Paragon Bank has procured business onboarding and automated due diligence technology services from RegTech firm, TruNarrative. The decision follows Paragon Bank’s recent approval from the British Business Bank, enabling Paragon to deliver bounce back loans to SMEs coping with the Covid-19 economic situation.

Paragon Bank is a FTSE 250 multi-award winning specialist bank with over 430,000 customers. Since its inception in 1985 as a buy-to-let mortgage lender, it has grown to offer a range of products, including commercial and SME lending, motor finance, asset finance, and consumer savings accounts.

TruNarrative’s platform is trusted by regulated entities across Europe and North America including banks, lenders, eCommerce and payment services. 

Via a single API, the TruNarrative platform delivers automated customer onboarding, financial crime prevention, fraud, money laundering detection, ID and biometric verification, multibureau eKYC, eKYB, PEPs and Sanctions, and anomaly detection.

Following Paragon’s appointment as the 20th Bounce Back Loans Scheme provider, it required a solution to deliver real-time financial crime decisioning and risk rating of linked entities and individuals so Bounce Back loans could be processed as quickly as possible.

The TruNarrative platform is integrated with Paragon Bank’s core architecture and will initially facilitate the onboarding of SMEs specifically for the Bounce Back Loans Scheme (BBLS).

TruNarrative’s cloud native solution was integrated, deployed and live within three weeks and now complements Paragon’s existing onboarding processes with a real-time financial crime decisioning and risk rating. 

The partnership will give Paragon Bank access to a range of capabilities, including device risk profiling, KYB risk insights, electronic identity verification, enhanced fraud detection using Cifas data, Peps, Sanctions and Adverse Media.

The TruNarrative platform allows Paragon to review and rapidly adapt its risk scores, thresholds and constantly monitor risk within its SME customer base for BBLS.

“Combining the technical proficiencies of Paragon Bank’s IT Team and depth of domain knowledge from their Financial Crime Team, we have collectively demonstrated that financial crime change projects can be completed in a matter of weeks rather than months or years. The resultant outcome is that the Financial Crime Team now has an enhanced capability that can positively support the commercial aspirations of the Bank to deliver an exceptional and frictionless customer experience. We continue to look forward to future initiatives with Paragon Bank,” says Edward Vaughan, Head of Banking, TruNarrative.

“The Covid-19 crisis has meant that as a business Paragon Bank has had to react quickly and effectively to adapt our processes and IT systems to support our customers. As part of our BBLS development we needed to select a partner who could provide not only the technology we required, but also work with our internal team to deliver a robust solution to very demanding timeframes, TruNarrative has proven it has the capabilities to do this and we will continue to work with them on future enhancements to support our customers,” comments Warren Stevenson, IT Director, Paragon Bank.

Nexi, the leading Italian PayTech in digital payments, signs a partnership with Meniga, the world's leading fintech in the development of personal & business financial management solutions.

According to the agreement, Meniga is the first company to collaborate with Nexi to develop a portfolio of digital financial management services aimed at strengthening bank-customer relationships. Meniga joins Nexi Open: Nexi's partner banks will therefore be able to offer Meniga’s PFM and BFM services, enhanced by the new features of access to customer accounts and money transfer between accounts governed by PSD2 regulations.

Meniga’s PFM and BFM services can, at the discretion of each bank, be integrated directly into a bank’s digital properties (internet banking, mobile apps, etc) or delivered to the clients as standalone solutions.

Credit institutions will be able to provide individual customers with the advanced features of a Personal Financial Manager, while small businesses will be able to access the services of a Business Financial Manager.

Tesco Bank is to become the first UK bank to introduce new technology that allows its 2.6 million credit card customers to more easily manage and pay their balance.

The ‘Pay by Bank’ facility will be provided by Tesco Bank and enabled by Mastercard’s Open Banking Connect™ service.  It allows Mobile and Online credit card customers to make payments directly from their current account via electronic payment services.

The new feature is made possible as a result of Open Banking legislation, and Tesco Bank is the first in the UK to introduce it for the payment of credit card balances. 

