Many banks think that because they offer a set range of payment products and solutions the potential lucrative Remittances market is just waiting to be picked.
But remittances are more than expanding your bank payment products to the Migrant Worker community. It is all about survival. It is all about banks maintaining their niche in the payments space, an area that has traditionally been the domain of the banks.
Today this is under threat. And where do the threats come from? From alternate payment systems – operations such as informal systems like Hawala to a whole range of new purpose built systems like PayPal, Google Checkout, Amazon Payments, to mention but a few.
Mobile payments are also on the move and the network operators are dying to capture huge new revenue streams from millions of clients that they already service through their mobile payment networks.
A few of the big banks have dipped their toes into the remittance market, many have only announced plans to do so – and seem to be sitting back with many others waiting in the sidelines.
Remittance payments through alternative payment mechanisms are here to stay. Banks really have no alternative but to play in the game or to lose out. Banks need to take advantage of the different options available to them while leveraging their consumer and merchant relationships, their existing payment infrastructure and their strong secure operational processes.
Please join us for “REMITTANCES – CREATING VALUE”, a two day intensive course on Payments, Remittances and Opportunities. This course is the definitive A to Z on Remittances – from informal systems to the revolutionary appearance of the Mobile Phone as a remittance tool.
London - 16 & 17 May 2011 – For additional details please CLICK HERE.
Johannesburg - 22 & 23 June 2011 – For additional details please CLICK HERE.
Tuesday, 15 March 2011
Monday, 14 March 2011
What is a “Safe Haven” currency?
In this short video Andy Busch, BMO Capital Markets, explains about safe haven currencies.
Merrill Lynch to launch Apps for Investment Accounts
To keep up with the sudden increase of mobile smartphones and tablets, Merrill Lynch is rolling out new mobile banking applications that will allow its customers to manage their investment accounts on the go.
The wealth management, brokerage, and investment banking arm of Bank of America has announced late that it would be introducing the new applications to customers of its of Merrill Lynch Wealth Management and Merrill Edge division that have access to either a BlackBerry, iPhone or iPad device.
“We continue to listen to clients and develop services that make managing their financial lives easier,” said the firm’s head of online platforms Paul Fox. “Now they have access to their account information and have the ability to perform transactions anytime, and from anywhere.”
Customers that have mobile phones will now have the ability to take advantage of features that include viewing their portfolio and account activity; transferring funds between linked Merrill Lynch brokerage accounts and Bank of America accounts; tracking breaking market news and customizing the alerts they receive from the bank. In addition to those services, those with the iPad app will be able to access research reports and create personalized dashboards through Merrill Lynch’s online app.
The wealth management, brokerage, and investment banking arm of Bank of America has announced late that it would be introducing the new applications to customers of its of Merrill Lynch Wealth Management and Merrill Edge division that have access to either a BlackBerry, iPhone or iPad device.
“We continue to listen to clients and develop services that make managing their financial lives easier,” said the firm’s head of online platforms Paul Fox. “Now they have access to their account information and have the ability to perform transactions anytime, and from anywhere.”
Customers that have mobile phones will now have the ability to take advantage of features that include viewing their portfolio and account activity; transferring funds between linked Merrill Lynch brokerage accounts and Bank of America accounts; tracking breaking market news and customizing the alerts they receive from the bank. In addition to those services, those with the iPad app will be able to access research reports and create personalized dashboards through Merrill Lynch’s online app.
Mobile Version of the CITADEL ADVANTAGE Blog
Now you can also keep up-to-date with our postings while on the move. The CITADEL ADVANTAGE Blog is now available in a mobile version.
Simply save this link to your smartphone: http://citadeladvantage.blogspot.com/?m=1
Or use the Bar Code
Simply save this link to your smartphone: http://citadeladvantage.blogspot.com/?m=1
Or use the Bar Code
Saturday, 12 March 2011
Operational Risk – Independent examination shows that the US Securities and Exchange Commission needs more staff and better technology
An independent consultant has presented the US Congress with a report examining the organization and operations of the Securities and Exchange Commission (SEC), as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act.
The consultant, the Boston Consulting Group, focused its attention on four broad areas: organization structure, personnel and resources, technology and resources, and the SEC’s relationship with self-regulatory organizations.
