To reduce unrelenting cost pressures, Swiss private banks should rethink longstanding third-party sourcing assumptions, especially when it comes to handling elements of their back- and middle-office IT and business portfolios.
This document provides an overview of supply chain finance (SCF) in India, including:
- SCF offerings like vendor finance and channel finance, how they work, and their advantages.
- The SCF market in India is approximately INR 650 billion, with major players like State Bank of India, HDFC Bank, and IndusInd Bank.
- Challenges to SCF adoption in India include available capital, lack of systems/infrastructure, low pricing, and supplier/dealer onboarding over large geographies.
- Opportunities for growth include leveraging e-commerce, taking an integrated approach across supply chains, developing online platforms, and expanding to new industries.
TreasuryVision is Citigroup's treasury information portal product that provides corporations visibility and control over their global cash positions and transactions. It aggregates data from multiple bank accounts and sources into a single dashboard view. Key benefits include improved cash forecasting accuracy, risk management and compliance. The system's modules allow monitoring of cash, investments, debt and flows. It provides a more integrated alternative to separate ERP/TMS solutions, especially for multinationals with global operations.
Negotiation Strategies: Using Game Theory and Decision Tree Analysis to Deter...brucelb
A detailed case study of how to use Negotiation Strategies, an application of Game Theory and Decision Tree Analysis to develop an optimum strategy for negotiating a settlement in litigation. We demonstrate a process that can: identify and assess negotiation risks; know whether th current Negotiation Strategy will fail in time to change it;
and execute the most effective strategy to get the best possible outcome.
By 1st December 2015, BCBS-IOSCO rules mean that all eligible financial and non-financial counterparties must be able to exchange bilateral Variation Margin (VM) and Initial Margin (IM) with their OTC derivatives counterparties. The consequences of this extend far beyond methodology, requiring a re-evaluation of the whole end to end workflow.
Asset allocators have become obsolete due to robo advisors. Robo advisors use computers with logic-based capacities to provide investment advice and recommend asset allocations based on user inputs, charging $0 in fees. While financial advisors traditionally specialized in asset allocation and fund selection, this approach results in excessive fees and holdings that cause performance to converge with the market. An investor should instead pay a manager to identify great companies globally before others and make informed decisions on company valuations and bubbles rather than pay fees for asset allocation that does not impact returns significantly. Robo advisors are now better suited than people to perform asset allocation functions.
The financing of the international trade of goods — and the underwriting thereof — implicate a many-staged process of manufacture, storage, movement, delivery, inspection, and vending. The parties involved are many. The documentation of rights and responsibilities used to fill a small library of paper, and now involves paper, electronic communication, and some digital information transfer. Many points of delay and potential contention persist. Can blockchain clean this up? What other technological developments are reshaping trade finance?
Part of the webinar series: Blockchain Basics 2021
See more at https://www.financialpoise.com/webinars/
Deutsche Bank Survey Sees Blockchain Adoption in Six YearsNicola Barozzi 🚘✔
A Deutsche Bank report called “Powering the flow of global capital” goes into great detail about the blockchain phenomenon. Researchers from the bank surveyed a variety of participants who believe blockchain technology is estimated to hit critical mass within six years.
Blockchain for Trade Finance: Trade Asset Tokenization (Part 3)Cognizant
By tokenizing the trade asset on blockchain and digitally managing trade documents, organizations can obtain delivery assurance, improve risk management for buyers and sellers, and prevent losses.
This document provides an overview of supply chain finance (SCF) in India, including:
- SCF offerings like vendor finance and channel finance, how they work, and their advantages.
- The SCF market in India is approximately INR 650 billion, with major players like State Bank of India, HDFC Bank, and IndusInd Bank.
- Challenges to SCF adoption in India include available capital, lack of systems/infrastructure, low pricing, and supplier/dealer onboarding over large geographies.
- Opportunities for growth include leveraging e-commerce, taking an integrated approach across supply chains, developing online platforms, and expanding to new industries.
TreasuryVision is Citigroup's treasury information portal product that provides corporations visibility and control over their global cash positions and transactions. It aggregates data from multiple bank accounts and sources into a single dashboard view. Key benefits include improved cash forecasting accuracy, risk management and compliance. The system's modules allow monitoring of cash, investments, debt and flows. It provides a more integrated alternative to separate ERP/TMS solutions, especially for multinationals with global operations.
Negotiation Strategies: Using Game Theory and Decision Tree Analysis to Deter...brucelb
A detailed case study of how to use Negotiation Strategies, an application of Game Theory and Decision Tree Analysis to develop an optimum strategy for negotiating a settlement in litigation. We demonstrate a process that can: identify and assess negotiation risks; know whether th current Negotiation Strategy will fail in time to change it;
and execute the most effective strategy to get the best possible outcome.
By 1st December 2015, BCBS-IOSCO rules mean that all eligible financial and non-financial counterparties must be able to exchange bilateral Variation Margin (VM) and Initial Margin (IM) with their OTC derivatives counterparties. The consequences of this extend far beyond methodology, requiring a re-evaluation of the whole end to end workflow.
