The current environment presents financial services technology organizations with an opportunity to leverage their existing Agile practices and to expand their adoption to tackle new challenges that change fluidly with the economic climate and regulation. Although it can be tempting to revert to old patterns to expedite delivery, “doubling down” on the foundational principles of Agile helps maintain a focus on delivering the most critical user functionality with the optimal time-to-market.
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Building Cyber Resilience in an Accelerated Digital World
As financial services firms embrace digital transformation, detection tools are not able to keep pace with the growth of sensitive data that continues to attract cybercriminals across the globe. Cybercriminals are not too different from their bank robber predecessors who were attracted to banks for the same obvious reason – “because that’s where the money is.”
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Minimum Capital Requirements for Market Risk: The Final Word on FRTB
The Basel Committee on Banking Supervision’s (BCBS) Minimum Capital Requirements for Market Risk (MCRMR) represent the next challenge for banks’ market risk calculations. After several years of consultations, revisions, and impact assessments, the BCBS published the final rule of what was formerly known as the Fundamental Review of the Trading Book (FRTB) rules in January of 2019.
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Transforming the Financial Contract Review Process through Artificial Intelligence
Artificial Intelligence (AI) has arrived and is set to transform the financial services industry in the upcoming years. AI solutions have been developed to specifically assist firms with the legal documentation review process. Several solutions have gained traction in recent years, facilitating the arduous and costly process of “re-papering” financial contracts. The ability to consistently and accurately process millions of lines of contractual language and produce auditable results gives the leading AI tools an important advantage.
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Regulation Best Interest: Raising the Bar for Broker-Dealer Standard of Conduct
The establishment of Regulation Best Interest (Reg BI) marked a major milestone for the U.S. Securities and Exchange Commission (SEC). It raises the bar for Broker-Dealer Standard of Conduct and will significantly enhance protection for U.S. retail customers, or “two-legged individuals”, who receive recommendations from broker-dealers for the purposes of managing personal, family, or household wealth.
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Executing IBOR Transition Programs for Global Financial Institutions
The use of Interbank Offered Rates (IBOR) has dwindled in recent years as fewer banks rely on interbank funding sources. As a result, continued use of IBORs has prompted on-going concerns, with regulators around the globe pressuring banks to pursue new benchmark rates that are market-based and not subject to market manipulation. Sunsetting IBOR and transitioning to alternative risk-free rates (RFR) requires banks to build, strategize, and execute amid industry-wide uncertainties and challenges which now includes a global pandemic.
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