Latest global banking news

July 27, 2022 8:18 AM

In global news this week, the U.K.'s major banks put pressure on global tech firms, Bank of Ireland improves paid paternity leave, Virgin Money debuts a buy now/pay later card, and more.

Here's what's happening around the world.

U.K. banks pressure tech firms on fraud

TSB, Barclays, Santander and Lloyds are calling on telcos and large technology firms to take more responsibility for online fraud prevention, including reimbursing victims. The banks are referencing the "polluter pays" concept, in which parties that enable pollution should cover the cost to society, reports The Telegraph. In this case, the banks are saying Facebook, Instagram, Google and mobile operators are not taking this responsibility. The newspaper cites Barclays research that found 75% of online scams take place on social media, auction sites or dating apps. Google, Facebook and Vodafone did not provide comment. —John Adams

Bank of Ireland expands paternity leave

Bank of Ireland has tripled its paid paternity leave to six weeks from two weeks, with the program open to any staffer who is having a baby, whose partner is having a baby, adopts a child, becomes a parent through surrogacy, or becomes a parent of a donor-conceived child. The bank says it's addressing a need for parents to bond with a new child, as well as to increase gender equity in the home. The Irish government also recently expanded government-backed family leave. —John Adams

Klarna partners with German small-business fintech

Swedish fintech Klarna is among the payment companies that have had a difficult year in the financial markets, though it is still expanding partnerships and diversifying its product line. Klarna this week entered a collaboration with Airbank, a Berlin-based digital financial management platform for businesses. Klarna will make its open banking platform, Klarna Kosma, available to Airbank, which allows businesses to manage finances by consolidating their accounts in a single location. Klarna Kosma will enable Airbank to access information from 15,000 banks in 26 locations. —John Adams

Virgin Money launches card for buy now/pay later

Virgin Money is bucking regulatory pressure on buy now/pay later lending in the U.K. with plans to launch a card this year that enables consumers to spread repayments. The card program, called Virgin Money Slyce, has opened a waiting list for consumers, who will be able to use the card to centralize all of their monthly BNPL payments. Spending over about $36 can be paid in installments over three, six, nine or 12 months, with no fees for the three- or six-month options. Slyce also has a feature that allows consumers to build their credit scores over time as part of a strategy to move the consumers to additional credit products. —John Adams

Google Cloud, Singapore team to slice carbon

The Monetary Authority of Singapore and Google Cloud have co-launched the Point Carbon Zero Program, which will try to accelerate environmentally-friendly financial services development by connecting technology firms and financial institutions. The connection is designed to make it easier for the financial industry to access data that can be used to spot investment opportunities for carbon-reducing and sustainable programs. Google plans to deploy an open-source cloud that is aimed specifically at climate financing, with participating fintechs receiving mentorship and access to data on Google Cloud. —John Adams

Santander, SAP plan digital banking initiative

Santander's Corporate and Investment Banking unit is partnering with SAP Spain to build technology to support connections between businesses and the banks in an effort to navigate challenges such as supply-chain disruptions and decarbonization. Santander will join SAP's Multi-Bank Connectivity service as part of the deal. SAP's MBC streamlines onboarding for corporate clients, and will embed Santander's banking products within business' enterprise resource planning systems, a process the bank calls "invisible banking," or a version of open banking designed for business-to-business transactions. —John Adams