Asset allocators have become obsolete due to robo advisors. Robo advisors use computers with logic-based capacities to provide investment advice and recommend asset allocations based on user inputs, charging $0 in fees. While financial advisors traditionally specialized in asset allocation and fund selection, this approach results in excessive fees and holdings that cause performance to converge with the market. An investor should instead pay a manager to identify great companies globally before others and make informed decisions on company valuations and bubbles rather than pay fees for asset allocation that does not impact returns significantly. Robo advisors are now better suited than people to perform asset allocation functions.
The financing of the international trade of goods — and the underwriting thereof — implicate a many-staged process of manufacture, storage, movement, delivery, inspection, and vending. The parties involved are many. The documentation of rights and responsibilities used to fill a small library of paper, and now involves paper, electronic communication, and some digital information transfer. Many points of delay and potential contention persist. Can blockchain clean this up? What other technological developments are reshaping trade finance?
Part of the webinar series: Blockchain Basics 2021
See more at https://www.financialpoise.com/webinars/
Deutsche Bank Survey Sees Blockchain Adoption in Six YearsNicola Barozzi 🚘✔
A Deutsche Bank report called “Powering the flow of global capital” goes into great detail about the blockchain phenomenon. Researchers from the bank surveyed a variety of participants who believe blockchain technology is estimated to hit critical mass within six years.
Blockchain for Trade Finance: Trade Asset Tokenization (Part 3)Cognizant
By tokenizing the trade asset on blockchain and digitally managing trade documents, organizations can obtain delivery assurance, improve risk management for buyers and sellers, and prevent losses.
This document discusses how financial institutions can reduce costs in check processing operations through automation technologies. It summarizes that check volumes are declining slowly but still significant. New automation solutions from Orbograph can reduce costs by up to 40% by achieving high recognition rates of 98% and accuracy of 99%, eliminating manual data entry and balancing. Orbograph provides monitoring and tuning tools to ensure performance levels are continuously met.
The document summarizes key considerations for investing in Dutch consumer finance non-performing loan portfolios. It notes that the Dutch economy and consumer confidence is growing. Collections are friendly with a strong legal creditor position and developed debt collection agency and bailiff markets. While the total non-performing loan stock is increasing, relatively small deals and forward flows are established. Investors should understand legal and compliance requirements and embed customer centric practices. The collections environment offers amicable and legal options with an increasing but still competitive bailiff and debt collection agency market.
Insurance Fintech Presentation by CF Yam at Lingnan University on 1 April 2016CF Yam
The document discusses the future of financial services and insurance with the rise of fintech innovations. It provides examples of how fintech is impacting areas like payments, deposits, lending, investment management, and insurance. Key developments discussed include the growth of digital aggregators for insurance rate comparisons, peer-to-peer and group purchasing models, usage-based insurance utilizing telematics and connected devices, the role of wearables and the internet of things, and the emergence of virtual insurers utilizing new technologies. Case studies from China are also provided on the use of social networks and mobile platforms to distribute insurance products.
Benefits-of-Financial-Technology-for-Banks_RMA Jan 2017Max Zahner
This document summarizes how community banks can use technology to successfully compete in commercial and industrial lending. It discusses that C&I lending can provide higher returns than other types of lending but is difficult for banks to do well due to the complex underwriting and loan administration processes required. It then describes how adopting new technology can streamline these processes, reducing the time and costs to underwrite loans and conduct loan reviews. This allows community banks to profitably lend to smaller businesses and increase their return on equity through expanding their C&I lending business.
Is an In-House Bank or Payment Factory right for your organisation (1)Krister Backlund
This document discusses the implementation of an in-house bank or payment factory. It notes that changes in technology and regulations are forcing companies to review their financial processes. An in-house bank could help achieve efficiency by insourcing bank account management and enabling payments and collections on behalf of subsidiaries. Implementing an in-house bank is a complex process that requires support from senior management and involvement from different departments. It outlines key requirements like the company's operational structure and banking arrangements. The document also differentiates between a payment factory, which automates payments, and a full in-house bank, which takes on account management functions from external banks.
Accenture Capital Markets- serving many masters - Top 10 Challenges 2013Karl Meekings
Regulators in multiple jurisdictions have implemented varying regulations in response to the 2009 financial crisis, creating challenges for investment banks operating in multiple countries. The regulations differ between countries in areas like capital requirements, derivatives trading, and separating retail and investment banking. This complex global regulatory landscape, coupled with reshuffling of financial supervisors, requires investment banks to build new relationships and change structures. To effectively manage these regulatory changes, banks must take a holistic view of regulations globally, understand the cumulative impacts, integrate stress testing into decision making, appoint a high-level executive to lead compliance, and automate regulatory processes.
Regulations are integral to the banking industry, and the extent to which the bank complies with such regulations not just maintains its bottom line in terms of avoiding hefty fines, but also has a big bearing on credibility and integrity. So how do banks comply with all that is required, and save themselves from the ill-effects of non-compliance?
