The global financial industry becomes more complex by the day. Meeting the challenges of complexity demands the best, most innovative and actionable input. Capco’s Thought Leadership and leading-edge research is contained in our Journal of Financial Transformation and our wide range of White Papers and Points of View. Access a unique resource of academic and practitioner thinking and experience. It’s tomorrow’s best practice available today.
In an increasingly digitized and interconnected world, customers are presented with more and more payment channels and payment options such as mobile proximity and distance payments to pay for goods and services. Payment vehicles such as mobile wallet, e.g. Apple Pay and Internet browsers, prompt users to store a default card of choice within their preferences. Meanwhile, with a growing number of devices connected to the internet, purchases can now be completed via non-traditional devices such as wearables or connected appliances.
This paper is designed to be relevant to producers and consumers of data in a financial institution. In particular, it is oriented towards the business use of data (e.g., analytics) and on technology techniques for managing data. The paper assumes that the reader has some context and understanding around Big Data technologies, how they would or would not apply within a financial organization, and the benefits and challenges that such new technologies present.
The wake created by the oil market collapse in the second half of 2014 has now persisted for almost a year, with continued low oil prices and high levels of volatility. The natural gas markets have fared no better, with persistent low prices that seemingly wander aimlessly in a market with no clear direction. The influences of both markets have extended to other energy commodoties as well, with power increasingly correlated to natural gas, the impacts of future LNG exports yet to be determined, and oil products prices moving irregularly with the underlying crude contract. With this increased market uncertaintty, and coupled with an activist regulatory environment, it is becoming increasingly difficult for energy traders to move confidently, knowing that they can make a profit and limit risks for their businesses.
The collapse in oil prices, beginning slowly at first in July of 2014 and accelerating in earnest in late September 2014, has sent shock waves throughout the energy industry. With West Texas Intermediate crude losing more than half its value from high in 2014 of around $110/bbl, the impacts have been profound on the energy industry, but particularly so for producers who are struggling to adapt and survive in this new market reality.
The Wealth Management industry is undergoing an unprecedented wave of digital transformation. Wealth Managers are transforming their operating models and underlying infrastructure to be fit for purpose in a digital age. Coupled with changing client needs, the momentum of digital change in Wealth moves forward at pace presenting Wealth Managers with a number of opportunities but equally exposing them to emerging data security risks. The drivers include continuous advances in technology, competition from fintech startups eroding parts of the wealth value chain, the availability of big and thick data and the need to cost-optimise and drive straight-through processing (STP). Combined with the proliferation of social platforms, the changing regulatory landscape and the rise of the new data security threats, you have a 'perfect storm' of challenges to traditional Wealth Management operating models.
GDPR – General Data Protection Regulation – entered into force on 25th May 2016 and will become directly applicable in the EU member states from 25th May 2018. The regulation affects processing of personal data and the free movement of data. In summary, GDPR:
They used to be ‘forgotten’ within the back office. But, today and urgently, banks need to re-evaluate their corporate actions departments. Suffering from high levels of manual processing, increasing volumes and products, they are costly to run. Even more pressing, they create real potential for exposure to losses and reputational damage. The answer is the adoption of new sourcing models, such as business-process-as-a-service. Such arrangements provide banks with access to the latest technologies automation levels, workflow efficiencies and the risk of potential loss. All without the investment burden banks would face to achieve the same results themselves.
We are delighted to share the ninth issue for 2016 of Capco's Regulatory Monitoring Newsletter, developed by industry experts in our Regulatory Monitoring Team.
Now, in 2016, we see every bank engaging with a series of fundamental challenges. How should they take best advantage of the digital revolution? How can they harness its power to improve their customer experience? What strategic directions should they choose? We believe the best answers are contained in an approach called the Adjacent Possible. The Adjacent Possible provides a powerful conceptual framework for a bank’s digital strategy. So what is this framework? And how can it be applied? Answering these questions requires some scene setting.
Capco's Hybrid Operating Model Execution (HOME) model allows clients to optimize opportunities in outsourcing through flexible and innovative contracting structures that have delivered up to 30% savings in as little as one year. Our original approach to traditional technology and operations cost-cutting challenges represents the opportunity clients have been waiting for, to free trapped funds and turn towards a transformation to efficiency.
We are delighted to share the eighth issue for 2016 of Capco's Regulatory Monitoring Newsletter, developed by industry experts in our Regulatory Monitoring Team.
There is no doubt that the existing capital markets infrastructure urgently needs a new lease of technology enabled life. Credible estimates set the potential for efficiency and elimination savings at somewhere between €30 and €50 billion annually. Either the industry itself, in its current configuration, will pursue and deliver those savings or, ‘outsiders’ will seize the impetus.
Efficient global trade of physical goods relies on availability of three key factors: credit, solid logistics and transparent payment. Trade finance addresses the challenges with well-established instruments to issue credit, document the transfer of exported or imported goods and execute subsequent payments. Yet, in spite of its established nature, our clients state that the trade finance business is becoming harder to manage than ever. Why?
Digital technologies open limitless possibilities for ‘disruptive’ approaches to product and service creation and delivery. From driverless cars to cars driven by complete strangers to staying in a stranger’s house, ‘set in stone’ approaches to established industries are being transformed. For this transformation to extend without disintermediation of established players, financial institutions will need to take action around three key dimensions.
We are delighted to share the seventh issue for 2016 of Capco's Regulatory Monitoring Newsletter, developed by industry experts in our Regulatory Monitoring Team.
The intent of this newsletter is to provide you with a regular update on some of the most important regulatory changes - along with a Capco view on the implications of these changes.