business transformation

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    CAN BANKS GET SMARTER? Rethinking AI in financial services

    As competition in financial services grows, success hinges on delivering exceptional customer service. The high cost of doing so has proved a barrier, driving many firms to turn to innovations that hold huge promise such as artificial intelligence (AI). However, there are major risks and the potential for costly mistakes. Conor Ogle and Rashed Haq look at what strategies need to be in place to ensure AI projects deliver and what firms can learn from recent implementations.

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    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 [...]
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    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 [...]
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    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 [...]
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    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 [...]
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    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 [...]
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    INVESTMENT BOOK OF RECORD: improving decision support and transparency in an increasingly complex environment

    Rapid technology innovations during the past few years are disrupting business models within the financial services industry that have largely remained untouched for decades, challenging operational processes and rendering traditional architecture options suboptimal. With increased regulation stemming from the global financial crisis and competition from new financial services providers, leveraging innovation in the quest for alpha is now a necessity for buy-side firms. In this article, Joshua Satten and Sidhartha Adholekar outline why the Investment Book of Record (IBOR) is critical to empower operational and investment process functions. They also address why an IBOR is equally beneficial to funds, fund [...]
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    THE BUSINESS TRANSFORMATION IMPERATIVE: change now or become obsolete

    The financial services landscape is changing faster than at any time in history. The FinTech revolution is creating an entirely new breed of competitor that is forcing “the establishment” to look closely at themselves and determine how they can transform to continue to be leaders in tomorrow’s marketplace. Goldman Sachs estimates that $4.7 trillion worth of revenue is at stake and could be claimed by new entrants to the financial services space if today’s market leaders do not adapt and change. While this is a concern for most CEOs, it is also a great opportunity. In this article, Josh Sutton [...]
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    THE BUSINESS CAPABILITY MAP: a critical yet often misunderstood concept when moving from program strategy to implementation

    The use of business capabilities for planning and analysis has been on the rise in recent years, yet the value they provide is not fully understood. For most critical initiatives at large firms, the transition from vision to strategy to implementation is a multiyear program involving numerous stakeholders. During the early inception phases—amidst aggressive timelines, pressure to produce estimates, budget constraints and other challenges—project teams tend to jump into execution without truly comprehending the overarching business strategy. It is difficult to visualize end-to-end risk and business value without a business capability map. In this article, Shiva Nadarajah and Atul Sapkal [...]
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    FINTECHS–OPPORTUNITY OR THREAT?: a pragmatic approach for organizations to assess the value of financial technology initiatives

    In the last six years, a proliferation of new financial services technology or “FinTech” ventures, eager to capitalize on shifting market needs and preferences, have emerged. Rather than sit back and watch these new models eliminate them, financial services organizations need to address these innovative initiatives as opportunities rather than threats. In this article, Sean O’Donnell reviews the drivers of the FinTech evolution, where and how they are transforming financial services, and approaches for businesses to adopt (rather than run from) these new offerings. While the mainstay of the financial services industry was busy dealing with the global financial crisis [...]