Tag Archive for: Refinitiv

How are fintechs combating anti-money laundering challenges?

30-01-2023 | treasuryXL | Refinitiv | LinkedIn |

A recent white paper from Refinitiv – produced in collaboration with global consultancy, FINTRAIL – discusses the key elements currently shaping the evolving fintech space and the key trends that will be shaping the fintech landscape in 2023.

  1. New findings from Refinitiv and FINTRAIL, based on interviews with experts from different fintechs across a range of geographies, have identified five key factors that are shaping fintechs today.
  2. The white paper identified that the primary factors shaping fintech in 2022 were technology, data, talent, governance and efficiency, and it will continue in 2023.
  3. Fintechs also have to keep tight control of the anti-money laundering (AML) processes to protect against widespread illicit activity and ensure regulatory compliance.

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Constant evolution

The fintech industry is one of dynamism and innovation; a space where agile players harness new technology and challenge the status quo of the traditional financial services industry every day.

Undoubtedly, this delivers substantial opportunity for those involved in the sector, but at the same time, financial criminals are similarly leveraging technology and using advancements to devise new ways to further their illicit activities.

In this fast-paced space, characterised by evolution and a growing financial crime threat, what key elements are at play and what factors have shaped and defined the industry in 2022, and will continue to do so in 2023?

Findings from Refinitiv and FINTRAIL, based on interviews with experts from different fintechs across a range of geographies, have identified five key factors that are shaping fintechs today.

Five factors shaping fintechs today

Five factors shaping fintechs today: technology; data; talent; governance, efficiency

Technology

The fintechs we spoke to stress that the right technology can make all the difference when it comes to managing financial crime, with some describing machine learning and artificial intelligence (AI) as “indispensable tools”.

This view is in line with the recommendations of the Financial Action Task Force (FATF).

Interviewees also stress the importance of “explainability” – in other words being able to explain what data is used to reach different conclusions and why the results can be trusted – when introducing technology.

According to FATF, applying new technologies makes tackling financial crime faster, cheaper and more effective

Data

Leading technology needs trusted, comprehensive data, but fintechs highlight that striking a balance is key. Requiring too much information can damage the customer experience, while not enough leaves fintechs vulnerable to financial crime.

Collecting the right data – and the right amount of data – and then building a complete picture of risk is key to the combined fintech goals of maximising efficiency, keeping customers happy and protecting against financial crime.

Talent

Technology and data are critical in managing financial crime threats, but a third and equally critical element is invaluable human expertise. The right people across difference disciplines can make all the difference.

Fintechs tell is that from the first and second line of defence to engineers and data scientists, finding talent to scale is an essential consideration

Those we interviewed said that engineers and data scientists are key, and further that the compliance profession is considered “recession-proof” – upskilling compliance team members should be a key priority for those in the sector.

Interviewees also highlighted that fintechs should concentrate on attracting and retaining key staff, but should also consider outsourced solutions for additional support and expertise.

Governance

Effective governance is a key consideration for fintechs as they grow and evolve. The nature of the industry and the rapid growth trajectories often followed by sector participants mean that effective AML controls and good governance need due attention.

Plus, fintechs agree that governance models should not be static – they need to adapt over time.

Efficiency

Efficiencies are increasing in the industry, with new technology now enabling fintechs to integrate specific data points alongside behavioural biometrics to help them spot suspicious activity.

For example, device identification data can identify if an account is accessed from a new device and this can be compared to a client’s history.

To further boost efficiencies, fintechs say that adopting a dynamic approach to risk is key and avoids wasting often scarce resources.

Discover more about our KYC and anti-money laundering solutions for the fintech industry

Keeping pace with changes in fintech

Fintechs can expect these top trends to continue in the year ahead and should especially take note of the powerful combination of tech, data and human expertise that are not only shaping the sector, but can enable better compliance and good governance, while boosting efficiencies.

As the industry continues to grow and develop at pace, many players are rightly concerned with ensuring an engaging and positive customer experience that offers connectivity and seamless interaction. They must, however, also keep tight control of the AML processes they will need to protect against widespread illicit activity and ensure regulatory compliance.

Read the full white paper. AML challenges for fintechs: Insights for the future

AML challenges for fintechs: Insights for the future

How can fintech rise to the challenge of AML compliance?

12-01-2023 | treasuryXL | Refinitiv | LinkedIn |

A new white paper from Refinitiv, produced in collaboration with global consultancy, FINTRAIL, unpacks some of the key financial crime-related challenges facing fintech today, and explores how companies in this evolving sector can best manage AML compliance.

