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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?

Optimizing your ETRM technology investment

Optimizing your ETRM technology investment

Author Lance Mcanelly Published December 07, 2016

The malaise in energy and commodity prices that has gripped the wholesale markets for the last two years has had profound impacts on companies that operate in the upper & mid-streams of the market.

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What Will the Next Four Years Bring to the Financial Industry?

What Will the Next Four Years Bring to the Financial Industry?

Published November 30, 2016

In response to Donald Trump’s win, industry professionals have begun considering the implications that his presidency will have for the financial industry. The specifics remain uncertain: The president-elect made only broad commitments on the campaign trail, although they implied comprehensive and ambitious reforms. The political reality is that bringing about major changes will require a considerable alignment of priorities between the administration, congress and industry stakeholders.

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Superior services in Wealth Management begin with security

Superior services in Wealth Management begin with security

Authors Dan Giannotti, Roy Mcnamara Published November 25, 2016

Premium banking has always been about seamless service and pre-eminent asset performance. But now there’s a new factor in the premium equation: the challenge of assuring client trust in a digital age. 

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Next generation payment technologies: Insights from China

Next generation payment technologies: Insights from China

Authors Tony Cheng, Ron Lin Published November 14, 2016

Mainland China


Payment technologies in China have exploded recently. Today’s mobile payments combine various detection and identification technologies, such as Near Field Communication (NFC), and biotechnologies, for example fingerprint identification. These technologies enable many types of payments including P2P (peer to peer), functioning online, offline, short and long range.

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When business met business: Introducing a B2B social networking platform

When business met business: Introducing a B2B social networking platform

Authors Anna Li, Steve Wan Published November 10, 2016

Could social media help banks resist the entry of non-traditional players? A new approach, called B-Connect, promises just that

Today, banking is one of the most disrupted industries. Many business giants, such as Tencent and Alibaba, empowered by their strength and expertise in technology and innovation, are competing with established players to provide banking services. The biggest challenge for the banks now is working out how to safeguard their leading positions in the industry - and social media could help.

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Rise of the chatbots: Simplifying banking interactions

Rise of the chatbots: Simplifying banking interactions

Author Abbas Taqi Published November 09, 2016

Messaging platforms are the talk of fintech, helping banks to engage with customers more effectively than ever

Swiping through a mobile application to check your bank balance is pretty much second nature today. Even so, it’s hard to believe that versions of this technology have existed since 1999. That’s when European banks started offering contextualized data to their customers via SMS, including banking balances, revised interest rates and other information.

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Realising value from data

Realising value from data

Authors Charles Evans, Chris Probert Published November 07, 2016

How an evolved data management framework can help you make better business decisions

The role of data in business has evolved rapidly as vast changes in technology have increased the volume, velocity and variability of data gathered by businesses. Yet at the same time, the potential value of this data is often restricted by outdated legacy systems architectures and the absence of a proper data management framework. To realise value from data, banks must get a better understanding of their data ecosystem and put in place a robust data governance framework that sets clear roles and responsibilities.

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Mix-and-match (out)sourcing: maximising opportunities

Mix-and-match (out)sourcing: maximising opportunities

Authors Caroline Beaman, Adriano Sammarchi Published November 02, 2016

10 key ingredients for success: Correctly planned, executed and monitored, an IT and business process outsourcing (ITO/BPO) environment will enjoy maximum benefits with minimal risks.

Today outsourcing is taken for granted. All banks outsource to stay competitive. But, with outsourcing models and options continuously evolving, are banks taking full advantage of what’s on offer?

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Corporate actions. The times are (finally) changing.

Corporate actions. The times are (finally) changing.

Published November 01, 2016

Corporate actions demand ‘corporate action’ now. It’s time for this ‘backroom’ function to step into the limelight.

Corporate Actions create complex, costly fluctuating processes that are often completed manually. This is further complicated by the large number of corporate action events where different actions require different processes. In addition, corporate actions demand specialist knowledge but they do not differentiate the business by adding value to customer satisfaction and corporate profile. Just like household chores, they only really get noticed when they are not done, or done incorrectly.

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P2P Forex: How one aspect of finance threatens to disrupt an entire industry

P2P Forex: How one aspect of finance threatens to disrupt an entire industry

Authors Alec Mok, Kay Muhammad Published October 27, 2016

Online P2P forex brokers are quietly (but very effectively) raising hell in the currency exchange industry

It is 11:00pm on a weekday night. A small business owner in Hong Kong has just completed a successful transaction to pay his Polish vendors tens of thousands of Euros at a competitive rate. Pretty routine stuff these days, so what is the big deal? The really big deal is that the business owner did not use a bank’s service for his cross-border payment. In fact, he didn’t even consider a bank in the first place!

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Tokenisation: The foundation of the future payments industry

Tokenisation: The foundation of the future payments industry

Authors Tristan Hugo-webb, Jeff Tijssen Published October 10, 2016

Investment in tokenisation can be substantial, but it is increasingly becoming a ‘hygiene factor’ due to the growing popularity of Android Pay, Apple Pay and Samsung Pay among consumers.

Introduced in mid-noughties to protect cardholders from the growing risk of public data breaches, tokenisation quickly became the industry standard for data security in payments. But unlike other standards, such as EMV, that demand significant investment, tokenisation can help retailers achieve cost savings by reducing PCI DSS[1] scope and reconciling chargebacks and payments without handling payment data. And given that it is also compatible with the vast majority of current retail systems and merchant acquirers, tokenisation is ready to power the next generation of card based transactions.

