Cooperation the key for TB
(21 September 2009 – Global) A keynote debate at this month’s Sibos conference in Hong Kong highlighted that the future of transaction banking is in collaboration by banks due to the effects of the global financial crisis.
Financial technology website, Finextra, reported that, in a keynote debate, three of the world’s largest transaction banks, Citi, Deutsche Bank and HSBC, all agreed that greater collaboration was being embraced in the current environment.
The financial crisis has caused an even greater focus on ongoing and increased regulation and the liquidity implications and costs that go with it.
Andrew Long, head of Global Transaction Banking and group general manager, HSBC said that because each of the big global banks were implanting the same changes due to regulatory requirements, it was reasonable to collaborate and instead spend money on customers.
Mr Long’s counterpart at Deutsche bank, Werner Steinmuller, head of Global Transaction Banking, reiterated the point, saying that the big banks required a common voice to interact with the regulator, so cooperation was key.
The payment processing joint venture between American banking giants Bank of America and Wells Fargo that began last year was highlighted as a key example.
Catherine Bessant, president, Corporate Banking, Bank of America, indicated that the primary reason for the joint venture was for cost savings to grow their business in the current financial crisis.
Business models based on open architecture and white labelling were also highlighted as key ways forward for transaction banks. Vanni d'Archirafi, chief executive, Global Transaction Services for Citi called open architecture the way of the future, with easier customer integration creating efficiencies for both customer and bank.
The financial crisis has caused an even greater focus on ongoing and increased regulation and the liquidity implications and costs that go with it.
Andrew Long, head of Global Transaction Banking and group general manager, HSBC said that because each of the big global banks were implanting the same changes due to regulatory requirements, it was reasonable to collaborate and instead spend money on customers.
Mr Long’s counterpart at Deutsche bank, Werner Steinmuller, head of Global Transaction Banking, reiterated the point, saying that the big banks required a common voice to interact with the regulator, so cooperation was key.
The payment processing joint venture between American banking giants Bank of America and Wells Fargo that began last year was highlighted as a key example.
Catherine Bessant, president, Corporate Banking, Bank of America, indicated that the primary reason for the joint venture was for cost savings to grow their business in the current financial crisis.
Business models based on open architecture and white labelling were also highlighted as key ways forward for transaction banks. Vanni d'Archirafi, chief executive, Global Transaction Services for Citi called open architecture the way of the future, with easier customer integration creating efficiencies for both customer and bank.
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