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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?

Re-inventing retirement: DoL rules to redefine wealth management

Re-inventing retirement: DoL rules to redefine wealth management

Authors Kapin Vora , Matthew Berkowitz Published May 27, 2016

No wealth manager wants to walk away from $7.2 trillion retirement assets with a predicted 9% CAGR, but the transformation to reach compliance is enormous

If the US wealth managers are not up at night worrying about what the Department of Labor (DOL) regulation is going to do to their businesses, they should be. The legislation that expands the definition of the Employee Retirement Income Security Act (ERISA) to include all advisors for Individual Retirement Accounts (IRAs) is redefining the current brokerage model.

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Financial Inclusion: What matters now is action

Financial Inclusion: What matters now is action

Author Howard Taylor Published May 25, 2016

From education to access, the new Financial Conduct Authority paper on Access to Finance has important news for banks and insurers

On 24 May I attended the launch of the Financial Conduct Authority (FCA) Occasional Paper 17 on Access to Finance on behalf of Capco. The paper signals an important evolution in the perception of Financial Inclusion amongst banks and insurers. Critically, Financial Inclusion is taking a firm place on the senior management agenda, alongside consumer vulnerability, ageing and a fairer market.

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Start small, scale fast. The business case for real-time enterprise payments

Start small, scale fast. The business case for real-time enterprise payments

Authors Bryce Vandiver, Seth Cadan Published May 19, 2016

Read Part I of this blog


As the global landscape for enterprise payments evolves rapidly, the once commonly-held mindset that these services could be treated like commodities has disappeared almost as fast as the plans banks had for maintaining their legacy platforms.

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Proposed NYDFS BSA/AML Rules Add Fines and Jail Time for Noncompliance

Proposed NYDFS BSA/AML Rules Add Fines and Jail Time for Noncompliance

Author Jason Malcolm Published May 18, 2016

Investment Banking Operations MI Platforms

As 2015 came to a close, Governor Andrew Cuomo of New York City rattled the cages of financial services executives by holding them accountable for the integrity of their anti-money laundering systems1. This is a serious proposal, ensuring the competence of chief compliance officers’ (CCOs) oversight, accountability and governance with the threat of possible jail time and hefty fines.

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Financial Inclusion – It starts with challenging our assumptions

Financial Inclusion – It starts with challenging our assumptions

Author Howard Taylor Published May 17, 2016

Financial Inclusion in the UK – a live issue with a rapidly growing profile on the regulatory and c-suite agenda

We define Financial Inclusion (FI) as appropriate, affordable, available and attractive financial products and services accessible to the entire population, delivered via a customer-led experience and robust framework.

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The EU General Data Protection Regulation (GDPR)

The EU General Data Protection Regulation (GDPR)

Authors Roger Hamilton, Simon Stickley, Andrew Macqueen Published May 06, 2016

It’s a major regulatory development and there are just two years to prepare for compliance. The time to understand the impacts and implications - and to get ready for implementation - is now.

The clock is ticking louder every day. The EU General Data Protection Regulation (GDPR) rules will become compulsory from 25 May 2018[i]. Organisations, businesses and institutions will need to take action to implement effective compliance measures. Key activities will include end-to-end process reviews, adjustment or amendment of relevant controls and re-alignment of risk profiles. Everyone concerned also needs to take into account the tough penalties that come with breach of this legislation. Who are the key actors? And what do they need to know?

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What blockchain isn’t?

What blockchain isn’t?

Author Stephen Harrison Published May 04, 2016

Ditch the hype. It’s time to face up to the reality of blockchain

Let’s cut to the chase. Blockchain is a combination of four existing technologies put together to create something new. These technologies are well-known:

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The Current State – and Future – of Digital Wealth

The Current State – and Future – of Digital Wealth

Authors Kapin Vora , Tobias Henry Published April 27, 2016

The world of financial technology has recently experienced an outburst of development, driven by rapidly improving technology and the maturation of the millennial generation.

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Alternative Data: The Ascent to Better Risk Management & Financial Inclusion

Alternative Data: The Ascent to Better Risk Management & Financial Inclusion

Author Francesca Lopez Published April 18, 2016

The financially excluded are those without access to traditional financial services at usury prices, and lacking in financial education. This population is not limited to those in developing countries, but also counts people in the developed world, including the 88 million in the United States (see consumer profiles in American Express’s Documentary “Spent: Looking for Change”).

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Optimizing the Wealth Management Operating Model

Optimizing the Wealth Management Operating Model

Author Kapin Vora Published April 11, 2016

Wealth Management Firms Must Adapt to Overcome Today’s Challenges


The wealth management industry is at a crossroads. Evolving client needs, disruptive technology and general cost and regulatory pressures are putting a strain on overall profitability. Firms continue to invest in obsolete, complex and rigid platforms that are decades old. Data has become siloed, making it more difficult to unwind manual processes and technology. In addition, the cost of “lights on” investments to maintain the status quo continues to hamper the bottom line.