In response to the report, SEC Chairperson Mary L. Schapiro issued the following statement:
“I welcome today’s report and the analysis performed by the consultant.
“I am pleased that the report recognizes the many initiatives we have taken over the past two years to increase the agency’s efficiency and effectiveness. Yet, I know there is more to be done.
“Importantly, the report of the independent consultant confirms the concerns I have been expressing that the SEC does not have the resources to perform all the activities expected of us.
“As the report notes, despite the growth of our responsibilities and market complexities, the SEC’s resources have not kept pace. This capacity gap places our markets and America's investors at risk.
“I believe that investors need an SEC with added staff and better technology to properly police Wall Street.
“The independent consultant’s report offers valuable recommendations that will help us improve SEC operations and market oversight. In fact, I am immediately undertaking the following first steps:
The consultant, the Boston Consulting Group, focused its attention on four broad areas: organization structure, personnel and resources, technology and resources, and the SEC’s relationship with self-regulatory organizations.
In response to the report, SEC Chairperson Mary L. Schapiro issued the following statement:
“I welcome today’s report and the analysis performed by the consultant.
“I am pleased that the report recognizes the many initiatives we have taken over the past two years to increase the agency’s efficiency and effectiveness. Yet, I know there is more to be done.
“Importantly, the report of the independent consultant confirms the concerns I have been expressing that the SEC does not have the resources to perform all the activities expected of us.
“As the report notes, despite the growth of our responsibilities and market complexities, the SEC’s resources have not kept pace. This capacity gap places our markets and America's investors at risk.
“I believe that investors need an SEC with added staff and better technology to properly police Wall Street.
“The independent consultant’s report offers valuable recommendations that will help us improve SEC operations and market oversight. In fact, I am immediately undertaking the following first steps:
- I plan to ask for the authority to expand the responsibility and strengthen the authority of our Chief Operating Officer (COO) by moving under him all of the functions that currently report to our Office of the Executive Director.
- I also have assigned to our COO the responsibility for leading a series of working groups that are being created to address each of the report’s recommendations. He, along with other members of our senior leadership team, will ensure that we report to Congress and the public on our progress.
Japanese payment & settlement systems functioning normally after earthquake
The central bank, the Bank of Japan has reported no disruptions to its operations following the massive offshore earthquake that occurred on March 11.
There was no substantial damage to any of the buildings of the central bank or its branches. The Bank's business operations, including operations at the windows, are carried out as usual. The BOJ-NET settlement system is functioning normally.
The Bank set up a disaster management team at its Head Office headed by the Governor, immediately after the earthquake, to assess the impact of the earthquake on financial markets as well as on financial institutions' business operations and to respond as necessary.
The Bank indicated that it will do its utmost, including the provision of liquidity, to ensure the stability in financial markets and to secure the smooth settlement of funds.
There was no substantial damage to any of the buildings of the central bank or its branches. The Bank's business operations, including operations at the windows, are carried out as usual. The BOJ-NET settlement system is functioning normally.
The Bank set up a disaster management team at its Head Office headed by the Governor, immediately after the earthquake, to assess the impact of the earthquake on financial markets as well as on financial institutions' business operations and to respond as necessary.
The Bank indicated that it will do its utmost, including the provision of liquidity, to ensure the stability in financial markets and to secure the smooth settlement of funds.
Friday, 11 March 2011
Christmas comes early as Internet drives shopping revolution
Christmas shopping in the UK is getting progressively earlier as shoppers migrate to the internet to buy gifts, according to the Payments Council’s research into the latest spending data.
Plastic card spending on the high street is increasing in November, relative to December. In 2010 this increase was marked; the total amount UK consumers spent with retailers in November amounting to £11.2 billion was 84% of the December total of £13.3 billion. These figures exclude food and fuel.
A year earlier, in 2009, November was just 80% of the December total. 2008 figures show that the November spend was only 69% of the December figure.
A longer view over the last decade confirms this pattern. At the beginning of this century, November’s spending was nearly 2.5% smaller than December’s, by the middle of the decade spending during the two months was exactly equal and over the last two years November spending has exceeded December by 2.27%.
