PNC to buy BBVA’s US subsidiary for US$11.6bn
The entity in question - BBVA USA Bancshares - is headquartered in Texas, possesses $104bn in assets and operates across 637 branches.
With a long-standing heritage of 175 years in the sector, PNC has managed to establish a strong presence in 21 states and focuses on retail banking, asset management, and corporate and institutional banking.
BBVA (Banco Bilbao Vizcaya Argentaria) shares a similarly enduring market legacy (163 years) and remains one of the largest financial institutions in the world. Currently focused on developing the digital economy, the company is the on the Nasdaq sustainable debt market.
Strengthening and expanding
Added to its existing presence in the US, this acquisition will see PNC claim a commanding presence in 29 of the country’s 30 largest markets.
William S. Demchak, PNC's Chairman, President and CEO, made it clear that the acquisition represented not just a chance for the company to expand its presence in North America but also strengthen its business by absorbing BBVA’s expertise.
"This transaction is an opportunity to navigate our future from a position of strength, accelerating PNC's national expansion strategy while drawing on our experience as a disciplined acquirer.
“We are excited to bring our industry-leading technology and innovative products and services to new markets and clients, leveraging our mutual commitment to building diverse
and high performing teams and supporting the communities we serve," he said.
Meanwhile, BBVA Group Executive Chairman Carlos Torres Vila stated that the deal was beneficial not only for PNC but for his company too:
"This is a very positive transaction for all sides. PNC has recognised the great value of our unique client franchise and of our great team in the US, who will be part of a leading financial services group in the country.
"The deal enhances our already strong financial position. We will have ample flexibility to profitably deploy capital in our markets strengthening our long-term growth profile and supporting economies in the recovery phase, and to increase distributions to shareholders."
The final agreement is expected to be completed by mid-2021.
TrueLayer launches new verification API
TrueLayer, the leading, London-based open banking solution fintech, has announced the launch of its new Open Banking API verification solution.
According to reports, the technology combines open banking with machine learning (ML) to make the onboarding process seamless and fast.
Fast processing in Open Banking
Results show its success rate is currently 20% higher than credit bureaus because it generates reports in seconds rather than the traditional manual, bank statement checks that can take days to complete.
TrueLayer also says the technology simplifies the payment setup and transactions by pre-verifying customer’s details.
Another advantage is that existing providers have access to raw data that requires businesses to build and maintain their own logic to verify that the customer’s name matches their name on file at the bank.
The verification logic sits on top of open banking rails and matches the name given via the onboarding, along with the name held at the bank. It, therefore, offers a single feed that provides an immediate and highly accurate response regarding whether their user’s account has been verified.
Open Banking in the UK
Open Banking has seen a surge in popularity since March 2020. Data shows that the technology is being used 12-fold more than it was two years ago. Banks in the UK are now handling more open banking payments volume in a single month than the amounts measured in the whole of 2019.
TrueLayer says many of its clients are using the Verification API, including Authologic, a Y Combinator-backed provider of identity verification solutions.
Ossama Soliman, Chief Product Officer at TrueLayer, said the verification breakthrough makes a huge difference to both businesses and customers because verification is the first step to onboarding a new user and yet it can often take days to verify an account owner using traditional methods.
He explained, “Their security is questionable, they’re prone to errors and they take forever. It doesn’t need to be that way. With the verification API, we’ve built on top of open banking to create a faster, more secure, and more accurate approach to verifying a user’s account. It serves businesses across multiple industries, including financial services, PSPs, wealth management and trading, marketplaces, property, and iGaming.”
Speaking about the new technology, Jarek Sygitowicz, co-founder of Authologic explained, “Whether you are a fintech, a marketplace, or an ecommerce platform you want to deliver the best possible onboarding experience.
He added; “We are aggregating different identity verification methods and we are big supporters of using open banking thanks to its ability to make the entire process more intuitive.”
The TrueLayer verification API delivers:
• A faster onboarding process, cutting time from three days to three clicks.
• The API coverage spans all major banks, resulting in a 22.5% higher success rate compared to other credit check methods.
• Prevents fraud through its embedded strong customer authentication (SCA) within the bank verification process.
• Offers a better user experience for customers using biometric technology to confirm identity and ownership.
• Lowers payment failures through its pre-verified account details.
• Lowers burden on compliance teams through automated verification via a single API call.
• Lowers maintenance issues because engineers can focus on solving core business problems, rather than building and maintaining name-check logic.
Image credit: TrueLayer offices from TrueLayer