Banking annual report preview deck - june 2013Everest Group
This report provides an overview of the Application Outsourcing (AO) market for the banking industry, through an in-depth analysis of large-sized AO contracts (i.e., contracts over US$25 million in TCV and over three years in duration). The report analyzes key trends in market size & growth, demand drivers, adoption & scope trends, emerging priorities of buyers, key investment themes, and future outlook for 2012 with regards to such large banking AO deals
From Analytical Actuarial to Fintech by CF Yam at HKU on 10 March 2016CF Yam
The document discusses the transition from traditional analytical actuarial processes to modern dynamic risk management in the era of fintech. It notes that analytical approaches are no longer sufficient due to factors like increased volatility, complex products, and new regulations. Modern risk management requires more sophisticated modeling of risks like insurance, market, credit, liquidity and operational risks. The rise of fintech is disrupting financial services and creating new opportunities for risk management professionals to develop specialized skills and take on expanded roles. Actuaries are well-positioned to succeed in risk management with skills in data analytics, modeling, and understanding different risk types.
Banks can leverage machine learning models to increase value through stronger customer acquisition, higher customer lifetime value, and lower operating costs. AI-powered decision making allows for personalized experiences, continuous customer engagement, automated document processing, and early risk detection. Advanced analytical models can be organized around significant elements like the customer lifecycle to benefit banks.
The document discusses the potential for initial coin offerings (ICOs) to become a mainstream financing mechanism for small and medium-sized enterprises (SMEs). It notes that while ICOs allow for faster and cheaper financing than traditional options like IPOs or venture capital, they currently pose significant risks to both issuers and investors due to a lack of regulation and investor protections. For ICOs to become more viable, the document argues that greater international regulatory coordination is needed to provide clarity and safeguards, while also ensuring disclosure standards and investor education on the risks involved.
Cognizant_Introduction to management consulting in Switzerlandaudrey miguel
Cognizant is launching management consulting services in Switzerland to help clients with strategy, business transformation, customer relationships, and risk management. Since 2004, Cognizant has provided these services primarily to banking, financial services, and insurance clients. The document outlines Cognizant's five specialized consulting practices and experience assisting clients with regulations like IFRS 9, Basel III, BCBS 239, and PRIIPS.
Access models for the buy side | CCP Central Counterparty | Eurex Clearing Eurex
With the balance in supply and demand in traditional financial market structure deteriorating, the buy side community is facing a variety of challenges. Increasing costs for the banks driven by new regulatory requirements translate into higher fees, wider spreads or even service reductions for the buy side not only for derivatives, but also for securities financing transactions. Additionally the concentration of banks offering client clearing creates challenges with regards to counterparty risk concerns and porting in case of a Clearing Member default.
► Visit our website: http://www.eurexclearing.com
► Twitter: http://twitter.com/eurexgroup
► LinkedIn: http://www.linkedin.com/company/eurex
The document discusses interchange fees, which are paid to credit card issuers for cards processed by merchants each month. It explains that interchange fees, along with association fees paid to credit card networks and discount fees paid to processors, make up the various fees deducted from merchant statements. The majority of these fees are interchange fees, which are set by credit card networks and non-negotiable for merchants. The document provides examples of interchange and association fees for Visa, MasterCard and Discover transactions.
This document discusses how treasury software can replace banking services, freeing corporations from dependence on banks. It provides three key points:
1) Technological developments have made it possible for treasury software solutions to replace transactional banking services, eliminate trapped cash, and minimize banking risks for corporations.
2) Treasury software can intelligently integrate systems, support cash pooling relationships and rules, and facilitate in-house banking capabilities like intercompany payments.
3) By replacing banking services with software, corporations can gain cost savings and reduce risks from issues like unfair bank covenants and the potential of bank defaults.
This presentation by Mark Simpson, Partner, Norton Rose Fulbright, was made during the discussion “Blockchain and Competition” held at the 129th meeting of the OECD Competition Committee on 8 June 2018. More papers and presentations on the topic can be found out at oe.cd/2gx.
3 Non-Compliant Financing (pg 8-9) by JasonJason Wong
The document discusses some concerning financing arrangements used by Chinese companies in response to tightened monetary policy. Specifically, it describes how some companies abuse systems like banker acceptances (BAs) and overseas loans with domestic guarantees (OLDGs) to obtain funds beyond their real financing needs. For BAs, companies may falsify trade documents to apply for excessive funds or speculate by buying BAs at a discount and reselling them. For OLDGs, some set up artificial export trades solely to access overseas loans and earn arbitrage gains, without real commercial purpose. While these arrangements can ease cash flows, the document warns they may involve legal and compliance issues if abused, and that overreliance could threaten sustainability if cut off.
1) The document discusses a project by the OECD to analyze the implications of proliferating tokenization of assets for financial markets. It aims to understand benefits and challenges, disruptive effects, and policy implications.
2) Tokenization refers to using blockchain or distributed ledger technology to issue tokens representing ownership of real-world assets. This could streamline clearing and settlement by reducing intermediaries.
3) Tokenization may improve liquidity for illiquid assets and increase retail access but also risks market fragmentation and gaps in regulation. Policymakers should address potential issues and facilitate standardization where tokenization provides clear benefits.
