number of banking groups with over 5,000 branches and outlets has, according to new RBI research, continued to rise
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Barclays ups US brand profile as international operations grow in size
Barclays has agreed a 20-year, $4 million naming rights deal with New Yorks Metropolitan Transportation Authority, under the terms of which Atlantic Avenue subway station in Brooklyn will be renamed after the UKs third-largest bank. The latest agreement is Barclays second such tie-up in Brooklyn, following the $400 million, 20-year deal signed in 2007 for the naming rights to Barclays Center, a $3.5 billion sports arena where local basketball team New Jersey Nets will play its home matches; the development also incorporates a residential and business complex. The US has become of increasing importance to Barclays since it acquired part of failed investment bank Lehman Brothers last September.
Greek banks pass stress test for stability
The Greek central bank has concluded that the countrys banking sector is in reasonable shape with none of the countrys leading banks having need of emergency capital. The Bank of Greeces first Financial Stability Report, published on 23 June, followed a stress testing exercise which was applied to the countrys nine largest banks, representing around an 80 percent market share of the sectors total assets. The report said the sector would be able to withstand strong shocks, as defined by the central bank
GE’s banking unit increases exposure to Central America
GE Capital Global Banking, the recently formed banking unit of General Electric, has increased its ownership stake in BAC-Credomatic GECF, from 49.99 percent to 75 percent BAC-Credomatic owns the retail bank BAC International Bank and the BAC and Credomatic operations throughout Central America
Fortis eyes insurance deal with Tesco
Tesco, the UKs largest retailer and a company making a big push into retail financial services (see RBI 610), is reviewing a number of its existing insurance affinity deals, with Belgiums Fortis reportedly in line to win the contract to manage the household and auto insurance business, worth more than £500 million ($820 million) a year in premiums. Fortis, which already provides insurance for a number of UK retailers, including Marks & Spencer, would replace Tescos long-standing partner Royal Bank of Scotland, whose Direct Line unit lost Tescos life business to Friends Provident in April.
Branch Banking – Best Practices in the Worst of Times
A new report by VRL Financial News on branch-based sales techniques examines in fine detail the processes and techniques banks should use to improve customer service and cross-sell more products Clients are not looking for overly innovative branch formats just straightforward environments to bank in.It is by now a well-accepted observational that traditional distribution via branches is here to stay For most banks, branches are still the key retail delivery channel