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 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.
Author Dan Jones Published September 22, 2015
In the last of our four-part series on putting the consumer at the heart of consumer banking, Dan Jones takes a different perspective. So far, the focus has been on ways existing banks can adapt to survive and thrive in the new consumer banking landscape. Now, Dan looks at a new category of player: the ‘non-traditional’ competitor. Read Part I, Part II and Part III.
Author Dan Jones Published September 15, 2015
In the third of our four-part blog series on putting the consumer at the heart of consumer banking, we consider another key line of defence against emerging competitor threats. Read Part I and Part II.
Author Dan Jones Published September 10, 2015
In this second blog in our series (read Part I) on putting the consumer back at the heart of consumer banking, we look at the first of the three key lines of defence against fundamental changes in the banking landscape: imitation. Imitation is a strategy well proven in nature. When a more successful predator appears, you can either continue to do what you do and hope that the rival will fail and go away. Or you can learn from their techniques, emulate the best of them, and change your own game.
Author Andrew Arwas Published September 07, 2015
How can established financial services brands win the ‘Robot Wars’ being waged for the hearts and minds (and wallets) of a generation of investors? (While ensuring the robots always prioritise the best interests of their human customers?)
Author Dan Jones Published September 03, 2015
In a new four-part blog series, Dan Jones looks at some of the key issues associated with creating a new kind of consumer banking product range and service style. A fresh approach can and must directly reflect the aspirations of consumers themselves. In part I, Dan examines the fundamental forces that are reshaping the consumer banking landscape.
Author Bernd Richter Published September 01, 2015
Wanted – New ways for banks to embrace successful digital innovation without ignoring old problems.
We keep hearing that banks must do more to bridge the ‘digital gap’. But, in order to create and deliver the next generation of digital customer service experiences, they require a more predictably productive development environment.
Published August 26, 2015
This is the second part of a blog by Philip Booth - Professor of Insurance and Risk Management, Cass Business School - based on his presentation to the Cass Capco Conference: Risk Rebooted in June 2015.
Read Part I
Published August 25, 2015
This is the first part of a blog by Philip Booth - Professor of Insurance and Risk Management, Cass Business School - based on his presentation to the Cass Capco Conference: Risk Rebooted in June 2015.
Author Bethel Desmond Published August 11, 2015
Trust (as in safety, security, fairness, transparency and reliability) is the key driver that separates highly satisfied consumers from less satisfied ones, and that’s a fact. A fact proven by FIS’s Consumer Pace Index, which showed that regardless of age or nationality, banked consumers expect their banking providers to get basic trust factors right. These trust factors (aka “satisfiers”) form the foundation of banking relationships, and without them financial service providers will not get high scores when it comes to customer satisfaction. Without trust, customers are less inclined to recommend their bank and the likelihood of making their next service or product purchase from their bank plummets to zero. Let’s face it, banks have to solidify customer trust before they can aspire to cement, or grow, future financial services relationships. What’s a bank to do?