Digital Customer Due Diligence: Leveraging Third-Party UtilitiesCognizant
By leveraging digital technologies, automation and third-party models, banks can more successfully navigate the complexities of the client onboarding process.
New credit reporting tools can help companies manage risk and increase revenue. Several newly enhanced specialized credit reporting products are available from various vendors to minimize risk, reduce bad debt, and expand revenue opportunities. It is important to select reports that fully support business objectives and avoid common pitfalls like relying on self-reported data. The quality and depth of data is crucial, and companies should ask questions about data coverage, predictive accuracy, and data sources to ensure reports will provide useful answers.
This document discusses how financial institutions can reduce costs in check processing operations through automation technologies. It summarizes that check volumes are declining slowly but still significant. New automation solutions from Orbograph can reduce costs by up to 40% by achieving high recognition rates of 98% and accuracy of 99%, eliminating manual data entry and balancing. Orbograph provides monitoring and tuning tools to ensure performance levels are continuously met.
The document summarizes key considerations for investing in Dutch consumer finance non-performing loan portfolios. It notes that the Dutch economy and consumer confidence is growing. Collections are friendly with a strong legal creditor position and developed debt collection agency and bailiff markets. While the total non-performing loan stock is increasing, relatively small deals and forward flows are established. Investors should understand legal and compliance requirements and embed customer centric practices. The collections environment offers amicable and legal options with an increasing but still competitive bailiff and debt collection agency market.
Insurance Fintech Presentation by CF Yam at Lingnan University on 1 April 2016CF Yam
The document discusses the future of financial services and insurance with the rise of fintech innovations. It provides examples of how fintech is impacting areas like payments, deposits, lending, investment management, and insurance. Key developments discussed include the growth of digital aggregators for insurance rate comparisons, peer-to-peer and group purchasing models, usage-based insurance utilizing telematics and connected devices, the role of wearables and the internet of things, and the emergence of virtual insurers utilizing new technologies. Case studies from China are also provided on the use of social networks and mobile platforms to distribute insurance products.
Benefits-of-Financial-Technology-for-Banks_RMA Jan 2017Max Zahner
This document summarizes how community banks can use technology to successfully compete in commercial and industrial lending. It discusses that C&I lending can provide higher returns than other types of lending but is difficult for banks to do well due to the complex underwriting and loan administration processes required. It then describes how adopting new technology can streamline these processes, reducing the time and costs to underwrite loans and conduct loan reviews. This allows community banks to profitably lend to smaller businesses and increase their return on equity through expanding their C&I lending business.
Is an In-House Bank or Payment Factory right for your organisation (1)Krister Backlund
This document discusses the implementation of an in-house bank or payment factory. It notes that changes in technology and regulations are forcing companies to review their financial processes. An in-house bank could help achieve efficiency by insourcing bank account management and enabling payments and collections on behalf of subsidiaries. Implementing an in-house bank is a complex process that requires support from senior management and involvement from different departments. It outlines key requirements like the company's operational structure and banking arrangements. The document also differentiates between a payment factory, which automates payments, and a full in-house bank, which takes on account management functions from external banks.
Accenture Capital Markets- serving many masters - Top 10 Challenges 2013Karl Meekings
Regulators in multiple jurisdictions have implemented varying regulations in response to the 2009 financial crisis, creating challenges for investment banks operating in multiple countries. The regulations differ between countries in areas like capital requirements, derivatives trading, and separating retail and investment banking. This complex global regulatory landscape, coupled with reshuffling of financial supervisors, requires investment banks to build new relationships and change structures. To effectively manage these regulatory changes, banks must take a holistic view of regulations globally, understand the cumulative impacts, integrate stress testing into decision making, appoint a high-level executive to lead compliance, and automate regulatory processes.
Regulations are integral to the banking industry, and the extent to which the bank complies with such regulations not just maintains its bottom line in terms of avoiding hefty fines, but also has a big bearing on credibility and integrity. So how do banks comply with all that is required, and save themselves from the ill-effects of non-compliance?
Banking annual report preview deck - june 2013Everest Group
This report provides an overview of the Application Outsourcing (AO) market for the banking industry, through an in-depth analysis of large-sized AO contracts (i.e., contracts over US$25 million in TCV and over three years in duration). The report analyzes key trends in market size & growth, demand drivers, adoption & scope trends, emerging priorities of buyers, key investment themes, and future outlook for 2012 with regards to such large banking AO deals
From Analytical Actuarial to Fintech by CF Yam at HKU on 10 March 2016CF Yam
The document discusses the transition from traditional analytical actuarial processes to modern dynamic risk management in the era of fintech. It notes that analytical approaches are no longer sufficient due to factors like increased volatility, complex products, and new regulations. Modern risk management requires more sophisticated modeling of risks like insurance, market, credit, liquidity and operational risks. The rise of fintech is disrupting financial services and creating new opportunities for risk management professionals to develop specialized skills and take on expanded roles. Actuaries are well-positioned to succeed in risk management with skills in data analytics, modeling, and understanding different risk types.
