Transaction Banking

BAFT Launches New Women in Transaction Banking Initiative at 2024 Global Annual Meeting

WASHINGTON —BAFT, the leading global financial services association for international transaction banking, today launched its groundbreaking Women in Transaction Banking (WTB) initiative during its 2024 Global Annual Meeting in Orlando.

The BAFT WTB initiative was established to promote gender diversity and inclusion within the transaction banking industry. The program, which aims to foster an environment where women can thrive and excel, will provide a platform for networking, mentorship, and professional development opportunities tailored specifically for women in transaction banking.

“At BAFT, we recognize the importance of gender diversity in driving innovation and success in the transaction banking sector,” said Deepa Sinha, vice president, payments & financial crimes, BAFT. “The launch of the Women in Transaction Banking initiative reaffirms our dedication to advancing the careers of women professionals in our industry and creating a more inclusive and equitable future.”

The program’s unveiling was held during the BAFT Global Annual Meeting, as it brings together industry leaders, policymakers, and stakeholders from around the world to discuss the latest trends, challenges, and opportunities in transaction banking.

As part of the WTB initiative, BAFT will organize a series of networking events, webinars, and a robust mentorship program designed to connect women in transaction banking and enhance their industry-relevant skills. Additionally, WTB will collaborate with member institutions and industry partners to drive meaningful change and promote gender equality throughout the transaction banking ecosystem.

“We are excited to launch the Women in Transaction Banking initiative and look forward to working closely with our members and partners to advance the representation and leadership of women in our industry,” Sinha said.

For more information about the Women in Transaction Banking initiative and other BAFT programs and initiatives, please visit the BAFT website at www.baft.org.

About BAFT

BAFT, the leading global financial services association for international transaction banking, helps bridge solutions across financial institutions, service providers and the regulatory community that promote sound financial practices enabling innovation, efficiency, and commercial growth. BAFT engages on a wide range of topics affecting transaction banking, including trade finance, payments, and compliance.

BAFT Media Contact:
Blair Bernstein
Senior Director, Public Relations
[email protected]
+1 (202) 663-5468

Follow Us: @BAFT

BAFT White Paper Explores Uneven Regulations in the Payments Industry

WASHINGTON – BAFT, the leading global financial services association for international transaction banking, today released a new white paper, “Uneven Regulations in the Payments Industry.” The paper sheds light on the disparities and challenges in regulatory frameworks governing the global payments landscape.

This comprehensive publication offers a deep dive into the complexities of payment regulation and its implications for financial institutions, fintech firms, regulators, and consumers alike.

“In an era of rapid technological advancement and evolving payment methods, the regulatory environment has struggled to keep pace, resulting in a patchwork of regulations across jurisdictions,” said Deepa Sinha, vice president for payments & financial crimes, BAFT. “BAFT’s white paper serves as a vital resource for industry stakeholders seeking to navigate this complex regulatory landscape and advocate for greater harmonization and standardization.”

Key highlights of the white paper include:

  • Overview of Payment Regulations: It examines the diverse approaches taken by regulatory bodies in different jurisdictions around the world. From traditional banking regulations to emerging fintech regulations, it analyzes the regulatory frameworks governing various payment instruments, including cards, digital wallets, real-time payments, and cross-border transactions.

  • Challenges and Inconsistencies: The paper explores the fragmentation, duplicative requirements, and conflicting mandates in existing regulation that hinders interoperability and innovation in the payments ecosystem.

  • Impact on Market Participants: It offers an analysis of the compliance burden, operational costs, and market access barriers imposed by divergent regulatory requirements and how these uneven regulations impact financial institutions, fintech firms, payment service providers and consumers. It also discusses the implications for competition, consumer protection, and financial inclusion in an increasingly globalized payments landscape.

  • Regulatory Convergence: The paper takes a closer look at potential pathways for collaboration among regulatory bodies at the domestic, regional, and international levels.

  • Industry Recommendations: It provides an outline of strategies and practical recommendations to promote regulatory convergence, streamline compliance processes, and enhance the efficiency and effectiveness of payment regulation.

  • Call to Action: Lastly, it includes a push for industry stakeholders to work towards an inclusive, competitive, and fair environment in which consumers will effectively benefit from a broad and safe offering, while still maintaining provider profitability and sustainability. 

Click here to read BAFT’s Uneven Regulations in Payments. The white paper is also available within BAFT’s Library of Documents under the Guidance and Industry Practices section.

About BAFT

BAFT, the leading global financial services association for international transaction banking, helps bridge solutions across financial institutions, service providers and the regulatory community that promote sound financial practices enabling innovation, efficiency, and commercial growth. BAFT engages on a wide range of topics affecting transaction banking, including trade finance, payments, and compliance.