The main benefits for customers are:

• Simplicity – Pay by Bank delivers a straightforward way for customers to pay their credit card directly from a current account. Customers do not have to remember any account details or find their debit card to make a payment.
• Visibility – The Pay by Bank method of payment allows customers to view their current account balance before deciding how much of their credit card to pay – and see their bank balance update instantly.*
• Security – Customers can make safe and easy payments from non-Tesco Bank current accounts using their bank’s usual online or mobile app login details to verify payment.

Testing and roll-out of the new functionality started in August 2020, with all Mobile and Online credit card customers expected to have access to this new payment option, enabled by Mastercard, in the coming weeks.

Tesco Bank is the fourth largest credit card provider in the UK, with a range of cards targeted towards the different borrowing needs of customers.  This includes Purchase Cards and Balance Transfer Cards, as well as a Foundation Card for those who are looking to re-build or improve their credit rating.

All Tesco Bank credit cards reward customers with Tesco Clubcard points when they spend on their card, with one point collected for every £4 spent in Tesco, and for every £8 spent elsewhere.

Sigga Sigurdardottir, Chief Customer Officer, Tesco Bank, said: “Tesco Bank’s purpose is to help Tesco shoppers manage their money a little better every day.  The introduction of Pay by Bank helps us do that for 2.6 million of our credit card customers, giving them a simple and secure way of paying their credit card, and greater control of their finances. 

"We are particularly pleased to be the first UK bank to make this technology available for credit card customers. We expect this functionality to be widespread in the market in the coming years.

“This is a great example of the strength that our partnership with Mastercard brings to our credit card offering.”

Kelly Devine, Division President for Mastercard UK and Ireland, said: “Bringing more simple, safe and convenient ways for people to pay is at the very heart of our Open Banking solutions. With this enhancement, Tesco Bank customers will have greater flexibility to make payments against card balances than ever, aiding budgeting and placing them in full control of their finances.”

*This is subject to your bank’s capability 

MYHSM, the global provider of cloud-based Payment Hardware Security Modules (HSM) as a Service today announces its partnership with Compass Plus, an international provider of retail banking and electronic payments software to processors and financial institutions. Together, the companies are enabling payment providers to deploy Cloud-based infrastructure that aids growth, innovation, and success. The partnership offers fast and flexible project implementation which is crucial within the payments industry for both fintech start-ups and established tier 1 banks. The ability to go from concept to testing to full production in a compliant manner in a matter of weeks is critical to stay ahead of the competition and demand.

The partnership places true emphasis on flexibility and scalability. It provides customers with a customisable platform of products and services to build a compelling USP with a subscription model for fully managed Payment HSMs. The model can either be implemented for organisations running payment solutions in-house or in a Cloud service environment such as AWS, Azure or Google.

MYHSM is a fully managed, PCI PIN compliant service providing active-active “5 nines” availability using Thales payShield 10K HSMs in multiple data centres as an alternative to operating your own estate of Payment HSMs with your own staff. The cost-effective service aligns seamlessly with a Cloud strategy, is globally accessible and removes the need for any physical infrastructure.

Compass Plus offers a cloud-native, open development payments platform TranzAxis, that was purposefully built to enable innovators to innovate. Developed for the needs of today’s fast paced world and tomorrow’s unknown, TranzAxis architecture supports a variety of deployment models across all products, delivering optimal flexibility to its customers at any given time.

John Cragg, CEO at MYHSM, commented: “Payment HSMs are an essential asset in securing the payments system, but they are expensive and complex to own and operate. It’s a huge cost burden that both fintech start-ups and banks want to avoid and that is why we are seeing a growing demand for flexible Cloud-based services. It is key for MYHSM to work with strategic partnerships to change the way the industry consumes HSMs and deliver the benefits of a Cloud payments strategy. It is great to work with Compass Plus a forward thinking, dynamic company that puts innovation and the customer at the centre of their focus.”

“Unlike traditional payments platforms, TranzAxis is not just cloud-enabled, it is cloud-native, with a variety of built-in features and functions that are readily accessible at the click of a button,” commented Maria Nottingham, EVP at Compass Plus. “We have been successfully enabling cloud deployments since 2014 and truly understand the benefits a cloud-based infrastructure can bring. Partnering with companies like MYHSM, who fully embrace the latest technological advancements, is a natural and logical extension of our cloud deployment offering, enabling our customers to take full advantage of everything cloud-based infrastructures are able to deliver.”

