Customer onboarding – the need The customer onboarding process is the first touch point through which a prospective customer forms impressions about an organization. Today the major challenge financial services firms face is Customer Management. Managing customer expectations from the time of onboarding is going to be a key differentiator for these firms to achieve customer […]
xVA The multitude of costs and risks faced by banks in their OTC derivatives trading operations – outside the typical risks of a Trading Book – have led to the adoption of various xVAs, (‘valuation adjustments’) aiming to bridge the gap between fair and actual value. Practitioners often refer to these VAs as ‘components’ of […]
Summary The long awaited move to USD T+1 settlements is expected to be approved in Q3 2022, with a target implementation date of Q3 2024, so now is an opportune time for institutions to consider the impacts and challenges in meeting those timelines. The implementation of T+1 settlement will require a reassessment of existing industry […]
Summary When stock exchanges were first established, the typical trade settlement period was 14 days. It wasn’t until the 1970s that required settlement times began shrinking, first dropping to 7 days, then 5 and then to 3 days till 1990s, then it lowered to 2 days in 2017. Now moving to T+1 involves reduction in […]
Where compression seeks to offset economically similar trades to reduce notional, optimisation seeks to free up committed margin and capital by placing a series of market risk-neutral trades.
A more sophisticated methodology has been introduced for calculating capital requirements with the aim of better capturing systemic risk; the downside being an increased regulatory burden on the banking system.
Inspired by use in the tech industry, financial firms are embracing biometrics as a way of improving banking security.
Driven by rapid innovation in the tech sector, financial services have embraced cloud computing, aiming to redeploy this towards their specific needs.
The reliance of the financial industry on both customer volume and complex decision-making makes it a prime candidate for embracing this artificial intelligence (AI) and machine learning (ML).
At its core, decentralised finance (DeFi) is the use of a peer-to-peer (P2P) network through which traditional financial services can operate, free from intermediation.