BAFT Media Contact:
Blair Bernstein
Senior Director, Public Relations
[email protected]
+1 (202) 663-5468

Follow Us: @BAFT

BAFT and TFG Launch a Comprehensive Letter of Credit Guide

Washington D.C, February 27, 2024: Trade Finance Global (TFG) and BAFT (the Bankers Association for Finance and Trade) are excited to announce a jointly produced guide on Letters of Credit.

Everything you need to know about Letters of Credit: A comprehensive guide to Documentary Credits” was launched at the BAFT International Trade and Payments Conference on February 27, in Washington D.C. You can find out more about the conference by following the link here: 2024 International Trade and Payments Conference

In a world where global trade is constantly shaped by shifting economic conditions and geopolitical uncertainties, Letters of Credit stand out as a reliable source of security and trust.  With interest rates remaining “higher-for-longer” and financial access tightening for businesses worldwide — coupled with increasing logistics costs, supply chain challenges and geopolitical instability — the need for clear guidance on Documentary Credits has never been more critical.

While Letters of Credit are one of the most vital tools used in international trade, their complexity can create confusion among many practitioners. Recognizing the need to demystify this essential trade finance instrument, TFG and BAFT have come together to craft a guide that not only clarifies the basics of Letters of Credit but also breaks down further intricacies of when to use certain documents.

The aim is to broaden the understanding and use of this tool, removing barriers and fostering a more inclusive global trade environment. The guide is the result of a collaborative effort, drawing on the insights and experiences of industry veterans. Special thanks go to David Meynell, Pradeep Taneja, Deepesh Patel and Scott Stevenson for their contributions, and to the BAFT Commercial Letters of Credit Committee, who have made this publication possible.

Deepesh Patel, Editorial Director, Trade Finance Global said, “Letters of Credit are a vital tool for businesses to manage risk and facilitate trade. There is a strong demand for these financial instruments across many industries all around the world, and these financial guarantees remain crucial during times of uncertainty, changing trade corridors and risk.

“TFG are very excited to publish this important guide with BAFT at the Trade & Payments conference. We continue to break down the barriers in trade, treasury and payments, which is why we’ve launched this educational guide, for free. We want to thank all of the contributors, and especially BAFT for their help in producing this guide. We expect this guide to serve as a focal point for trade finance practitioners for years to come.”

“As the leading global forum for the transaction banking industry and their clients, BAFT is pleased to collaborate with TFG in the publication of this Documentary/Letter of Credit Guide,” said Scott Stevenson, senior vice president of trade, BAFT. “Documentary credits can be complex financial instruments involving multiple parties and intricate terms and conditions. This guide provides clarity and helps all parties, both banks and their corporate and SME clients, understand their rights, obligations and the procedures to follow. Overall this guide is a valuable tool for promoting transparency, efficiency, compliance, and trust in international trade transactions, thereby facilitating smoother and more secure trade relationships between parties across borders.”

Click here to read The BAFT and TFG Comprehensive Letters of Credit Guide. The white paper is also available within BAFT’s Library of Documents under the Guidance and Industry Practices section.

About BAFT

BAFT, the leading global financial services association for international transaction banking, helps bridge solutions across financial institutions, service providers and the regulatory community that promote sound financial practices enabling innovation, efficiency, and commercial growth. BAFT engages on a wide range of topics affecting transaction banking, including trade finance, payments, and compliance.

BAFT Media Contact:
Blair Bernstein
Senior Director, Public Relations
[email protected]
+1 (202) 663-5468

Follow Us: @BAFT

BAFT Announces Future Leaders Program Class of 2024

Launched in 2015, the 2024 Future Leaders class includes 40 individuals from 16 countries representing a variety of disciplines within transaction banking around the globe.

WASHINGTON — BAFT, the leading global financial services association for international transaction banking, announced today its Future Leaders Program class of 2024. Now in its ninth year, the program recognizes upcoming talent in the global transaction banking industry.

Nominated by their respective member institutions, the class of 2024 includes 40 individuals from 16 countries across six continents representing a variety of disciplines within transaction banking.

This year’s group will be divided into five project teams to address current industry issues including developing a resource guide for digitization in trade, a client due diligence questionnaire for ESG, harnessing the power of generative language models to transform transaction banking, B2B payments and the G20 FSB payments report, and human resources challenges post pandemic.

The class of 2024 will start their program in January at the BAFT Europe Bank to Bank Forum and will conclude at BAFT’s Global Annual Meeting in May. Several Future Leaders Council members will support the current class as mentors, joining BAFT board members who will continue to serve as project sponsors.