Temenos (SIX: TEMN), the banking software company, today announced that Elevations Credit Union selected Temenos Infinity delivered on the cloud to digitally transform its member experience. Temenos Infinity will streamline processes, while enabling the credit union to provide frictionless, differentiated member experiences across mobile and online channels. This will allow the credit union to better engage with members, improve money management capabilities, and roll out new capabilities tailored to the needs of its widening member base.

Elevations Credit Union serves over 140,000 members throughout seven counties in Colorado. The credit union seeks to foster growth in its community by providing members with an empowering banking experience. With over $2 billion in assets and growing, the credit union was looking for a partner to transform its online and mobile app experiences for both retail and business banking.

Financial institutions around the world are looking at how to deliver the digital experiences that account holders are demanding. In a new report published by the Economist Intelligence Unit on behalf of Temenos – “Forging New Frontiers: advanced technologies will revolutionize banking” – 66% of banking executives cited new technologies as having the biggest impact on banks by 2025, with 27% of respondents saying that improving the user experience will be the most valuable use of artificial intelligence. Elevations Credit Union will leverage the agility and AI-based capabilities of Temenos Infinity to meet the needs of its tech-savvy member base and provide a best-in-class digital experience.

Temenos Infinity is the leading omnichannel digital banking product covering engagement from acquisition, to account servicing, through to long-term retention, supporting multiple stages of growth. Over 600 financial institutions in the US and Canada use Temenos Infinity. This core-agnostic, cloud-native and cloud-agnostic digital front office product is the leader in customer acquisition and digital banking engagement. Temenos Infinity enables banks to increase digital revenues by 5x and cut customer onboarding time by 75%.

According to a survey conducted in March, 63% of respondents are now more likely to try a digital banking application.[1] Digital channels have become the main vehicle for banking relationships, and the ability to roll out new products and services is imperative. Temenos technology empowers financial institutions to meet the surge in digital banking during the challenging times surrounding COVID-19, and best support their account holders. Elevations will have the agility to address the fast-growing needs for digitalization and offer its members superior financial products.

Craig Draayer, Director of Digital Experience, Elevations Credit Union, commented: “Improving the member experience and increasing loyalty is a key element of our strategic plan to invest in our members and our community. In 2014, Elevations earned the prestigious Malcolm Baldrige National Quality Award, and we continue to take our commitment to quality seriously. With a highly engaged staff, and the right digital technology in place, we can create seamless, personalized experiences for our members. Temenos Infinity will allow us to carry through the Elevations promise with a human-centric digital branch that supports each member’s financial journey 24 hours a day, wherever they are.”

Alexa Guenoun, President – Americas and Global Head of Partners, Temenos, said: “We are proud to partner with Elevations Credit Union and help the team take their member experience to the next level. With Temenos, Elevations will be able to support its members with a wide range of services to support their unique needs from retail to business, whether they are in an urban or rural area. The credit union will be able to grow and respond to today’s member demands as they develop, launching new products and services in days instead of months. Our advanced technology brings the benefits of speed to market, elastic cloud infrastructure, and the ability to accelerate growth. We are proud to support Elevations and other financial institutions looking to help account holders during this time of disruption.”

Join Temenos’ leading digital event – Synergy Online on September 23 – to get inspired by the most innovative financial institutions and technology leaders from across the United States.

Finantix, the global provider of digital enabling software for the banking, wealth management and insurance sectors, announces the integration of Next Best Action into its award-winning and innovative product suite. Next Best Action leverages the power of AI to provide highly personalised financial advice through an accessible user interface that is as understandable as those from top-tier online sales and media platforms. It is a unique combination of Finantix’ advisory components and InCube’s deep expertise in quantitative finance, AI and data capabilities, and is ongoing evidence of the added value InCube brings to Finantix following its acquisition by Finantix earlier this year.