However, while we are rushing to use our cards online, particularly at Christmas, UK shoppers are not using borrowing to fund our shopping habit. Almost all of the increase over the last five years on total card spending was on debit card (£97bn compared with £4bn on credit cards); a pattern that was repeated in 2010, where total spending on cards was up by 7% (9% on debit cards, as opposed to 2% on credit card). Credit card repayments also increased by 8% in 2010 and outstanding credit card credit was at its lowest level since the beginning of 2004.
Cheque usage has fallen by 13% over 2010, as payments have migrated online or to other automated methods; further evidence of UK consumers move to the “virtual high street”. Cash payment volumes have also fallen over the last year by 5% and the number of Faster Payments peaked again in Q4 2010 when 120 million payments benefited from immediate transfer. The majority of these Faster payments were made online.
Sandra Quinn, Director of Communications, Payments Council explained: “The internet has really changed the way we shop at Christmas, with many of us choosing to shop on line to get the best deals and to avoid the shops at the busiest time of year, but you need to start early. That’s why there is a distinct shift in spending towards November. This has only been possible with the vast expansion of card usage in the UK.
“Even the looming increase in VAT which flattered December’s spending wasn’t enough to mask the rise of November. The problems of dispatching Christmas goods through the heavy December snows last Christmas mean this year, people are likely to get even more organised and get their orders in online early. Looks like we’re going to have to learn to love those early Christmas adverts.”
Plastic card spending on the high street is increasing in November, relative to December. In 2010 this increase was marked; the total amount UK consumers spent with retailers in November amounting to £11.2 billion was 84% of the December total of £13.3 billion. These figures exclude food and fuel.
A year earlier, in 2009, November was just 80% of the December total. 2008 figures show that the November spend was only 69% of the December figure.
A longer view over the last decade confirms this pattern. At the beginning of this century, November’s spending was nearly 2.5% smaller than December’s, by the middle of the decade spending during the two months was exactly equal and over the last two years November spending has exceeded December by 2.27%.
However, while we are rushing to use our cards online, particularly at Christmas, UK shoppers are not using borrowing to fund our shopping habit. Almost all of the increase over the last five years on total card spending was on debit card (£97bn compared with £4bn on credit cards); a pattern that was repeated in 2010, where total spending on cards was up by 7% (9% on debit cards, as opposed to 2% on credit card). Credit card repayments also increased by 8% in 2010 and outstanding credit card credit was at its lowest level since the beginning of 2004.
Cheque usage has fallen by 13% over 2010, as payments have migrated online or to other automated methods; further evidence of UK consumers move to the “virtual high street”. Cash payment volumes have also fallen over the last year by 5% and the number of Faster Payments peaked again in Q4 2010 when 120 million payments benefited from immediate transfer. The majority of these Faster payments were made online.
Sandra Quinn, Director of Communications, Payments Council explained: “The internet has really changed the way we shop at Christmas, with many of us choosing to shop on line to get the best deals and to avoid the shops at the busiest time of year, but you need to start early. That’s why there is a distinct shift in spending towards November. This has only been possible with the vast expansion of card usage in the UK.
“Even the looming increase in VAT which flattered December’s spending wasn’t enough to mask the rise of November. The problems of dispatching Christmas goods through the heavy December snows last Christmas mean this year, people are likely to get even more organised and get their orders in online early. Looks like we’re going to have to learn to love those early Christmas adverts.”
Principles for financial market infrastructures – New consultative report published
The BIS’ Committee on Payment and Settlement Systems (CPSS) has just published, in conjunction with the Technical Committee of the International Organization of Securities Commissions (IOSCO), a new consultative report on financial market infrastructures.
The report “Principles for financial market infrastructures” contains new and more demanding international standards for payment, clearing and settlement systems. Issued for public consultation by the CPSS and, the new standards (called "principles") are designed to ensure that the essential infrastructure supporting global financial markets is even more robust and thus even better placed to withstand financial shocks than at present.
The report contains a single, comprehensive set of 24 principles designed to apply to all systemically important payment systems, central securities depositories, securities settlement systems, central counterparties and trade repositories (collectively "financial market infrastructures" or "FMIs"). These FMIs collectively record, clear and settle transactions in financial markets.
