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 October 09, 2014
The market size and app richness in the new payments area begs the question, where is this all going? And what should the perfect payment solution of the future look like? In this final part of the blog series I look at issues that should be addressed to fast-forward the way we conduct payments.
Author Mark Reeves Published October 05, 2014
Throughout this blog series, we have seen that change needs to come to the methods by which financial institutions can commission and support transformational projects.
Published October 02, 2014
In the third of a four-part series, Markus Sander tests the latest payments innovations. This week: cashless and cardless payments.
Author Peter Springett Published October 01, 2014
Remarkable. Explosive. Terrifying. Just three of the words used by reviewers to describe Flash Boys, Michael Lewis’s thrilling account of the high frequency trading markets published earlier this year.
Published September 30, 2014
$150 billion is, by bizarre coincidence, almost exactly the same amount that was signed off for the Economic Stimulus Act of 2008 in the US, at the height, or depth, of the financial crisis. It’s also the official cost of the International Space Station. It’s the kind of cash that only Bond villains command - the unimaginably vast pile of greenbacks required to re-start entire global economies, or have one’s own personal residence in space. In short, it’s a huge amount of money. Why are banks spending it?
Author Mark Reeves Published September 29, 2014
To meet the multiple challenges of transformational Business and Technology change within banks, the CIO’s “dream ticket” would probably read something like this:
Published September 25, 2014
Apple really knows how to stir up a market. Last week, with the release of the iPhone 6, complete with the new ‘Apple Pay (AP)’ mobile payment capability, Apple sent the payments industry into a tailspin which left everyone wondering just what the announcement means – especially our nation’s banks. Currently only 2% of the four trillion dollar payments market, which is comprised of over 200 million transactions per day, uses mobile devices to make payments, but no one doubts that is just the tip of the iceberg. The market, however, has been disjointed. Google, square and PayPal have all launched mobile payment solutions using different technologies and infrastructure. NY Time’s Jenna Worthman said, “The imminent mobile wallet remains elusive for mainstream adoption”. And then there was Apple Pay.
Published September 25, 2014
Right now, CIOs are in a double bind. The rapidly changing financial services landscape – in fact permanent, rolling transformation - demands fast and flexible technology responses as the business meets the key drivers of regulation, acquisition, competition and consumer expectations. The mission critical projects generated require real time access to broad, deep and current skills. Yet the pressure on budgets remains acute. Agility of high skills team configuration and deployment means expense. Is there a way out? Or is a mix of captive resource and costly contracting the only game in town?
Published September 25, 2014
In the second of a four-part series, Markus Sander tests the latest payments innovations.
Author Tom Riesack Published September 23, 2014
On August 11, 2014 the European Securities and Markets Authority (ESMA) published a Consultation Paper (CP) on clearing obligations regarding Interest Rate Swaps (IRS). Forty-six affected market participants responded to the CP expressing their views on the introduction of obligatory clearing of specific IRS OTC derivatives via central clearing houses (CCPs). What follows is our analysis of the respondents’ comments. The analysis indicates that asset managers, banks, CCPs and regulated markets appreciate ESMA’s initiative, but concerns remain about frontloading requirements, implementation timelines and classification of counterparties.
Author Mark Reeves Published September 22, 2014
“Changing change” is something that financial institutions need to do. Urgently. So far in this blog series, we have seen that regulatory response needs to be balanced with commercial development. We’ve also seen that change projects present banks with a broad spectrum of challenges. These can be both disruptive and difficult to predict sufficiently in advance to avoid pinch points and pressure on resources.
Published September 19, 2014
Author Mark Reeves Published September 15, 2014
Sustainable change within financial institutions requires urgent redefinition. Strategically, change needs to be seen as an opportunity to embrace more effective commercial practices, as well as producing acceptable regulatory responses. (No bank can succeed for long if it is no more than a “compliance engine”. It has to become more competitive as well.)
Published September 11, 2014
On Tuesday, Apple presented a new series of mobile devices, including two new iPhones and the Apple Watch. While the hardware is gorgeous, another announcement has generated a heated discussion in the financial industry: Ap
Published September 10, 2014
RMB (renminbi) is poised to broaden its reach and influence as a true global currency. China is establishing its first official Europe-based renminbi clearing bank in London, after a recent visit of the Chinese Premier to the UK. A number of other new locations are set to follow suit. What does this expansion mean for global transaction banks?
Author Mark Reeves Published September 08, 2014
Financial institutions could be forgiven for feeling a sense of relentless pressure around the issue of change. Whether they aspire to change in pursuit of their own commercial objectives, or they have it thrust upon them by the demands of regulatory response, there is no escape from the constant need to re-evaluate every aspect of their operation.
Published September 03, 2014
How can banks make better use of customer data? Why not ask the customers themselves? That was the goal of Capco’s survey of the banking population in the Netherlands earlier this year. Above all, we wanted to know how banks can best use data to make themselves more relevant to the customer.
Published August 20, 2014
In its April 2014 review of RDR implementation, the FCA highlighted its aims to make the market more competitive in favour of consumers. What steps should execution-only brokers take to address those aims, before regulation is imposed, to get ahead of competition and gain customer loyalty and trust?