Banks led losses in the S&P 500, with JPMorgan Chase & Co. and Citigroup Inc. sinking as investors worried that third-quarter results signaled just a pause in pain from soured loans. Johnson & Johnson slumped after temporarily halting its late-stage study of a coronavirus vaccine while Eli Lilly & Co. plunged as its trial of an antibody treatment for
Banks led losses in the S&P 500 after JPMorgan Chase & Co. said its surprisingly-good reserve release didn’t reflect a better view of the economy and Citigroup Inc. reported a jump in costs. Tech shares outperformed as Amazon.com Inc. and Apple Inc. hold key events. Delta Air Lines Inc. tumbled as a decision to delay $5 billion
Marqeta, the global modern card issuing platform, today released a report that examines how banks intend to change their strategies in response to the COVID-19 pandemic. According to the findings, COVID-19 has had a significant impact on almost all (96%) European banks, with over three-quarters (78%) planning to change their future banking strategy to adapt to changes in consumer behaviour, such as the accelerated adoption of digital banking services and cashless payments.
The study of 200 banking executives found that, as a result of growing demand for digital services, 80% of banks have accelerated their plans to digitally transform. Banks also predicted that digital transformation projects will need to be delivered in two-thirds (69%) of the time, with 89% saying that the COVID-19 pandemic has drastically increased the speed of change in banking from years to months. The study also found that:
A major hack that compromised Uganda’s mobile money network has plunged the country’s telecoms and banking sectors into crisis.
The Oct. 3 hack was a result of a security breach on a consumer finance aggregator, Pegasus Technologies, which mainly affected bank to mobile wallet transfers, according to an Oct. 8 statement by MTN Uganda, the country’s largest mobile phone company. Kampala-based Pegasus Technologies provides financial and billing solutions for various companies including all the affected entities.
At least $3.2 million is estimated to have been stolen in this latest incident with some reports quoting a much higher figure. The hackers used around 2,000 mobile SIM cards to gain access to the mobile money payment system, according to local papers. They then instructed the banks to transfer millions of dollars to telecommunication companies who then paid out mobile money to these different SIM cards across the country.
From sourcing 2,000 laptops for computer-less staff to boosting remote working capacity 20-fold, Michael Gorriz spent the year at the center of a global bank’s scramble to cope with an office-emptying pandemic.
Standard Chartered Plc’s chief information officer had a ringside seat for the start of the crisis. While his bank is headquartered in London, the German-born Gorriz works from Singapore — a five-hour flight to Wuhan, the Chinese epicenter of the coronavirus outbreak. StanChart’s branch in Wuhan was locked down, giving an early inkling of what life under Covid-19 might be like.
The pandemic drove thousands of older customers online for the first time, stress-testing technology for a company that’s bet heavily on digital banking. The Wuhan outbreak also gave Gorriz a unique perspective on enabling working from home at a time when the crisis still seemed remote in
Commercial banks could become technology firms by cooperating with technology firms, including telcos, to create a new growth space.
Le Huu Duc, president of Military Bank, said the bank has decided to highlight digital banking as the focus in its development strategy.
Minister of Information and Communications Nguyen Manh Hung (right) and MBBank President Luu Trung Thai
To turn this into reality, Military Bank has cooperated with technology firms such as IBM, Oracle and Viettel in an effort to optimize the digital transformation solution.
The bank has put a digital loyalty point system into operation, which allows users to buy services and exchange points. It has also tried robotic payments, and applied digital signature and electronic authentication (eKYC) on an app platform.
Luu Trung Thai, CEO of Military Bank, said the bank wants to become a leading digital firm in the next three years.
Banks and other financial institutions could be forced to cut ties with cloud providers and other technology suppliers under a draft European Union regulation that aims to limit cybersecurity risks to the sector.
National regulators in EU countries could require banks to stop using external technology services if their providers fail to fix cybersecurity problems identified in government inspections. The bill goes beyond existing European legislation mandating cybersecurity rules for the finance sector by requiring technology suppliers to also undergo regulatory scrutiny.
Under the proposed rules, authorities can recommend cybersecurity changes to technology providers, which must respond within 30 days on whether they plan to follow the recommendations. Regulators would then monitor whether financial firms have taken those risks into consideration, and can require them to suspend or stop using a company’s services.
“It could be a massive, massive headache,” said Richard Parlour, chief executive of law firm Financial Markets
Good day. The European Commission proposed legislation that would stop banks and financial firms from using tech services that present known cybersecurity risks. Regulators would have the authority to require banks to suspend or stop using a company’s services if the flaws aren’t fixed, WSJ Pro’s Catherine Stupp reports.
Universal Health Services
restores network after cyberattack and is still reconnecting applications; retailer
fined $41.6 million for privacy abuses; China tells World Trade Organization that TikTok and
bans violate cross-border trade rules.
Also today: Cybersecurity jobs of the future.
EU seeks authority to cut off banks’ tech suppliers if they are found wanting on cybersecurity. Banks and other financial institutions could be forced to cut ties with cloud providers and other technology suppliers under a draft European Union regulation that aims to limit cybersecurity risks to
HONG KONG (Reuters) – Asia’s equity capital markets generated a record pay day for investment bankers in the third quarter, bolstered by surging appetite for technology deals and a rush to list on China’s new STAR Market, Refinitiv data showed.
Asia Pacific, including Japan, saw bankers garner $3.6 billion in equity capital market (ECM) fees in July-September, up 145% from the same period a year earlier. The previous peak was $3.5 billion in the fourth quarter of 2009.
Bankers are also preparing to fatten their pay packets when Ant Group raises up to $35 billion in a dual listing in Hong Kong and Shanghai likely in October.
“Global capital markets are working. An enormous amount of money is available worldwide,” said Aaron Arth, head of the Asia ex-Japan financing group at Goldman Sachs. “All signs point to a steady desire and need for capital.”
Ken Sweet and Damian J. Troise, Ap Business Writers
FILE – In this May 26, 2020 file photo, a historic marker for Wall Street is shown in New York’s financial district. Stocks are off to a mixed start on Wall Street Tuesday, Sept. 29 as the market cooled off following a rally the day before and as investors waited for the presidential debate between former Vice President Joe Biden and President Donald Trump. Banks and industrial companies had some of the biggest losses shortly after the opening bell Tuesday, while several big technology and communications companies were higher. less
FILE – In this May 26, 2020 file photo, a historic marker for Wall Street is shown in New York’s financial district. Stocks are off to a mixed start on Wall Street Tuesday, Sept. 29 as the market cooled off … more