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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?

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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10 steps to creating a breakthrough financial services app

10 steps to creating a breakthrough financial services app

Authors Alexander Fritz, Bryan Olson Published December 16, 2015

The complete recipe for a financial services app that stands out from the crowd

So, you want to design a financial services app. But how do you make it stand out from the thousands of others already in the market? From our experience, customer centricity is the key, where by ‘customer’ we mean ‘real people’. Technical components influence speed and performance, but a fully explored customer journey creates a satisfying app experience. Here’s the complete recipe for an appealing and useful financial services app:

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The Time is Now for Immediate Payment Investment

The Time is Now for Immediate Payment Investment

Authors Tommy Marshall , Bryce Vandiver, Seth Cadan Published December 15, 2015

Broke with a Capital B


Under today’s custodial banking system, it can take less time for an individual to withdraw cash, hop on a flight across the globe and hand-deliver it to their recipient than it does to transfer the same amount through banks. And while an argument can probably be made that this is a result of advancements made in transportation, the reality is that moving funds across international borders has been, and continues to be, a highly cumbersome activity for financial institutions.


The process, which involves having to transfer money from one correspondent bank to another (and any number of others in between) en route to its final destination, has always been inefficient. But without a viable alternative, customers have had no choice but to deal with the delays and costs associated with moving their funds – until now. Modern regulation, emerging technologies and customer demands are shaping a new reality for payment service providers. Can they rise to the occasion?

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Capco Talks: Disrupting Financial Services Highlights

Capco Talks: Disrupting Financial Services Highlights

Published December 09, 2015

On October 26th, Capco launched its ‘CapcoTalks’ series with an exciting panel focused on those disrupting Financial Services.  Hosted by Dea Markova from Innovate Finance and featuring James York, Ofer Deshe, Sophie Guibaud and David Tawil from Worry + Peace, Tobias & Tobias, Fidor Bank and Allocator, respectively. Our panel of fintech entrepreneurs discussed how they grew and developed their businesses. See the highlights below:

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T2S: Commercial advantages for Treasurers and Collateral Managers

T2S: Commercial advantages for Treasurers and Collateral Managers

Author Henner Brüner Published December 08, 2015

Don’t drown in the waves of T2S implementation. Surf them in pursuit of lasting competitive advantages, delivered through effective liquidity and collateral management.

T2S-related preparation and implementation is another example of costs incurred in reaction to yet more imposed regulatory change, right? Wrong. In fact, and given the right approach, preparing for and living with the changes brought by T2S can be much more than surviving just another wave in the tsunami of financial market regulations. Treasurers and Collateral Managers now have a chance to realize real competitive advantages, as long as they are prepared to look for the opportunities inside the changes.

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Capco Vision: Forget retention. Workforce ‘mobility’ will attract and retain top talent

Capco Vision: Forget retention. Workforce ‘mobility’ will attract and retain top talent

Author Isabel Naidoo Published December 04, 2015

Isabel Naidoo, Capco’s Human Capital Lead, advises embracing staffing clouds

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Neglecting Data Kills Transformation Programmes

Neglecting Data Kills Transformation Programmes

Author Karan Kapoor Published December 01, 2015

The industry needs to start thinking about data differently. If you want to get the best possible outcome from your transformation programme, you need to pay adequate attention to your organisational data.

Banks’ data is the blood in their veins. It’s the key ingredient of everything they do. Yet, data is often neglected. When it comes to new architecture and transformation programmes, data is typically unavailable or incompatible or pushed to the bottom of the priority chain. Is it any wonder that numerous transformation deliveries are then delayed or face failure?

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The Future of Private Banking

The Future of Private Banking

Author Andrew Arwas Published November 10, 2015

In private banking, success today means reflecting the market as it really is, not relying on a picture from the rear view mirror.

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NPP – New value proposition masked as compliance effort?

NPP – New value proposition masked as compliance effort?

Author Rolf Enders Published November 09, 2015

The new EBA Guidelines on product governance and oversight will come into force in January 2017, leaving banks just over a year to implement effective processes governing product design, market and customer demand.

The figures are staggering. Major global banks incurred around EUR 170 billion of conduct-related costs between 2010 and 2013, with further EUR 70 billion provisioned for future costs at the end of 2013. The European Banking Authority (EBA) quoted these research findings in its recent ‘Guidelines on product oversight and governance arrangements for retail banking products’ -the guidelines seeking to protect consumers by addressing some of the causal drivers of banks’ misconduct. But product oversight risks are, in fact, a ‘blessing in disguise’ for banks and could mean a new value proposition waiting to be unearthed as part of compliance process.

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Clearing and settlement report highlights challenges for 2016 and beyond

Clearing and settlement report highlights challenges for 2016 and beyond

Author Ivelina Dimtscheva Published November 03, 2015

2016 will be a critical year for buy- and sell-side operations, with two T2S waves, the ‘Great Collateral Squeeze’ and readiness for MiFID II top priorities.

So how will institutions respond? This is the focus of the new Clearing & Settlement World Industry Benchmark Report, based on a survey conducted by WBR with Capco acting as a knowledge partner.

