GOOD MONTH/BAD MONTH
IBS Journal February 2018
41
Keeping ahead of the Curve
Love is in the air for some fi ntech fi rms in 2018, while others are beginning to get that two-month itch, already pining after the glory days of 2017. We’ve had a look at who had the best and worst of it in January
Good month for… Curve
The payments startup has launched its service to 50,000 waiting customers. The Curve card works like a normal bank card anywhere in the world that accepts Mastercard. Customers can download the Curve app, add their existing cards, and start spending via their Curve card.
Bad month for… HSBC
The bank has been left red-faced after having to pay a $63.1 million criminal penalty and $38.4 million in restitution charges to resolve accusations that it had defrauded two of its clients. On two separate occasions in 2010 and 2011, traders on HSBC’s foreign exchange desk “misused confi dential information” provided to them by clients that hired HSBC to execute multi- billion-dollar foreign exchange transactions.
Mark Johnson, the former head of foreign exchange cash trading at HSBC, was found guilty of one count of conspiracy and eight counts of wire fraud after a four-week jury trial in Brooklyn, New York. He is due to be sentenced in February.
The Core Banking industry According to research from Future Market Insights, the core banking sector is set to experience a compound annual growth rate (CAGR) of 5.1% by 2027. According to Future Market Insights, stakeholders in the core banking solution market “would do well to focus their attention on emerging economies such as India whose governments are aggressively courting foreign direct investment and offering ample untapped opportunities”.
Banks have the largest share in the core banking solution market when it comes to demand and that is likely to remain so for some time. It’s not called core banking for nothing, after all. Underserved markets in Latin America and Asia-Pacifi c will also drive further need for digital-fi rst core banking solutions.
Innovative bankers About 80% per cent of bankers are looking forward to the opportunities brought about by Open Banking, according to a survey from Temenos and Accenture (see page 16). Some 62% said that they would be prepared to distribute third-party products through their platforms and channels, compared with just 29% in 2016.
Fintechs are no longer the main threat – now it’s other fi nancial institutions. New challenger banks are now perceived as the leading competition, cited by 22% of respondents.
Anyone getting an invoice from the UK The proportion of invoices from the UK being paid late has risen “dramatically” from 2016 to 2017. Some 73% of invoices sent by UK businesses to EU fi rms were paid late, a clear increase from 40.4% in 2016. Late invoices by US business increased similarly, from 45.7% to 71% in each respective year.
EU fi rms now take 30 times as much time to settle invoices compared with 2016 (0.3 days to 9.1 in 2017). US fi rms are also taking longer to settle their bills beyond payment terms, up from 7.1 days in 2016 to 19.5 days in 2017.
ATM users in rural areas Consumer group Which? has attacked LINK, the ATM body, for a planned decimation of machines across the UK. LINK wants to lower the fees to card users by 20% over four years, from 25p (35c) to 20p (28c) per transaction. The change would make it less profi table to operate ATMs, and would likely result in closures.
The trade body argues that there are already too many ATMs in the country, and that 80% are located within 300 metres of other machines.
www.ibsintelligence.com
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