Capco Blog

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Via discussions hosted on the Capco Institute Blog. Members debate high profile issues, with frequent and provocative contributions from Capco thought leaders. For institutions around the world, how will the changing financial services landscape form the future of finance?

The content and opinions posted on this blog and any corresponding comments are the personal opinions of the original authors, not those of Capco.

Author: Arunima Haque
Published: August 20, 2014

In its April 2014 review of RDR implementation, the FCA highlighted its aims to make the market more competitive in favour of consumers. What steps should execution-only brokers take to address those aims, before regulation is imposed, to get ahead of competition and gain customer loyalty and trust?

The review - ‘Supervising retail investment firms: being clear about adviser charges and services’, TR 14/6 – focused on helping customers make informed choices and ensure that advice is provided based on the best product for the client rather than a product that is lucrative for the adviser.

Author: Tom Riesack
Published: August 13, 2014

Mandatory clearing of OTC (over-the-counter) derivatives in Europe will soon become reality under EMIR (European Market Infrastructure Regulation).

The European Securities and Markets Authority (ESMA) has issued two Clearing Obligation consultation papers - IRS (interest rate swaps) and CDS (credit derivatives swaps) – which outline product classes subject to clearing obligation. Are you ready to clear?

Author: James Monro
Published: August 13, 2014

Why the cloud? At first glance the advantages to financial institutions are clear: lower costs, faster reactions to competitors and regulators, and improved communication with counterparties, for seamless transaction execution.

Even though the financial services industry has been slow to embrace cloud (mainly due to security concerns), adoption is accelerating. The numbers speak for themselves. Global business spending for infrastructure and services related to the cloud was $78.2bn in 2011. This year it is expected to grow to $174.2bn, reaching $235.1bn by 2017. In addition, Gartner believes that over 60 percent of banks worldwide will process the majority of their transactions in the cloud by 2016. So what’s driving the rate of acceptance?

Author: Lloyd Chapin
Published: August 08, 2014

It’s confusing, what’s going on with Wall Street right now. News is rife with cost cutting and massive lay-offs as revenues continue to fall due to low market volatility and drops in trading volume. Yet, the pressure to invest and spend is unrelenting as a result of the continuously strong S&P, generally favorable market conditions, the possibilities of emerging technologies, and the continuous regulatory mandates. This pressure to invest and spend is feeding banks’ appetites to continue to grow professionals who can strategize, visualize, communicate, and implement massive Change Programs. Cut costs or invest? How can a financial institution simultaneously do both?

Author: Ilja Ilit
Published: July 21, 2014

From a cold start to a bright future in less than six years! In 2008, a well-respected analyst house reported that “Europeans show little interest in contactless payments”. However, in 2013-2014, the two biggest card associations confirmed that contactless transactions had trebled and that spending had increased six-fold. So who is successful and why?

Let’s look at why contactless – CL - payments have the potential to reach a wide audience. First and foremost there are clear benefits for the three main parties involved.

Author: Bernd Richter
Published: July 18, 2014

The age of payments as a ‘cash cow’, is about to end. Migration to new systems, a reduced operational cost base and total focus on innovative revenue drivers are essential to protect, stabilize, and grow revenues. It all adds up to a shift in focus: beyond compliance to concentrate on the needs of the business.

With so much emphasis on compliance, where’s the silver lining? As the following infographic shows, there’s plenty of space for innovation. Besides centralizing or sourcing certain parts of the value chain, smart payments solutions, such as payment bridges, will be needed to move towards sustainable and profitable payments operations where banks can continue to launch new products and enter new markets.