Global supply shortages fall to lowest since January 2020

The August S&P Global PMITM Commodity Price & Supply Indicators signalled the fewest reports of commodity shortages at global manufacturers since the beginning of 2020. Similarly, reports of rising prices were below the long-run average and eased to a three-month low.

Global supply shortages fell for the second consecutive month during August, signalled by the Global Supply Shortages Index easing to 0.6, the lowest since January 2020. Semiconductors, chemicals, and the monitored non-ferrous metals were among the items to see an improvement in supply conditions over the course of the month. Meanwhile, transport, textiles, and food all saw reports of supply shortages in excess of their long-run averages.

The Global Price Pressures Index posted 0.8 in August, slightly down from 0.9 in July. The index was at its weakest level since May and indicative of a lower instance of price rises than the long-run average. Relative price pressures were strongest for paper, packaging and textiles. Meanwhile, firms reported sustained falls in both steel and stainless steel prices.

“Reports of both price pressures and supply shortages remained subdued midway through the third quarter, with the respective indices easing slightly on the month,” said Usamah Bhatti, Economist at S&P Global Market Intelligence. “In fact, manufacturers signalled that supply shortfalls were at their least marked since January 2020, as 15 of the 20 monitored commodities saw reported shortfalls ease or remain the same during the month. Meanwhile, price pressures were at their softest for three months, with 15 of the 26 commodities covered by the index either at or below their long-run average. The steepest increases were seen for paper, packaging and textiles, all of which saw reported prices rise at nearly twice the usual level.”

 

UK industry coalition explores digital verification to fight economic crime

Some of the world’s leading finance and tech firms have come together to form a new industry coalition in the UK to fight economic crime through digital verification, according to the Centre for Finance, Innovation and Technology (CFIT).

Companies including Amazon Web Services (AWS), A&O Shearman, Barclays, CRIF, Dun & Bradstreet, Ernst & Young, Experian, GLEIF, HSBC, LexisNexis Risk Solutions, Lloyds Bank, Mastercard, Revolut, Santander, Visa and Yoti have confirmed their participation in the CFIT-led coalition, in addition to regulators such as the Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR). Together, they will undertake research and testing to find new ways to protect businesses and consumers from fraud, which is estimated to cost the UK economy billions every year.

Digital verification is considered a critical step in mitigating economic crime. An enhanced digital identity for businesses that can be shared and understood across institutions and sectors would help thwart fraudsters and create a more secure economy. The idea is to provide standardised and verified information about a business that is interoperable with other financial systems for data cross-referencing, enhanced authenticity checks and additional fraud detection tools.

CFIT’s coalition will collaborate on data-driven research and solutions that will pave the way to making enhanced digital verification a reality. This work will be informed by Lloyds Bank, NatWest Bank, and Monzo, who will collaborate to deliver a proof of concept that tests the impact of a digital corporate ID, including a reduced scope for accounts to be offered to potential criminals. The final blueprint report with recommendations for how UK institutions could implement a digital verification solution is expected in March 2025.

 

Atlantic Money launches A2A international transfer service

UK fintech Atlantic Money has launched a service called Portals, which allows users to make international transfers directly from their bank account and with the fintech’s network but without needing its app. Users can access the Atlantic Money network from their main bank account.

After a one-time setup, users receive a unique set of Portal accounts for each recipient. A USD recipient's Portals includes both GBP (sort code and account number) and EUR (IBAN) Portals. Users can then initiate local bank transfers directly from their home bank to these Portals. For example, a UK customer sending money to a USD recipient can transfer GBP from their banking app to the designated GBP Portal. The Portal automatically exchanges GBP to USD, then delivers USD to the US account. This process creates a direct link between the UK bank and the US account with Atlantic Money’s infrastructure operating in the background. 

Atlantic Money says that, just as with a Swift transfer, users can now make international transfers without leaving their familiar banking environment. There's no need for a separate app or additional confirmation steps to set up the transaction.

Portals are built for recurring payments. An analysis of 40,000 transfers handled by Atlantic Money shows that 94% of users that recurrently transfer do so to the same recipient bank account, which highlights the need for a solution to make those recurring transfers easier. 

With Portals, users can transfer up to £1m to currencies such as EUR, USD and INR for a £3 fixed fee and at the current exchange rate. Standard delivery transfers are paid out within 2 business days, while express transfers are paid out instantly. Users can continue to use the Atlantic Money app to get updates on the Portals transfer or, if required, submit compliance documents.

 

Jack Henry and Moov aim to simplify digital payments for small businesses

Jack Henry has announced a collaboration with digital payments processor Moov to enable community and regional financial institutions to offer enhanced digital payment services to small and medium-sized business (SMB) customers.

The cloud-native service will allow SMBs to accept payments with the tap of a phone, receive same-day funds for payments accepted, and automate reconciliations to accounting software packages. 

Banks and credit unions are increasing their focus on small businesses. In Jack Henry's 2024 Strategy Benchmark Survey, 78% of clients planned to expand their small business capabilities over the next two years. Of those clients, nearly seven out of 10 cited payments as the SMB service they planned to add.

Jack Henry and Moov say they are working toward a multi-phased approach, with beta testing expected to begin by mid-2025.

 

Lenvi Riskfactor and efcom strike global receivables finance partnership

Lenvi Riskfactor (UK) and efcom gmbh have signed a partnership agreement to bring together their expertise and technology to provide customers with connected experiences and continue to drive innovation for the receivables finance industry.  

Lenvi Riskfactor is a global leader and innovator in risk management software. The technology is used globally by receivables finance providers and asset-based lenders to manage risk, reduce fraud and maximise efficiency. 

By partnering with Lenvi Riskfactor, efcom says it is bolstering the existing risk functionality aided to their clients, enabling lenders to safeguard better and scale their portfolios. This collaboration aims to provide deeper insights, reducing risk exposure while optimising growth opportunities for efcom clients.