Wolters Kluwer Finance, Risk and Regulatory Reporting (FRR) has announced Varo Bank, N.A. as a new customer. Varo has successfully filed regulatory reports using Wolters Kluwer’s OneSumX for Regulatory Reporting software. OneSumX for Regulatory Reporting combines bank data into a single source of data to ensure consistency, ease of reconciliation and accuracy. It includes access to Wolters Kluwer’s unique Regulatory Update Service (RUS) which is maintained by Wolters Kluwer experts who actively monitor regulation in 30 countries, factoring the potential impact of future changes into the OneSumX portfolio and ensuring clients’ ongoing compliance. OneSumX for Regulatory Reporting integrates with the Temenos T24 Transact core banking system used by Varo Bank, providing lower total cost of ownership when compared to other Extract, Load and Transform (ELT) processes. As a result, and through utilizing Wolters Kluwer’s RUS, the bank says it will be well placed to meet the ongoing regulatory reporting demands of various regulatory bodies.
Bloomberg announced its Market-Implied Probability of Default (MIPD) product, a fully market-driven creditworthiness indicator, is now available to both Enterprise Data and Bloomberg Terminal clients globally. MIPD enables clients to easily incorporate creditworthiness metrics within their existing workflows for a more holistic approach to credit risk management. MIPD provides clients with a highly responsive, transparent, daily credit risk assessment that incorporates data from BVAL, Bloomberg’s best-in-class evaluated pricing service, to proactively estimate fixed income market sentiment and quickly react to changing market and issuer-level conditions. This solution helps anticipate credit deterioration such as major rating downgrades and defaults ahead of traditional credit analysis, allowing clients to confidently make risk and investment decisions. MIPD is a premium Enterprise Data solution that is available to Bloomberg Data License clients, as well as on the Bloomberg Terminal through a new dedicated screen accessed via MIPD , W and via the Excel API. The solution includes implied probability of default for over 36,000 issuers and multiple sectors across the term structure from 1 to 20 years.
The Coalition for a Digital Economy, or Coadec as it’s more commonly known, is calling on the Financial Conduct Authority (FCA) to tread carefully when introducing tighter restrictions on the buy-now-pay-later (BNPL) sector. Coadec has laid out five themes the regulators should focus on to prevent a potential misfire with regulation.
- Firstly, Coadec is urging the FCA to focus on the BNPL firms and not the retailers they support after its research found that additional compliance requirements on the retailers’ end could see 68 per cent of e-commerce startups shift away from BNPL.
- Secondly, the industry body is calling on providers to develop better affordability checks, most importantly, not undertaking a hard credit check.
- Coadec has also outlined the credit rating industry as a whole needs to be dragged into the 21st Century by using smart data, like open banking or AI.
- Clear, concise, and easy-to-understand information is the fourth topic on Coadec’s list. all communications (including from third-party advertisers like influencers) mustn’t be misleading. Late last year, the Advertising Standards Agency (ASA) branded four Klarna ads as ‘irresponsible’ after several influencers posted ads for the fintech linking spending (and borrowing) money with happiness.
- And, finally, BNPL providers must provide customers with a better complaint network as most BNPL fintechs exist outside the realm of the Financial Ombudsman’s reach.