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Industry roundup: 14 June

Oliver Wyman and S&P Global Market Intelligence launch climate credit analytics

S&P Global Market Intelligence and Oliver Wyman have announced the launch of Climate Credit Analytics to help companies evaluate and assess the impact of climate risk. The new model suite includes coverage of more than 700,000 public and private companies across all non-financial sectors of the global economy and comprises carbon intensive sector specific models, such as airlines, automotive manufacturing, metals & mining, oil and gas, and power generation.

Developed through a collaboration between S&P Global Market Intelligence and Oliver Wyman, Climate Credit Analytics helps financial institutions and corporations assess how a transition to a low-carbon economy will impact the creditworthiness of their counterparties and investments. The solution translates climate scenarios into scenario-adjusted financials and scores at the company level by combining S&P Global Market Intelligence's advanced Credit Analytics risk models and unique industry-specific datasets with Oliver Wyman's industry-leading climate scenario and stress testing expertise. 

UBS will be the first European-headquartered bank to be leveraging Climate Credit Analytics for transition risk assessment. "We are pleased to collaborate with Oliver Wyman and S&P on this initiative," commented Liselotte Arni, UBS portfolio underwriter for Sustainability and Climate Risk. "Partnerships such as this one that bring together the best of capabilities across data, methodologies, and analytics are critical for furthering our understanding of climate-related financial risk. Working collaboratively with the industry and expert organizations on climate risk topics is a key part of Our Climate Strategy."

The Climate Credit Analytics model suite will utilise the following datasets from S&P Global:

  • Financials and industry-specific data from S&P Global Market Intelligence, including oil & gas, coal production, airline passenger volumes, electricity capacity.
  • Sophisticated quantitative credit scoring methodologies from Credit Analytics, S&P Global Market Intelligence's flagship credit and counterparty risk solution.
  • Company-level greenhouse gas (GHG) emissions and environmental impact data from S&P Global Trucost.

"As businesses continue to assess transition risks, our newly launched models with specialised modelling of high carbon-emitting sectors will provide market participants a holistic approach to assess the potential financial impact of climate related scenarios on their portfolios," said Whit McGraw, managing director and global head of Credit Risk Solutions at S&P Global Market Intelligence. "Our collaboration with Oliver Wyman integrates the expertise and capabilities of two world class players with a deep legacy in climate risk management, credit risk modelling, and stress testing and we're looking forward to using these models to help the market continue its transition to a low-carbon economy."

 

Fides announces new treasury customer wins

Fides Treasury Services has announced that in the past year it has onboarded and extended a total of 259 client relationships. New customers added include ATS-Tanner Banding Systems, Audemars Piguet, Kandou Bus, Quadra Commodities, and Trivium Packaging Treasury.

At the beginning of the year, Fides announced its new finance and treasury marketplace, available through the Fides Multibanking Suite, followed by the announcement of Instimatch Global’s money markets digital platform as the first partner offering available. In the few months since, Fides has hired a new CIO, and restructured its sales, marketing, support, services, and business development teams to even better align with customer needs.

On 15 September 2021, Fides will host a virtual edition of its annual conference, bringing together the Fides community. The online event will feature updates on the company’s vision and roadmap for its multi-banking products and solutions, along with presentations from industry-leading experts.

 

BMO Financial Group selects AWS as preferred cloud provider

Amazon Web Services (AWS), an Amazon.com company, has announced that BMO Financial Group (BMO) has selected AWS as its preferred, strategic cloud provider. BMO will use AWS to modernise its banking platforms and build digital financial services applications as part of the company’s ongoing digital transformation. 

Using AWS’s portfolio of cloud capabilities, including analytics, machine learning, serverless, compute, storage, and database, BMO says it will develop and scale digital platforms and services for its global customers, meeting and strengthening stringent security and compliance standards. In addition, BMO will launch a comprehensive, hands-on cloud skills training program for its non-technical and IT employees.

The financial services company says it chose AWS for its comprehensive set of cloud technologies and proven reliability and operational experience, which will help the bank streamline its internal business processes, extract insights from decades of financial transaction data, and deliver secure applications and services to customers. BMO is moving strategic workloads to AWS that support its retail and commercial banking, investment banking, and wealth management operations. The bank is also migrating its online and mobile banking applications to AWS to innovate faster and set up an operating model that will enable broad and rapid cloud adoption; this includes creating a consolidated data lake, adopting serverless architecture, and deploying advanced capabilities like high-performance computing and machine learning. 

As part of its move to personalise services, the bank is using Amazon Connect (AWS’s scalable cloud contact centre) to provide a seamless and more customer-centric experience for its call centre, as well as to support remote working capabilities for employees.

 

BIS and BoE launch Innovation Hub London Centre

The Bank for International Settlements (BIS) and the Bank of England (BoE) have launched the BIS Innovation Hub London Centre, the fourth Innovation Hub Centre to be opened in the past two years.

The launch is part of a plan to expand the global reach of the BIS Innovation Hub, which also includes the opening of Centres with the Bank of Canada (Toronto), the European Central Bank/Eurosystem (Frankfurt and Paris) and the four Nordic central banks (Danmarks Nationalbank, the Central Bank of Iceland, the Central Bank of Norway and Sveriges Riksbank) in Stockholm. In January 2021, the BIS signed a memorandum of understanding for a strategic collaboration with the Federal Reserve System (New York).

The BIS Innovation Hub's work programme is currently focused on six areas: use of technological innovation in supervision and regulation (suptech and regtech); next-generation financial market infrastructures; central bank digital currencies; open finance; cyber security; and green finance. Work related to these themes is distributed across the various Hub Centres.

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