 

  1. A new white paper explores three key challenges currently at play in the fintech space.
  2. Fintech priorities are balanced between operational efficiencies, positive customer experiences and regulatory compliance.
  3. Discover more in the paper from Refinitiv and FINTRAIL, which is based on interviews with experts in different international fintech.

For more data-driven insights in your Inbox, subscribe to the Refinitiv Perspectives weekly newsletter.

Fintech and illicit activity

The fintech space is highly dynamic and agile, but this industry of innovation and opportunity is substantially impacted by a constantly evolving financial crime landscape.

Emerging technology, quickly adopted by fintech and leveraged to make every facet of our lives easier, is similarly harnessed by financial criminals seeking to engage in illicit activity.

Criminals seeking to evade controls are resourceful, quickly making used of new opportunities to conduct illicit activity

New findings from Refinitiv and FINTRAIL – based on interviews with experts in different fintech across a range of geographies – reveal the top challenges faced by the fintech and focus on three key challenges currently at play in this dynamic space.

Read the white paper: AML challenges for fintechs: Insights for the future

What are the three key challenges facing fintech?

Online fraud

Fraud continues to grow across the globe and is a key pain point highlighted by the fintech we spoke to.

One of the top fraud-related challenges currently in play is application fraud, where sophisticated financial criminals typically impersonate individuals or make use of synthetic identities.

Illicit actors are leveraging powerful technology to do this – manipulating information, tapping into advanced graphics techniques and exploiting vulnerabilities wherever possible.

In the UK, reported losses totalled £2.35bn in 2021. In the U.S., 2.8 million consumers made fraud reports in 2021.

In the United Kingdom, where fraud is the most commonly experienced crime, reported losses totalled £2.35 billion in 2021. In the United States, fraud trumps all other proceed-generating crimes and 2.8 million consumers made fraud reports in 2021.

 – AML challenges for fintech: Insights for the future

The fintecs we spoke to are responding in a range of ways, from providing better customer education and raising awareness to protect vulnerable customers, to ramping up collaboration initiatives between the private sector, governments and law enforcement agencies.

Digital assets and cryptocurrency challenges

Crypto continues to grow, and hand-in-hand with this, regulation within the sector is also increasing.

Against a highly dynamic situation, where products and technologies are evolving at speed, virtual asset service providers (VASPs) need to keep pace with a changing regulatory curve, especially when it comes to complying with differences across jurisdictions.

Even fintech that don’t bank digital assets need to stay acutely aware of the crypto-related risk as they may interact with VASPs, and consequently, need to understand potential regulatory obligations.

Sanctions

Sanctions are another key challenge for fintech, and little wonder given the global sanctions landscape that has unfolded throughout most of 2022.

AML teams have been scrambling to keep pace with the exponentially rising volume of sanctions, especially – but not only – those related to the Russian invasion of Ukraine.

Not only has the absolute volume of sanctions been increasing, but individual sanctions have been becoming increasingly complex, leading to rising compliance costs for fintech as well as their traditional financial services industry counterparts.

Non-compliance can have far-reaching consequences – ranging from financial to reputational and more.

Sanctions are our highest priority and receive dedicated 24/7/365 attention

A best practice response

The fintech we spoke to are acutely aware of the need to protect against widespread illicit activity and of the requirement to remain compliant at all times.

At the same time, they operate in a lean industry of constant change, exponentially growing customer bases and a breakneck pace of business.

This means that building a best-practice response to financial crime must be carefully considered, efficient and effective.

Leading-edge AML technology, robust data and skilled compliance professionals – whether in-house or outsourced – can offer the solution to help manage and mitigate financial crime risk and the key challenges outlined above.

High on the list of fintech priorities is striking the all-important balance between operational efficiencies, positive customer experiences and regulatory compliance – and with the right data, technology and human insights, this delicate balancing act can be maintained.

Read the white paper: AML challenges for fintechs: Insights for the future

[WEBINAR] FRTB – Are Banks Ready To Be Compliant?

23-11-2022 | treasuryXL | Refinitiv | LinkedIn |

Join experts across the industry for this complimentary webinar to explore how to prepare for – and comply – with the Fundamental Review of the Trading Book (FRTB) regulation in 2023.

