Barclays 'Pingit' Passes 500,000 Downloads in 4 months

Back in February, UK bank Barclays launched Pingit, a potentially game-changing app that lets users send and receive money using just their mobile phone number. And today the British bank has revealed that it has just hit 500,000 downloads of the app, less than three months after launch.

It was reported earlier this year that Pingit had sailed past 20,000 downloads in just a couple of days, which was pretty impressive given that it was open only to Barclays’ customers at the time. But when it opened its service to customer of other banks last month, it seems this may have helped boost the uptake.

There  has been lots previously written about the future of online banking, where it has been argued that Barclays blindsided the UK banking industry somewhat with the launch of Pingit. And crucially, the fact that it has opened up the service to customers of all banks could be key to its success.

By getting in there first, Pingit might become the industry standard before any of its competitors have even spluttered into their morning coffee. It’s understood that the Royal Bank of Scotland (RBS), owner of NatWest, is looking at similar ideas, as is Lloyds Banking Group.

Antony Jenkins, chief executive of retail banking at Barclays, has previously said that Pingit would revolutionize banking, or at least live up to the scale achieved by telephone and Internet banking before it.

An indication that Barclays’ move was a masterstroke came in a frank admission by an HSBC spokesperson, who said that whilst it had no current plans to launch a rival service, it was “certainly a step forward for the banking industry.” That’s about as high-praise as you’ll ever get from one bank to another.

Extract taken from:

http://tiny.cc/m7a9fw

Ring-fencing retail banks to cost up to £7Bn

The cost of ring-fencing retail banking operations in the UK could be as much as £7 billion, according to HM Treasury, but the effects on systems and processes will be wide-ranging and unpredictable.

With the publication of a White Paper this week, the UK Government confirmed that it will implement the ring-fencing proposals of the Independent Commission on Banking, with some modifications, by the 2019 deadline. All necessary legislation will be passed in the lifetime of the current parliament. Barring an early election, that means 2015.

The British Bankers' Association "welcomed the way the government's plans had evolved to make its proposals more workable" but chief executive Angela Knight said there were three key outstanding questions:

• how reform will affect banks headquartered in the UK but working largely outside it
• how banks can be assured they will not be subject to competing and different reforms
• the actual scale of the costs involved

 "The Chancellor has carefully walked the tricky path between making changes that give greater safety and security, while not making the burdens so great that it would be difficult for banks to operate effectively in the interests of their customers and of the economy," Knight said.

"At first glance, these refinements have removed many of the obstacles from the original report that, if left in place, would have hampered the banks from providing important services such as finance for mid-sized companies and trade finance for exports and from maintaining the international wealth management services so vital for our country. However, the costs to the banks - not including those of transition - are very substantial running anywhere between the Treasury's estimate of £4 to £7 billion a year.

"This leaves three big questions. First, we need to work out how today's reforms will affect those banks which have their headquarters in the UK but which operate largely outside our shores. We are pleased the capital proposals are now aligned internationally but we still need assurances that banks will not face the double-whammy of different and competing reforms. Lastly the bill is a big one and we do not yet know what the impact of this will be."

Satish Swaminathan, senior principal of capital markets at Infosys, said there are wider structural and process changes that banks will need to make to accommodate the regulations.
He believes the technological impact on the processes within banks include the need to segregate trade flows that are currently intertwined across multiple entities and systems, increased overhead on trade processing because of the need to create an audit trail for hedging transactions, and a huge impact on reference data because of the need to segregate of entities and accounts.

"The biggest challenge is going to come from the fact that transactions are so intertwined that it is hard to tell what is a hedge and what isn't," he said.
In many ways, he said, the UK is implementing a version of the US Volker Rule, which is good in some ways, as it means that there is a broad alignment of international regulations, but the UK proposes to allow some use of derivatives for hedging purposes by banks operating inside the ring-fence.

Swaminath said that the costs of ring fencing are going to be very high, based on the empirical data from the implementation of the Dodd-Frank regulation in the US. The average cost for US banks is put at $20 million, with larger banks having to spend as much as five times that, he said.

With costs like this, it is very important that as much uncertainly is removed as possible, he said: "people don't want to have to spend a tone of money to be compliant, only to have to spend another ton of money because the interpretation changes down the line".

Extract taken from:

http://tiny.cc/w198fw

'Big Society Bank' to Start Providing Capital

Hundreds of millions of pounds resting in dormant bank accounts is to be ploughed into the government’s “big society bank”, which the prime minister will launch on Wednesday, providing start-up capital for social enterprises.

Big Society Capital, the world’s first such investment institution, will invest via intermediaries in social enterprises, social impact bonds and other businesses that seek to deliver a particular social good, such as reducing reoffending or getting people into work.

