With high volumes, strong growth and resilience in the face of severe economic headwinds, the global remittance market is gaining new ground. But banks that wish to capitalise on this growth will have to think hard about what strategy they adopt. Charlie Corbett reports.
The renewed currency volatility of the past year has received attention from banks, international organisations, governments and researchers, mindful of the Asian currency crisis of 1997/98. Commentators have discussed alleged causes, including systemic deficiencies, shortcomings of debtor nations and culpably soft attitudes by lenders.
Even though the majority of sub-Saharan countries are cash-driven, a string of initiatives are being rolled out across the region to take bank notes out of transactions where possible. Telcos, financial companies and reforms by the central banks are leading the way in Kenya, Ghana and Nigeria. Writer Wendy Atkins
Rob Mandeno, global head of FX spot and e-commerce at Deutsche Bank in LondonAs the credit crisis took hold, foreign exchange trading, regarded as a reliable source of profit, surged in popularity among investors. Now, as trading volumes begin to return to pre-crisis levels, the inference is that confidence is slowly returning to the global economy. Writer Charlie Corbett
More liquid than most derivative markets, foreign exchange products still suffered in the turbulence of late 2008. But hedging exchange rate risk has never looked more important, creating growth opportunities for banks that can stay in the game. Writer Philip Alexander.
The European payments landscape is undergoing a period of dramatic transformation as regulatory, infrastructural and commercial pressures force Europe’s payment providers to invest colossal amounts of human and financial resources in new technological and compliance projects.Faced with SEPA, the PSD and UK Faster Payments, the transaction banking business has rarely been busier or more inflamed by competitive pressure.
The UK Faster Payments Service heralds a new epoch for payments. Although there are obvious benefits to individuals in terms of convenience and certainty of payment, the potential benefits to business and the economy are even greater. Martin Kearsley, director of strategy at VocaLink, explains how the infrastructure was designed and its potential benefits to consumers and businesses alike.