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: 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.

Author: Vince Forte
Published: July 09, 2014

The US is finally deciding to play catch-up with the rest of the world and begin working towards the adoption of the Europay, MasterCard, and Visa standard for secure payments (EMV). With the October 2015 liability shift looming and the devastating fallout from Target’s data security breach in 2013, the rollout of chip and pin securitization has shifted from neutral into drive.

Debit and credit card payments in the US today leave the card issuer liable for fraud related to in-person or ‘card present’ transactions. Should the charges be disputed by the customer and a chargeback occurs, then the merchant would suffer as they would bear the costs of items purchased using the fraudulent card. However, as of October 2015, the official US transition date, the transfer of card fraud liability will shift from the card issuer to merchant.

Author: Michael Drews
Published: July 07, 2014

There is nowhere to hide from regulators determined to drive Wall Street trading toward total transparency, and the last round of industry fines is a wake-up call to action. On June 4, 2014 The Financial Industry Regulatory Authority (FINRA) fined major banks (including Barclays Capital Inc., Goldman, Sachs & Co., and Merrill Lynch), $1 million each for failing to submit complete and accurate, detailed information concerning trades performed by the firms, and for their customers, warning that failure to correct the problem could, in no uncertain terms, lead to suspension or expulsion from the securities industry.

Author: Michael Bertran
Published: July 02, 2014

July 1, 2014 came and went with an errie silence for banks waiting for some type of acknowledgement or guidance from regulators regarding the latest deadline for revised Living Wills. Seemingly buried under the glacier of regulatory reform building up on Capitol Hill, agencies are bobbing dangerously on the surface of the sea of reform and may be unable to comment on Living Wills directives again this year.

Banks are frustrated by the lack of feedback from regulators, as they continue to attempt to comply with the Living Will requirements they are guessing will be expected of them. With limited regulatory feedback on two versions of the documents already submitted, banks are struggling to understand what will satisfy regulators in their next revisions. More and more however, we are seeing a move on Wall Street away from responding to tactical, stilted regulatory demands and toward a drive for sweeping change, with not only the next governmental review in mind, but with shaping the healthy future state of the bank as its goal.

Author: Isabel Naidoo
Published: June 26, 2014

Inclusion in today’s workplace is moving beyond joining ethnic, LGBT or any other networks covered by the Equality Act. Proactive companies define it as diversity of thought, values and interests. ‘Being yourself at work’ may be the best way to describe it. However, when taking down barriers and opening up new freedoms of self-expression in the workplace, one aspect that shouldn't be overlooked is our interactions with others and how what we say and do affects people.