Background: Reserve Bank of India has been relentlessly working in the direction of enabling a digital payments ecosystem in the country. In this direction, RBI under its guidance and with support from Indian Banks Association (IBA) enabled the formation of National Payments Corporation of India (NPCI) as an umbrella organization for all retail payments system […]
Scaled Agile Framework defines Business Agility as the ability to compete and thrive in the digital age by quickly responding to market changes and emerging opportunities with innovative, digitally enabled business solutions. But we can ask – WHY are we focusing on the innovations? WHO are we really working for? WHO should we always have […]
Digital On-boarding: In banking, digital onboarding is an automated process that gives customers access to financial products and services. This may include opening a bank account, taking out a loan, or simply creating an account with a digital bank. Digital transformation in on-boarding process: In recent technology environment, the banking industry across the globe are […]
Agile is not a framework or a method. It’s a mindset built up around 4 core values and 12 principles. The agile values and principles are valid within any business domain and allow to “be Agile”. Deep understanding of agile values and principles simplifies “doing Agile”, means effective use and mastering of agile practices e.g. […]
Customer onboarding – the need The customer onboarding process is the first touch point through which a prospective customer forms impressions about an organization. Today the major challenge financial services firms face is Customer Management. Managing customer expectations from the time of onboarding is going to be a key differentiator for these firms to achieve customer […]
xVA The multitude of costs and risks faced by banks in their OTC derivatives trading operations – outside the typical risks of a Trading Book – have led to the adoption of various xVAs, (‘valuation adjustments’) aiming to bridge the gap between fair and actual value. Practitioners often refer to these VAs as ‘components’ of […]
Summary The long awaited move to USD T+1 settlements is expected to be approved in Q3 2022, with a target implementation date of Q3 2024, so now is an opportune time for institutions to consider the impacts and challenges in meeting those timelines. The implementation of T+1 settlement will require a reassessment of existing industry […]
Summary When stock exchanges were first established, the typical trade settlement period was 14 days. It wasn’t until the 1970s that required settlement times began shrinking, first dropping to 7 days, then 5 and then to 3 days till 1990s, then it lowered to 2 days in 2017. Now moving to T+1 involves reduction in […]
Where compression seeks to offset economically similar trades to reduce notional, optimisation seeks to free up committed margin and capital by placing a series of market risk-neutral trades.
A more sophisticated methodology has been introduced for calculating capital requirements with the aim of better capturing systemic risk; the downside being an increased regulatory burden on the banking system.