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Fraud harming trust in payment methods - Industry roundup: 2 October

Fraud harming trust in payment methods

Chubb’s latest global survey, ‘The Impact of Cyber Scams on Trust in Digital Payments’, reveals the growing impact of cyber fraud on consumers, the misconceptions regarding cyber protections, and the significant changes in consumer purchasing behaviour driven by escalating worries over cyber breaches.

Digital payments have become part of our daily lives and are increasingly crucial to fostering financially inclusive economies. The survey findings define the pivotal role insurance plays in building trust and helping to enable the growth of the digital payments ecosystem.

Nearly half (46%) of survey respondents mistakenly believe their payments are protected. This false sense of security is compounded by the fact that 61% of participants have changed their behaviour or reduced their use of payment platforms due to fears about cyber scams.

All survey respondents have made a digital payment in the last year, and 63% have been cyber scam victims or know someone who has been. The impact of this fraud extends beyond financial losses, eroding trust in payment platforms, hindering adoption.

Respondents were asked about nine different types of scams. They are most troubled by phishing/vishing and impersonation scams, as well as fake product or service purchases. Some 61% of respondents have changed their behaviour or reduced the use of certain digital payment platforms over concerns.

Elsewhere, the survey found that insurance could promote greater trust and adoption of digital payments. Three-quarters (75%) of respondents say transaction insurance would boost their trust. The impact of insurance is highest among consumers in Latin America – 84% would fully trust or trust payment technology much more if they had personal cyber-scam insurance, and 82% for payment protection insurance. Many respondents also see AI as a way to enhance security.

 

Global price and supply pressures ease during September

The latest S&P Global PMI Commodity Price & Supply Indicators signalled a sustained easing in price pressures across the global manufacturing sector at the end of the third quarter. The Global Price Pressures Index edged down from 0.8 in August to 0.6 in September to remain below the long-run average. Moreover, the latest reading was indicative of the softest increase in prices since March. Four of the 26 monitored commodities recorded a fall in prices. Semiconductors saw the steepest fall, with reports of price reductions over three times the usual level. Price cuts were also signalled for iron, steel and stainless steel.

Supply pressures also eased slightly during the latest survey period, as the Global Supply Shortages Index dipped to 0.5, the lowest since January 2020. All 20 monitored commodities saw reported shortages either at or below the long-run series average, with reports of improved availability of transport, rubber, food and textiles. Polypropylene saw the greatest number of reported shortfalls in September, though the reading was in line with the long-run trend. At the same time, reported semiconductor shortages picked up slightly from August but remained well below the series average of 1.0.

“Price and supply pressures were muted at the end of the third quarter of 2024, with both running below their respective long-run averages,” commented Usamah Bhatti, Economist at S&P Global Market Intelligence. “In fact, supply shortages were reportedly half the usual level across the All Items Index, which was the lowest since January 2020.

“On the price front, four of the 26 monitored commodities signalled a reduction in price during September. The sharpest reduction was for semiconductors, where on average, prices reportedly fell over three times quicker than they normally rise. This was the first reduction since September 2023 and a far cry from the record price markups seen at the start of 2022.”

 

Asda launches sustainable supply chain finance scheme

Supermarket chain Asda has launched a sustainability-linked enhancement to its Supply Chain Finance scheme in partnership with HSBC UK, which will see the retailer use financial incentives to encourage better sustainability practices within its supply chain.

Launching in January 2025, the voluntary scheme will offer over 250 Asda suppliers who currently use the existing scheme access to three tiers of enhanced rates of financing. Access to each tier will be based on suppliers disclosing their ESG performance data, setting targets and taking action on shared sustainability goals.

Performance will be scored by the sustainability data platform EcoVadis, with those suppliers performing strongly against their ESG KPIs and sharing their sustainability data rewarded with the most preferential terms. The scoring will have a particular focus on decarbonisation, but will also extend to other elements of ESG (such as social initiatives) to support embedding strong ESG practices throughout Asda’s supply chain.

Asda’s Supply Chain Finance programme with HSBC UK has been in place for over 10 years – the introduction of a sustainability enhancement demonstrates the commitment from both parties to support the supply chain in making sustainable changes to their business.

Asda already asks its largest suppliers – those accountable for around 80% of its product carbon emissions – to share sustainability data through the EcoVadis assessment platform.