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Six lessons financial services can learn from Bitcoin, blockchain’s original use case (Part 2)

Six lessons financial services can learn from Bitcoin, blockchain’s original use case (Part 2)

Author Joshua Lintern Published October 07, 2016

In the second and final part of this blog we will examine the perils of relying on trust in a trustless world and explore the challenges around governance and in not using a tiered transaction approach. Read Part 1 of the blog here.

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New phase of mobile wallet evolution

New phase of mobile wallet evolution

Authors Tristan Hugo-webb, Jeff Tijssen Published October 06, 2016

There are still opportunities for domestic players - banks, telcos and fintechs - to develop competitive solutions ahead of the arrival of the Pay solutions. Especially in Europe and the UK with the introduction of PSD2 and CMA Open Banking regulations.

Mobile wallets – Android Pay, Apple Pay, Samsung Pay (the ‘Pays’) - are popping up in more and more markets and constantly announcing impressive results. It is clear that we have moved into a new phase (but not the final stage) in the evolution of mobile wallets and payment services – one that focuses on solutions tailored to the established mobile customers.

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Six lessons financial services can learn from Bitcoin, blockchain’s original use case (Part 1)

Six lessons financial services can learn from Bitcoin, blockchain’s original use case (Part 1)

Author Joshua Lintern Published October 05, 2016

Careful consensus selection, an understanding of the concentration of power and a clear grasp on the settlement finality within the design are all crucial in any blockchain solution for use within financial services.

A few years ago there was much discussion about how Bitcoin can transform financial services for the good of all involved. This was a particularly interesting notion, given that one of the headline benefits of Bitcoin is that it is censorship-resistant and answers to no regulator, whereas financial services is one of the world’s most regulated sectors.

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The Adjacent Possible for Banks

The Adjacent Possible for Banks

Authors Nic Parmaksizian , Alexander Boere Published September 27, 2016

What could the near future hold for consumer banking? It seems that anything is (adjacent) possible.

From a boring black and white bank statement to a full colour, multi-branded monthly record of how where and when you spent that hard earned cash? From a ‘customer base’ to a fully engaged focus group, actively involved in and enthusiastic about product refinement, naming and even pricing? Or going from designing Donkey Kong to creating online investment scenarios? Are these just ‘fantasy futures’ for consumer banking? Or could they be a delivered reality within a couple of years?

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Blockchain in capital markets infrastructure. Now is the time for action.

Blockchain in capital markets infrastructure. Now is the time for action.

Author Sara Feenan Published September 25, 2016

From automation of KYC and AML to elimination of archaic and onerous processes, we are presented with the opportunity to reshape and redesign the entire market infrastructure

Today’s capital markets infrastructure is considered by most to be sub-optimal; some would go as far as to call it simply no longer fit for purpose. Regulatory pressures continue to push markets towards higher standards of transaction reporting and transparency. Processing costs are under constant review. The possibility of cost savings estimated to be as much as €30 - €50 billion annually cannot be ignored. Meanwhile, blockchain technology is starting to come of age in the capital markets. It will soon be ready to play an important part in realising these vast savings and delivering significant opportunities to the industry as a whole.

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Understanding market abuse in the age of market surveillance 2.0.

Understanding market abuse in the age of market surveillance 2.0.

Author Jeroen Aumand Published September 22, 2016

Part 3: Spotting how offenders conceal information and other tell-tale signs

In this three-part blog series, Capco’s Jeroen Aumand looks at how market abuse is being perpetrated and the challenges for new market surveillance controls/ solutions. Part 1 provided a definition of market abuse and the techniques used for gaining market information. Part 2 reviewed how offenders try to influence the market. Now in Part 3 we examine how offenders hide information and other noteworthy behaviours.


 

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Understanding market abuse in the age of market surveillance 2.0.

Understanding market abuse in the age of market surveillance 2.0.

Author Jeroen Aumand Published September 21, 2016

Part 2: The deliberate – and fraudulent – influencing of market information

In this three-part blog series, Capco’s Jeroen Aumand looks at how market abuse is being perpetrated and the challenges for new market surveillance controls/solutions. Part 1 provided a definition of market abuse and the techniques used for gaining market information. In Part 2 we review how offenders try to influence the market, while Part 3 talks about how offenders hide information and other noteworthy behaviours.

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Understanding market abuse in the age of market surveillance 2.0.

Understanding market abuse in the age of market surveillance 2.0.

Author Jeroen Aumand Published September 20, 2016

Part 1: Definition of market abuse and the techniques used for gaining market information

In this three-part blog series, Capco’s Jeroen Aumand looks at how market abuse is being perpetrated and the challenges for new market surveillance controls/solutions. In Part 1 we provide a definition of market abuse and the techniques used for gaining market information. Part 2 reviews how offenders try to influence the market, while Part 3 talks about how offenders hide information and other noteworthy behaviours.

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Blockchain: Is this the future for trade finance innovation?

Blockchain: Is this the future for trade finance innovation?

Authors André Brunner, Nourdine Abderrahmane, Arjun Muralidharan Published September 14, 2016

Banks have successfully tested blockchain for trade finance agreements. But can they realise the full potential of distributed ledger technology in this space?

Blockchain holds considerable promise, but all too often it fails to find sustainable use cases. Trade finance is one significant exception. This traditional revenue source for banks is ready for disruption. A whole new approach, informed by blockchain logic, could bring the very transformation an established yet restricted business is crying out for.

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