Mandates & Initiatives
FINMET MarkeWatch is part of our exclusive service provided to industry participants. The daily report offers technical commentary on the days price action on Gold, Silver and USD/INR. It gives both a global and local perspective on these metals. MarketWatch will also provide key technical price levels, support and resistance zones and probable trends likely to impact markets and prices. MarketWatch is a powerful tool available for the business to help one make informed pricing decisions. It is offered to our select clients on a subscription basis.
FINMET has provided the benefit of its international experience to assist local regulators to scope out the various options, challenges, and business models that may be considered for the establishment of a physical gold market platform.
We have been engaged to discuss the impact of changes in the regulatory landscape arising from the implementation of Basel III norms related to NSFR on physical gold. The goal is to set up an alternative physical gold settlement process that minimises the impact of the increased funding constraints on Banks.
Establishing a Gold Desk Platform - India
FINMET has designed a technology based, ready to implement plug-n-play solution for banks who are looking to enter the bullion banking in India. The solution will enable banks to participate in the worlds largest bullion markets and capitalize on this opportunity within existing RBI regulations without the need for import license.
The solution focuses on Domestic Bullion Banking, keeping in mind the governments call for becoming “आत्मनिर्भर”. The Gold Desk Platform is a business model that is:
- Domestic Focused
- Low Risk
- Technology based
With the implementation of the Gold Desk Model, Banks will be able to effectively mobilise Gold Deposits under Gold Monetisation Scheme (GMS) and deploy them profitably. Banks can leverage their branch network and customer base with new product offerings that will improve the bottom
Launching Digital Gold Loans in UAE
FINMET is pioneering the gold monetization space in UAE with its unique offering of an Operating Model for Digital Gold loans. FINMET is working with leading banks and financial institutions in UAE to set up their loan against gold business.
The unique offering from FINMET allows banks and Financial Intuitions to leverage their existing customers base and offer a secured personal finance product. This product will enhance their customer relationship with new product offerings and improve the risk profile of the loan book.
FINMET management team’s vast experience in managing precious metals across global markets has enabled us to design technology-based and cost-effective processes for testing, valuation, storage, risk management, and liquidation to the offering. The security “Gold” will be handled end-2-end by
FINMET while the lender can focus on the customer relationship.
New Product Development
One of the largest retail jewellery chain was exploring options to enhance their customer loyalty experience beyond customer sales and loyalty points.
FINMET designed a private safekeeping solution for the jeweller that was both cost-effective and secure. Understanding the jewellers’ endeavor to offer exclusive services, FINMET was able to delivery key add-on products like valuation and financing along with the safekeeping solution making it a one-of-a-kind exclusive customer offering. The solution is expected to enhance jewellery sales for the corporate.
Price Risk and Balance Sheet Management
A leading regional retail jewellery chain wanted FINMET to design a risk management solution to help them mitigate price risk arising from their gold accumulation scheme offered to retail customers. The scheme allowed retail customers to buy gold from the jeweller in equal installments spread over 10 months. At the end of the scheme, the customer may redeem the accumulated gold against their jewellery and/or coin purchases.
Based on FINMET’s review, all possible risk scenarios were outlined and strategies to mitigate the same was provided.
Delivering Growth through Strategic solutions
A global manufacturer and refiner of precious metals products was looking to enhance their financing options in order to participate in global refining contracts. They had regulatory challenges which limited their financing options. The company faced competition from global refiners having easy access to commodity linked financing structures and flexible regulatory environment.
FINMET worked with the company to understand the nuanced details of their business operations to articulate the issues and pain points. FINMET then designed and proposed a strategic solution to the company that enabled them to avail global finance solutions. The proposed solutions were in line with the regulatory framework and provided a distinct completive edge to the company to enhance their business.