Wednesday, April 29, 2009
Tuesday, April 28, 2009
Co-op contracts with Finacle for core banking overhaul
Co-operative Financial Services has selected the Finacle universal banking system from Infosys to replace its legacy technology infrastructure.
The Co-op says its current infrastructure, while currently fit for purpose, is unsuitable for future needs, prompting the decision to replace it with the Finacle platform as part of a business transformation programme.
Finacle will replace systems across the back-office and channels in the retail and corporate banking businesses. The implementation will cover core banking, CRM (uniting banking and insurance businesses) and e-banking across home-market operations in the UK.
John Hughes, director, retail banking, Co-operative Financial Services, says: "Once the new platform is implemented CFS will be able to create a differentiated customer experience through innovative products, a unified customer view and seamless integration across channels. Finacle will also enable CFS to acquire and retain customers, achieve sustainable scale, and lower operational costs."
Monday, April 27, 2009
Banks linking to whole of market broking service
Bank of China is teaming up with national brokerage mortgageforce to exclusively launch its whole of market broking service.
The bank has 5 branches in the UK, mortgageforce will handle applications which are outside of normal lending policy.
Earlier in the year HSBC linked with John Charcol to launch a seven month trial mortgage intermediary service on a whole of market basis.
Monday, April 20, 2009
Summary of rating actions at Moody’s on Banks and Building Societies
Taken from Moody’s website www.moodys.com, these were announced on 14th April 2009.
Abbey National plc ("Abbey"): the BFSR is downgraded to C- from C+ on review for downgrade (mapping to BCA of Baa2); senior debt/deposit ratings of Aa3 are on review for downgrade; the P-1 rating is affirmed; subordinated debt ratings are downgraded to Baa3; Tier 1 hybrid instruments are downgraded to Ba1; the review will focus on the impact of the integration of Alliance & Leicester and the degree to which this will be offset by further capital measures from their ultimate parent, Banco Santander S.A. (Aa1/B).
Alliance & Leicester: the BFSR is downgraded to E+ from C+ with a developing outlook (mapping to BCA of B1); senior debt/deposit ratings of Aa3 are on review for downgrade, the P-1 rating is affirmed; dated subordinated debt is downgraded to Caa1; junior subordinated debt is downgraded to Caa2; and Tier 1 hybrid instruments are downgraded to Caa3; the developing outlook on the BFSR reflects the intrinsic weakness of A&L, balanced by the potential strength to be derived from its shareholders, Abbey and Banco Santander; the Aa3 ratings and the review for downgrade are aligned with the ratings of Abbey, reflecting the cross-guarantee for senior debt between the two institutions.
Britannia Building Society ("Britannia"): The BFSR is downgraded to D+ from C (mapping to BCA of Ba1) and has been placed on review with direction uncertain reflecting the pressure from its weak intrinsic strength and the benefits expected from the merger with the Co-Operative Bank plc (rated A2/C); senior debt/deposit ratings of A2/P-1 are on review for downgrade; the review will focus on the impact of the near-term merger with the Co-Operative Bank and the extent to which the strength of the Co-Operative Bank can offset some of the intrinsic challenges that Britannia is facing; dated subordinated debt is downgraded to Ba2; and PIBS are downgraded to B1.
Chelsea Building Society ("Chelsea"): The BFSR is downgraded to E+ from C (mapping to BCA of B1) with a negative outlook; senior debt/deposits downgraded to Baa3 from A2 with a stable outlook; short-term ratings are downgraded to P-3 from P-1; dated subordinated debt downgraded to Caa1.
Coventry Building Society ("Coventry"): The BFSR is downgraded to C- from C+ (mapping to BCA of Baa2) with a negative outlook; senior debt/deposits downgraded to A3 from A2 with a negative outlook; the short-term ratings are downgraded to P-2 from P-1; dated subordinated and junior subordinated debt is downgraded to Baa3; PIBS are downgraded to Ba1.
Leeds Building Society ("Leeds"): The BFSR has been affirmed at C+ (mapping to BCA of A2), outlook changed to negative; senior debt/deposit ratings and subordinated debt ratings have been affirmed at A2/A3 with a stable outlook; the P-1 rating has also been affirmed.
Nationwide Building Society ("Nationwide"): The BFSR is downgraded to C- from B (mapping to BCA of Baa2) with a negative outlook; senior debt/deposit ratings downgraded to Aa3 from Aa2 with a stable outlook; P-1 ratings affirmed; dated subordinated debt and junior subordinated debt is downgraded to Baa3; PIBS downgraded to Ba1.
