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Industry roundup: 28 September

BNY Mellon and GTreasury collaborate on cash and investment management for corporates

BNY Mellon has announced a venture designed to enable its clients to access the cash management and payment capabilities of treasury management services provider GTreasury. Under the collaboration, the bank says its clients will have the opportunity to achieve greater visibility into their cash balances and more efficient utilisation of these assets. With the transparency provided by GTreasury’s treasury and risk management platform, clients should be able to better identify where balances are sitting across bank accounts, regions and time zones and then deploy the assets to productive ends.

Through a seamless integration with BNY Mellon’s LiquidityDirect platform, those balances can be put to work in a range of cash equivalent vehicles, providing opportunities for clients to earn incremental income as they manage liquidity across short-term investments or determine the best long-term use for their funds.

Due to the degree of integration that the two firms have been able to achieve, BNY Mellon clients will be able to sweep cash into funds available on LiquidityDirect without leaving the GTreasury environment. Furthermore, treasurers already familiar with the GTreasury ecosystem will not be required to make any changes to their existing infrastructure to take advantage of this new functionality, and the new investment capabilities will be provided to eligible clients at no additional cost.

“We are thrilled to be able to offer clients integrated access to LiquidityDirect through GTreasury’s digital treasury management tools, enabling them to streamline their cash management workflow and allocate balances with maximum efficiency,” said George Maganas, head of Liquidity Services at BNY Mellon. “Connecting those capabilities with LiquidityDirect is a natural fit, as it will enable clients to operate within one ecosystem to manage both their cash and payments while interacting with their global digital liquidity network for short-term investments via BNY Mellon.”

“The GTreasury ecosystem is purpose-built to seamlessly connect into investment portals like LiquidityDirect," said Terry Beadle, global head of Corporate Development at GTreasury. "The result is an efficient, immediate, and transparent workflow for maximising the return of cash-on-hand.”

 

Juniper Research forecasts instant payments transaction values to reach US$18 trillion by 2025

A study from Juniper Research has found that the value of instant payments, where transactions are completed within ten seconds, will reach US$18 trillion in 2025, up from US$3 trillion in 2020; a growth of over 500%. This represents 17% of all B2B and consumer digital money transfer and banking payments by value in 2025. The research found that western Europe is driving innovation and will account for 38% of instant payment transaction value by 2025.

The report identified that success of domestic instant payment schemes will enable cross-border vendors to connect different schemes into cross-border networks, which will radically reduce the time, cost and frustration involved in the current cross-border payments ecosystem. However, this will also require established cross-border vendors to revisit their business models, as the fundamentals of the market change drastically. 

The report, titled 'Instant Payments: Domestic & Cross-border Analysis and Forecasts 2020-2025', found that the US will trail in terms of instant payments adoption, with only an 8% share of global instant payment transaction values in 2025. While RTP has been available in the US for some time, the fragmented nature of its financial system means that adoption has been slow to date. 

Research author Nick Maynard explained: ‘With the proposed FedNow service from the US Federal Reserve not coming into service until 2023/24, the US is rapidly falling behind in instant payments. Payments vendors must concentrate on creating innovative digital payments products to bridge this gap or be faced with an outdated system.’

The research found that B2B payments will dominate values in the instant payments market; accounting for 89% of global transaction values in 2025. While consumer payments are numerous, B2B payments have much higher average values. The research identifies that instant payments adoption can be particularly transformative in B2B payments, where value-added capabilities, including automation and additional remittance data enabled by ISO 20022 can be valuable in tackling complex accounts payable processes.

 

NAB launches cyber bug bounty programme

NAB has announced the launch of a bug bounty programme, in partnership with crowdsourced security company Bugcrowd. The bank says it will reward vetted security researchers who uncover previously undisclosed vulnerabilities in NAB’s environment. Participants must have an ‘Elite Trust Score’ on the Bugcrowd platform.

NAB Executive Enterprise Security, Nick McKenzie said using controlled crowdsourcing methods would assist NAB to further test and strengthen its existing cybersecurity capabilities, helping to keep the bank and customers safe from cyber threats:

“Controlled, crowdsourced cybersecurity brings together uniquely skilled testers and security researchers with fresh perspectives to uncover vulnerabilities in our defences that traditional assessment might have missed. Proactive cybersecurity measures are vital in today’s hyperconnected environment where new threats are constantly emerging. Diversity is a critical yet often overlooked factor in security and controls strategies. Moving to a ‘paid bounty’ gives us the ability to attract a wider pool of ethically-trained security researchers from across the globe.” 

While researchers will work in live environments, they will not have access to any customer information, and activities will not affect NAB customers’ banking experience.

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