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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?

The irresistible rise of Corporate Sophistication?

The irresistible rise of Corporate Sophistication?

Published January 14, 2015

The irresistible rise of Corporate Sophistication?

What is Corporate (financial) Sophistication? Why does it matter? And what, if anything, can banks do about it? Pretty much unchallenged, banks used to provide corporate customers with a range of services, from payments processing to business extension financing. Then everything began to change, with the evolution of much greater financial sophistication in corporates’ handling of finance and financial services.

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Mobile Payments – Apple’s not the only fruit!

Mobile Payments – Apple’s not the only fruit!

Published January 12, 2015

Nobody can ignore Apple Pay. And nobody is ignoring Apple Pay. Must-have designer technology, heavy hitting icon brand and high profile merchant signings have finally aligned, like so many stars in the payments heavens. Together, and for once the use of the well-worn cliché seems justified, they deliver a ‘user-friendly solution’ that accelerates us several million light years towards payments nirvana. We can at last empty our straining wallets of their multiple cards, coupons and vouchers and finally dispense with cumbersome forms of personal identity. Free to roam the malls of the world, we will be able to shop as the fancy takes, with just our smart phones to take care of the previously complex matter of funding our consumer gratification. We will, won’t we?

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The rise of passive investing. And the demise of investment managers?

The rise of passive investing. And the demise of investment managers?

Author Edmund Cohen Published December 18, 2014

Investment in passive funds has grown from £17 billion in 2004 to £80.6 billion today, boosted by regulation and the global recession. Compared to the 1% fee charged by active investment managers, passive funds charges are often around 0.2% and can be as low as 0.07%. As passive Exchange Traded Funds (ETFs) and unit trusts grow, outflows from active funds and inflows into passive funds are likely to follow. How will traditional investment managers survive?

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Ready for MiFID II? Find out the latest from Capco’s MiFID II client briefing event, London, December 2014

Ready for MiFID II? Find out the latest from Capco’s MiFID II client briefing event, London, December 2014

Published December 17, 2014

Lots of Questions, Plenty of Opportunities With Christmas fast approaching it is traditional to reflect on the past year, sharing nerve-wracking stories of compliance deadlines hit with seconds to spare. But at our latest client-briefing breakfast, held in December 2014 at Capco’s new London office, we decided to dive headlong into the next big challenge looming large: MiFID II. We were joined by over 30 people from nearly 20 firms, trade repositories and vendors. The event was highly interactive, with plenty of debate from the audience.

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Operations Keep the Bank Ticking: Build Your Own Bank

Operations Keep the Bank Ticking: Build Your Own Bank

Author Dan Jones Published December 15, 2014

It’s easier than you think
Operations Keep the Bank Ticking: Build Your Own Bank

Creating engaging customer propositions demands an operational structure that is fit to support. And the key word here is support. No operational design that credibly promotes itself as customer-centric at heart can be technology led. So what is the advantage of having truly customer centric operations? It’s a double win, for tomorrow (flexibility and future proofing) and today (true customer relevance). Tomorrow, systems designed and built with agility and flexibility in mind will be ready to accommodate the changing demands and preferences of customer without major re-engineering. Today, they predictably support service based on a deep-rooted understanding on what makes your customers tick. This, finally, is the ‘Holy Grail’ of technology that actually reflects and enables the business that is paying for it. Often, when supporting rapid proposition development, the challenge is to implement operations quickly and without employing an army of back office staff, along with expensive new systems. The good news - in our experience, this can be done.

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Quest for the perfect equity-return volatility estimation technique

Quest for the perfect equity-return volatility estimation technique

Authors Alexey Sulima , Christoph Ferstl Published December 10, 2014

The financial industry has a great interest in estimating the equity return volatility. But given the wide range of estimation techniques available, how do industry practitioners decide which to use? And which estimator is reliable?

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Rewarding Customer Loyalty: Build Your Own Bank

Rewarding Customer Loyalty: Build Your Own Bank

Author Nic Parmaksizian Published December 08, 2014

Rewarding customer loyalty
Rewarding Customer Loyalty: Build Your Own Bank

How does a new bank (or any bank) attract and then keep its customers? Offering the lowest savings rate or the longest balance transfer deal may work short term. But can lasting loyalty be embedded through tactical attractors alone? And how does a challenger bank grow their customer base and their portfolios through the art of cross-selling? The answer is simple – create an eco-system. At the heart of every challenger bank’s offering should be something to make that proposition ‘sticky’ - a unique aspect that represents the brand values. The brand in question could be luxury, recognised all over the world and renowned for unrivalled customer experience. It could be a local community brand that focuses on ‘down to earth’ service, based on intimate customer knowledge. In both cases, the DNA of success is the same. And the route to effective cross selling may well lie in a rewards-based customer loyalty scheme, embedded within the bank’s core.

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Wealth Management and Newspapers - an unlikely pairing?

Wealth Management and Newspapers - an unlikely pairing?