Banks can leverage machine learning models to increase value through stronger customer acquisition, higher customer lifetime value, and lower operating costs. AI-powered decision making allows for personalized experiences, continuous customer engagement, automated document processing, and early risk detection. Advanced analytical models can be organized around significant elements like the customer lifecycle to benefit banks.
The document discusses the potential for initial coin offerings (ICOs) to become a mainstream financing mechanism for small and medium-sized enterprises (SMEs). It notes that while ICOs allow for faster and cheaper financing than traditional options like IPOs or venture capital, they currently pose significant risks to both issuers and investors due to a lack of regulation and investor protections. For ICOs to become more viable, the document argues that greater international regulatory coordination is needed to provide clarity and safeguards, while also ensuring disclosure standards and investor education on the risks involved.
Cognizant_Introduction to management consulting in Switzerlandaudrey miguel
Cognizant is launching management consulting services in Switzerland to help clients with strategy, business transformation, customer relationships, and risk management. Since 2004, Cognizant has provided these services primarily to banking, financial services, and insurance clients. The document outlines Cognizant's five specialized consulting practices and experience assisting clients with regulations like IFRS 9, Basel III, BCBS 239, and PRIIPS.
Access models for the buy side | CCP Central Counterparty | Eurex Clearing Eurex
With the balance in supply and demand in traditional financial market structure deteriorating, the buy side community is facing a variety of challenges. Increasing costs for the banks driven by new regulatory requirements translate into higher fees, wider spreads or even service reductions for the buy side not only for derivatives, but also for securities financing transactions. Additionally the concentration of banks offering client clearing creates challenges with regards to counterparty risk concerns and porting in case of a Clearing Member default.
► Visit our website: http://www.eurexclearing.com
► Twitter: http://twitter.com/eurexgroup
► LinkedIn: http://www.linkedin.com/company/eurex
The document discusses interchange fees, which are paid to credit card issuers for cards processed by merchants each month. It explains that interchange fees, along with association fees paid to credit card networks and discount fees paid to processors, make up the various fees deducted from merchant statements. The majority of these fees are interchange fees, which are set by credit card networks and non-negotiable for merchants. The document provides examples of interchange and association fees for Visa, MasterCard and Discover transactions.
This document discusses how treasury software can replace banking services, freeing corporations from dependence on banks. It provides three key points:
1) Technological developments have made it possible for treasury software solutions to replace transactional banking services, eliminate trapped cash, and minimize banking risks for corporations.
2) Treasury software can intelligently integrate systems, support cash pooling relationships and rules, and facilitate in-house banking capabilities like intercompany payments.
3) By replacing banking services with software, corporations can gain cost savings and reduce risks from issues like unfair bank covenants and the potential of bank defaults.
This presentation by Mark Simpson, Partner, Norton Rose Fulbright, was made during the discussion “Blockchain and Competition” held at the 129th meeting of the OECD Competition Committee on 8 June 2018. More papers and presentations on the topic can be found out at oe.cd/2gx.
3 Non-Compliant Financing (pg 8-9) by JasonJason Wong
The document discusses some concerning financing arrangements used by Chinese companies in response to tightened monetary policy. Specifically, it describes how some companies abuse systems like banker acceptances (BAs) and overseas loans with domestic guarantees (OLDGs) to obtain funds beyond their real financing needs. For BAs, companies may falsify trade documents to apply for excessive funds or speculate by buying BAs at a discount and reselling them. For OLDGs, some set up artificial export trades solely to access overseas loans and earn arbitrage gains, without real commercial purpose. While these arrangements can ease cash flows, the document warns they may involve legal and compliance issues if abused, and that overreliance could threaten sustainability if cut off.
1) The document discusses a project by the OECD to analyze the implications of proliferating tokenization of assets for financial markets. It aims to understand benefits and challenges, disruptive effects, and policy implications.
2) Tokenization refers to using blockchain or distributed ledger technology to issue tokens representing ownership of real-world assets. This could streamline clearing and settlement by reducing intermediaries.
3) Tokenization may improve liquidity for illiquid assets and increase retail access but also risks market fragmentation and gaps in regulation. Policymakers should address potential issues and facilitate standardization where tokenization provides clear benefits.
Digital Customer Due Diligence: Leveraging Third-Party UtilitiesCognizant
By leveraging digital technologies, automation and third-party models, banks can more successfully navigate the complexities of the client onboarding process.
New credit reporting tools can help companies manage risk and increase revenue. Several newly enhanced specialized credit reporting products are available from various vendors to minimize risk, reduce bad debt, and expand revenue opportunities. It is important to select reports that fully support business objectives and avoid common pitfalls like relying on self-reported data. The quality and depth of data is crucial, and companies should ask questions about data coverage, predictive accuracy, and data sources to ensure reports will provide useful answers.
The Economic Value of Data: A New Revenue Stream for Global CustodiansCognizant
Global custodians' big data offers myriad opportunities for generating value from analytics solutions; we explore various paths and offer three use cases to illustrate. Data aggregation, risk management, digital experience, operational agility and cross-selling are all covered.
