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: Alexander Chan
Published: October 23, 2014

AML. Dodd-Frank. OTC Derivatives reform. The Volcker rule. Basel IV. FATCA. GATCA. The list goes on but the introduction of new local and global regulations shows no signs of abating. Against this backdrop, financial institutions in APAC must ensure that they are promptly informed of evolving regulatory obligations. But an understanding of these requirements is just the beginning of a wide range of resource-intensive activities that financial institutions in APAC are undertaking to break free of the regulatory shackles.

Faced with spiraling costs, and myriad complex rules and regulations of a supranational nature, financial institutions in APAC are now asking the question...

Author: Peter Springett
Published: October 13, 2014

We’re debating the impact of cost to trade and success strategies at Banking Reloaded Conference on October 29, New York. Don’t miss this chance to meet the experts and find out how to reduce costs and boost profitability.

Why is calculating the cost to trade so elusive for banks? The first hurdle for trading entities starts with complicated capital charges for products, based on whether they are exchange or bi-laterally traded. In addition, regulatory capital influences favor higher-rated counterparties adding another layer of complexity to the mix, and front office implications are just the beginning.

Author: Mark Reeves
Published: October 12, 2014

In this concluding blog in our series on changeSourcing (CS), we ask – and answer – four of the most frequently asked questions.

Question: We have built up considerable “expertise equity” in our change delivery capability. Does changeSourcing mean we lose our equity?

No, absolutely not. A well thought out CS program will not only keep one’s current expertise and capability intact, it will also quickly grow it through direct access to best practice and current industry experience.

Author: Markus Sander
Published: October 09, 2014

The market size and app richness in the new payments area begs the question, where is this all going? And what should the perfect payment solution of the future look like? In this final part of the blog series I look at issues that should be addressed to fast-forward the way we conduct payments.

Published: October 07, 2014

Bitcoin has gone through some growing pains. The first stage was ignore, ridicule and accuse anyone using bitcoin of buying drugs. Next, after Mt Gox apologies were made, a quiet curiosity set in, not just about bitcoin, but also about the possibilities of crypto-finance protocols being used in traditional banking and payments industries. However, with three major announcements out last week, small but serious entrées’ are allowing crypto-currencies and architectures into some pretty mainstream businesses. Now, bitcoin has moved into the “cannot be ignored” stage of growth and it’s not so painful anymore.

Squaring off with crypto currencies

Square, PayPal and two small, traditional banks ventured into crypto-cyber-space last week, sounding a heralding horn for new crypto-engineers that said “will we take a small step to see what this is all about”. Square announced that it is officially building a register that will allow companies to accept bitcoin, in addition to Apple Pay. CEO Jack Dorsey said that the merchant services and mobile payments giant will make it so that “square sellers can accept any form of payment” because “they should never have to lose out on a sale”. Online tech mag Wired, said that “bitcoin was a long way from being mainstream”, but with behemoths like Overstock.com and Square “now accepting bitcoins for payments all over the globe, the currency just inched closer”.

Author: Mark Reeves
Published: October 05, 2014

Throughout this blog series, we have seen that change needs to come to the methods by which financial institutions can commission and support transformational projects.

changeSourcing plots a course between the high and fixed overheads associated with captive resource and the potential for disruption and risk that can come with outsourcing. But the question will remain in many CIOs’ minds: exactly how can I retain my previous resource and put my change capability on an advantageous new footing?