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Ready for Exponential Leadership? Here are seven things you need to know

Ready for Exponential Leadership? Here are seven things you need to know

Author Isabel Naidoo Published October 28, 2015

Exponential change is transforming our world. It’s time business leaders changed their strategy accordingly.

Earlier this year I was lucky enough to attend, along with some colleagues, the Singularity University Executive Programme which covered emerging technologies and their impact on the world, including workplace. Inspired by the programme, we got thinking about a concept that we felt should be put on the radar alongside disruption – Exponential Leadership. What qualities of leadership are required for an organisation to flourish at a time when technology, driven by Moore’s Law, has transformed the way we work, live and play?

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Digital Innovation in Asset Management – a Wake Up Call

Digital Innovation in Asset Management – a Wake Up Call

Authors André Brunner, Delia Steiner Published October 27, 2015

Better websites drive more sales but the asset management industry is only just starting to appreciate their importance.

The asset management industry has never distinguished itself as a leader in digital innovation. The traditional institutional investor isn’t the kind of client looking for a fancy online offering, so asset managers have focused heavily on other priorities, not least fulfilling new regulatory requirements that have emerged in recent years. As such, digital has taken a back seat.

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Prepaid: a ‘magic bullet’ for retail banking?

Prepaid: a ‘magic bullet’ for retail banking?

Author Bernd Richter Published October 14, 2015

Nobody disputes that it’s tough to succeed in today’s retail banking industry. Some would argue that only a magic bullet could transform the fortunes of ‘traditional’ banking in the post-Google and Amazon world. If such a bullet existed, what would be included in its list of superpowers?

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Why rogue traders should be afraid of big ‘bad’ data

Why rogue traders should be afraid of big ‘bad’ data

Author Dr. Dimitrios Geromichalos Published October 13, 2015

Big data, data analytics and data science provide exactly the tools needed to predict and prevent damage caused by rogue traders

Follow Dimitrios Geromichalos on Twitter:


Rogue traders continue to cause catastrophic damages to banks. It’s no great surprise then that the incentive for banks to detect – and prevent – such illegal activities is extremely high. Inevitably this task is complicated by the complexity of the trading ecosystem and inventiveness of fraudulent individuals. However, recent methodologies and technologies – big data, data analytics and data science in general – provide exactly the tools needed to track, predict and prevent anomalous behavior, successfully.

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FRTB: Replacing VaR with Expected Shortfall in market risk

FRTB: Replacing VaR with Expected Shortfall in market risk

Author Tobias Voigt Published October 06, 2015

Out with old risk metric, in with the new. Welcome to Expected Shortfall

The Basel Committee on Banking Supervision has been revising its market risk framework since 2012. The result of its ‘fundamental review of the trading book’ (FRTB , BCBS 219) is expected to be implemented by January 2018, with 2016-17 scheduled for calibration and testing. The consultation phase for the new regulatory framework is still ongoing and has featured several Quantitative Impact Studies, highlighting the framework’s complexity.

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Our EMV Future Part II

Our EMV Future Part II

Authors Tommy Marshall , Christian Wuerth , Katie Hermann Published October 01, 2015

Shifting Seas in Liability

In the last part of our series “Our EMV Future” we mentioned a liability shift set to occur in October of this year. So what’s the liability and where is it shifting? Liability in this context refers to which party is liable for fraudulent charges on a credit card. If you are one of the 41% of American cardholders1 who have been a victim of fraud, you most likely did not have to bear the cost of those charges. So who did? Currently the card issuers (i.e. banks) are liable for the cost of card present fraudulent charges (including both counterfeit and lost/stolen cards) – and its costing banks an estimated $10 billion per year2! However, come October the rules are changing and this presents the issuers an opportunity to recover some of these costs… but timing is critical.

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Workplace 2020: Attrition is dead, long live employee partnerships!

Workplace 2020: Attrition is dead, long live employee partnerships!

Author Isabel Naidoo Published September 29, 2015

Millennials are not looking for life-long careers. Future workplace will use technology to match skills, opportunities and values to fulfil shorter-term projects. Employee partnerships, similar to the fledgling examples of alumni and LinkedIn networks, will see employees cycling in and out of firms to work on their terms.

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A Brand New Day; The Implementation of Volcker

A Brand New Day; The Implementation of Volcker

Author Jennifer Liu Published September 23, 2015

You could hear an audible sigh of relief across the whole of Wall St. when on July 21st , 2015, the Volcker Rule compliance date came and finally (after years of preparation) went, leaving the world of trading permanently and irrevocably, changed.  With its main goal to restrict proprietary trading, The Volcker Rule(s) not only touches essentially all trading desks across Capital Markets, but also all business lines throughout a bank that in any way impact trading.  Volcker was one very big rule, and one most certainly the venerable Mr V. refined in his mind, many times throughout his illustrious career in finance; however,  there was still a lot left unclarified for affected banks.  Will the measures banks managed to put in place to comply with Volcker’s day in the sun, stand the winds of time?  With whispers of manual, patchwork processes and even, spreadsheets! – Wall Street professionals are realizing that perhaps the battle has been won, but the war has only just begun.

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