The sum of £400m will come from dormant bank accounts – where there has been no customer activity for 15 years – topped up by £200m committed by Barclays, Lloyds, HSBC and RBS, the four largest UK high street banks, as part of the Project Merlin.
“Just as finance from the City has been essential to help businesses grow and take on the world, so finance from the City is going to be essential to helping tackle our deepest social problems,” David Cameron said, in a transcript of his speech released ahead of the launch.
“Big Society Capital is going to encourage charities and social enterprises to prove their business models – and then replicate them. Once they’ve proved that success in one area they’ll be able – just as a business can – to seek investment for expansion into the wider region and into the country.”
Boston Consulting Group recently reported that just £165m went into social investments last year, underlining the scale of the challenge as the government seeks to enlarge the market.
Charities have complained that their capacity to play a role in the Work Programme, which pays providers to move people off benefit lists and into work, is constrained because significant payments are made only when an individual has been found work that lasts for at least six months.
Nick Hurd, minister for civil society, said: “Charities and social enterprises have been telling government for at least 10 years that it’s very hard for them to access capital from traditional financial institutions,” adding that Big Society Capital would “play its part in correcting that market failure”.
Charities and foundations were sitting on “£95bn worth of assets currently managed very conservatively through traditional financial instruments”, he said. If a tiny percentage of that capital could be persuaded “to consider social investments as being compatible with their social mission we think we can move serious money into the social sector”, he added.
Further down the track, it was “not too fanciful” to think about creating “social ISAs” that might appeal to wealthy individuals who wanted to use their money to make “a social impact on something [they] care about”.
Nick O’Donohoe, Big Society Capital’s chief executive and former global head of research at JPMorgan, added: “None of us expect that this will be a dominant part of any individual or institution’s portfolio. We’re not talking about taking all the money that exists in the [philanthropic] foundation or all an individual’s savings. We’re just saying: ‘Look, if you can take five per cent and put it in this bucket that would make an enormous difference’.”
Big Society Capital will act as a wholesaler, investing through intermediaries such as Triodos Bank, one of the UK’s few lenders specialising in loans to social enterprises. Charles Middleton, its UK managing director, said he was pleased that Big Society Capital would be “building, rather than displacing” existing intermediaries, such as his organisation.
Faisel Rahman, founder of Fair Finance, a social enterprise which provides microfinance loans to people living in the poorest districts of London, added that Big Society Capital could be a “game changer” if its resources could be used to encourage investors to back what may be considered more risky ventures.
“Nobody wants to be the first person to put money in,” he said.

Extract taken from:

http://www.ft.com/cms/s/0/51466676-7d8f-11e1-bfa5-00144feab49a.html#axzz1r413keHS

An offer you can't refuse...

What does a real-life CEO have in common with the central figures of a fictitious Mafia crime family in The Godfather? According to Justin Moore, CEO and founder of Axcient, plenty.

Moore is a serial entrepreneur, early-stage advisor, and angel investor. He’s currently at the helm of Axcient, a company he founded that provides backup, business continuity, and disaster recovery services to the small and mid-sized business (SMB) market. Right now, Axcient is protecting more than 2 billion files and applications for businesses across North America.

Moore also happens to think that The Godfather is “one of the best movies ever made” and had a chance to watch it again when the film was aired extensively last week to mark the 40th anniversary of its premiere. Though a decade had passed since the last time Moore watched it, his recent viewing offered an unexpected reward. This time he found the film rife with teaching moments for CEOs running a business today.

“I certainly don’t endorse crime or violence, and I’m not suggesting business should operate like the Mafia,” explains Moore, “but there are some universal themes in the movie I can relate to as a CEO.” Moore says The Godfather offers valuable lessons in community and team building, making tough decisions, and playing to win while not neglecting friends and family.

Here are five essential leadership lessons Moore distilled for Fast Company.

1. Build a powerful community. 

Someday, and that day may never come, I'll call upon you to do a service for me. ~Vito Corleone

Uttered in the iconic rasp of Marlon Brando, the words of Vito Corleone illustrate how he creates a loyal community among those he has helped. Moore says, “By granting these favors and helping people with their problems, Vito Corleone is building a network of influence--relationships that may or may not deliver a specific or quantifiable return, but all which serve to strengthen his power base and which have the potential to be reciprocal in the long run.”

Moore says building strategic partnerships enables companies to work through challenging markets and fast-track overall success. “As a CEO, I see it as part of my job to be a super connector, networking with the technology and investment community without an expectation of reciprocation. Partnerships forged through time, trust, and mutual benefit--such as those Axcient has built with HP, Ingram-Micro, and a vast network of service providers and resellers--are the types of community relationships that bring about the greatest returns.”

2. Hold people accountable. 

What's the matter with you? I think your brain is going soft. ~Vito Corleone

The Godfather reminds us of the importance of being tough when necessary. “As soon as Vito Corleone allowed a few moments of weakness to be seen by his enemy, they attempted to assassinate him. And it was largely because of failures of his team,” Moore observes.

