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?
Published February 04, 2014
The traditional model for the Discount Brokerage firm compared to its full service counterparts has been to provide broader access to investment markets to the non-wealthy at lower prices but with comparatively fewer services. With a high degree of competitive pressure on commission pricing where firms act in relative tandem to price changes, Discount Brokerage firms are faced with finding new ways to evolve their business to gain market share and stay relevant to their client’s needs.
Published January 30, 2014
“May I have your data?” ”Depends on who’s asking!” Banks need data from customers to provide them with a differentiated service. They won’t get very far though, until they establish themselves as responsible and trustworthy in customers’ eyes.
Published January 23, 2014
A comprehensive study of the existing Board Risk Committees, for the top 50 Financial Institutions in the US, was recently conducted by Capco. Overall, the study concludes that the majority (over 70%) of these institutions do not fully comprehend the requirements outlined by recent regulatory mandates, and a significant number (23%) are not currently compliant.
Author Peter Springett Published January 16, 2014
Can you keep up? These days the payments space resembles a soap opera where consumer-bank-device relationships swap with as much regularity as prime-time TV dramas.
Published January 13, 2014
As Central Clearing is more and more widely adopted around the globe, collateral, especially highly liquid collateral, is in high demand. Compared with bilateral transactions, central counterparties (CCPs) not only require the clearing members to post collateral for Variation Margin (VM) but also other margins such as Initial Margin (IM) and Delivery Margin (DM) , and contribution to Default Funds (DF). The latter, in particular IM, can be substantially higher than VM, depending on the type of transactions. It is estimated that USD $2trillion collateral will be held at CCPs.
Published December 17, 2013
Actually, it’s not an API, it’s the lack of one that can make the CIO cry.
API (Application Programming Interface) refers to something quite technical and involves creating a technology capability which ensures the bank can be connected and flexible. They typically serve as a facade to complex back-end systems which provide the products and services delivered to customers. APIs are constructed to expose a specific business function, and harnessing their power enables banks to focus on creating engaging and powerful user experiences.
Published November 19, 2013
What if you could pay for coffee with just a swipe of your finger? That’s the idea from a team of researchers from Baruch College in New York who presented their vision for in-store purchases at the Zicklin-Capco Conference last month.
Author Peter Springett Published November 12, 2013
The internet of things is already here. Bus stops in many major cities have an IP address that enables them to display the time of the next arrival. According to Intel, the connected car is already the third fastest growing technological device after phones and tablets.
Published November 11, 2013
Digital technology continues to transform financial services, disrupting the competitive landscape for traditional market participants and drawing new, sometimes powerful, players from outside the industry. Today, every institution recognizes the need to offer mobile services, conduct big-data-driven analytics and engage customers through social media.
Author Nic Parmaksizian Published October 03, 2013
Banks are under huge political and social pressure to demonstrate their role in the wider economic progress of nations and their citizens. Unless banks adopt active policies to rebalance the negative economic and social consequences for the segments they currently exclude from their normal course of business, governments will intervene still further in the financial services industry. And they will do so by public demand. Around the world, there is a clear message to banks: “Help me fulfill my dreams”.
Author Henner Brüner Published September 26, 2013
The European Securities and Markets Authority (ESMA) has done it again. They quietly published a revised European Market Infrastructure Regulation (EMIR) timeline which postpones commencement of Trade Repository (TR) reporting until February 2014. This is no surprise as the recent third round of their Questions & Answers (Q&A) still left uncertainty among market participants.
Author Thadi Murali Published September 05, 2013
In January 2013, the Basel Committee released 14 principles on risk data aggregation and risk reporting. What does this mean to the banking risk executive? Risk executives of banks are already overwhelmed with a myriad of regulatory matters, so it is important to put these principles into perspective.