Published December 05, 2014

Wealth management is increasingly seen as a profitable new arena for non-wealth firms. While technology companies are the obvious candidates to branch into the wealth management space, media companies that are known for their print journalism are showing signs of taking the lead. Will print journalism, seen by many as a rapidly declining industry, sustain the move into wealth and gain the status of a regulated advisor? Both technology and print journalism have loyal customer bases and strong brands. But print journalism has the additional advantage of being able to avoid some of the privacy concerns associated with large technology companies.

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Have you met your future consumer and workforce yet?

Have you met your future consumer and workforce yet?

Published December 03, 2014

How many organisations do you know that look beyond the confines of their workplaces to understand the behaviour, values and even buying patterns of the future consumer? For any organisation to thrive, isn’t that what they should be doing?
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Financial inclusion – from margins to mainstream

Financial inclusion – from margins to mainstream

Author Christopher Geldard Published December 02, 2014

Financial Inclusion. Does it matter? (A great deal.) Is it worth fixing? (It is a global imperative.) And will mainstream banks ever really be a part of the solution? (Yes. With the right approaches.)

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Branding the Bank: Build Your Own Bank

Branding the Bank: Build Your Own Bank

Author Sarah O'Callaghan Published December 01, 2014

Branding the Bank: Build Your Own Bank

Historically, rates have had precedence as the lead value of most financial propositions. Branding has taken a back seat, or not had a seat at all. Today however, transformational change, explosive change even, has impacted the market. Customers have more touch points with banks than anybody would have thought possible even a few years ago. Now, a traditional industry has come to a very contemporary realisation: fail to build your brand, or worse still, lose its meaning to your customers and relevance to their lives, and there will simply be nowhere to hide.

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The unstoppable drive to streamline operations for compliance

The unstoppable drive to streamline operations for compliance

Published November 28, 2014

Risk management has been transformed beyond recognition in the past few years. The regulatory wave unleashed by the 2008 financial crisis has created a need for a new layer of operations for implementations of these legal requirements. Most banks are already improving their operations by throwing teams at the ‘deep end’ of run-the-bank and change-the-bank functions. I believe they should be diving deeper.

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Snapchat and Square: A Payments marriage made in heaven?

Snapchat and Square: A Payments marriage made in heaven?

Published November 27, 2014

A once slow-moving market is changing at an ever-increasing speed. Snapchat, the popular photo sharing app, has announced a partnership with Square to offer instant P2P mobile payments.

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The '10 Steps' : Build Your Own Bank

The '10 Steps' : Build Your Own Bank

Author Adam Davis Published November 26, 2014

The '10 Steps': Build Your Own Bank

The financial crisis. Memories of the worst of it may, just, be starting to fade. But its legacy is likely to be felt for decades, through the reshaping of the banking landscape. We all know the key features of change; Regulation has hardened and proliferated

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Build Your Own Compliance

Build Your Own Compliance

Published November 24, 2014

Monitoring ongoing compliance under a myriad of regulations is now a considerable overhead for banks.
Build Your Own Compliance

To add a level of complexity, regulators have increased the volume of rules and guidance in recent years and many of these now overlap and can, on occasion, conflict with one another. Moreover, banks are no longer confined to liaising with a single regulator - compliance now involves dealing with domestic and foreign authorities. Regulators from all over the world continue to issue fines and censure individuals and companies in relation to compliance failings.

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LVRG: Are German Insurers fit enough for the regulatory marathon?

LVRG: Are German Insurers fit enough for the regulatory marathon?

Published November 21, 2014

Until recently, insurance companies have escaped the scrutiny of global regulators, while banks carried the burden for the 2008 financial crisis, adapting to a torrent of reforms.

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The mass affluent: underserved & misunderstood

The mass affluent: underserved & misunderstood

Author Kyle Marynowski Published November 03, 2014

Traditionally, Mass Affluent households have proven to be an enigma to Wealth Managers. This segment requires a new approach and fresh thinking to unlock investment opportunities. Capco believes that it is the first company to offer a comprehensive, yet flexible solution, to develop and retain that business segment well into the future.

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The Rubik’s Cube of regulation in APAC

The Rubik’s Cube of regulation in APAC

Published October 23, 2014

AML. Dodd-Frank. OTC Derivatives reform. The Volcker rule. Basel IV. FATCA. GATCA. The list goes on but the introduction of new local and global regulations shows no signs of abating. Against this backdrop, financial institutions in APAC must ensure that they are promptly informed of evolving regulatory obligations. But an understanding of these requirements is just the beginning of a wide range of resource-intensive activities that financial institutions in APAC are undertaking to break free of the regulatory shackles.

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Welcome to the perfect storm. Why banks can’t ignore cost to trade calculations any longer

Welcome to the perfect storm. Why banks can’t ignore cost to trade calculations any longer

Author Peter Springett Published October 14, 2014

We’re debating the impact of cost to trade and success strategies at Banking Reloaded Conference on October 29, New York. Don’t miss this chance to meet the experts and find out how to reduce costs and boost profitability.

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Everything you ever wanted to know about changeSourcing but may have been too shy to ask!

Everything you ever wanted to know about changeSourcing but may have been too shy to ask!

Author Mark Reeves Published October 13, 2014

changeSourcing Part 6

In this concluding blog in our series on changeSourcing (CS), we ask – and answer – four of the most frequently asked questions.

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