ESBG keeps a close eye on prudential treatment of crypto assets

On 30 September 2022, ESBG responded to the second public consultation of the Basel Committee on Banking Supervision (BCBS) on the prudential treatment of banks' crypto asset exposures, which is built on the proposals in the first consultation issued in June 2021.

The basic structure of the proposal in the first consultation is maintained, with crypto assets divided into two broad groups: Group 1 includes those that are eligible for treatment under the existing Basel Framework with some modifications. Group 2, on the other hand, includes unbacked crypto asset and stable coins with ineffective stabilisation mechanisms, which are subject to a new conservative prudential treatment.

In the response to the second consultation in 2022, we advocated for the removal of the technological risk add-on from the proposed prudential framework.

The first reason for this would be the principle of technological neutrality. The regulation should focus on regulating the services but not the applicable technology in order not to prevent the adoption of a specific technology and to neither prefer nor prejudice a specific business model or service provider. Secondly, technological risk already exists in all asset classes. If persistent technological risks are detected, the supervisor could require actions for their mitigation or apply a Pillar 2 Requirement (P2R) surcharge. Finally, a common surcharge of capital would reduce institutions’ incentives to mitigate inherent risk.

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OCTOBER 2022 | TOPICS: Prudential, Supervision and Resolution | Public Consultation | Crypto Assests | Basel Framework | Technology Neutrality

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Joint letter to Commissioner McGuiness on the EFRAG consultation regarding its first set of draft ESRSs

Constantin

October 5, 2022

On 27 September, the ESBG, together with the European Banking Federation (EBF), the European Association of Co-operative Banks (EACB), Insurance Europe, Accountancy Europe, Business Europe and European Issuers, has submitted a joint industry letter to Commissioner Mairead McGuinness regarding the European Financial Reporting Advisory Group (EFRAG) public consultation on its first set of draft European Sustainability Reporting Standards (ESRS).

In the letter, ESBG strongly emphasized the necessity to phase-in the submission of the disclosure requirements from EFRAG to the Commission. In this respect, it is considered that EFRAG should deliver a limited set of crucial ESRS by November 2022. After this, EFRAG and the Commission should agree on a detailed plan to deliver the rest of the first set of standards and all the other deliverables required by the Corporate Sustainability Reporting Directive (CSRD). All these will constitute the minimum requirements to be delivered within the pre-set deadlines by the Commission.

Download the Joint Letter

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End Term Evaluation of the Scale2Save Programme

Scale2Save Campaign

Micro savings, maximum impact.

Abridged report July 2022

End Term Evaluation of the Scale2Save Programme

Scale2Save Programme created a lasting Legacy:
1.3 million more low-income women, farmers and youth are financially included on the African continent

1.3

MILLION

The World Savings and Retail Banking Institute (WSBI) and the Mastercard Foundation engaged Genesis
Analytics to conduct the end-term evaluation of the Scale2Save programme

The purpose of the evaluation was to provide lessons learnt against key learning questions of the programme related to the supply-side.:

  • How does the institutional model affect the ability to offer low balance savings accounts (LBSAs)?
  • What impact has the programme had on partner Financial Service Providers (FSPs)?
  • How has the Scale2Save programme contributed to the ecosystem?
  • What has been the value of partnerships in the delivery of LBSAs under the Scale2Save programme?
  • What is the combination of supply-side and demand-side drivers that emerge for LBSAs?
  • What factors impeded the ability of partner FSPs in the provision of LBSAs during the Scale2Save programme?
  • What factors influence the sustainability of LBSAs developed under the Scale2Save programme
  • Learnings from the evaluation will be used to inform future efforts of increasing demand and supply for low balance savings accounts and for broader ecosystem learning.


The programme
helped FSPs to
overcome obstacles
that would have
been prohibitive
without the
Scale2Save
team’s constant
support.

Download the Abridged Report

Download

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ESBG Event

Constantin

25 OCTOBER

HYBRID EVENT

REGISTRATIONS

Promoting financial education among women and highlighting the need to focus a few more efforts in improving female financial literacy. This is the aim of the upcoming ESBG event “My World, My Knowledge, My Future: A Female Approach To Financial Education”.

Studies show that women are less likely to be financially literate than men – especially when it comes to investing. Men are statistically more likely to take risks, but also research their activities and understand what they are doing. A basis in financial education is key to our future success in saving, investing, and growing wealth in a safe environment – calculating the risk and understanding what could go wrong, or right.
Empowering consumers – in particular women, who are less engaged than men – with the knowledge to make sound financial decisions and build a better future is important in an era of low savings rates, pandemic recovery and an ever-changing digital world. Every day we find new challenges and face new risks, and we need to be armed with up-to-date information and simple knowledge how to navigate through the financial world.

Join us and be part of a pivotal debate on topics like :

• How can financial institutions raise awareness among women of the risks and responsibilities when investing?
• What can school curricula do to engage more girls in money topics?
• Where can financial institutions improve their financial education plans to appeal to a female audience?
• What can policy makers do to provide support when targeting this group?

