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?
Authors Roger Hamilton, Simon Stickley, Andrew Mcqueen Published May 06, 2016
The clock is ticking louder every day. The EU General Data Protection Regulation (GDPR) rules will become compulsory from 25 May 2018[i]. Organisations, businesses and institutions will need to take action to implement effective compliance measures. Key activities will include end-to-end process reviews, adjustment or amendment of relevant controls and re-alignment of risk profiles. Everyone concerned also needs to take into account the tough penalties that come with breach of this legislation. Who are the key actors? And what do they need to know?
Author Stephen Harrison Published May 04, 2016
Let’s cut to the chase. Blockchain is a combination of four existing technologies put together to create something new. These technologies are well-known:
Authors Kapin Vora , Tobias Henry Published April 27, 2016
The world of financial technology has recently experienced an outburst of development, driven by rapidly improving technology and the maturation of the millennial generation.
Author Francesca Lopez Published April 18, 2016
The financially excluded are those without access to traditional financial services at usury prices, and lacking in financial education. This population is not limited to those in developing countries, but also counts people in the developed world, including the 88 million in the United States (see consumer profiles in American Express’s Documentary “Spent: Looking for Change”).
Author Kapin Vora Published April 11, 2016
The wealth management industry is at a crossroads. Evolving client needs, disruptive technology and general cost and regulatory pressures are putting a strain on overall profitability. Firms continue to invest in obsolete, complex and rigid platforms that are decades old. Data has become siloed, making it more difficult to unwind manual processes and technology. In addition, the cost of “lights on” investments to maintain the status quo continues to hamper the bottom line.
Author Manoj Kulkarni Published April 06, 2016
Reverse mortgages may be a ‘silver’ lining for cash-poor pensioners who own a property, particularly in developing countries where pension schemes are rare or non-existent. But how valuable are they for banks and will they reach scale in the near future?
Author Bernd Richter Published March 30, 2016
“Perfect Storm Digital 2”, “Premier Service Driver 2”, “Paradigm Shift Dynamic 2”? OK, they may never catch on as advertising slogans. But they all go some way to capturing the sense of excitement and opportunity that should be at the heart of how the European finance industry views and prepares for PSD2. For this is, emphatically, not just another piece of regulatory process. Viewed from the right perspective, it is not even a “threat” to heartland retail banking payments and account data supremacy. So what is it then? Let’s take a closer look at each alternative definition.
Authors Kapin Vora , Tobias Henry Published March 18, 2016
Charles Schwab may have made the biggest splash amongst wealth managers last year. It launched its robo-advisory platform, known as “Intelligent Portfolios,” in March, and only six months later the program had grown to hold $4.1 billion in assets. This figure represents 1.54 percent of Charles Schwab’s $266 billion wealth management business.
Author Thomas Krol Published March 15, 2016
I’m all too familiar with the pains of studying a STEM (science, technology, engineering and maths) degree. Familiar with the struggle that goes with pages of math texts containing more numbers than letters, hundreds of lines of code ruined by the omission of a semicolon, and days on end spent in the laboratory trying to obtain reasonable scientific results by any (and sometimes questionable) means necessary.
Author Rick Fish Published March 10, 2016
Quieter, faster and more sustainable than their fossil-burning counterparts, EVs – electric vehicles - are also better ‘connected’. We tested a few EV connectivity concepts at a recent hackathon hosted by Capco and Digital Nebula, aiming to address some of the challenges facing electric vehicle drivers. Attendees included IBM, Deloitte Digital, EthosVO, MakersAcademy and many Tesla owners and technology entrepreneurs. Here are some great concepts developed by the hackathon teams on the day:
Author Farzine Fazel Published February 17, 2016
Across the financial industry a Capco/Finextra global survey confirms growing awareness that Utilities are useful – not least because of their potential to transform the way banks approach compliance.
Author William Marle Published February 15, 2016
The world is undergoing a data revolution. We are in the midst of the Quantified Self and real time personal data and performance measurement.
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