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Industry roundup: 24 April

Currencycloud to provide SWIFT gpi tracking

Currencycloud has announced a pilot programme to provide SWIFT gpi tracking capabilities to their clients through a new API. This service, one of the first offered by a non-bank, will allow Currencycloud clients to track their customers’ cross-border payments directly. They can also pass the service further onwards to their own customers so they can track their payments themselves.

SWIFT gpi technology tracks a payment as it moves around the world and is able to identify where it is being held, or where it may have failed, in a matter of seconds – immediately removing the need to contact a banking partner, or the need for further investigation. Since the introduction of SWIFT gpi, 60% of failed payments made through Currencycloud are traced and resolved in less than one day, often in minutes. Prior to SWIFT gpi, Currencyloud estimates that 80% of failed payments on its platform would take more than seven days to resolve due to a laborious administrative process - this has been reduced to less than 5% with this new technology.

 

Morningstar to acquire ESG ratings firm Sustainalytics

Morningstar, a provider of independent investment research, has announced it has reached an agreement to acquire Sustainalytics, the environmental, social, and governance (ESG) ratings and research firm. Morningstar currently owns an approximate 40% ownership stake in Sustainalytics, first acquired in 2017, and will purchase the remaining approximate 60% of Sustainalytics shares upon closing of the transaction. 

The transaction consideration includes a cash payment at closing of approximately €55m (subject to certain potential adjustments) and additional cash payments in 2021 and 2022 based on a multiple of Sustainalytics’ 2020 and 2021 fiscal year revenues. Based on the upfront consideration, Morningstar estimates the enterprise value of Sustainalytics to be €170m. The closing of the transaction is subject to customary closing conditions and is expected to occur early in the third quarter of 2020.

 

Trovata receives additional J.P. Morgan investment

Trovata, which automates cash reporting and forecasting through wholesale, multi-bank API data aggregation, has announced it closed on US$4.3m in additional funding led by J.P. Morgan. The additional funding was a planned extension from the company’s initial seed round co-led by FINTOP Capital, who also participated. The final tranche was oversubscribed as a result of the company gaining significant traction with customers, capping off its seed round.

The investment marks one year since the company officially launched its product. During that time, Trovata has nearly doubled its customers and annual recurring revenue (ARR), quarter over quarter. The company’s product automates cash-centric workflows, which is designed to allow small, medium, and large corporate finance and treasury teams to gain better visibility into their cash flow.

“APIs are transforming how banks and clients collaborate and innovate across wholesale banking,” said Jason Tiede, managing director and global head of Innovation, Wholesale Payments for J.P. Morgan. “Clients are looking for a better way to visualise and analyse cash flows and the need for such a solution has become even more germane given the unprecedented volatility in our global economy.”

 

Danske Bank green loans slashed 532,039 tonnes of CO2 in 2019

Danske Bank and Realkredit Danmark provided DKK7bn in green loans to corporate customers in 2019, which resulted in 532,039 tonnes of avoided CO2. The projects the pair funded with green loans included an offshore wind farm, four electric ferries, improvement of more than 30 Nordic hydropower plants, a green and energy-efficient residential building with 300 apartments, and the improvement of a recycling plant. 

Recently, Danske Bank published its first Green Bond Impact report, which provides an overview of the environmental impact of its green loans granted to corporate customers in 2019. One of the customers that used a green loan to finance an initiative with a clear environmental impact is Finnish Kemijoki Oy, a producer of hydropower and regulating power in Finland. The green loan provided by Danske Bank will improve more than 20 existing hydropower plants.

 

ANZ establishing business hotline for government COVID-19 payments

ANZ has announced it will establish a dedicated hotline to help small and medium business customers who are eligible for the Federal Government’s Job Keeper payments. The bank will implement a process to identify which customers need this assistance and prioritise their funding requests until their payments arrive. The Australian Taxation Office is scheduled to make the first payments under the Federal Government’s Job Keeper program in early May.

ANZ has already provided more than 6300 small and medium enterprise (SME) customers with a 10% increase on their overdraft accounts, which has helped alleviate some of the financial pressure and provided support until Job Keeper payments arrive. The bank has also provided loan repayment deferrals to about 15% of its SME customers. It is also offering loans for business customers that are 50% guaranteed by Federal Government for up to $250,000 as another way to help them through this challenging time.   

 

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Cash Flow Management & Forecasting
Cash Flow Forecasting
Environment, Social, Governance
SWIFT Corporate Connectivity
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