“The continued record growth in applicants for this program underscores the value in both recognition and leadership development for tomorrow’s future leaders, and led us to expand this year’s class,” said Tod Burwell, President & CEO, BAFT. “The participants step outside of their day-to-day jobs to learn more about important industry topics and contribute a diverse perspective on how we can collectively approach them. I’m excited to hear their views on this year’s projects.”  

BAFT congratulates the following individuals who were selected to this year’s program:

  • Tommy Babos, Barclays
  • Alyazia Bin Suwaidan, Commercial Bank of Dubai
  • Christophe Bock, Société Générale
  • Bridget Bonilla, BNP Paribas
  • Frank Burgman, Barclays
  • Adolfo Canales, StoneX
  • Christian Khouri Chalouhi, Intesa Sanpaolo
  • Iris Chen, ING Bank
  • Michael Chong, Standard Chartered Bank
  • Ana Laura Contelli, American International Group (AIG)
  • Pablo de Bacco, ANZ Banking Group
  • Mónica Dörr, Banco Santander
  • Jagoda Dul, Citibank
  • Amro El-Far, Arab Bank
  • Christopher Finan, BNY Mellon
  • Hilary Freedenberg, HSBC Bank
  • Carolina Gonzalez Marino, UBS
  • Petra Gross, UniCredit
  • Kubra Guler, Bank of America
  • Revina Guma, BMO (Bank of Montreal)
  • Sivine Halwani, JP Morgan Chase Bank
  • Oskar Jerrå, Skandinaviska Enskilda Banken (SEB)
  • Natalija Katic, Banco Santander
  • Jialing Li, Deloitte
  • Kaylee Karumanchi Lord, Bank of America
  • Anjana Mary Menasis, Surecomp
  • Antonio Muñoz, Deutsche Bank
  • Sarah Bachwitz Mruk, HSBC Bank
  • Giovanni Paolini, UniCredit
  • Astrid Perrin-Megret, BNP Paribas
  • Grayson Prickett, First Citizens Bank
  • Diego Puron Kelleher, Banco Mercantil del Norte (Banorte)
  • Maria Fernanda Quevedo, Deutsche Bank
  • Jose Reynoso, Umpqua Bank
  • Angel Spanos, PNC Bank
  • Cameron Stanton, Lloyds Banking Group
  • Amin ur Rehman, Standard Chartered Bank
  • Daniel Vallance, RBC Capital Markets
  • Patrick Wodetzki, Crédit Agricole CIB
  • Lianlian Zhao, BNY Mellon

About BAFT

BAFT, the leading global financial services association for international transaction banking, helps bridge solutions across financial institutions, service providers and the regulatory community that promote sound financial practices enabling innovation, efficiency, and commercial growth. BAFT engages on a wide range of topics affecting transaction banking, including trade financepayments, and compliance.

BAFT Media Contact:
Blair Bernstein
Senior Director, Public Relations
[email protected]
+1 (202) 663-5468

Follow Us: @BAFT

BAFT Names New Vice President of Operations and Business Management

PNC Bank’s Daniel Pinho announced as new VP at Bankers Association for Finance and Trade overseeing business operations, education and training, and strategic leadership councils.

WASHINGTON – BAFT, an international financial services association, has named Daniel Pinho as its new Vice President of Operations and Business Management. Pinho will oversee the business operations of the association, support its North America and Regional Bank Councils, and education initiatives including the Future Leaders Program when he joins BAFT on July 31.

“Daniel has played an active role in the BAFT community for many years and we are delighted to have him join us as a part of the BAFT team,” said Tod Burwell, President & CEO of BAFT. “His industry knowledge and familiarity with our members, our business and our practices should allow him to seamlessly transition while ensuring we continue to exceed member expectations.”

Prior to joining BAFT, Pinho was Senior Vice president and Assistant Group Manager of Trade Finance at PNC, where he held a number of roles over the past 19 years. Prior to PNC, he worked at UPS Capital Business Credit. Pinho has been active on many BAFT councils and committees and was recognized as 2020 BAFT Ambassador of the Year. He served on the advisory committee of the Export-Import Bank of the U.S., the Secretary of PNC’s Latino Employee Business Resource Group, and as a member of the bank’s Talent Management Council.

Pinho has an MBA from the University of Connecticut, BBA from Mackenzie University (São Paulo), BSc Engineering from the Polytechnic School of University of São Paulo, and is fluent in Portuguese and Spanish.

About BAFT

BAFT, the leading global financial services association for international transaction banking, helps bridge solutions across financial institutions, service providers and the regulatory community that promote sound financial practices enabling innovation, efficiency, and commercial growth. BAFT engages on a wide range of topics affecting transaction banking, including trade finance, payments, and compliance.

