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Industry roundup: 10 November

PNC Treasury Management launches AI/ML cash forecasting application

The theory behind AI has been around for many years and is evolving across various industries, with much to be explored. However, the concept continues to grow rapidly into many sectors today.

One move towards this innovation in the financial landscape is today’s announcement from PNC Bank. PNC Treasury Management launches an artificial intelligence, machine learning-enabled cash forecasting application called PINACLE Cash Forecasting. Treasurers will be able to quickly capture a snapshot of their portfolio without the time-consuming, manual efforts put forth to obtain cash forecast data.

The cash forecasting application will allow treasurers to create forecasts of their integral cash position based on their specific company requirements, infrastructure, fluctuations and revenue stream cycles. This system’s flexibility enables treasurers to pull data from the company’s existing treasury management, ERP system, or from their prior day information reports.

According to PNC, the PINACLE cash forecasting system leverages AI and ML to prepare five distinctive models to discover the most exact model-set based upon a client’s information. After the module is prepared, it can be updated day by day to create a 31-, 60-, or 90- rolling figure to assist with foreseeing cash stream, arranging for the gap or excess, and picking up superior insight into current and future cash positions for different scenarios. Furthermore, all prior figures and reinforcement tests are maintained in the module application for accuracy, security and efficiency, optimizing key forecast information for treasurers in a timely manner.

For more information, please visit www.pnc.com.

 

Bank of England and HM Treasury (HMT) announced next steps to explore UK Central Bank Digital Currency (CBDC)

Central Bank Digital Currency (CBDC) is a virtual platform of a country’s fiat currency issued and regulated by the nation’s monetary authority or central bank and backed by the full faith and credit of the issuing government. The HMT and Bank of England announced their next exploratory steps towards a UK CBDC. 

The process would entail Bank of England issuance of CBDC (i.e., digital money), a new payment form in addition to cash and bank deposits, to be used by businesses and consumers for their daily payment needs.

Bank of England and HMT plan to launch a consultative platform in 2022 to evaluate and assess the features, benefits and challenges posed in the possible development and consideration for a UK CBDC functional technology business model. Furthermore, a forum was created to include partners from the industry, civil society and academia to provide insight on strategic and technical information.

The initial phase will cover research, exploration and policy development. If the project moves forward, the taskforce will proceed onto the next phase to establish the technical and feasibility details and tests for the project. A possible launch of a UK CBDC may occur during the second half of the decade if the technology development outcome provides positive results.

The Economic Secretary to the Treasury, John Glen, said, “This consultation will begin an open discussion on the role a UK central bank digital currency might play in the UK.” He further invites partners to join the forum to discuss opportunities and risks.

“The plan to publish a consultation next year on CBDC is a crucial step in our policy development,” said Jon Cunliffe, Deputy Governor for Financial Stability. In addition, he further stated the pertinent information created from the first phase will be important to determine the advancement to the development stage.

For more information, please visit www.bankofengland.co.uk.

 

Monetary Authority of Singapore (MAS) announces Sandbox Plus

The Monetary Authority of Singapore (MAS) announced three developments to its Fintech Regulatory Sandbox framework. The first launch in 2016 was an experiment of innovative financial products and services, and the second launch in 2019 provided quicker capabilities to test the market in pre-established settings.

According to MAS, Sandbox Plus will add three enhancements, to take effect on January 2022. These upgrades will provide organizations with effective value-added service offerings on innovative products and services regulated by MAS.

Below is a brief description outlined by MAS of the Sandbox Plus enhancements:

  1. “Expansion of eligibility criteria to include early adopters of technology innovation.” More options will be available to businesses and consumers moving towards innovative technologies.
  2. Streamlined application with financial grant.”The premise of the grant is to help applicants with cash flow needs and turn the focus on innovative technology developments.
  3. Participation in Deal Fridays.” Deal Fridays is a program that enables eligible applicants access to investor communities, mentorship, funding and network benefits.

Fintech continues to configure financial services to better serve the financial landscape. “Sandbox Plus reflects MAS’ ongoing commitment to support promising technology innovation to take root in Singapore by providing innovators with more effective one-stop support,” said Mr.Sopnendu Mohanty, Chief FinTech Officer, MAS.

For more information on Sandbox Plus, please visit the MAS FinTech Regulatory Sandbox at https://www.mas.gov.sg/development/fintech/regulatory-sandbox

 

Visa’s sustainability solutions improve consumer climate awareness

Visa announced the launch of Visa Eco Benefits, a platform offering issuers the ability to facilitate their cardholder’s sustainability. It is expected to become available in Europe first, then subsequently across the globe to Visa’s customers in the near future.

According to Visa, the Visa Eco Benefits bundle will provide Visa issuers the ability to add sustainability-focused benefits to Visa cardholder credit and debit products. Cardholders will be able to analyze how much they spend on the environment.

Visa’s projected characteristics at the initial phase or future updates will include a carbon footprint calculator, carbon offsets, personalized instruction for improved sustainability, cards made from sustainable products, contributions to environmental causes, and increased benefits for cardholders with sustainable actions.

Charlotte Hogg, executive vice president and chief executive officer, Europe, Visa, said, “As an engine of global commerce, we have the opportunity to work with clients and partners around the world to help embed sustainability into the payments ecosystem and support cardholder and business choices through the transition.” Visa has committed to reach net-zero emissions on or before 2040.

For more information, please visit: visa.com/ESG

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