Wealth managers, relationship managers and advisers in private and retail banks are under continual and growing pressure to reduce operating costs and maximise profitability, while at the same time providing the highest quality service to clients. To meet these requirements, banks are increasingly moving to digitalise their core business processes.

Using machine learning to leverage the power of data from multiple sources, Next Best Action provides wealth managers, relationship managers and advisers with appropriate product and client ideas and recommendations at speed, removing the need for time-consuming manual collection and evaluation of information and lowering the cost of servicing clients.

Benefits of this approach include:

• Wealth managers, relationship managers and advisers can unlock real value from data to deliver personal, relevant, timely and actionable insights to clients.
• Intelligent mining and use of client data can build a holistic picture of client preferences including ESG, investment styles and attitude to investment risk to inform more personally relevant client recommendations.
   
• The digital end-user experience for both wealth management and client is made as convenient, engaging and personally relevant as shopping on ecommerce websites or selecting a recommended movie from streaming services.

Next Best Action is built around an accessible user interface, making it easy for wealth managers, relationship managers and advisers to rapidly access and analyse relevant information from multiple sources, and then relay that to clients in a digital, digestible and personalised format. It is fully compliant with relevant regulatory requirements.

Dr. Boris Rankov, Co-founder of InCube Group AG said: “Digital transformation within the banking industry is a complex process, most quickly and cost-effectively achieved by using specialist providers with modular, API based solutions that fully integrate with existing systems. Both InCube and Finantix have a proven track record of successfully implementing digital projects and Next Best Action is an example of how InCube’s expertise in AI has found synergy with Finantix’s proven front-end technology.”

Next Best Action delivers information at speed, freeing relationship managers up from the process of manually compiling data from multiple sources. Smaller value clients can now be given the level of proactive, personalised service that might previously have been reserved only for High Net Worth Individuals, including being offered information and advice that fits with their interests and portfolio. This can help banks maximise their return per client, as well as increasing client satisfaction.

Christine Ciriani, Chief Executive Officer of Finantix, said: “I am very proud to see Next Best Action integrated into our advisory product portfolio. Leveraging insights and preferences to personalise recommendations allows banks to increase the conversion rate of proposals and grow client loyalty.  Next Best Action opens the door to the democratisation of private banking, delivering private banking service levels to more clients.”

Finantix and InCube will host a series of webinars explaining how Next Best Action can help wealth managers, relationship managers and advisors deliver a more engaging, personalised and efficient experience to their clients.

The European P2P lending platform Robo.cash has found that the demand of investors for long-term loans offered by its Singaporean loan originator is rising. In August, the platform’s users funded €1.5 mln of these loans, which is twice as much as in June. This might mark a new trend among P2P investors.

Starting with €0.7 mln in June,  in July the worth of loans from Singapore funded through the platform went up to €1.2 mln, and then peaked in August making €1.5 mln. It has been the highest number so far.

As the Singaporean loan originator is the only one on Robo.cash, which places loans lasting from 6 to 12 months, it can be seen as a sign of a growing demand for longer-term products among P2P investors. This  tendency is also confirmed by an increasing interest of investors in other long-term assets, such as shares and ETFs. Thus, in a survey conducted by Robo.cash at the beginning of 2020, 33% of respondents claimed stocks and ETFs made the largest part of their portfolio. In April, though, the share of investors with the same distribution of assets grew to 40%. 

Analysts of the company comment: “The pandemic and the related uncertainties seem to have made investors reconsider their strategies and think ahead, opting for longer-term investment products. As for the stocks, it is undeniable that they remain one of the most profitable investment tools. However, it is hardly possible to count on a sharp rise in stock markets after the current recession (a so-called V-shaped recovery). Some prominent experts say that the stocks are rather likely to follow the U-shaped recovery, which decreases their attractivity. The longer the pandemic, the more pessimistic these predictions become. Thus, other experts think that the recovery scenario may well have the L-shape, which makes this type of investment riskier than usual. This may be a reason why investors look at other alternatives, including P2P lending. Such investments give high returns, are not so volatile and give a view of exactly when and how much profit one is going to receive.”

