Our FinTech update also includes news about Wells Fargo’s new CEO, Bank Leumi’s “challenger bank” Pepper, and an Italian bank embracing a sanctions solution from Pelican.
Prime Brokerage Business Moves to BNP Paribas
BNP Paribas and Deutsche Bank officials report that they have signed a master transaction agreement to transfer Deutsche Bank’s Global Prime Finance and Electronic Equities business, clients and staff to the French banking giant.
Under the agreement, Deutsche Bank will continue to operate the platform until clients can be migrated to BNP Paribas, officials say.
Officials at both firms “will work closely together to ensure a seamless transition for clients, through the migration of technology and key staff from Deutsche Bank to BNP Paribas,” according to an official statement. “This binding agreement remains subject to regulatory approvals of the relevant authorities.”
“We are pleased to have signed the master transaction agreement with BNP Paribas on schedule,” says Frank Kuhnke, chief operating officer (COO) for Deutsche Bank, in a prepared statement. “This is an important milestone for our Capital Release Unit and attests to the strength of our client offering and technology in these products.”
BNP Paribas is “looking forward to welcoming staff and serving these new clients,” says Yann Gérardin, Deputy, COO and head of corporate and institutional banking for BNP Paribas, in a statement.
Ex-BNY Mellon Exec is Wells Fargo’s New CEO
Wells Fargo & Co.’s board of directors has selected the former chairman and CEO of Bank of New York Mellon, Charles W. Scharf, as its new CEO and president, and a member of the board, effective Oct. 21, officials say.
In March, Wells Fargo appointed C. Allen Parker as the interim CEO and president and as a board member, officials say. “Parker will continue to serve in these roles until Scharf joins the company; Parker will thereafter support the transition as a key member of the company’s leadership team and general counsel,” according to a statement from Wells Fargo.
“With more than 24 years in leadership roles in the banking and payments industries, including as CEO of Visa Inc. and Bank of New York Mellon, Charlie has demonstrated a strong track record,” says Betsy Duke, board chair for Wells Fargo, in a statement.
Before his time at Visa, Scharf served as a managing director of One Equity Partners, the private investment arm of JP Morgan Chase & Co., officials say. He also held the post of CEO of retail financial services at JP Morgan Chase, and CEO of the retail division of Bank One Corp.
Wells Fargo is based in San Francisco, and has $1.9 trillion in assets. The firm offers banking, investment, mortgage, consumer and commercial finance products and services.
Bank Leumi’s Pepper Launches Investment App
Pepper, Bank Leumi’s mobile-only “challenger bank,” has launched Pepper Invest, an investment app that gives customers in Israel the “ability to buy fractional shares of top U.S. companies (traded on the S&P 100 index), such as Facebook, Apple, Amazon, Coca-Cola, Ford, Starbucks, Goldman Sachs, Nike and Netflix, with a minimum investment amount of NIS 50 (about USD $14).”
A so-called “challenger bank” is generally defined as a small retail bank established with the intention of competing for business from large, long-established banks.
Pepper Invest is “based on a simple and straightforward fees model, which includes a unified quarterly management fee of 0.2% of the portfolio’s value (0.08% annually), regardless of the amount invested or the number of transactions made by the customer during each quarter,” the bank says in a statement, which adds that the Pepper Invest model “gives customers full transparency and does not charge the customary trading fees and commissions, such as stock trading fees (per share), minimum fees, custodial fees, brokerage fees and other hidden fees.”
Bank Leumi, based in Tel Aviv, has “a presence in key financial centers across the globe, including London, New York, Palo Alto and Shanghai. In 2018, Leumi reported a net profit of NIS (New Israeli Shekels) 3.3 billion ($880 million), with total assets under management reaching NIS 1,434 billion ($383 billion),” according to the bank’s statement.
Intesa Sanpaolo Deploys Pelican Sanctions Solution
Pelican, a provider of artificial intelligence-powered payments- and financial-crime-compliance solutions for banks and corporates, reports that Intesa Sanpaolo, an Italian bank, is implementing Pelican’s A.I.-based sanctions self-learning solution, which is named PelicanSecure Sanctions Self-Learning.
The Pelican A.I. solution, to be used by the bank to support global sanction screening, is expected to go live before year’s end, according to the vendor’s statement.
PelicanSecure Sanctions Self-Learning “employs advanced AI technologies to analyze transactions that have been flagged for investigation by the bank’s third-party sanction screening tools,” per the statement.
Pelican was founded by Parth Desai, who is also the company’s CEO. Prior to founding Pelican, Parth worked for Cognitive Systems, Inc. in New Haven, Conn.
GMEX to Employ IBM Blockchain
GMEX Technologies Ltd., a wholly owned subsidiary of the GMEX Group that offers “multi-asset post-trade business and technology solutions,” reports that it has released the latest iteration of its GMEX Fusion digital capital-markets technology suite.
GMEX Fusion, which is built on the IBM blockchain platform, “empowers institutional investors with a hybrid solution supporting multiple digital assets, including cryptocurrencies, security tokens, and more,” the firm says in a statement.
The IBM-GMEX deal was signed in the third quarter of 2019.