Newcastle Building Society ("Newcastle"): The BFSR is downgraded to D- from C- (mapping to BCA of Ba3) with a negative outlook; senior debt/deposits ratings are downgraded to Baa2 from A3 with a negative outlook and the P-2 short-term ratings are affirmed; dated subordinated debt is downgraded to B1.
Norwich & Peterborough Building Society ("Norwich & Peterborough"): The BFSR is downgraded to D from C (mapping to BCA of Ba2) with a negative outlook; senior debt/deposits ratings are downgraded to Baa2 from A2 with a negative outlook; P-1 short-term ratings downgraded to P-2.
Nottingham Building Society ("Nottingham"): The BFSR has been affirmed at C- (mapping to BCA of Baa2) and the outlook is changed to negative; senior debt/deposit ratings are affirmed at A3 with a negative outlook; P-2 ratings affirmed.
Principality Building Society ("Principality"): The BFSR is downgraded to D- from C- (mapping to BCA of Ba3) with a negative outlook; senior debt/deposit ratings are downgraded to Baa2 from A3 with a negative outlook; the P-2 short-term ratings are affirmed; dated subordinated debt is downgraded to B1; and PIBS downgraded to B3.
Skipton Building Society ("Skipton"): The BFSR is downgraded to D+ from C+ (mapping to BCA of Ba1) with a negative outlook; senior debt/deposit ratings are downgraded to Baa1 from A2 with a negative outlook; P-1 short-term ratings are downgraded to P-2; dated subordinated debt is downgraded to Ba2; This rating action concludes the review for downgrade on Skipton's BFSR initiated on November 3, 2008, following the merger with Scarborough Building Society. Furthermore as a consequence of the merger Scarborough's ratings are withdrawn.
Standard Life Bank ("Standard Life"): The BFSR is downgraded to D from C- (mapping to BCA of Ba2) with a negative outlook; senior debt/deposit ratings of A2/P-1 are on review for downgrade; the review will focus on the level of support available from the bank's parent Standard Life Assurance Ltd. rated A1; dated subordinated debt is downgraded to Ba3; junior subordinated debt downgraded to B1.
West Bromwich Building Society ("West Bromwich"): The BFSR is downgraded to E+ from C- (mapping to BCA of B3) with a negative outlook; senior debt/deposit ratings are downgraded to Baa3 from A3 with a stable outlook; short-term ratings downgraded to P-3 from P-2; dated subordinated debt and junior subordinated debt is downgraded to Caa3; PIBS are downgraded to Ca.
Yorkshire Building Society ("Yorkshire"): The BFSR is downgraded to D+ from C (mapping to BCA of Ba1) with a negative outlook; senior debt/deposit ratings are downgraded to Baa1 from A2 with a negative outlook; short-term ratings are downgraded to P-2 from P-1; dated subordinated debt is downgraded to Ba2.
Tuesday, April 14, 2009
Tieto outline another 620 job cuts
7 April 2009
Just months after outlining plans to axe 350 jobs, recession hit Scandinavian IT services vendor Tieto says it has begun the process of cutting a further 620 positions.
Tieto says approximately 300 jobs will go in Finland, 150 in Sweden, and 170 in the other 10 countries in which it operates. In addition, the firm says it will discuss the possibility of temporarily laying off more staff in Finland.
All negotiations with union representatives will be completed during the second quarter.The latest cuts come after February's decision to cut 170 jobs in Sweden with a further 180 going from Denmark, Norway, Germany, the UK, Latvia and India. A major part of this processes has already been completed.
Other cost cutting moves, including the consolidation of offices, reducing the number of subcontractors and slashing business expenses, will also be implemented.
Hannu Syrjälä, president and CEO, Tieto, says: "The decline in customer demand for IT services has been stronger and faster than we anticipated at the start of the year. Tieto has started a number of streamlining actions to address this situation with the aim of reaching new cost savings in the amount of EUR 100 million. Personnel adjustments are unfortunately also needed to adjust our cost-base."
Last month Tieto warned that it expects its full-year net sales to be lower than in 2008 as tough market conditions continue, with the banking and telecom sectors particularly hard hit.
In January 2008 the firm embarked on a restructuring and cost cutting programme designed to generate annual savings of more than EUR100 million by the end of 2009.
The programme followed an 18-month run of volatile earnings which had mainly been caused by project over-runs in the company's banking and insurance and healthcare and welfare units.
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