1. Three key trends will shape the future of lockbox services: the need for more locations closer to where payments originate due to changes in mail delivery; the emergence of hybrid wholesale and retail 'wholetail' lockbox solutions; and the importance of data management and integration to provide insights from payments information.
2. Experience shows that leveraging modern adaptable lockbox solutions can deliver significant operational efficiencies through blending in-house and outsourced operations in hybrid models.
3. While big data presents opportunities, for now lockbox providers are focusing on consolidating existing data and looking at enterprise intelligence to optimize their businesses.
Data-Centric Insurance: How the London market can embrace analytics and regai...Accenture Insurance
The London Market has a long tradition of excellence in the
actuarial analysis of premiums and claims data, but it has not
yet embraced the analytics revolution seen in other industries.
For the London Market to remain globally competitive, it must
re-establish its pre-eminence regarding the use of data.
Blockchain Smart Contracts - getting from hype to reality Capgemini
The potential of smart contracts – programmable contracts that automatically execute when pre-defined conditions are met – is the subject of much debate and discussion in the financial services industry. Smart contracts, enabled by blockchain or distributed ledgers, have been held up as a cure for many of the problems associated with traditional financial contracts, which are simply not geared up for the digital age. Reliance on physical documents leads to delays, inefficiencies and increases exposure to errors and fraud. Financial intermediaries, while providing interoperability for the
finance system and reducing risk, create overhead costs for and increase compliance requirements.
In this report, we aim to cut through the speculation and hype around the potential of smart contracts. We have conducted detailed discussions with financial services industry professionals, prominent smart contract startups and academics (see Research Methodology at the end of this paper). Our study confirms that smart contract adoption will lead to reduced risks, lower administration and service costs, and more efficient business processes across all major segments of the financial services industry. These benefits will accrue from technology, process redesign as well as from fundamental changes in operating models, as they require a group of firms to share a common view of the contract between trading parties. Consumers will benefit from more competitive products, such as mortgage loans and insurance policies, along with simpler processes that are free of many of the hassles of today’s customer experience.
Smart Contracts in Financial Services: Getting from Hype to Reality. Reporteraser Juan José Calderón
Smart Contracts in Financial Services: Getting from Hype to Reality.
Executive Summary
The potential of smart contracts – programmable contracts that automatically execute when pre-defi ned conditions are met – is the subject of much debate and discussion in the fi nancial services industry.
Smart contracts, enabled by blockchain or distributed ledgers, have been held up as a cure for many of the problems associated with traditional fi nancial contracts, which are simply not geared up for the digital age. Reliance on physical documents leads to delays, ineffi ciencies and increases exposure to errors and fraud. Financial intermediaries, while providing interoperability for the fi nance system and reducing risk, create overhead costs for and increase compliance requirements.
In this report, we aim to cut through the speculation and hype around the potential of smart contracts. We have conducted detailed discussions with fi nancial services industry professionals, prominent smart contract startups, and academics (see Research Methodology at the end of this paper). Our study confi rms that smart contract adoption will lead to reduced risks, lower administration and service costs, and more effi cient business processes across all major segments of the fi nancial services industry. These benefi ts will accrue from technology, process redesign as well as from fundamental changes in operating models, as they require a group of fi rms to share a common view of the contract between trading parties. Consumers will benefi t from more competitive products, such as mortgage loans and insurance policies, along with simpler processes that are free of many of the hassles of today’s customer experience.
The report aims at stimulating thoughts and discussions on Supply Chain Finance topic and it doesn’t intent to give a professional advise to your company, taking into account that each Business has specific requirements and goals.
Private credit bureaus have proliferated globally in recent decades as most economies now share credit information. A new PERC study examines the impacts of shifting to full-file credit reporting on banking concentration and competition. The study finds no meaningful changes in bank concentration or market power following shifts to full-file reporting. Additionally, greater information sharing is associated with higher private lending levels. Overall, the findings suggest lender fears about full-file reporting reducing their market share are unfounded, as the credit market appears to expand without significantly impacting individual bank shares.
Rabobank_Exploring the Impact of Graph Technology on Financial Services.pdfNeo4j
In today’s rapidly evolving financial landscape, the role of technology is pivotal in driving innovation and efficiency. Graph Technology has emerged as a powerful tool, offering unique capabilities to uncover hidden insights, streamline processes, and comply with for CDD-, Fraud- and AML-requirements. This webinar delves into the transformative potential of Graph Technology, focusing on its impact on financial institutions. Specifically, we will get an overview into Rabobank’s innovative implementation of Graph Technology.
By examining real-world use cases and success stories, attendees will gain valuable insights into how Rabobank leverages graph technology to optimize operations, enhance decision-making processes, and stay ahead in a competitive market.
Join us as we explore the intersection of finance and technology, and discover the game-changing potential of Graph Technology in shaping the future of financial services.
