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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?

Neglecting Data Kills Transformation Programmes

Neglecting Data Kills Transformation Programmes

Published December 01, 2015

The industry needs to start thinking about data differently. If you want to get the best possible outcome from your transformation programme, you need to pay adequate attention to your organisational data.

Banks’ data is the blood in their veins. It’s the key ingredient of everything they do. Yet, data is often neglected. When it comes to new architecture and transformation programmes, data is typically unavailable or incompatible or pushed to the bottom of the priority chain. Is it any wonder that numerous transformation deliveries are then delayed or face failure?

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The Future of Private Banking

The Future of Private Banking

Published November 10, 2015

In private banking, success today means reflecting the market as it really is, not relying on a picture from the rear view mirror.

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NPP – New value proposition masked as compliance effort?

NPP – New value proposition masked as compliance effort?

Author Rolf Enders Published November 09, 2015

The new EBA Guidelines on product governance and oversight will come into force in January 2017, leaving banks just over a year to implement effective processes governing product design, market and customer demand.

The figures are staggering. Major global banks incurred around EUR 170 billion of conduct-related costs between 2010 and 2013, with further EUR 70 billion provisioned for future costs at the end of 2013. The European Banking Authority (EBA) quoted these research findings in its recent ‘Guidelines on product oversight and governance arrangements for retail banking products’ -the guidelines seeking to protect consumers by addressing some of the causal drivers of banks’ misconduct. But product oversight risks are, in fact, a ‘blessing in disguise’ for banks and could mean a new value proposition waiting to be unearthed as part of compliance process.

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Clearing and settlement report highlights challenges for 2016 and beyond

Clearing and settlement report highlights challenges for 2016 and beyond

Author Ivelina Dimtscheva Published November 03, 2015

2016 will be a critical year for buy- and sell-side operations, with two T2S waves, the ‘Great Collateral Squeeze’ and readiness for MiFID II top priorities.

So how will institutions respond? This is the focus of the new Clearing & Settlement World Industry Benchmark Report, based on a survey conducted by WBR with Capco acting as a knowledge partner.

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Ready for Exponential Leadership? Here are seven things you need to know

Ready for Exponential Leadership? Here are seven things you need to know

Published October 28, 2015

Exponential change is transforming our world. It’s time business leaders changed their strategy accordingly.

Earlier this year I was lucky enough to attend, along with some colleagues, the Singularity University Executive Programme which covered emerging technologies and their impact on the world, including workplace. Inspired by the programme, we got thinking about a concept that we felt should be put on the radar alongside disruption – Exponential Leadership. What qualities of leadership are required for an organisation to flourish at a time when technology, driven by Moore’s Law, has transformed the way we work, live and play?

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Digital Innovation in Asset Management – a Wake Up Call

Digital Innovation in Asset Management – a Wake Up Call

Authors André Brunner, Delia Steiner Published October 27, 2015

Better websites drive more sales but the asset management industry is only just starting to appreciate their importance.

The asset management industry has never distinguished itself as a leader in digital innovation. The traditional institutional investor isn’t the kind of client looking for a fancy online offering, so asset managers have focused heavily on other priorities, not least fulfilling new regulatory requirements that have emerged in recent years. As such, digital has taken a back seat.

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Prepaid: a ‘magic bullet’ for retail banking?

Prepaid: a ‘magic bullet’ for retail banking?

Published October 14, 2015

Nobody disputes that it’s tough to succeed in today’s retail banking industry. Some would argue that only a magic bullet could transform the fortunes of ‘traditional’ banking in the post-Google and Amazon world. If such a bullet existed, what would be included in its list of superpowers?

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Why rogue traders should be afraid of big ‘bad’ data

Why rogue traders should be afraid of big ‘bad’ data

Published October 13, 2015

Big data, data analytics and data science provide exactly the tools needed to predict and prevent damage caused by rogue traders

Follow Dimitrios Geromichalos on Twitter:


Rogue traders continue to cause catastrophic damages to banks. It’s no great surprise then that the incentive for banks to detect – and prevent – such illegal activities is extremely high. Inevitably this task is complicated by the complexity of the trading ecosystem and inventiveness of fraudulent individuals. However, recent methodologies and technologies – big data, data analytics and data science in general – provide exactly the tools needed to track, predict and prevent anomalous behavior, successfully.

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FRTB: Replacing VaR with Expected Shortfall in market risk

FRTB: Replacing VaR with Expected Shortfall in market risk

Author Tobias Voigt Published October 06, 2015

Out with old risk metric, in with the new. Welcome to Expected Shortfall

The Basel Committee on Banking Supervision has been revising its market risk framework since 2012. The result of its ‘fundamental review of the trading book’ (FRTB , BCBS 219) is expected to be implemented by January 2018, with 2016-17 scheduled for calibration and testing. The consultation phase for the new regulatory framework is still ongoing and has featured several Quantitative Impact Studies, highlighting the framework’s complexity.

