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?
Author Scott Bancroft Published August 23, 2016
In today’s always-connected world, where almost all information is stored digitally, it is critical that sensitive and privacy relevant data protection is assured. The advent of fast communication technologies such as 4G and home broadband, ubiquitous mobile devices and availability of free or low cost ‘Cloud’ services have resulted in easy and convenient transfer data options. Often this is in contravention of corporate policies and regulatory requirements and represents an increased risk to the company, its people and the data subjects. Loss of privacy relevant data is set to become a very big issue with the new EU General Data Protection Regulation (GDPR) on the horizon.
Author Jack Burrows Published August 18, 2016
On August 9, the Competition and Markets Authority (CMA) released the final report on its investigation into the retail banking market. It found that the market is “still not as innovative or competitive as it needs to be”. In response the report outlines a package of remedies which include mandating that larger banks adopt and maintain a common standard for open APIs (Application Programming Interface). To comply - and to benefit -the best approach for banks is to treat APIs as customer products. But what does this mean in practice?
Published August 18, 2016
Although often a lengthy and manual process, wealth client onboarding is critical in creating positive long-term relationships with clients. Firms that master the onboarding process can achieve revenue-generating assets faster, improve cross-sell and up-sell, and defend against early attrition.
Authors Owen Priestley, Prashant Choudhary, Neena Kaiser Published July 29, 2016
Incubators and accelerators play a valuable role in bringing key players together. In an ideal world, we would connect demand and supply rapidly. There would be dedicated specialist environments where you could scope the relevance of potential projects quickly. Incubators and accelerators go a long way to fulfilling these criteria.
Authors Owen Priestley, Luis del Pozo , Neena Kaiser Published July 27, 2016
In the first blog in this series on incubators and accelerators in the fintech business, we looked at the market-specific factors that impact choice of development locations, and by extension, choice of innovation projects too. In this second blog, we focus on the commercial heart of any incubator or accelerator environment: the business model.
Authors Owen Priestley, Luis del Pozo , Prashant Choudhary Published July 25, 2016
Few commentators dispute the pivotal role of technology innovation in the transformation of the financial industry. But getting the most out of innovation, by delivering the greatest meaningful value to the customer – requires more than technical prowess or a fancy business model. It needs an environment where the demand and supply sides - in the form of fintechs, start-ups, investors and financial institutions - can align thinking, share visions and co-create real-world solutions efficiently and effectively. In the first of a three part blog series, we look at some of the key context issues that can help create an optimum environment for innovation.
Authors Joshua Ablett, Alvaro Barata Published July 07, 2016
On June 23rd a majority of British voters opted to leave the European Union bringing to an end the UK’s 43-year relationship with the politico-economic union of our continental neighbours. So what happens next for the UK’s emerging fintech scene? The traditional fintech market in the UK generates £20 billion in annual revenue, with emerging fintech companies accounting for £6.6 billion of that total. Both figures owe a lot to London’s position as a global financial services centre, favourable regulations, a readily accessible, large customer base and high availability of capital. But it remains to be seen how much the referendum result will disrupt these factors.
Author Bhanu Shukla Published July 04, 2016
Standalone robo-advisors in this context are pure-play robos who offer only online and automated wealth management service via algorithm-based portfolio management with little human interaction. For such low cost, low margin business models, scale is everything. But to achieve scale, robos must demonstrate value to their customers.
Author Partha Chatterjee Published June 29, 2016
In the modern world, any corporate house has huge amounts of data stored in multiple systems pertaining to different domains. In a trading firm – be it an investment bank, an energy company trading in commodities or a hedge fund – there is significant data related to trading transactions, market data (prices, volatilities, correlation), exchange information, accounting and settlement data. Normally, this information is used for regulatory and compliance-related reporting, what we might call “defense,” in sports terminology. That same information can be used to gain a competitive advantage and make better decisions. It can bring enormous value to the company.
Author Craig Borysowich Published June 22, 2016
When you look at the origins of DevOps you can see why so many established enterprises struggle with the practice. Many of the DevOps agile and lean practices originate from ‘born on the internet’ companies. These companies have had the opportunity to create their systems and infrastructure to meet the demands of continuous integration and delivery, from inception.
Authors Kapin Vora , Tobias Henry Published June 16, 2016
It would be safe to say most individuals perceive a growing competition between robo-advisors and traditional wealth managers. Even further, if an individual works on one side or the other he/she would most likely portray this space as an “us vs. them” or “them vs. us” environment. However, there is a very important aspect of the robo-advice movement that most people either overlook or are simply unaware of, the “robo-advisor for the advisor”.
Authors Kapin Vora , Tobias Henry Published June 15, 2016
Born between the years 1980-2000, Millennials are arguably the most talked-about generation in history, and they currently represent the largest adult segment in North America at 92 million individuals (or 25% of America’s overall population). So what do we know about this massive group of people? The general perception is that millennials are lazy, entitled, and have allowed technology to erode their in-person social skills. However, if you ask the millennials themselves you will hear a different story; most likely that they are adaptive, open to sharing ideas, and want to make the world a better place.
Author Tristan Hugo-Webb Published June 13, 2016
For more than 50 years card networks have played a central role in the growth of electronic payments in the U.K. and around the world. As the electronic payment ecosystem grew, Visa, MasterCard and to a lesser extent American Express (among many other card networks) have developed a payment infrastructure that connects consumers, businesses and financial institutions along with all other players in the payments value chain.
Author Tristan Hugo-Webb Published June 09, 2016
The UK e-commerce market is Europe’s largest and is set to reach £90 bn before 2020 (up from £60 bn in 2015). But while e-commerce grows, the preferred consumer payment mechanisms are changing.
Authors Kapin Vora , Matthew Berkowitz Published May 27, 2016
If the US wealth managers are not up at night worrying about what the Department of Labor (DOL) regulation is going to do to their businesses, they should be. The legislation that expands the definition of the Employee Retirement Income Security Act (ERISA) to include all advisors for Individual Retirement Accounts (IRAs) is redefining the current brokerage model.
Author Howard Taylor Published May 25, 2016
On 24 May I attended the launch of the Financial Conduct Authority (FCA) Occasional Paper 17 on Access to Finance on behalf of Capco. The paper signals an important evolution in the perception of Financial Inclusion amongst banks and insurers. Critically, Financial Inclusion is taking a firm place on the senior management agenda, alongside consumer vulnerability, ageing and a fairer market.
Author Bryce VanDiver Published May 19, 2016
As the global landscape for enterprise payments evolves rapidly, the once commonly-held mindset that these services could be treated like commodities has disappeared almost as fast as the plans banks had for maintaining their legacy platforms.
Author Jason Malcolm Published May 18, 2016
As 2015 came to a close, Governor Andrew Cuomo of New York City rattled the cages of financial services executives by holding them accountable for the integrity of their anti-money laundering systems1. This is a serious proposal, ensuring the competence of chief compliance officers’ (CCOs) oversight, accountability and governance with the threat of possible jail time and hefty fines.
Author Howard Taylor Published May 17, 2016
We define Financial Inclusion (FI) as appropriate, accessible, affordable and attractive financial products and services accessible to the entire population, delivered via a customer-led experience and robust framework.