This document summarizes an article from the Luxemburger Wort Newspaper regarding data management regulations in the investment management industry. It discusses how regulations will increase the need for reliable and accurate market and counterparty data aggregation. Firms can outsource data aggregation to skilled solutions providers to save money and efficiently meet regulatory reporting obligations. When choosing a data service provider, firms should consider the provider's adoption rate, experience, security practices, and ability to support global data needs.
Payments innovation is Critical for Every Global EnterpriseXTRMAccount
As fintech software and service innovations continue to disrupt the Financial Services market, even non-financial firms need to think about how to take advantage of this trend to improve
their payments processes for the benefit of the company, their customers and their partners.
Initio at World Blockchain & Cryptocurrency Summit 2018Initio
We at Initio, went to Moscow to present our vision about How Blockchain can support businesses to be compliant with these regulations? We provided leadership insights and global best market practices to answer to this major question by focusing on the 3 hot topics in EU: GDPR, MiFID and AML. Find out more about this subject in our WBC Summit Moscow slides.
The lending landscape is by far one of the most competitive sectors within financial services, and customers today are spoilt by the choices offered to them, while many underserved markets still remain to be tapped into. EY is able to help you to differentiate your business model, work with you to improve your business so that your customers stay satisfied and your business will continue to grow for the foreseeable future.
This document discusses the challenges that lenders and special purpose vehicles face in meeting the new IFRS9 accounting regulation, which requires account-level provisioning rather than portfolio-level provisioning. It outlines how building statistical models with high quality account-level data can help meet IFRS9 requirements. HML, a large mortgage data and analytics company, can help lenders by building models and performing stress testing using its extensive mortgage data and expertise in account-level modelling. The document details the type of data needed and HML's process for building statistical models and scorecards to perform IFRS9 calculations at the account level.
It is clear the banking landscape is changing. Explore what open banking means and the impact it could have on the market. Find out more in our report at Deloitte.co.uk/Flourish. You can also discover further analysis on open banking and the future of banking generally at Deloitte.co.uk/FutureBank.
This presentation by the UK Competition & Markets Authority was made during a workshop on “Regulation and competition in light of digitalisation” held by the OECD in Paris on 31 January 2018. More papers and presentations on the topic can be found out at oe.cd/wrcd.
Four key challenges in the financial sectorSally Hunt
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Swiss Private Banking and the Rationale for Global Services Deliver
1. Swiss Private Banking and the Rationale
for Global Services Delivery
To reduce unrelenting operating cost pressures, Swiss private banks
should rethink longstanding third-party sourcing assumptions and
update their knowledge of what partners can provide, especially when
it comes to handling elements of their back- and middle-office IT and
business portfolios.
Executive Summary
Switzerland’s hallmark data privacy laws, which
once made Swiss banks attractive to wealthy
customers worldwide, are increasingly making it
difficult for banks to efficiently conduct business.
This trend, combined with the pre-crisis level of
activity and a general client preference for safer
investments, is causing a steep drop in profit
margins across the private banking sector. Unfor-
tunately, operating costs have also continued to
climb. The result: an expected industry shakeout,
with the remaining players focusing intensively on
cost reduction. Recent settlements with foreign
governments on alleged tax evasion claims will
hasten this shakeout.
A recent Boston Consulting Group global study
noted that the cost base of global private banks
has increased from 61 cents to 73 cents to the U.S.
dollar1
during the past five years. To reduce costs,
private banks are expected to turn to third-party
partners for certain operations. In fact, UBS and
Credit Suisse already work with partners on large
portions of their IT and business services portfo-
lios. More recently, Deutsche Bank hired Avaloq
Group to handle a majority of its wealth manage-
ment back-office operations in Switzerland, where
80 employees were rebadged to the vendor.2
In general, Swiss private banks are not as mature
as their American counterparts or their retail and
investment banking peers when it comes to global
sourcing. This is primarily due to the following
three drivers:
• Process maturity.
• Service standardization.
• The increasingly competitive landscape.
This point of view paper examines the feasibility of
global sourcing for Swiss private banks, which are
seeking a return to their historic healthy margins.
Bottom-line pressure and the growing clamor for
relaxing Swiss secrecy laws will increase receptiv-
ity to global sourcing opportunities.
The Business Context: Data Privacy
Data security, a strong characteristic of the Swiss
private banking industry, has often deterred global
sourcing opportunities. Despite the rejection of a
bill introduced in the Swiss Parliament seeking to
temporarily allow Swiss banks to share informa-
• Cognizant Point of View
cognizant point of view | march 2014
2. 2
tion with U.S. tax authorities, it is clear that the
Swiss banking model is on the verge of a change.
As a result, it is only a matter of time before more
middle- and back-office functions will be sourced
from third parties after incorporating appropriate
safeguards.
The Swiss Federal Banking Act of 1934 and its
subsequent amendments, which apply to all
banks in Switzerland, prohibit the transmission or
disclosure of any customer-related data to a third
party, unless:
• Banks have complied with provisions in the
Financial Market Supervisory Authority
(FINMA) outsourcing guidelines and the Data
Protection Act (DPA).
• The data that allows the customer to be
identified is encrypted, or the unencrypted
data transfer is expressly approved by the
customer.