BAFT Media Contact:
Blair Bernstein
Senior Director, Public Relations
[email protected]
+1 (202) 663-5468

Follow Us: @BAFT

“Don’t Forget About Us”: SVB’s Impact on the Underbanked

Regulators need to ensure that new rules passed in the wake of the U.S. banking crisis do not increase financial exclusion, writes Tod Burwell, President & CEO of BAFT.

Via The Banker

Reactions to recent bank failures in the U.S. have unfolded along predictable lines. Banks are re-examining their client diversity, liquidity, risk management approach, lending practices and counter-party risk. Regulators are re-examining the appropriateness of existing regulations and the need for new guardrails. Investors are re-examining their risk profiles and due diligence on portfolios. There is a flight to quality.

These are all very reasonable measures to reinforce the resilience of individual institutions and the overall banking system. Yet what has not often been mentioned are the implications of recent banking failures on the underbanked and those most at risk of financial exclusion.

For several years, BAFT (Bankers Association for Finance and Trade) has highlighted the impact of correspondent bank de-risking, with the current trade finance gap standing at around $1.8bn globally, and discussed potential solutions.

The trade finance industry has endeavored to close this gap; multilateral development banks and alternative finance providers have increased lending to fill funding gaps in emerging markets; fintechs have introduced solutions to reach the underbanked; and governments have introduced policies that widen participation in national financial systems.

Then, in one day, we witnessed $42bn of deposits withdrawn from a single institution in what has been described as “the first Twitter-fuelled bank run”, causing a wave of disruption throughout the system. U.S. bank deposits fell by about $175bn in the week following the collapse of Silicon Valley Bank (SVB), hitting their lowest level in two years by the end of April.

Lower deposits limit the amount of lending that banks can extend, with small and medium-sized enterprises (SMEs) the most vulnerable to the resulting squeeze in credit. Biz2Credit’s Small Business Lending Index shows that large bank lending approval rates fell to 13.5% in April 2023, a drop of more than 50% in the past three years. Small bank approvals meanwhile fell to 18.7%, nearly a 60% decline over the same period.

Strong Systems Needed

Increased financial inclusion is a contributing factor to two-thirds of the UN’s Sustainable Development Goals, promoting growth, addressing poverty and enhancing financial stability of society. While large banks remain systemically important to the global economy, these institutions rely on strong local and regional banking systems to reach parts of the market they are less equipped to serve.

In the weeks following the recent U.S. bank failures, the country’s regional banks have been adversely affected, with their letters of credit requiring additional confirmation and additional restrictions being placed on their ability to obtain insurance on certain transactions. Relationship reviews are underway, putting additional institutions in jeopardy of being de-risked.

Fintechs routinely partner with banks to extend capabilities to the SME and micro-SME market with cost- and technology-efficient solutions. Non-traditional financial service providers are engaging in more traditional banking activity.

However, fintech, crypto and digital wallet companies that accept and hold client funds are also susceptible to interest rate risk, uninsured assets and liquidity crises. What will be the consequences of SVB for fintech banking? Fortunately, the recent U.S. bank failures have not spread to other regions of the world, but the effect on the broader ecosystem’s behaviors will be seen in the coming months.

The overall health of the international banking system remains strong, and greater inclusion inside the transparent and regulated system is better than outside it. Correspondent banks should absolutely look at their individual portfolios to make sound risk and liquidity decisions, but also consider the broader economic impact of fewer companies able to trade, transact and make payments if de-risking is expanded.

While it is certainly appropriate to re-examine regulations to determine if any modifications are required, regulators should also take care to avoid unintended consequences of more financial exclusion resulting from new regulation.

Next Steps

BAFT has participated in the World Trade Board’s efforts to produce a roadmap for financial inclusion in trade, outlining steps various parties can take to help eliminate the $1.8tn trade finance gap. It calls for digital, data and legal infrastructure reform, new funding sources and technical assistance to organizations that need to build their capabilities.

This last point was identified particularly with local and regional banks in mind. Regional banks would do well to increase not only their technical capabilities, but also would benefit from increasing their direct relationships with each other across the global community.

The World Bank estimates around 1.4 billion adults remain unbanked, and SME and micro-SMEs around the world remain particularly vulnerable to disruption in the financial system. If our collective response leads to more financial exclusion, one could argue that we will have weakened, rather than strengthened, the overall financial system.

During a recent conversation with a friend who is a small business owner, I talked about what the banking industry and policy-makers were doing in response to recent bank failures. His response still resonates: “Don’t forget about us.”