The company says there will be no operational disruption to existing suppliers in the programme. Suppliers who choose not to engage will remain on current payment terms and default rates. Suppliers will continue to receive payment within 14 working days as part of the supply chain finance programme. This enhancement is made possible with the support of multiple funding partners, including Rabobank.

“As we continue to drive progress towards our own decarbonisation and ESG targets, supporting and engaging with suppliers forms a crucial step in this journey,” noted Michael Gleeson, Chief Financial Officer at Asda. “Working with HSBC, we’re not only encouraging greater transparency over sustainability data in our supply chain, but we are able to use competitive financing to incentivise a significant number of suppliers to become more sustainable.”

 

ANZ becomes first Australian bank to join Project Guardian

ANZ is joining the Monetary Authority of Singapore’s (MAS) Project Guardian to explore broader access to tokenised real-world assets in financial markets. In partnership with Chainlink Labs and ADDX, ANZ will explore interoperability between private blockchains to exchange tokenised real-world assets, such as commercial paper.

“MAS is a global leader in its unwavering commitment to digitise the financial system through industry collaboration,” said Mark Evans, Singapore Country Head, ANZ. “We’re pleased to join Project Guardian and play a role in fast-tracking the development of a stable, secure digital asset ecosystem which will be essential to meeting the future needs of our customers across the region.”

Since 2022, Project Guardian has supported collaboration between policy makers and the financial industry to enhance liquidity and efficiency of financial markets through asset tokenisation.

 

Landmark Retail signs private sector ESG-linked working capital facility agreement 

Emirates NBD has announced the signing of an ESG-linked working capital facility with Landmark Retail. This marks the first time a private sector company has signed a bilateral sustainability-linked loan in Saudi Arabia.

The partnership underlines both parties’ long-standing commitment to Vision 2030 and the Kingdom’s sustainability goals. The collaboration is fully aligned with Landmark Retail’s ongoing efforts to achieve net zero and extends its efforts to provide even greater access to a comprehensive suite of leading-edge sustainable financial solutions.

The agreement builds on previous partnerships between the pair, and marks the launch of the second ESG-linked facility between Emirates NBD and Landmark Retail, following the leading conglomerate’s decision to transition from its working capital facility to a sustainability-linked loan in 2022. 

The ESG-linked objectives are increasing the contribution of renewables in Landmark’s energy utilisation and increasing the composition of sustainable materials in its retail products. A statement noted that the KPIs under this loan fit well within Landmark’s journey of becoming circular and climate positive via a holistic framework encompassing sustainable products, sustainable operations & sustainable customer journeys.

“We are committed to conducting our business responsibly, by driving positive changes to reduce the environmental impact of our operations,” commented Rajesh Garg, Group Chief Financial Officer, Landmark Retail. “We understand the important role we play in our industry and take it upon ourselves to act as flagbearers of responsible business, working as ethically and conscientiously as possible to protect people and planet.”

“This milestone agreement underscores our shared commitment to environmental stewardship and driving meaningful change through ESG-linked solutions,” added Pri Mcnair, Group Co-Head of Corporate Coverage, Emirates NBD.

 

GeoPura closes debt funding round to support clean energy transition

GeoPura has successfully completed its inaugural debt funding round, securing £22m to fund renewable fuel infrastructure and support the clean energy transition. This marks the first major asset-backed debt funding announcement by a green hydrogen company in the UK.

Debt funding has been secured from a panel of bank and non-bank financial institutions, including BNP Paribas Leasing Solutions, Close Brothers Asset Finance, HSBC UK and Siemens Financial Services. The proceeds will be used to recapitalise and fund GeoPura’s growing fleet of Hydrogen Power Units (HPUs) and key supporting infrastructure such as tube trailers.

The debt funding consists of fixed rate asset loans and hire purchase agreements. All funding partners have indicated strong interest in increasing their debt funding capacity as GeoPura scales.

“Securing this debt funding is a pivotal milestone in our journey to build a global fleet of over 3,600 HPUs, which will require over £2.5bn in capital over the next decade,” said Derek Bulmer, CFO of GeoPura. “This funding will not only accelerate our expansion but also drive significant reductions in carbon emissions and improve local air quality while contributing directly to the UK’s net zero targets.”

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