• Banks can legally exercise due control over the
supplier functions.
As the global services industry has matured, it has
become increasingly feasible to conduct control
checks and leverage IT appropriately to overcome
these challenges. Advanced data encryption and
data masking tools ensure that banks adhere to
data privacy laws. Third parties are increasingly
adept at providing “clean room”’ facilities with a
level of data protection that is considered even
more secure than the bank’s own operations. And
as these vendors expand globally, many offer a
mix of near-shore and offshore facilities to deliver
various permutations of a global services delivery
matrix.
Global Sourcing Decision Factors
Global sourcing is no longer an exception but a
competitive necessity. Decisions to hire a global
services provider typically pivot around the
following:
• What to source: Banks must decide what their
core functions are and consider third-party
partners to access expertise in noncore func-
tions. Doing so frees up resources that can be
applied to core strategic initiatives, such as of-
fering even more customized client solutions
or driving a transformation project. Typically,
the middle- and back-office tasks are suitable
candidates for turning over to a third-party
expert. Figure 1 illustrates the potential global
services landscape for a private bank.
cognizant point of view
Sales Front-Office Middle-Office Back-Office
Acquisition
Asset allocation determination
Account and securities deposit
Research/data analysis
Salesforce management
Order entry
Allocation/rebalancing
Payments
System maintenance
Order validation and routing
Settlement notes
Corporate actions
Clearing and settlement
Custody/administration
Reconciliation
Fee calculation and booking
Portfolio accounting
Contract management
Tax services
Client relationship
management support
Client and management
reporting
Trade enrichment and
completion
Transaction management
and control
Financial statements
and custody services
Investment strategy
and process
Continuous client
relationship management
Risk profile assessment/
regulatory documentation
Risk management and
controlling (client rating)
Product management
(product rating)
Investment controlling/
monitoring
Complaint and claims
management
Risk management and
analytics
Portfolio maintenance
and rebalancing
Service provider and partner
management
IT processes and
administration
Regulatory & management
reporting
Data and document
management
Processes requiring no client data access.
Offshorability rating: 80%-90%
Processes requiring minimal
access to client data.
Offshorability rating: 60%-70%
Data-sensitive processes requiring full
access to client data.
Offshorability rating: 20%-30%
Source: Based on the domain knowledge and experience of Cognizant’s Private Banking Operations group.
Figure 1
Private Banking Outsourcing Landscape
3. 3cognizant point of view
• Sourcing model: The main decision here is
whether to follow the captive route (where
banks create and manage their own offshore
delivery centers) or hire a third party that is
primarily responsible for running the opera-
tions to meet service level agreements (SLAs).
Other options can be considered along the
spectrum between these two extremes, such
as working with a third party in an affiliate
model. An example of this is when a generic
IT infrastructure setup is provided by a third-
party provider, but the IT security and IT net-
works belong to the bank. The bank may retain
supervisory functions in such an affiliated set-
up. Figure 2 reveals how and why a third-party
sourcing decision is typically superior to the
captive alternative when the following param-
eters are considered:
>> Cost effectiveness: Which option tends to
have lower operational and setup costs?
>> Core activity: Where would the bank prefer
to source core/critical activity?
>> Competency: What are the general talent
competencies in a captive or third-party op-
tion?
>> Scalability: Which option is more scalable
and flexible?
>> Talent retention: What is the attrition and
longevity of staff within the organization?
>> Control: Can sourced work be better con-
trolled via a captive or third-party provider?
>> Management oversight: Which option re-
quires less corporate management band-
width?
>> Transformational: Can the bank leverage
IT and engage in transformational exercises
with its captive setup or with a third-party in-
tegrated IT and business services provider?
• Sourcing location: The selection of the sourc-
ing location is primarily decided upon on the
basis of cost-effectiveness, availability of tal-
ent, overall business environment, culture, lan-
guages spoken and laws. If it’s feasible, banks
should consider a ”follow the sun” approach,
which provides them with up to 18-24 hours
of productivity if the third-party services are
delivered from another time zone. When all
of these parameters are considered, India of-
ten appears on the top of the list for favored
sourcing destinations.
Looking Ahead
As Swiss private banks continue to experience
margin pressure, they will need to review their
global services footprint in order to remain com-
petitive. This is especially true as pressure rises
from both public and governmental entities for
increased transparency of Swiss banks. Banks
that have chosen to set up captive centers for
data privacy reasons are likely to review their
decisions, particularly as third-party vendors
continue to demonstrate increased process
maturity, in addition to a level of industry
knowledge and data sensitivity that allows for an
equal level of confidentiality. The upside benefits
of revisiting such decisions can be substantial. But
for banks that do not reconsider their stance on
global third-party services partners, the missed
opportunities can be enormous.
Figure 2
Scoring the Sourcing Choices
Third-party sourcing often outscores a captive arrangement when key parameters
are considered.
Cost-effective
CoreActivity
Competency
Scalability
TalentRetention
Control
Required
Management
Oversight
Transformational
Total
Captive — 1 1 — — 1 — — 3
Third-
party partner
1 — — 1 1 — 1 1 5