Imagine a time when banks functioned without computers. It’s literally unimaginable. The computer has become the banker’s best friend. Today, banking is on the brink of another great leap in innovation that may re-create the industry as we know it: quantum computing. Based on quantum mechanics, this developing technology promises lightning-fast processing speeds that boggle the mind. But before vision becomes reality, much preparation work still needs to be completed.
To date, there have been several significant landmarks that have been achieved by cryptocurrency during its decade-long evolution into a legitimate asset class. US SEC (Securities and Exchange Commission) regulation, token sales and coin offerings, derivatives-market maturation and development of government and central-bank digital currencies
Technology is bringing an assortment of benefits to consumers and their banks but also a slew of new or heightened risks. In the UK, regulatory authorities are addressing the looming threats by rolling out proposals related to Operational Resilience (OpRes). UK financial firms will be expected to adhere to new rules during the second half of 2021 and need to start preparing as the journey to compliance will be arduous.
According to a report commissioned by the UK’s Treasury, Britain’s financial services system is experiencing an existential skills crisis. Why? As digital start-ups have moved quickly to offer desirable working benefits such as flexible hours or learning and development opportunities, financial institutions have been comparably slow to react to new workplace demands.
It is hard to believe that we just wrapped up another year. The beginning of a new year is one of the best times to both reflect on the previous years successes, while looking ahead at what the biggest challenges, priorities and opportunities will be for companies as they enter the new year.
Although banks have been in financial services longer than anyone else, they have a thing or two to learn about customer service from the mammoths in the retail sector. Retail subscription services are taking off, promising to deliver combinations of products conformed to the needs and likes of customers, whose preferences are well known from data analyses. What similar steps can banks adopt in their drive to augment customer satisfaction?
Many financial institutions are facing a perfect storm of pressure on revenues and increasing costs driven by regulatory mandates and the need for overdue investment in infrastructure.
The term “operational efficiency” is not new, and in fact, applies to many industries because it works toward a common goal: to optimize operations so they provide greater returns – whether they be faster time to market, greater volume and/or increased revenue – relative to inputs.
With the introduction of the Financial Services Act (FinSA) in Switzerland, the regulatory noose is tightening for international providers of financial services to Swiss clients. Although FinSA will not be fully implemented until January 1, 2020, preparations are well underway, and affected providers will need to study up on the new rules to ensure they are in full compliance—or face punishing penalties.
Societies face a stark reality: their 65-plus members are claiming a rapidly increasing population share. Japan may be the guinea pig in this predicament; in the Land of the Rising Sun, the death rate already eclipses the birthrate. How the innovation-savvy Japanese respond will be a model for other countries that will follow in their footsteps. Will Japan’s empathy for its elders be duplicated elsewhere, especially in financial industries?