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Industry roundup: 24 November

Citi launches green deposits

Citi Treasury and Trade Solutions has announced the launch of a green time deposit product with enhanced yield. The new fixed-term green deposit is designed to give corporate clients the ability to invest their short-term liquidity in environmentally friendly projects.

The bank says it is guided by a commitment to achieve a positive social and environmental impact through its products and services and its work with clients. This new offering arrives on the market as more companies have an increased awareness of the importance of ESG and sustainable investing, and want to direct their long and short-term investment portfolio towards financial solutions that have a positive environmental and societal impact.

Investments in Citi’s green deposit solution will be allocated to finance or refinance a portfolio of green projects that meet the rigorous environmental finance eligibility criteria defined in the Citi Green Bond Framework, established by the bank to finance solutions and developments designed to aim to reduce the impacts of climate change. The Citi Green Bond Framework is aligned with the recommendations of the International Capital Market Association Green Bond Principles 2018 and assists in advancing the United Nation Sustainable Development Goals.

"With our new green deposit solution, we are expanding our sustainable investment offering to serve the needs of our clients and assist them in achieving their sustainability goals,” commented Stephen Randall, Citi Treasury and Trade Solution’s global head of Liquidity Management Services.

Recognising the increasing urgency of climate change, earlier this year Citi launched its 2025 Sustainable Progress Strategy with the ambition to be a leading bank in driving the transition to a low-carbon economy. This strategy focuses on a new five-year US$250bn Environmental Finance Goal to advance solutions to address climate change around the world in addition to priorities focused on climate risk and sustainable operations.

 

GLEIF confirms J.P. Morgan as first validation agent in global LEI system 

The Global Legal Entity Identifier Foundation (GLEIF) has announced that J.P. Morgan has become the first validation agent in the Global LEI System. The Validation Agent Framework, announced by GLEIF in September 2020, is designed to enable financial institutions to improve their customer experience, accelerate client lifecycle management and reduce costs by using ‘business-as-usual’ know-your-customer (KYC) and anti-money laundering (AML) onboarding procedures to facilitate LEI issuance for their clients. 

J.P. Morgan and LEI issuer, Business Entity Data B.V. (BED), a wholly owned subsidiary of The Depository Trust & Clearing Corporation (DTCC), have together issued the first LEI under the new Validation Agent model, via BED’s GMEI Utility service. 

“Working as a validation agent will allow us to improve our client onboarding experience as well as create valuable industry LEI reference data," said George Brandman, managing director, Reference Data Strategy at J.P. Morgan. "If a majority of financial institutions implemented this service, it would greatly multiply the number of LEIs in production to the benefit of all.” 

As well as delivering a faster customer experience, validation agents should also be able to capitalise on new opportunities to add client value and achieve market differentiation. By expanding LEI issuance beyond clients that require an LEI for financial compliance, a validation agent can equip its whole business client base with globally recognised identities that can be leveraged in new services and across borders with any counterparty or supplier around the world. 

 

Raiffeisen selects CoCoNet for corporate customer offering

Swiss banking group Raiffeisen and software provider CoCoNet are launching a joint project to introduce a service offering for the corporate customers of the Raiffeisen banks, which is scheduled to go live in spring 2021.

The offering aims to provide a complete solution for payment transactions and cash management for small to large companies with a fully integrated range of functions. The initial phase includes standardised data exchange (EBICS), secure payment release (remote authorisation), interbank retrieval of account information (multibanking), tools for liquidity planning and management (cash pooling) and creation of payment orders. A dashboard with customisable views, roles and permissions allows customers to choose from different offering profiles according to their needs. The platform will be expanded to include additional functions, such as customer self-service.

The project will be implemented on the basis of CoCoNet’s MULTIVERSA products. “After a thorough evaluation we have decided in favour of the MULTIVERSA products," said Markus Beck, Head of Payment Transactions for Corporate Customers at Raiffeisen Switzerland. "In addition to the range of functions especially designed for corporate customers and the convincing front-end, the comprehensive EBICS expertise of the CoCoNet team was a decisive factor.”

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