Weighing the possibility of adopting AI and automated decision-making is no longer a choice for banks; this technology has proved its worth in everything from combating fraud to meeting compliance requirements to providing excellent customer service via chatbots. As banks struggle to be profitable in the post-financial crisis era, AI has been an invaluable friend to those that have learned how to make it work for them.
In recent weeks, the eyes of the financial world have been firmly fixed on Turkey, since its lira plunged in reaction to a doubling of trade tariffs by the United States.
Financial services firms in the UK have more questions than answers about how Brexit will affect their operations. The uncertainty extends to London’s position as a global centre for dispute resolution, as it is possible that English court decisions will not be automatically enforceable in the EU. As the case study in this article demonstrates, English courts will endure as the best option for fast and fair resolution of international cases.
The financial services industry relies more on information technology than any other sector. That makes perfect sense given the high-speed and detail-oriented nature of the industry. Unfortunately, it’s costing a lot more to protect and maintain financial data these days.
Banks are spending $20 billion on compliance in an effort to combat money laundering, yet only one per cent of illicit financial flows are seized by authorities every year. While regulations have been introduced to crack-down on money laundering, so far they have had a limited effect.
For European banks, regulations (GDPR, MiFID II, PSD II, Open Banking) are aligning at a time when they are already warding off digital disruptors intent on wooing customers with convenient, cutting-edge technology-based offerings. Financial institutions that adopt a wait-and-see approach will likely lose ground in a rapidly changing financial landscape, but those who adapt and maximize their formidable advantages will prevail.
Next year, investment firms in the European Union will be confronted by a new prudential regime, courtesy of the European Commission, that is so sweeping, it could cause some to rethink what client activities they engage in. Now is the time, for smaller firms, to take a close look at their operations under the light of the regulations and begin to prepare.
The Markets in Financial Instruments Directive II (MiFID II)—a major package of financial reforms for European markets—is due to be introduced at the start of 2018. The new rules are aimed at providing considerably more protection for investors
You would have to be living with your head buried in the sand not to realize that we are witnessing the Fourth Industrial Revolution, of which the Blockchain Revolution is an integral part. The necessity of working with digital assets is forcing the reinvention of traditional financial infrastructure, and only those banks that adapt and participate in the metamorphosis are sure to capitalize on the generous rewards.
The intensifying interconnectedness of countries around the world has its benefits but also leaves nations vulnerable to the potentially detrimental effects of not only financial meltdowns but also regulations imposed by foreign entities. The EU’s soon-to-come MiFID II is already causing consternation in the United States, especially as the new regulations relate to US investment firms.