Monday, 17 October 2016

MAS: Bringing compliance closer to the cloud

The Monetary Authority of Singapore (MAS) has helped dispel some of the uncertainty around outsourcing and cloud-based models in the governance, finance, risk and compliance (GFRC) context, with the inclusion of guidance on cloud computing services in its updated guidelines on managing the risks associated with outsourcing. Here Wouter Delbaere, Asia-Pacific Market Manager, Regulatory Reporting, for Wolters Kluwer’s Finance, Risk & Reporting business, explores this welcome development that should pave the way for greater adoption of these services - and hence a more efficient and cost-effective approach to GFRC - among financial institutions.

Banks in Asia are increasingly aware of the potential of cloud computing to reduce the costs and enhance the flexibility of their information technology infrastructure, and many are turning to cloud solutions in areas such as software development or customer relationship management. However, the security concerns and regulatory restrictions surrounding sensitive customer and financial data make service-based IT approaches to governance, finance, risk and compliance (GFRC) less common.

Thursday, 13 October 2016

The future of the banking industry

Every month we see huge developments and changes happening in the banking industry. In September, IBM released research suggesting that 65% of banks have plans to put blockchain projects in production in three years’ time. Meanwhile the CMA recently released findings stating that banks are not working hard enough for their customers, and the BBC claims more than 600 High Street bank branches have closed in the UK in the past year. On top of this, traditional retail banks are facing increasing competition from digital-first challenger banks such as Monzo (formerly Mondo) and Atom.

The changes aren’t just coming from within the industry, but also from a huge shift in customer expectations. 51% of US adults bank online, as do 47% of Europeans, and this number is likely to increase as more Millennials buy in to financial services. This is part of a wider customer attitude that banks should be using the latest popular technology to provide the best service to their customers. However, with new expectations and technologies emerging all the time, how can the banking industry adapt to this digital world?

Thursday, 22 September 2016

Notes from America

UK-based micropayments venture tibit (IBS Journal’s very first Startup of the Month) launched in the US last week at the Online News Association’s Denver event. Carl Beetham, Business Advisor, brings you this post from his travels

I’m the least-travelled of individuals and the daily commute to Peckham still fills me with an equal combination of trepidation and excitement. So you can only wonder at my feelings when faced with the joyous prospect of a business trip to the US – imagine a midget ginga Mickey Rooney-esque individual playing the Eddie Murphy character in Coming to America and you won’t go far wrong.

Wednesday, 21 September 2016

imaginBank: Simpler banking for the digital age

"I don’t need an elaborate banking service with branches, passbooks, letters in the post, an annual financial review and a bank manager that knows my name. Interest? I don’t save enough to accrue any, or I put my money somewhere else. All I really want is an account that will accept my deposits, hold my money and release it when I want to make a payment or transfer. I don’t want to wait for transactions to appear on my balance or for transfers to clear. An automatic payment function would be useful, so I can settle my bills easily. But most important of all, I want to do everything, repeat everything, on my phone. Some exclusive offers and deals would be good too. That’s it."

Welcome to the mindset of a growing demographic of today’s banking customers. All are committed device users - not power users or early adopters - just people that manage their lives using phones and tablets. Many are young – Millennials - but not all. Most have modest incomes and are determined to live debt-free and unconstrained by financial commitments.

Monday, 5 September 2016

Apple stays in the payments picture

Apple, good products, horrible company…The EU ruling that Apple must pay over $14 billion in back taxes to Ireland has been hogging the headlines, but the tech giant’s increasingly hostile face off with Australia’s banks is equally as compelling a story. In a nutshell, all of Australia’s big banks (except ANZ which is rolling out Apple Pay) are looking to gain access to the inner workings of the mobile payment platform. If successful, third parties would be able to bypass Apple Pay and create their own apps.

Apple has countered by arguing this would compromise the iPhone’s security, reduce innovation and hamper its entry into the Australian payments market. It told the Australian Competition and Consumer Commission (ACCC) that “allowing the banks to form a cartel to collectively dictate terms to new business models and services would set a troubling precedent and delay the introduction of new, potentially disruptive technologies”.

Thursday, 1 September 2016

Forget FinTechs, here come RegTechs!

You’ve just familiarised yourself with FinTech. Now it’s time to take a look at the innovation that rocked London 2016 FinTech Week: RegTech. The ambition: to manage all regulatory aspects, from the determination of ratios to risk mapping and KYC management.

These new players aim to address the following challenges:

Tuesday, 30 August 2016

Embracing RegTech: Asia Pacific adapts to mounting reporting requirements

Just as global regimes such as the Basel III net stable funding ratio (NSFR) and International Financial Reporting Standard (IFRS) 9 are being rolled out, Asia Pacific’s regional regulators are stepping up the pressure on banks by intensifying reporting requirements and moving more aggressively to address governance failures.

Thankfully, at the same time, emerging technologies, such as RegTech, and business models are equipping institutions with the strategies and capabilities needed to address escalating regulatory reporting requirements, which have become a region-wide reality. For example, the Monetary Authority of Singapore is completely overhauling the key financial position report, MAS 610, for the first time in years to glean more data points and details from banks. The changes will impact all supporting forms and require multiple new attributes, calculations and aggregations.