Winter 2016/2017 Edition

  • 1271

    OPTIMIZING THE INVESTMENT PROCESS: leveraging IBOR for alpha generation

    The Investment Book of Record (IBOR) has traditionally focused on operations and accounting support to strengthen data utilization, optimize trade support analytics, increase regulatory reporting preparedness and tighten risk mitigation. But is this approach the most comprehensive and effective? In this article, Joshua Satten and David Depew examine the information that should form an IBOR to plug alpha leaks and improve the investment process at a time when profit margins are shrinking and regulatory reporting requirements are expanding. Investment is the key term that defines an IBOR. All data controlled and consumed is used with the intent of supporting the [...]
  • 1255

    DATA WITH PERSONALITY: the evolution of visualization

    How well are financial institutions truly able to understand their data? It’s a critical question at a time when firms must process more data than ever before, for both compliance and business growth. Conveying and interpreting its complex characteristics is an ongoing challenge. In this article, Julie Rodriguez and Piotr Kaczmarek look at how far data visualization has come, illustrate a viable option to evolve data displays and discuss why the next step of encoding objects could be a major breakthrough.  Financial markets data—and specifically investment data—comes in many guises. It can be structured or unstructured and contain multiple variables [...]
  • 1245

    ARTIFICIAL INTELLIGENCE: how it’s transforming financial services today

    As customers and employees demand better and faster ways to engage, organizations are turning to digital technology to help them transform, remain competitive and grow. For many firms, this means improving how they interact with—and meet—customer needs. In fact, customer experience represents the single best opportunity financial services firms have to deliver on their priorities, according to a survey by Econsultancy. What’s more, 45 percent of respondents indicated that making the customer experience as personalized and relevant as possible is their key focus. CEOs around the world are not asking if digital disruption will occur, but instead, what it means [...]
  • 1238

    DATA MANAGEMENT: the key to greater insight, automation and personalization, but how do we get there?

    Businesses around the world are looking to leverage data for value-generating activities more effectively. They are spending a significant amount of time and effort thinking about innovative and strategic approaches to mature their data programs. Many organizations have ambitions to be in the advanced stages—beyond using predictive analytics to optimize data-driven processes and toward using machine learning to actually improve customer journeys. Some may be close. However, the truth is most organizations lack a strong data governance framework, which hampers their ability to use data as a strategic asset and drive value. In this article, Paul Gibson and Nam Tran [...]
  • 1227

    SIMM: tackling the initial margin obligation in OTC derivatives

    Regulatory reforms following the financial crisis have tested banks’ ability to adapt and fundamentally changed business models. The Standard Initial Margin Model (SIMM) is another addition that could reshape many derivatives trading and risk management practices. In this article, Sapient Global Markets’ Thomas Schiebe and Sendi Cigura in partnership with Patrice Touraine and Matthieu Maurice of Global Market Solutions look at what it means for banks and how they must tackle a new wave of data and technology challenges. Following the introduction of mandatory clearing for standardized derivatives, regulators created measures to deal with non-centrally cleared and non-standardized derivatives. This [...]
  • 1212

    THREE TECH TRENDS OF 2017: it’s all about the humans

    As 2016 draws to a close, many financial services firms find themselves in the unusual position of having technology at their disposal that is more advanced than their processes and their humans. It is time to play catch up. And technical know-how is only part of the equation as new regulations, client requirements and competitive forces demand a new approach. In the battle between running the old and introducing the new, something will have to give. In this article, Dr. Leda Glyptis explains three of the most important technology trends for the year ahead—and the paradigm shift they represent. Once [...]
  • 1203

    ALTERNATIVE CREDIT SCORES: opportunities and challenges

    As new institutions step into banks’ traditional lending domain, alternative credit score models are causing disruption in the way loans are underwritten and applicants are assessed. Thanks to technology innovations focused on data science, revenue opportunities abound as new entrants look to serve a large, overlooked yet creditworthy market. In this article, Adi Ghosh and Harsh Sharma examine the changing landscape of lending; the opportunities for new entrants in the alternative credit score market; and the risks and challenges that emerging and traditional players face. As the financial services industry looks to the future, there is widespread recognition to leverage [...]
  • 1196

    THE NEW ASSET MANAGEMENT ECOSYSTEM: how asset managers can grow loyalty, AUM

    Asset managers are grappling with a complex environment beset by higher expectations, more competition and greater pressure on profit margins. That’s moving the industry into a targeted, personalized and intelligent future, requiring managers to more strategically engage with their customers to cultivate loyalty and grow assets. In this article, Jarlath Forde outlines the new asset management ecosystem, highlighting how asset managers can leverage the Salesforce platform in conjunction with automation tools to grow revenue and improve customer service across client segments, including retail, advisor and institutional. Across the industry, asset managers are facing a confluence of challenges impacting not only [...]
  • 1184

    AGRICULTURE: an industry ripe for disruption

    The growing demand for agricultural products is increasing the complexity of production, trading and risk management amid continued price volatility that is being driven by a variety of macroeconomic and environmental factors. As the agricultural industry enters an era of digital agriculture, firms today are making the transition from “price takers” to “price optimizers” while facing ever-increasing risk as they strive to gain more from their existing assets and optimize their supply chains. Jake Riley and Pranjal Srivastava explain how innovative firms are taking advantage of technology to leverage the disruption in agriculture by essentially creating a new class of [...]
  • 1175

    MILLENNIALS AND MORTGAGES: how a shifting demographic is redefining the housing market

    Millennials, those born between 1981 and 1997, introduce a set of norms and expectations befitting a new generation, now the largest in the United States.1 Traits, such as digital savviness, remaining single longer and elevated debt levels, represent not only a cultural transformation, but also a shift in the way this generation views its housing needs. In this article, Jocelyn St. James discusses how lenders looking to rebound in the real estate market will need to build systems and processes that address millennials’ specific priorities in order to remain ahead of more digitally enhanced competitors to create advantages in both [...]