DETAILS:

  • Webinar: FRTB – are banks ready to be compliant?
  • Date: Tuesday, November 29
  • Time: 09:00 EST / 14:00 GMT / 15:00 CET
  • Speakers:
    • Hany Farag, Senior Director and Head of Risk Methodology and Analytics, CIBC
    • Fausto Marseglia, Head of Product Management, FRTB and Regulatory Propositions, Refinitiv, an LSEG Business
    • [Moderator] Lisa Regan, Head of Sales, EMEA, Enterprise Data, Refinitiv, an LSEG Business\
    • Volker Wellmann, Risk and Resource Manager at BNP Paribas, BNP Pariba



 

 

Register today

 

MENA Investment Banking Review First Nine Months 2022

02-11-2022 | treasuryXL | Refinitiv | LinkedIn |

Refinitiv Deals Intelligence brings you the MENA Investment Banking performance review, covering First Nine Months 2022.
Access this report for Investment Banking fees, volumes, and league tables across M&A, Equity Capital Markets, and Debt Capital Markets. Examine deal flows, top deals, most active nations, and most active sectors.

 


Report Highlights

INVESTMENT BANKING FEES 
An estimated US$1.1 billion worth of investment banking fees were generated in the Middle East & North Africa during the first nine months of 2022, 5% more than the same period in 2021 and the highest first nine-month total since 2008.  Almost half of this year’s fees were generated during the first three months of the year, with quarterly fees declining in the following two quarters.  Fees totalled US$186.4 million during the third quarter of 2022, the lowest quarterly total in the region in six years.
MERGERS & ACQUISITIONS
The value of announced M&A transactions with any MENA involvement reached US$69.7 billion during the first nine months of 2022, 17% less than the value recorded during the same period in 2021.  Despite the decline in value, the number of deal announcements in the region increased 5% from last year to the highest first nine-month total since our records began in 1980.
EQUITY CAPITAL MARKETS
MENA equity and equity-related issuance totalled US$15.3 billion during the first nine months of 2022, the highest first nine-month total since 2008.  Proceeds raised by companies in the region increased 166% compared to the first nine months of 2021, while the number of issues increased 110%.
DEBT CAPITAL MARKETS
MENA debt issuance totalled US$18.3 billion during the first nine months of 2022, down 80% from the value recorded during the same period in 2021 and the lowest first nine-month total since 2011.  The number of issues declined 68% from last year at this time.

Download the report

Everything you need on the Standardised Approach

13-10-2022 | treasuryXL | Refinitiv | LinkedIn |

 

How can data and analytics help banks meet the FRTB Standardised Approach deadline? This blog by Refinitiv helps you understand everything you need on the Standardisded Approach.

Read more

Corporate Treasury Data Insights Refinitiv

07-09-2022 | treasuryXL | Refinitiv | LinkedIn |

 

The USDCNY historical volatility, the expert webinar on Inflation Growth & Markets, Refinitiv Corporate Treasury Newsbeat and much more. All summarised in the new Corporate Data Insights by Refinitiv.

Chart of the Month

Chart of the month

1M and 3M USDCNY historical volatility 

 

Our Chart of the Month shows 1-month volatility (in orange) and 3-month volatility (in green) for the USDCNY currency pair. It clearly demonstrates huge implications for those hedging CNY exposures.
The combination of USD rate tightening and Chinese rate easing since the start of the year – reflecting a weakening Chinese economy and Covid-19 restrictions – has meant a stronger USD, a sell-off of Chinese bonds, and significantly elevated USDCNY volatility.
Ahead of the November US mid-term elections, commentators are watching to see if Biden’s inflation imperative might outweigh the US response to China’s actions towards Taiwan. Our news partner, Reuters, unpacks this conundrum in more detail.


The Biden administration has been forced to recalibrate their thinking on whether to scrap some tariffs or potentially impose others on Beijing, according to sources familiar with the deliberations.
It has considered a combination of eliminating some tariffs, potential additional tariffs, and expanding a list of tariff exclusions to aid U.S. companies that can only get certain supplies from China.
Additional tariffs would make Chinese imports more expensive for U.S. companies, and subsequently makes products more costly for consumers. However, bringing inflation down is a major goal for Biden ahead of the November mid-term elections.
Politically there is a delicate path to tread, but recent market dynamics may suit US policy makers.

[Webinar] Inflation, Growth and Markets: Hear from the Experts |

Economies around the world are enduring inflationary pressures not experienced in decades. Rising cos

ts triggered by supply chain interruptions and wage demands as economies roared back to life post-COVID were compounded in February by Russia’s invasion of Ukraine, disrupting crucial commodity supplies. Join a panel of expert Reuters editors to discuss the issues and hear from Refinitiv’s Director of Macro and Economics on how to use Workspace and Eikon product enhancements.