Broadridge Financial Solutions, Inc. (NYSE:BR), a global Fintech leader, has announced an agreement to provide Smith & Williamson Group, a leading financial and professional services firm in the UK and Ireland, with its Shareholder Rights Directive (SRD II) solution for proxy voting. Smith & Williamson is using the Broadridge solution to support its discretionary and non-discretionary execution clients, spanning both institutional and retail investors.

An existing user of Broadridge’s shareholder communication solutions, Smith & Williamson has upgraded to Broadridge’s enhanced end-to-end Global Proxy solution to fulfil its new responsibilities under SRD II, which had a regulatory readiness deadline of 3^rd September 2020. This includes the distribution of meeting agendas within stricter timeframes, reconciling votes on a daily basis and processing votes “without delay.” It also handles all aspects of vote confirmation, including timely electronic confirmation back to shareholders.

“We take our regulatory obligations extremely seriously and it is important to us, and to our clients, that we are well-prepared for a smooth transition that mitigates compliance risk and delivers the combined benefits of greater process efficiency and higher governance standards,” said Nick Murphy, Partner, at Smith & Williamson Investment Management LLP.  “Broadridge, with its deep global domain expertise and strong investor communications governance model, has helped us to be well-positioned for delivering to our clients a unified service to manage proxy voting for their full portfolio of holdings.”

“We are delighted to continue to work with Smith & Williamson to meet its shareholder communications needs,” said Demi Derem, general manager of Broadridge’s International Investor Communication Solutions.  “Smith & Williamson was one of the first brokers to recognise the implications of SRD II to its business and also understood why being ready for SRD II compliance would be so important to its clients.”

SRD II is global in its scope, insofar as it impacts any financial intermediary that holds or services European equities, irrespective of where the firm is located. It applies to all types of financial intermediaries, including banks and brokers, wealth managers and central securities depositaries (CSDs).

ELEMENTARYb, a financial services firm addressing the complex financial needs of the Middle Market Enterprises (MMEs) in the UK, today announced the appointment of Lord David Blunkett as strategic advisor to help the firm’s continued growth and expansion. David Blunkett will be advising the senior management team on all aspects of regulatory requirements, including compliance, cyber-intelligence and the regulatory framework which comprise the foundation of the ELEMENTARYb network.

ELEMENTARYb has the ambition, leadership and roadmap to create the future model of banking for the UK’s under-served mid-market enterprises (MMEs), help firms achieve their strategic and day-to-day goals and positioning them for continued growth. The ELEMENTARYb platform will overlay financial management tools and integrate aligned, high performance modern technology to help MMEs build in resilience, compliance, and security fit for both today and tomorrow.  At the same time, ELEMENTARYb will guide MMEs through regulatory challenges and protect and enhance their ability to meet their climate, environmental and sustainability objectives.

Commenting on the announcement, Lord David Blunkett said: “MMEs are the under-appreciated backbone of the UK’s growth economy, yet are underserved by the UK financial services industry. In an environment of low-growth and continued uncertainty due to Brexit, pandemics and other challenges, MMEs need new allies. I look forward to working with the ELEMENTARYb leadership team to support the commercial needs of MMEs, to help them become more robust and resilient.”

A former Government Minister, David Blunkett served as Secretary of State for Education and Employment; Home Secretary and Secretary for Work and Pensions for nearly a decade under Tony Blair’s Government. He is currently a member of the House of Lords and a Professor of Politics in Practice at the University of Sheffield. He also chairs the Board of the University of Law and is a trustee and patron of a number of charities.

Karen Rudich, CEO of ELEMENTARYb, said: “We have set out to address some of the major challenges facing  MMEs and are working to deliver a smarter banking model for this segment of the market. Today, MMEs do not have access to the right tools and technology, services, products, let alone the best prices and the best opportunities out there. We help leaders of these enterprises get back in control, make better decisions and position themselves for sustained growth.”

She added: “I am very excited to welcome Lord Blunkett to ELEMENTARYb as Strategic Advisor. As a former Government Minister he will support the creation of the regulatory framework that will underpin our offering.  His commercial mind and our shared passion to support growth of the British MME sector will be invaluable in bringing our vision to life.”