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?
Author Jeroen Aumand Published February 08, 2016
“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?
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.
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?
Authors Alexander Fritz, Bryan Olson Published December 16, 2015
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:
Authors Tommy Marshall , Bryce Vandiver, Seth Cadan Published December 15, 2015
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?
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:
Author Henner Brüner Published December 08, 2015
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.
Author Isabel Naidoo Published December 04, 2015
Isabel Naidoo, Capco’s Human Capital Lead, advises embracing staffing clouds
Author Karan Kapoor Published December 01, 2015
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?
Author Rolf Enders Published November 09, 2015
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.
Author Ivelina Dimtscheva Published November 03, 2015
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.
Author Isabel Naidoo Published October 28, 2015
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?
Authors André Brunner, Delia Steiner Published October 27, 2015
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.
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?
Author Dr. Dimitrios Geromichalos Published October 13, 2015
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.
Author Tobias Voigt Published October 06, 2015
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.
Authors Tommy Marshall , Christian Wuerth , Katie Hermann Published October 01, 2015
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.
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.
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.