How are digital assets used to evade sanctions?
There is a growing concern that criminal networks may seek to circumvent global sanctions through the use of cryptocurrency. Refinitiv is working on promoting a more coordinated global response to financial crime, focusing on protecting the digital asset space. How can we respond to the challenge? >
Everything flows: Green equity funds go red for the first time since COVID meltdown

After a volatile start to July, the FTSE 100 crept up a touch less than 250 points over the month, with other equity markets globally turning upwards in a similar fashion from late June recent lows. At the same time, the yield on the benchmark 10-year gilt was squeezed by about 90 basis points. Fund flows, however, do not reflect this—at least at the most broad-brush asset class level, with redemptions excluding money market vehicles running to £7.9bn.  Find out more about recent asset flow trends >

Breakingviews: D.C. turf war opens crypto regulatory arbitrage 

 

Cryptocurrency ventures can divide and conquer Washington’s regulatory fiefdoms. The U.S. Federal Reserve staked out its turf this week, telling lenders to notify it if they offer services for bitcoin and its ilk. Other agencies are also wrestling to oversee the $1 trillion market. The scrap provides an opportunity for some industry participants, but it hurts token owners. Read on >

Deep U.S. curve inversion hastens the recession it predicts 

An inverted U.S. Treasury yield curve almost always heralds recession, but the yawning gap between high short-term funding costs and falling long-term borrowing rates may accelerate the economic downturn it presages. Reuters columnist Jamie McGeever looks at the potential impact of an inverted U.S. treasury yield curve.

Refinitiv Corporate Treasury Newsbeat

Refinitiv issues consultation on Tokyo Swap Rate benchmarks |  Refinitiv announced the publication of a consultation paper regarding the Tokyo Swap Rate benchmarks. Refinitiv administers Tokyo Swap Rate, a Japanese yen (JPY) interest rate swap (IRS) benchmark family, which is used in the valuation of swaptions, CMS, structured loans and notes, FRNs and private finance initiatives. Read more here >
Bulgarian Stock Exchange powers sustainability index with Refinitiv ESG metrics |  The Bulgarian Stock Exchange (BSE) announced it has adopted Refinitiv’s Environment, Social and Governance (ESG) metrics to power its sustainability index set to be launched end of 2022 Read more here >
Refinitiv to launch forward looking term rate versions of ARRC recommended fallback rates this September to facilitate industry transition from USD LIBOR |  Refinitiv announces that it intends to launch forward looking term rate versions of its ARRC recommended fallback rates – USD IBOR Cash Fallbacks – in September 2022. This follows the Alternative Reference Rates Committee’s (ARRC) March 2021 announcement that it had selected Refinitiv to publish its recommended fallback rates for cash products and Refinitiv’s November 2021 announcement that it had released production fallback rates based upon various SOFR conventions.  Read more here >
For more data-driven insights in your Inbox, subscribe to the Refinitiv Perspectives weekly newsletter.

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Harmonisation of FRTB data compliance requirements by local jurisdictions is crucial

09-08-2022 | treasuryXL | Refinitiv | LinkedIn |

 

Banks face uncertainty over changing responsibilities under the Fundamental Review of the Trading Book (FRTB), but potential jurisdictional divergence on new requirements for data vendors could add greater complexity to the roll-out of these new rules.

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5 steps to effective fraud prevention in fintech

14-07-2022 | treasuryXL | Refinitiv | LinkedIn |

 

A recent Refinitiv expert talk looks at the digital banking and fintech arena, unpacking the compliance challenges that dominate the sector and offering advice for a best-practice response.

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The Relentless Rise of Real-Time Data


16-06-2022 | treasuryXL | Refinitiv | LinkedIn |

 

Demand for real-time data is growing fast as financial firms face regulatory, trading, operational and competitive challenges. Rob Lane, head of real-time feeds at Refinitiv, discusses the changing data needs of banks and buy-side firms and how the cloud is helping improve access to a key source of competitive advantage in pursuit of more informed and agile decision-making.

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Turbulent markets put focus on evaluated pricing


24-05-2022 | treasuryXL | Refinitiv | LinkedIn |

 

Fixed income volatility looks like it will be around for a while, due to whipsaw-like changes in the overall economic environment. In such an environment, firms need to have the right evaluated pricing to ensure they are pricing their portfolios at fair value levels and that they are complying with regulations.

 

Read more