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Industry roundup: 25 February

PrimaDollar sells export finance business to Modifi

PrimaDollar has made the strategic decision to focus on its supply chain trade finance platform, an enterprise SaaS technology solution that enables large and mid-sized importers to take control over how their international suppliers are funded and paid. With the increasing success of this platform and focus on larger clients, PrimaDollar's board has determined that its existing export customers, who are typically SMEs, will be better served by moving across to a dedicated export trade finance specialist operating with a similar geographical footprint. As such, PrimaDollar selected Modifi after a full market review.

The sale of PrimaDollar's export trade finance business to Modifi has been completed. The transaction only relates to future business, with PrimaDollar retaining its current outstanding trade finance book.

Modifi provides trade finance to businesses around the world through one single digital platform. With digital onboarding and a paperless platform, customers can get working capital in a matter of days. Modifi pays exporters' outstanding invoices and covers the risk of buyer defaults.


DZ Bank selects Surecomp to support digital trade finance transformation journey

Surecomp, a provider of global trade finance solutions for banks and corporates, has announced that DZ Bank, as part of its journey towards digitised trade finance operations, chose DOKA-NG to be its next generation digital trade finance platform.

DZ Bank, which is headquartered in Frankfurt, acts as the central bank for almost 850 co-operative banks across the country. The trade finance department operates on behalf of both direct customers and member banks, acting as a trade finance hub to process thousands of transactions. The DZ BANK team also manages international trade finance processing requests from the bank’s Hong Kong branch. In view of thousands of corporate clients of varying size and growing transaction volumes, DZ Bank recognised the need to transition its operations to the next stage of digitisation. It decided to implement DOKA-NG, which is an API-enabled digital trade finance platform fully equipped to support pending regulatory changes including SWIFT SR2021. 

“Starting the transition to DOKA-NG is a natural progression in our digitisation journey,” explained Thomas Arendt, head of Documentary Trade at DZ Bank. “The bank in general is migrating more and more towards digital solutions, and I’m delighted that, through our established partnership with Surecomp, trade finance has been able to drive enhanced customer service through the automation of its back-end processing.”


Nordea enters into referral agreement with Citi for sub-custody services

Nordea has decided to exit its Nordic sub-custody business and has entered into a strategic referral agreement with Citi. Nordea recommends that its sub-custody clients appoint Citi as their new provider. Nordea says it is committed to ensuring that clients who do not migrate to Citi will be assisted through an orderly transition of services to a provider of their choice.

Nordea’s sub-custody services provide financial institutions with access to settlement, safekeeping and asset servicing of Nordic securities. Following its decision to exit the sub-custody business, Nordea continues to focus on Nordic corporate, institutional and retail custody business and is committed to ensuring a well-functioning custody and settlement market in the Nordics

“After careful consideration, we have concluded that the increasingly complex regulatory frameworks do not support us in delivering the level of value we intend for our clients," said Martin Persson, Head of Large Corporates and Institutions at Nordea. "The arrangement with Citi supports our strategic objective with increased Nordic focus. Our clients that transition to Citi can be confident that their short- and long-term needs are catered for in the best possible way.” 

The agreement with Citi has no impact on Nordea’s cash management services for international financial institutions. There will be no redundancies following Nordea’s decision to exit its sub-custody business.


Refinitiv rolls out analytics on corporate sustainability-related news and social media 

Refinitiv has announced the launch of MarketPsych ESG Analytics, an analytics tool to provide numerical ESG insights on companies and countries based on news and social media monitoring.

To monitor perceptions of sustainability and ESG risk, Refinitiv and MarketPsych have partnered to create what they describe as a multidimensional ESG analytics offering. Refinitiv MarketPsych ESG Analytics complements Refinitiv’s existing ESG data by offering an external “outside-in” perspective on a company or country’s sustainability by processing millions of global articles and social media posts in near real-time.

Refinitiv MarketPsych ESG Analytics can be used in a host of applications. Corporate clients can monitor market perceptions of their own and competitor firms. Quantitative investors can deploy the data to enhance alpha generation and risk management. Discretionary investors can use the data to improve portfolio construction. Regulators can use the data to more precisely direct investigations. Analysts and researchers can explore relationships between ESG and economic performance. Governments are able to monitor media perceptions of their activities.  

Gathering and analysing articles about environmental impacts, sustainability and government stewardship requires specialised capabilities. The software underlying the Refinitiv MarketPsych ESG Analytics is a complex AI-based natural language processing (NLP) engine, which locates, filters and scores environmental, social and governance (ESG)-themed content pertaining to specific companies as well as cities, regions and countries from tens of millions of authors in thousands of global resources - over 2 million credible articles and posts every day in a dozen languages. The NLP engine excludes corporate press releases, corporate websites and regulatory filings in order to maintain the outsider perspective of third-party media and minimise the impact of corporate 'greenwashing'.

In this ESG data feed, scores on over 100 ESG themes and controversies are published in minutely, hourly, and daily updates. The data covers over 30,000 companies and 252 countries and territories. The data history extends back to 1998, and companies were added point-in-time to facilitate quantitative research and minimise survivorship bias. Scores are published on key ESG themes such as intellectual property violations, management scandals and ESG policy failures.  

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