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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?

Protecting Data with DLP

Protecting Data with DLP

Author Scott Bancroft Published August 23, 2016

The recent Brexit vote in the UK changes nothing from a GDPR perspective for those who wish to do business with EU entities.

In today’s always-connected world, where almost all information is stored digitally, it is critical that sensitive and privacy relevant data protection is assured. The advent of fast communication technologies such as 4G and home broadband, ubiquitous mobile devices and availability of free or low cost ‘Cloud’ services have resulted in easy and convenient transfer data options. Often this is in contravention of corporate policies and regulatory requirements and represents an increased risk to the company, its people and the data subjects. Loss of privacy relevant data is set to become a very big issue with the new EU General Data Protection Regulation (GDPR) on the horizon.

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CMA + PSD2 = API: A solution for open banking

CMA + PSD2 = API: A solution for open banking

Author Jack Burrows Published August 18, 2016

Banks should avoid treating the delivery of CMA and PSD2 APIs as just another compliance project and instead take the same approach as when delivering new customer products such as mobile banking apps or mortgages.

On August 9, the Competition and Markets Authority (CMA) released the final report on its investigation into the retail banking market. It found that the market is “still not as innovative or competitive as it needs to be”. In response the report outlines a package of remedies which include mandating that larger banks adopt and maintain a common standard for open APIs (Application Programming Interface). To comply - and to benefit -the best approach for banks is to treat APIs as customer products. But what does this mean in practice?

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Aligning the Building Blocks

Aligning the Building Blocks

Published August 18, 2016

Seven Things Firms Can Do to Streamline Wealth Client Onboarding

Although often a lengthy and manual process, wealth client onboarding is critical in creating positive long-term relationships with clients. Firms that master the onboarding process can achieve revenue-generating assets faster, improve cross-sell and up-sell, and defend against early attrition.

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Blockchain Cheat Sheet

Blockchain Cheat Sheet

Published August 09, 2016

Blockchain Cheat Sheet

Fundamentals of Blockchain technology at a glance.

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Technology innovation in financial services Part 3: Where to locate?

Technology innovation in financial services Part 3: Where to locate?

Authors Owen Priestley, Prashant Choudhary, Neena Kaiser Published July 29, 2016

In our third and final blog on selecting incubator and accelerator environments for fintech innovations, we examine of the importance of location for innovators, start-ups and banks

Incubators and accelerators play a valuable role in bringing key players together. In an ideal world, we would connect demand and supply rapidly. There would be dedicated specialist environments where you could scope the relevance of potential projects quickly. Incubators and accelerators go a long way to fulfilling these criteria.

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Technology innovation in financial services Part 2: The business model

Technology innovation in financial services Part 2: The business model

Authors Owen Priestley, Luis Del Pozo , Neena Kaiser Published July 27, 2016

Financial backing for innovation is critical. But big brand sponsorship, networking, and access to test markets can be just as valuable.

In the first blog in this series on incubators and accelerators in the fintech business, we looked at the market-specific factors that impact choice of development locations, and by extension, choice of innovation projects too. In this second blog, we focus on the commercial heart of any incubator or accelerator environment: the business model.

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Technology innovation in financial services Part 1: Creating an optimum environment for innovation

Technology innovation in financial services Part 1: Creating an optimum environment for innovation

Authors Owen Priestley, Luis Del Pozo , Prashant Choudhary Published July 25, 2016

The final choice of a development framework should be driven by a full understanding of what’s going on in the most important environment of all - the market

Few commentators dispute the pivotal role of technology innovation in the transformation of the financial industry. But getting the most out of innovation, by delivering the greatest meaningful value to the customer – requires more than technical prowess or a fancy business model. It needs an environment where the demand and supply sides - in the form of fintechs, start-ups, investors and financial institutions - can align thinking, share visions and co-create real-world solutions efficiently and effectively. In the first of a three part blog series, we look at some of the key context issues that can help create an optimum environment for innovation.

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Brexit: Boon or Bane for UK Fintech?

Brexit: Boon or Bane for UK Fintech?

Authors Joshua Ablett, Alvaro Barata Published July 07, 2016

In the wake of Brexit, what next for London’s flourishing fintech sector?