SPEAKERS & PANELLISTS

Mairead McGuinness

EU Commissioner for Financial Services and
Capital Markets Union

Keynote Speaker

Petra Hielkema

Chairperson of the European Insurance and
Occupational Pensions Authority (EIOPA) 

Panellist

Dominique Goursolle Nouhaud

President ESBG and
National Federation of Savings Banks

Keynote Speaker

Verena Ross

Chairperson, European Securities and
Markets Autorithy ( ESMA)

Keynote Speaker


Ellen Bramness Arvidsson

Executive Director, Finance Norway

Panellist

Magdalena Brier

Chief Executive Officer, Profuturo

Panellist


Ann Cairns

Executive Vice Chair
Mastercard

Panellist

Gabriele Semmelrock-Werzer

President, Austrian Savings Banks Association

Panellist


Karolin Schriever

Executive Board Member
DSGV

Panellist

Prof. Dr. Bettina Fuhrmann

Vienna University of Economics and Business

Panellist


Weselina Angelow

Programme Director on
Scale2Save

Speaker

Michelle Schonenberger

Advisor at European Savings and Retail Banking Group – ESBG

Speaker


Jacki Davis

Moderator


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Different Strokes for Different Folks

Scale2Save Campaign

Micro savings, maximum impact.

A Customer Onboarding Comparative Analysis

At its inception in 2016, the Scale2Save Program (referred to as the Program in this report) set out to acquire one million customers through 10 innovative projects across the six countries of Kenya, Uganda, Nigeria, Cote D’Ivoire, Senegal and Morocco.

All 10 projects were uniquely defined by a product/service mix that targeted diverse sectors and market segments of the local economies – ranging from micro, small and medium enterprise (MSMEs) to agriculture to micro-insurance.

As the Program is wrapping up, this publication looks at the strategic operations and tactics applied by the Scale2Save partners in East and West Africa to acquire customers.

An attempt is also made to analyse the quality and impact of the level of effortand investment made, evidently at varying degrees, against the outcomes that were delivered, particularly regarding the experience a customer gets through that first touchpoint

Objective of the Case Study

This case study sets out, ab initio, to validate the dynamic nature of customer targeting and acquisition, and the varying degrees of success that accompany each tactical approach. While not in doubt that in effect, a combination of tactics would ordinarily be desirable to achieve the expected outcomes, it is safe to assume that one or two dominant tactics tend to carry the greatest burden of the customer acquisition drive for any product or service.

Download the Comparative Analysis

September 2022

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Savings and Retail Banking in Africa 2022

Scale2Save Campaign

Micro savings, maximum impact.

New 2022: WSBI survey of Financial Inclusion for micro, small and medium-sized enterprises

Scale2Save WSBI’s programme for financial inclusion, launches today its Savings and Retail Banking in Africa 2022 report. This time, WSBI puts the focus on the state of the focus is on the financial inclusion for micro, small and medium-sized enterprises (MSMEs).
The Savings and Retail Banking in Africa research series aims to help improve access to financial services for financially disadvantaged people in Africa.
The 2022 edition is based upon research conducted with WSBI members in up to 34 countries on the African continent. It was produced in collaboration with FinMark Trust under the Scale2Save programme.
The report targets financial institutions, regulators and donors who deploy financial inclusion initiatives to develop the MSME sector in Africa.

Why the reports foundings are crucial ?

It highlights :
· How national strategies favour financial inclusion of MSMEs
· What services FSPs are offering to MSME
· How FSPs contribute to a successful MSME sector
· How financial services enable access to clean energy
· Supporting MSMEs as bank agents, and
· What impedes better financial inclusion of MSMEs

The report concludes with specific recommendations for regulators and policymakers, financial service providers and market facilitators.

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What constitutes a viable business model for small scale savings?

Scale2Save Campaign

Micro savings, maximum impact.

Problems of high poverty rates and financial exclusion in sub-Saharan Africa, the correlation between them, and low formal savings rates, remain a major concern.

The market potential of various low-income segments to save is poorly understood by many formal financial service providers (FSPs). Customer and potential customer needs – and how much they can and/or wish to afford to pay to meet those needs – are inadequately reflected in FSP’s business models, customer interfaces and interactions. The resulting poor customer experience gives rise to very high incidences of dormancy and inactivity in account usage. This represents a significant drain on bank costs and undermines potentially sustainable business cases in delivering accessible financial services to these segments.

Why reading this new learning paper ?

This paper highlights 3 different business models for small scale savings including key revenues and costs drivers developed by Centenary Bank in Uganda, Lapo Microfinance Bank in Nigeria and Advans Microfinance Bank in Ivory Coast

Download the Learning Paper

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2022 ESG Financing Summit

2022 ESG Financing Summit | ESG financing
A real momentum and uptake

About the event

We are proud to invite you to the WSBI ESG Finance Summit 2022.
Our aim is to bring together leading policy makers and executives from the financial sector to discuss the prevailing market and regulatory trends in sustainable finance.
As an association that brings together leading financial institutions from around the world, we are confident that the ESG Finance Summit 2022 will be an important platform for the financial industry to address ESG finance.