“In business, accountability isn’t achieved by a murderous rampage. But the lesson is this--to be successful in business you have to be tough, and you have to be extremely focused on hitting goals and getting results," says Moore. That doesn’t mean patience and understanding don’t have a place, he says, but ongoing tolerance of low-performing people or products just eats away at the success of the entire company. “You are ultimately responsible for all of your employees and shareholders, and that requires tough and swift decisions.

3. Don’t get emotional.

It’s not personal, Sonny. It’s strictly business. ~Michael Corleone

“Many people don’t like to talk about the fact that in business, there are winners and losers. When Sonny Corleone reacts impulsively and emotionally, he gets taken out. In business, if you don’t take the opportunity to out-sell, out-bid, or out-market your competitor, they’ll take you out. I’m not suggesting doing anything outside the boundaries of morality or rightness--simply pointing out that when people make emotional decisions, they start making bad decisions. To lead successfully, you have to take your emotion and ego out of the equation.”

Likewise, Moore says it’s important to play to win. In business, that translates to knowing the competition and always staying at least one step ahead. “Operate your business with integrity and have respect for competition, but you also need to seize opportunities to eliminate your competition and win.”

4. Be decisive. 

Moore says that he, like most people who appreciate The Godfather, watch the movie with a combination of shock and respect. “Shock because he is so ruthless that he kills his own family member, but respect for the fact that Don Corleone knows exactly what he wants, executes decisively, and commands respect through unwavering leadership.”

While you don’t have to kill anyone to prove a point, as soon as you know what choice to make, move forward. “Know who on your team is making the right choices, and trust them to take decisive action as well. Hesitation too often leads to missed opportunities.”

5. Spend time with your family. 

Do you spend time with your family? Because a man who doesn’t spend time with his family can never be a real man. ~Vito Corleone 

Moore isn’t endorsing 1940s machismo, but he is decrying 100-hour workweeks that many entrepreneurs fall prey to in hot pursuit of the next big thing. Though he’s been dedicated like that in the past, Moore finds it’s not sustainable in the long run. 

“A leader can’t be successful in creative problem-solving and making excellent decisions unless that person is connected to people and passions outside of work. I find that it’s often time with family and friends that gives me the perspective I need to build the relationships and make the decisive actions required for continued success in business,” says Moore.

Extract taken from:

http://www.fastcompany.com/1826672/an-offer-you-cant-refuse-leadership-lessons-from-the-godfather

Transformation to EXPERIS

To address the new challenges facing professional talent, we are pleased to announce that, from 19 March 2012, the ManpowerGroup in the UK and Ireland has transformed its Professional Resourcing operations by consolidating all its existing brands (Elan, Manpower Professional and Jefferson Wells) into a new single operating model and brand – Experis.
Experis is dedicated to connecting talented individuals with businesses and opportunities across a number of professional sectors, including IT, Finance, Engineering and Healthcare.  We will work with over 80 percent of the Fortune Global 500 providing you access to a huge network of opportunities.
The world of work is evolving rapidly, new technologies, demographic shifts and increased social choices. Standing still is not an option. We’ve listened to our clients and candidates and after many years of development launch a collaborative business that offers professional talent access to a huge network of opportunities.
Our consultants have deep industry knowledge and understand the challenges you’re facing. We’ll connect you to the roles that can help you accelerate your career.

Card Fraud Hits 11 year Low

The amount of money lost due to fraud on credit and debit cards fell last year by 7% to £341m - its lowest level for 11 years.

The drop from 2010 was mainly due to a 41% fall in fraudsters impersonating people to obtain or use credit cards.
There was also a 24% fall in the amount of fraud from cards being faked.
The UK Cards Association said it was the third year in a row that card fraud had fallen, with a drop of 44% since losses peaked in 2008.
It brings card fraud to its lowest level since 2000 when £317m was lost through fraud.
The association credited the improvement to the increased use of anti-fraud measures.
Among them were online card verification software, such as Verified by Visa and MasterCard SecureCode, and the increased use of chip-and-pin technology abroad.
Melanie Johnson, chair of the UK Cards Association, said: "This is... clear proof that our endeavours to fight fraud are packing a punch."
"Customers have also played their part in driving down losses by taking heed of advice about looking after their personal and financial details," she added.
Losses falling
Card fraud rose during the past decade to reach its peak, in 2008, of £610m.
Although the adoption of chip-and-pin technology, largely replacing signatures, had helped to rein in fraud in the UK, there was a revival in the fraudulent use of cards abroad.
However, this has now dropped as well, with fraud abroad falling by a further 15% last year to £80m.
That was its lowest level in 12 years, and nearly two-thirds down from the peak of foreign card fraud in 2008, when it stood at £230m.
Overall, the most common losses last year were due to cards being improperly used to order items over the phone, by post or over the internet - so-called "card not present" fraud.
This accounted for £221m - nearly two-thirds of all card fraud losses.
Meanwhile counterfeit card fraud, once the second-largest category of loss, has slumped in the past five years, down by three-quarters since 2007.
The biggest areas of card fraud loss in 2011 were:

• Cards not present: £221m
• Lost or stolen cards: £50m
• Counterfeit cards: £36m
• Card ID theft: £23m
• Cards stolen the post: £11m

DCI Paul Barnard, who leads the police cheque and plastic crime unit, said with more sophisticated anti-fraud technology now in use, criminals had returned to simpler forms of form.
"Many scams involve customers being conned into handing over their cards and Pins, or their telephone banking security details by someone calling, pretending to be their bank or police," he pointed out.
"Be wary of any unsolicited phone calls or emails - never hand over your card and Pin or bank security details in full as neither your bank or the police will ever ask you for these."
Meanwhile, fraud losses against online banking accounts fell by 24% last year to £35m, while fraud losses involving telephone banking rose by 32% to £17m.

Text extracted from:

http://www.bbc.co.uk/news/business-17273097

Spanish Bank BBVA to use Google's Cloud

Spanish banking giant BBVA is switching its 110,000 staff to use Google's range of enterprise software.

The deal is the biggest that the search giant has signed with one company for its cloud-computing services, where software is offered as a service via the internet.The bank told the BBC it would use Google's tools only for internal communication.

But the deal can be seen as a breakthrough in corporate adoption.
Banking - with its high security needs and strict regulations - was always considered to be one of the last industries to accept cloud-computing.
BBVA's director of innovation, Carmen Herranz, stressed that all customer data and other key banking systems would "stay in our own data centres" and be completely separate from the cloud solution.
The bank would use Google applications like email, calendar, docs, chat, video conferencing and other collaboration tools to "achieve a cultural change" and get "the whole company working together" across the 26 countries where BBVA is based. Ms Herranz said the project - with roll-out across all employees to be complete by the end of the year - was not about saving cost.
"The main goal is to promote innovation and making decisions and increase productivity. We are in a challenging market and need to make faster and more accurate decisions... and eliminate duplication," Ms Herranz told the BBC.
Also driving the change was the increasing mobility of the bank's workforce. A lot of the bank's computing needs had moved to smartphones, tablets, laptops and computers at home, she said.
Jose Olalla, chief information officer at BBVA, said because workers now had "access [to] the information they need at any time from any internet-connected device, anywhere in the world, [they] will be able to be more flexible and mobile".
BBVA is one of Spain's largest banks.
It is also the largest provider of financial services in Mexico, and has a large presence in the south of the United States.

'Largest ever deal'
Traditionally, companies have done all their computing on their own premises, to keep their data secure and to stay in control.
However, most enterprises leave some 80% of their computing power idle, and find themselves spending more than two thirds of their information technology budget on maintenance and software upgrades.

Cloud computing tends to be much more efficient, with firms like Amazon Web Services running their servers at more than 90% of capacity. That cuts cost and also helps the environment.

The man in charge of Google Enterprise apps in Europe, Sebastien Marotte, said that his corporate customers on average achieved cost savings of between 50% and 70%.
But the deal with BBVA, argues Mr Marotte, is important not only "because it is the largest ever agreement we have signed with an organisation, it is important because it is a very large financial company, it shows that now even banks are moving to the cloud".
BBVA's data would not reside on dedicated servers - a solution known as private cloud - but would sit distributed across the public cloud of Google's data centres. Both Mr Marotte and Ms Herranz stressed this would meet the demands of banking regulators and data protection officials, and be as secure as any solution on the bank's premises.
A bigger worry will be whether BBVA's computer network will be able to cope with the sharp rise in network traffic that cloud-computing solutions demand.
A pilot with 7,000 staff had not seen any issues, but the bank would closely monitor for any increases in network load. "Our biggest worry is around video conferencing," said Ms Herranz.
Network issues were blamed on serious performance problems when several years ago Google apps were introduced by the city of Los Angeles.
'Starting from scratch'
The biggest challenge for BBVA and other firms switching to cloud computing could indeed be cultural issues.
The bank says it has a training programme in place - including personalised guides - to prepare their staff for the move from their tried and trusted email solution and other tools to the new browser-based online world.
However, the bank encourages its employees to leave all their old email and data in those legacy systems. They will be accessible if necessary, but, says Ms Herranz, but we "want to start from scratch... don't want to carry across old behaviours".
"To move to the future, you have to leave the past in a box," said Ms Herranz.

Extract taken from:
http://www.bbc.co.uk/news/business-16486796