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Investments begin at 60

Investments begin at 60

Author Manoj Kulkarni Published April 06, 2016

Wealthier people and financial planners are embracing reverse mortgages as another tool for retirement investment portfolios

Reverse mortgages may be a ‘silver’ lining for cash-poor pensioners who own a property, particularly in developing countries where pension schemes are rare or non-existent. But how valuable are they for banks and will they reach scale in the near future?

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PSD2 What SHOULD It Stand For?

PSD2 What SHOULD It Stand For?

Author Bernd Richter Published March 30, 2016

We all know the official definition: Payments Services Directive 2. But, argues Capco Partner, Bernd Richter we should be looking at ‘alternative versions’.

“Perfect Storm Digital 2”, “Premier Service Driver 2”, “Paradigm Shift Dynamic 2”? OK, they may never catch on as advertising slogans. But they all go some way to capturing the sense of excitement and opportunity that should be at the heart of how the European finance industry views and prepares for PSD2. For this is, emphatically, not just another piece of regulatory process. Viewed from the right perspective, it is not even a “threat” to heartland retail banking payments and account data supremacy. So what is it then? Let’s take a closer look at each alternative definition.

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Robo-advisory – More than Just a Fad

Robo-advisory – More than Just a Fad

Authors Kapin Vora , Tobias Henry Published March 18, 2016

Charles Schwab may have made the biggest splash amongst wealth managers last year. It launched its robo-advisory platform, known as “Intelligent Portfolios,” in March, and only six months later the program had grown to hold $4.1 billion in assets. This figure represents 1.54 percent of Charles Schwab’s $266 billion wealth management business.

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From science to the City: Why financial services consulting could be right for STEM graduates

From science to the City: Why financial services consulting could be right for STEM graduates

Author Thomas Krol Published March 15, 2016

The consulting industry is turning the heads of growing numbers of science and tech graduates, at the expense of more traditional banking roles

I’m all too familiar with the pains of studying a STEM (science, technology, engineering and maths) degree. Familiar with the struggle that goes with pages of math texts containing more numbers than letters, hundreds of lines of code ruined by the omission of a semicolon, and days on end spent in the laboratory trying to obtain reasonable scientific results by any (and sometimes questionable) means necessary.

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How connected is your car? Nine great ideas for electric vehicles from Capco’s EV hackathon

How connected is your car? Nine great ideas for electric vehicles from Capco’s EV hackathon

Author Rick Fish Published March 10, 2016

Quieter, faster and more sustainable than their fossil-burning counterparts, EVs – electric vehicles - are also better ‘connected’. We tested a few EV connectivity concepts at a recent hackathon hosted by Capco and Digital Nebula, aiming to address some of the challenges facing electric vehicle drivers. Attendees included IBM, Deloitte Digital, EthosVO, MakersAcademy and many Tesla owners and technology entrepreneurs. Here are some great concepts developed by the hackathon teams on the day:

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Utilities Are Useful

Utilities Are Useful

Author Farzine Fazel Published February 17, 2016

Across the financial industry a Capco/Finextra global survey confirms growing awareness that Utilities are useful – not least because of their potential to transform the way banks approach compliance.

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What if your Apple Watch could talk to your bank: Improving conduct risk and driving performance with Quantified Self

What if your Apple Watch could talk to your bank: Improving conduct risk and driving performance with Quantified Self

Author William Marle Published February 15, 2016

The world is undergoing a data revolution. We are in the midst of the Quantified Self and real time personal data and performance measurement.

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Speech technology for trading, market surveillance and cyber security

Speech technology for trading, market surveillance and cyber security

Author Jeroen Aumand Published February 08, 2016

We are told constantly that speech technology will revolutionise financial services but what is its potential today?

“Rrrrrrr”. No, I am not cold or angry. I’m teaching Siri to pronounce my name: Jeroen Aumand. After a few attempts, I settle for second best – an anglicised [Jeron] instead of [Yuron]. Then the app asks for help with my last name and I feel a sense of doom creeping up on me. We are told constantly that speech technology will revolutionise financial services, but beyond turning the lights on in the office, how can we use it in finance?

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POG-standard: Another hurdle for payments

POG-standard: Another hurdle for payments

Author Rolf Enders Published February 02, 2016

The new EBA Guidelines on Product Oversight and Governance (POG) will come into force in January 2017. This leaves banks with just over a year to implement effective processes governing design, target market and distribution channels for all products coming into market from January next year.  Payments are likely to take the worst hit as the new rules demand product perfection from every angle.

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How payment regulations are driving innovation in the UK

How payment regulations are driving innovation in the UK

Author Tino Kam Published January 25, 2016

The PSD2 (Payments Services Directive 2) and Open API (application programming interface) standards in banking will come into force in the UK (and the wider EU) within two years. The UK Government is backing these initiatives with the aim to provide consumers with more secure, less expensive and easy-to-use financial services. These developments will affect both retail and corporate banking. But how will this drive innovation and competition in financial services, and where are banks in the race to take advantage of the new approaches?

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