What to expect on 26th of September:

starts at 4:00 PM CET with supported languages: English & Spanish

Panel “Tools and practices for responsible finance. A Global Overview from the financial industry”

What to expect on 27th of September:
starts at 8:00 AM CET with supported languages: English, Chinese & Arabic

Panel 1 “Regulatory approaches to ESG finance”

The need to finance the global transition to sustainable development is constantly growing. Financial industry is required to gain a deeper understanding of the relevant context and regulatory requirements, for which they need to build their own expertise.
What determines the state of the market today and how should it be regulated?
What changes at the micro- and macroeconomic levels can the widespread use of sustainable finance lead to?

Panel 2 “Integration of ESG factors into the risk assessment system”

How are ESG principles integrated into the financial products? How do ESG factors integrate into the risk assessment system? What do analysts rely on in this process? Parameters and case study.

Panel 3 “Tools and practices for responsible finance. Overview from financial industry”

The speed and quality of the development of the responsible finance market depends not only on regulators, but also on the financial industry themselves, or rather, the degree of their clients’ interest in the relevant products and services. What do clients need to support sustainability initiatives?
What products are financial institutions ready to offer to their customers?
What are their differences and what do they depend on?

Which of the parties – the financial institutions or the client – should act as a motivator in the creation and offer of ESG products?

How and what products of responsible financing can support not only the “green” but also the social agenda?

Co-organizers

WSBI-ESBG

Driven by the three “R’s”​.With roots in 1924, WSBI-ESBG members enjoy a long history of socially responsible banking around the world. Although organizational structures vary from country to country, they each share certain values in their business models, embedded within the three “R”s.

The Union of Arab Banks

The UAB is financially, administratively, and an organizationally autonomous entity and serves as a comprehensive organization representing the Arab banking and financial community. giving key support to Arab Banks, financial institutions, economic organizations, and banking institutions with mutual support and connections to the Arab world. Member of ECOSOC United Nations – New York, accredited at the United Nations Office at Geneva (UNOG), supporting Member of United Nations Environmental Program-Finance initiatives (UNEP-FI) – Geneva

The Union of Arab Banks Website

Asian Financial Cooperation Association

AFCA shall be a regional non-government and non-profit international organization registered with China’s Ministry of Civil Affairs, mainly composed of financial institutions, associations of the financial industry, government related agencies, and relevant professional service agencies as well as individuals in financial field from Asian countries and regions on a voluntary basis.

Asian Financial Cooperation Association WEBSITE

Singapore Fintech Festival 2022

Singapore welcomes you to the 7th edition of the Singapore FinTech Festival

SFF will bring together the global FinTech community to engage, connect, and collaborate on issues relating to the development of financial services, public policy, and technology. As the world’s largest FinTech festival, last year’s edition brought together over 60,000 participants from 160 countries.
SFF is organized by the Monetary Authority of Singapore, Elevandi, and Constellar and in collaboration with The Association of Banks in Singapore.

Why attend SFF

1. Learn from 300+ expert teachers in formats ranging from plenary addresses to intimate, curated summits.
2. Network with participants from 7500+ organisations through our dedicated meeting lounges and event app, the official industry party, and 50+ side events across the week.
3. Meet with 300+ exhibitors spanning from web3 technologies to sustainable finance solutions and from growth stage startups to leading FinTech companies.
4. Contribute to the advancement of the industry by interacting with policymakers and regulators spanning 50+ jurisdictions.

SFF 2022 Theme

Building Resilient Business Models amid Volatility and Change

With the global economy experiencing a surge in inflation and facing risks of a significant slowdown in growth, many FinTech firms are striving to stay resilient and viable. Key stakeholders comprising government leaders, regulators, financial services leaders, entrepreneurs, investors, and technology leaders will take stock of the drivers of change and examine three key questions at SFF 2022:

Viable: How are organizations building and redefining business models that can be more resilient to volatile market conditions?

Responsible: How are organizations balancing corporate responsibility and profitability in order to achieve greater stakeholder satisfaction and engagement?

Inclusive: How are organizations designing inclusive business models that cater to the needs of the unbanked and underbanked?


Persona Segmentation Toolkit

Scale2Save Campaign

Micro savings, maximum impact.

Data is an essential tool for creating customer-centric financial products and services that are sustainable for financial service providers and truly work for low-income customers.

To drive inclusive finance in Nigeria, EFInA and WSBI’s Scale2Save programme are launching the Persona Segmentation Toolkit which allows bankers to use the EFInA financial access data, demographic, and socio economic household data in a simple, practical way.
The toolkit is an online interactive data portal to support market development and data-driven product development

The advantages of the toolkit :

  • Determine the size of business development opportunities specifically for under-served market segments, such as smallholder farmers, informal traders, and young people.
  • Offering insights into customer characteristics, such as livelihoods, income, and financial portfolios
  • Support strategic business development discussions and segmented product innovation process.

 

Access Toolkit

A guidebook and video will help financial sector professionals, consultants and researchers to navigate the portal

Watch the VideoBrowse the guidebook

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