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Our EMV Future Part II

Our EMV Future Part II

Authors Christian Wuerth , Katie Hermann Published October 01, 2015

Shifting Seas in Liability

In the last part of our series “Our EMV Future” we mentioned a liability shift set to occur in October of this year. So what’s the liability and where is it shifting? Liability in this context refers to which party is liable for fraudulent charges on a credit card. If you are one of the 41% of American cardholders1 who have been a victim of fraud, you most likely did not have to bear the cost of those charges. So who did? Currently the card issuers (i.e. banks) are liable for the cost of card present fraudulent charges (including both counterfeit and lost/stolen cards) – and its costing banks an estimated $10 billion per year2! However, come October the rules are changing and this presents the issuers an opportunity to recover some of these costs… but timing is critical.

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Workplace 2020: Attrition is dead, long live employee partnerships!

Workplace 2020: Attrition is dead, long live employee partnerships!

Published September 29, 2015

Millennials are not looking for life-long careers. Future workplace will use technology to match skills, opportunities and values to fulfil shorter-term projects. Employee partnerships, similar to the fledgling examples of alumni and LinkedIn networks, will see employees cycling in and out of firms to work on their terms.

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A Brand New Day; The Implementation of Volcker

A Brand New Day; The Implementation of Volcker

Published September 23, 2015

You could hear an audible sigh of relief across the whole of Wall St. when on July 21st , 2015, the Volcker Rule compliance date came and finally (after years of preparation) went, leaving the world of trading permanently and irrevocably, changed.  With its main goal to restrict proprietary trading, The Volcker Rule(s) not only touches essentially all trading desks across Capital Markets, but also all business lines throughout a bank that in any way impact trading.  Volcker was one very big rule, and one most certainly the venerable Mr V. refined in his mind, many times throughout his illustrious career in finance; however,  there was still a lot left unclarified for affected banks.  Will the measures banks managed to put in place to comply with Volcker’s day in the sun, stand the winds of time?  With whispers of manual, patchwork processes and even, spreadsheets! – Wall Street professionals are realizing that perhaps the battle has been won, but the war has only just begun.

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Consumer Banking Part IV

Consumer Banking Part IV

Author Dan Jones Published September 22, 2015

Going it alone…

In the last of our four-part series on putting the consumer at the heart of consumer banking, Dan Jones takes a different perspective. So far, the focus has been on ways existing banks can adapt to survive and thrive in the new consumer banking landscape. Now, Dan looks at a new category of player: the ‘non-traditional’ competitor. Read Part I, Part II and Part III.

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Consumer Banking Part III

Consumer Banking Part III

Author Dan Jones Published September 15, 2015

Expanding the ecosystem …

In the third of our four-part blog series on putting the consumer at the heart of consumer banking, we consider another key line of defence against emerging competitor threats.  Read Part I and Part II.

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Consumer Banking Part II

Consumer Banking Part II

Author Dan Jones Published September 10, 2015

If you can’t beat them, imitate them … (until you can do it even better)

It’s time to put the consumer at the heart of ‘consumer banking’. For banks, that could be a cue to go shopping or take a holiday…


In this second blog in our series (read Part I) on putting the consumer back at the heart of consumer banking, we look at the first of the three key lines of defence against fundamental changes in the banking landscape: imitation. Imitation is a strategy well proven in nature. When a more successful predator appears, you can either continue to do what you do and hope that the rival will fail and go away. Or you can learn from their techniques, emulate the best of them, and change your own game.

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Robo-advice 2.0

Robo-advice 2.0

Published September 07, 2015

How can established financial services brands win the ‘Robot Wars’ being waged for the hearts and minds (and wallets) of a generation of investors? (While ensuring the robots always prioritise the best interests of their human customers?)

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Consumer Banking Part 1

Consumer Banking Part 1

Author Dan Jones Published September 03, 2015

Putting the Consumer at the Heart of 'Consumer Banking'

In a new four-part blog series, Dan Jones looks at some of the key issues associated with creating a new kind of consumer banking product range and service style. A fresh approach can and must directly reflect the aspirations of consumers themselves. In part I, Dan examines the fundamental forces that are reshaping the consumer banking landscape.

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DigiSourcing

DigiSourcing

Published September 01, 2015

Wanted – New ways for banks to embrace successful digital innovation without ignoring old problems. 


We keep hearing that banks must do more to bridge the ‘digital gap’. But, in order to create and deliver the next generation of digital customer service experiences, they require a more predictably productive development environment.

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The Systemic Risk of International Financial Regulation

The Systemic Risk of International Financial Regulation

Published August 26, 2015

Part II

This is the second part of a blog by Philip Booth - Professor of Insurance and Risk Management, Cass Business School - based on his presentation to the Cass Capco Conference: Risk Rebooted in June 2015.


Read Part I

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The Systemic Risk of International Financial Regulation

The Systemic Risk of International Financial Regulation

Published August 25, 2015

Part I

This is the first part of a blog by Philip Booth - Professor of Insurance and Risk Management, Cass Business School - based on his presentation to the Cass Capco Conference: Risk Rebooted in June 2015.

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