On June 23rd a majority of British voters opted to leave the European Union bringing to an end the UK’s 43-year relationship with the politico-economic union of our continental neighbours. So what happens next for the UK’s emerging fintech scene? The traditional fintech market in the UK generates £20 billion in annual revenue, with emerging fintech companies accounting for £6.6 billion of that total. Both figures owe a lot to London’s position as a global financial services centre, favourable regulations, a readily accessible, large customer base and high availability of capital. But it remains to be seen how much the referendum result will disrupt these factors.

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Scaling up robo-advice: Lessons from online supermarkets

Scaling up robo-advice: Lessons from online supermarkets

Author Bhanu Shukla Published July 04, 2016

Standalone robo-advisors (‘robos’) must find other ways to demonstrate value to clients – a low cost offering isn’t enough to stand out in the market.

Standalone robo-advisors in this context are pure-play robos who offer only online and automated wealth management service via algorithm-based portfolio management with little human interaction. For such low cost, low margin business models, scale is everything. But to achieve scale, robos must demonstrate value to their customers.

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Data Analytics for Intelligent Decision Making

Data Analytics for Intelligent Decision Making

Author Partha Chatterjee Published June 29, 2016

Technology has made data storage and processing power cheaper. Those two key technology elements can enable the analysis of huge data that powers smarter decisions.

In the modern world, any corporate house has huge amounts of data stored in multiple systems pertaining to different domains. In a trading firm – be it an investment bank, an energy company trading in commodities or a hedge fund – there is significant data related to trading transactions, market data (prices, volatilities, correlation), exchange information, accounting and settlement data. Normally, this information is used for regulatory and compliance-related reporting, what we might call “defense,” in sports terminology. That same information can be used to gain a competitive advantage and make better decisions. It can bring enormous value to the company.

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It’s payback time! How to reduce architectural and technical debt during DevOps adoption

It’s payback time! How to reduce architectural and technical debt during DevOps adoption

Author Craig Borysowich Published June 22, 2016

Mature organizations struggle with DevOps, but there are plenty of ways to beat ‘technology debt’ and related challenges

When you look at the origins of DevOps you can see why so many established enterprises struggle with the practice. Many of the DevOps agile and lean practices originate from ‘born on the internet’ companies. These companies have had the opportunity to create their systems and infrastructure to meet the demands of continuous integration and delivery, from inception.

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Friends or Foes?

Friends or Foes?

Authors Kapin Vora , Tobias Henry Published June 16, 2016

Robo-advice for the advisor

It would be safe to say most individuals perceive a growing competition between robo-advisors and traditional wealth managers. Even further, if an individual works on one side or the other he/she would most likely portray this space as an “us vs. them” or “them vs. us” environment. However, there is a very important aspect of the robo-advice movement that most people either overlook or are simply unaware of, the “robo-advisor for the advisor”.

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The Millennial Paradox

The Millennial Paradox

Authors Kapin Vora , Tobias Henry Published June 15, 2016

Born between the years 1980-2000, Millennials are arguably the most talked-about generation in history, and they currently represent the largest adult segment in North America at 92 million individuals (or 25% of America’s overall population). So what do we know about this massive group of people? The general perception is that millennials are lazy, entitled, and have allowed technology to erode their in-person social skills. However, if you ask the millennials themselves you will hear a different story; most likely that they are adaptive, open to sharing ideas, and want to make the world a better place.

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MasterCard and VocaLink: Welcome to the future of card schemes?

MasterCard and VocaLink: Welcome to the future of card schemes?

Authors Olga Baranova, Tristan Hugo-webb Published June 13, 2016

Mobile payments, blockchain, regulation: Card schemes face many challenges but still have time to reposition themselves to maximum advantage if they know where to look

For more than 50 years card networks have played a central role in the growth of electronic payments in the U.K. and around the world. As the electronic payment ecosystem grew, Visa, MasterCard and to a lesser extent American Express (among many other card networks) have developed a payment infrastructure that connects consumers, businesses and financial institutions along with all other players in the payments value chain.

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Faster e-commerce: Accelerating UK payments post-PSD2

Faster e-commerce: Accelerating UK payments post-PSD2

Authors Tino Kam, Tristan Hugo-webb Published June 09, 2016

Merchants, consumers, banks all stand to benefit from faster payments. But are they ready?

The UK e-commerce market is Europe’s largest and is set to reach £90 bn before 2020 (up from £60 bn in 2015). But while e-commerce grows, the preferred consumer payment mechanisms are changing.

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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, accessible, affordable and attractive financial products and services accessible to the entire population, delivered via a customer-led experience and robust framework.

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