Xelerate helps maximise revenue and minimise risk for corporate banks
The corporate banking world is experiencing unprecedented challenges and individual banks face immense pressure from all directions including customers, non-conventional competitors, governments and regulators.
The worst of the global financial crisis is over but the pressure on banks to reduce and streamline fees for corporate services continue to grow. Regulators are also making banks hold more capital, limiting lending. The complexity of corporate banking services, compounded by the vagaries of legal jurisdictions, aged core banking systems and supposedly complementary legacy systems, leaves corporate bankers with little room to manoeuvre.
Xelerate enables automated real-time handling of relationship-based pricing
Xelerate provides revenue management and business assurance capabilities for commercial and corporate banks. Based on service-oriented architecture (SOA), it integrates with existing core banking and legacy systems, without any implementation disturbance. It is a highly scalable platform that has the power to process data across millions of corporate customers and billions of transactions. Xelerate currently handles over 14 billion transactions from 290 million end customers.
Providing a 360 degree view of corporate banking customers it allows automated consolidated billing, proactive customer loyalty programs and enterprise value management. In tandem with its ability to provide a single product view, Xelerate for corporate banking also enables enterprise-wide pricing and billing solutions.
Its powerful modeling capabilities even supports automated real-time handling of relationship-based pricing that allows innovative product bundling, complex negotiated pricing, enhanced risk management strategies, regulatory compliance and full transparency.
Gillian Tett, FT, A cryptocurrency fit for Wall Street, here.
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But the cryptoledger can also be used to make financial transactions through blockchain technology, which has three notable features. First, in theory a blockchain can execute transactions instantly. Second, blockchains can also perform transactions anonymously. Third, transactions can occur without the need to use third parties, or pay fees to a bank or clearing house. That is because the “cost” of running the bitcoin network is borne by the anonymous owners of servers that connect computer code in exchange for receiving new bitcoins as the system expands (this is known as “mining”).
These features make the system attractive for retail-style trades and money transfers, legitimate and illicit. But they could theoretically be useful for financial markets. Bankers often say they are at the cutting edge of innovation, but many of the systems they use are lamentably old-fashioned. It can take days, and significant fees, to settle trades in loans or derivatives. That makes the system ripe for disruption.
And some names are already jumping in. Last month, Blythe Masters, the former JPMorgan banker, unveiled a company called Digital Asset Holdings to develop bitcoin-based settlement systems. Don Wilson, a Chicago markets luminary, and Sunil Hirani, a derivatives and exchanges veteran, are also working with the company. Separately, JPMorgan Chase has applied for a patent for a technology that sounds similar to bitcoin; and patents are pending from other banks and financial groups.
Tom Braithwaite and Ben McLannahan, FT, Masters joins cryptocurrency start-up, here.
Ms Masters would not say how much she had invested, nor when the venture would launch. DAH was founded last year by Sunil Hirani, founder and chief executive of trueEX, an exchange for interest rate swaps, and Don Wilson, founder and CEO of DRW Trading, a proprietary-trading firm.
The venture has employees in New York, Chicago and Tel Aviv, a cryptocurrency hub.
Ms Masters, 45, is best known for a diverse career at JPMorgan, where she was instrumental in the development of the credit default swaps market as a young banker. Latterly she was head of the global commodities business and left when the bank sold it last year for $3.5bn.
In a research note on Tuesday, Goldman Sachs analysts noted that “bitcoin and cryptocurrencies allow for the decentralised transfer of assets without a central clearing authority”. They predicted that the technology could wipe out 20 per cent of the revenue the money transfer industry makes from consumer-to-consumer currency transfers and allow companies to cut $74bn in overheads from businesses-to-business payments over time.
A handful of existing companies, including Ripple Labs, are attempting to achieve the same aim, though all have different technology.