When finalized, the new principles will replace the three existing sets of CPSS and CPSS-IOSCO standards,
Robust and efficient FMIs help to ensure that markets continue to function effectively even in times of crisis and are an essential prerequisite for financial stability. Although FMIs have generally performed well, there are nevertheless lessons to be learnt both from the recent crisis and from the years of more normal operation since the current standards were issued.
Compared with the current standards, the new principles introduce more demanding requirements in many important areas including;
Published along with the report is a cover note which sets out some specific issues on which the committees are seeking comments during the public consultation period.
Comments on the principles have been invited from all interested parties and should be sent by no later than 29 July 2011 to both the CPSS secretariat (cpss@bis.org) and the IOSCO secretariat (fmi@iosco.org). The comments will be published on the websites of the BIS and IOSCO unless commentators request otherwise.
After the consultation period, the CPSS and IOSCO will review all comments received and publish a final report in early 2012. As set out in the cover note, the proposal is that relevant authorities will then strive to include the principles in their legal and regulatory framework by the end of 2012 and to apply the principles as part of their regulatory, supervisory and oversight activities as soon as possible. FMIs will be expected to take appropriate and swift action in order to meet the principles.
The consultative report as well as the covering note may be downloaded from the BIS website - http://www.bis.org/publ/cpss94.htm
The report “Principles for financial market infrastructures” contains new and more demanding international standards for payment, clearing and settlement systems. Issued for public consultation by the CPSS and, the new standards (called "principles") are designed to ensure that the essential infrastructure supporting global financial markets is even more robust and thus even better placed to withstand financial shocks than at present.
The report contains a single, comprehensive set of 24 principles designed to apply to all systemically important payment systems, central securities depositories, securities settlement systems, central counterparties and trade repositories (collectively "financial market infrastructures" or "FMIs"). These FMIs collectively record, clear and settle transactions in financial markets.
When finalized, the new principles will replace the three existing sets of CPSS and CPSS-IOSCO standards,
- the Core Principles for Systemically Important Payment Systems (2001)
- the Recommendations for Securities Settlement Systems (2001), and
- the Recommendations for Central Counterparties (2004).
Robust and efficient FMIs help to ensure that markets continue to function effectively even in times of crisis and are an essential prerequisite for financial stability. Although FMIs have generally performed well, there are nevertheless lessons to be learnt both from the recent crisis and from the years of more normal operation since the current standards were issued.
Compared with the current standards, the new principles introduce more demanding requirements in many important areas including;
- the financial resources and risk management procedures an FMI uses to cope with the default of participants
- the mitigation of operational risk, and
- the links and other interdependencies between FMIs through which operational and financial risks can spread.
Published along with the report is a cover note which sets out some specific issues on which the committees are seeking comments during the public consultation period.
Comments on the principles have been invited from all interested parties and should be sent by no later than 29 July 2011 to both the CPSS secretariat (cpss@bis.org) and the IOSCO secretariat (fmi@iosco.org). The comments will be published on the websites of the BIS and IOSCO unless commentators request otherwise.
After the consultation period, the CPSS and IOSCO will review all comments received and publish a final report in early 2012. As set out in the cover note, the proposal is that relevant authorities will then strive to include the principles in their legal and regulatory framework by the end of 2012 and to apply the principles as part of their regulatory, supervisory and oversight activities as soon as possible. FMIs will be expected to take appropriate and swift action in order to meet the principles.
The consultative report as well as the covering note may be downloaded from the BIS website - http://www.bis.org/publ/cpss94.htm
Wednesday, 9 March 2011
Sweden looking at mobile postage payment system
The Swedish postal service, Posten AB, is said to be seriously considering replacing the traditional paper postage stamps with a new text massage based postage payment system. It's a rather simple concept (as long as you have a mobile phone). Customers will send a text payment and will then receive a code that will then be written on the letter or parcel. This code will provide proof of payment. The system is expected to begin this summer.
Nearby Denmark is also expecting to begin a similar program shortly.
Nearby Denmark is also expecting to begin a similar program shortly.
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