How to adapt your business to an ever changing world

So far, many banks seem to have treated open banking as a regulatory compliance issue. While it is that, viewing open banking as simply a regulatory issue greatly underestimates its enormous potential to transform the industry and to change how banks interact with customers and third parties. Although it is still early days, open banking will certainly redefine what it means to be a bank. In this paper, we revisit the fundamental drivers of open banking and suggest ways that banks can seize this unique commercial opportunity.

This Point of View is the product of fruitful conversations with financial services executives around the globe. It explores the nature and scope of cognitive banking: how it fits in with the other pillars of exponential banking, and why banks should welcome this new dawn in technology. It demonstrates that the benefits of cognitive banking are limited only by the imagination and that early adopters will be well rewarded.

This Point of View explores some of the key commercial issues surrounding open banking. It offers a practical summary of the views we have developed over an extensive period of working with many of the world’s leading banks. After a brief overview of the drivers of open banking, the paper examines how banks can monetise this opportunity, including API pricing and revenue options.

The last few years have seen huge investment into software that brings distributed ledger technology (DLT) to financial markets, but it remains unclear as to whether it will be fit for purpose. In particular, it remains to be demonstrated that DLT is capable of working in intensely demanding, high throughput environments, suitable for financial markets.

GFT has been working with cloud technology since its inception. As part of our thought leadership programme we recently sponsored an independent survey of investment banks conducted by HTF Research. The aim was to understand how they are using cloud and their plans for doing so in future.

An immersive and hyperpersonalised financial experience This point of view explores the notion of augmented banking, one of the four pillars of exponential banking as envisioned by GFT. Through insightful analysis and illustrative case studies, you will learn how to leverage exponential technologies to create an immersive banking experience that goes far beyond today’s digital interactions.

Any bank considering a cloud migration must have an inventory of its applications and future road maps of these going forward. In both of these areas banks seem well prepared. This report considers what is happening in the capital markets area, regarding banks’ current cloud strategy and their planned usage of public cloud in the future.

For decades, mainframes have been the cornerstones of IT infrastructure in many businesses, with banks at the forefront. However, the demand for increased flexibility to cope with ever-changing business processes and the need to reduce recurrent costs are forcing companies to move towards open platforms.

Banking in 2020: exponential technologies in financial Services – This point of view outlines GFT's vision for leveraging exponential technologies as key enablers of growth for financial services organisations through the generation of new business models.

For the third consecutive year, GFT has surveyed decision-makers in banking to gain insights into the trends behind digitalisation in the financial services industry. Based on 285 interviews, the survey offers valuable insights into the status of digital transformation, Bank as a Platform and artificial intelligence across eight countries - Brazil, Germany, Italy, Mexico, Spain, Switzerland, the UK and the USA. Download the report and the infographic for a complete picture of the survey results.

Over the past few months; GFT has – like many others – been trying to make sense of the true implications of Brexit, with a focus on the financial sector. We have used our regulatory know how to dissect the legal parts, look at the state of affairs in the market and the various reports from official and unofficial sources.

Many banks have been working hard to ensure they are in a position to comply with the General Data Protection Regulation (GDPR) – a regulation driven by the EU with a global reach. GDPR has a broad scope for protecting personal data, with far-reaching consequences in terms of 'extra-territoriality'. It has every potential to hit firms with punitive fines for breaching guidelines – up to 4% of annual revenues.

Open banking is here to stay and fast becoming a reality for financial services organisations that want to stay competitive in terms of innovation and customer offerings. But what are the practical aspects that organisations need to consider as they prepare to seize the opportunities presented to them in the open banking environment?

This paper reviews the development of supply chain management in the automotive industry over the past several years, analyse the challenges faced by the automotive industry with particular reference to the financial supply chain, and suggest ways in which the financial services industry can be a more effective partner to the automotive industry.

Information technology is increasingly pervading every aspect of our lives, promising fantastic opportunities for improving our health, wealth, knowledge and the way we live together.

Banks now operate in a fiercely competitive market, with revenue streams being challenged by new customer behaviours, low interest rates and the entry of new agile market participants. To survive, banks are evolving to keep their customers engaged, continually pursuing the most efficient and effective solutions.

By adopting a Bank as a Platform approach, banks will be able to shift to a business model that is based on service offerings as a means of delivering greater and more sustainable economic value. This vision calls for a modular and open IT architecture that can coexist with core banking systems while ensuring seamless data exchange between the bank and third parties.

As the FX market continues to grow and cross-border transactions increase in size and value, so too does the expectation of customers in terms of lower costs and better services. In a joint paper with Broadridge, we examine a possible reshaping of the FX operations market, capitalising on mutualisation to potentially reduce costs and increase efficiency.

Proudly sponsored by GFT, this report examines the trends that look set to shape the future of banking, from changes in the competitive landscape to the rising importance of customer engagement, digitalisation and the future of payments. Download it now to gain valuable insight into the dynamics that are defining new customer expectations across the industry.

The recent analysis by GFT looked at key markets in Europe, Asia and America with regards to the market penetration of mobile payment technologies and their adoption by users. Significant opportunities are offered to banks as providers of future oriented payment technologies, yet the challenges are also immense.

Since the publication of our paper on utilising Triparty facilities for OTC derivative collateral in March 2016, we have had numerous conversations with clients and interested parties, including custodians, agents, broker-dealers and buy-side institutions. Find new approaches and results in our addendum to GFT´s spring 2016 paper.

The economic and regulatory environment of recent years has placed a powerful downward pressure on any real investment within banks and other financial services firms, whilst at the same time diverting a significant portion of remaining resources to coping with rapidly evolving regulatory requirements.

The financial services regulatory environment is in a state of constant flux. Many legislative bodies around the globe publish regulations that are growing in both volume and complexity.

There is still uncertainty regarding the extent of capital impact, it falls within tight parameters, as neatly expressed in the recent ISDA FRTB QIS4 Refresh summary slide, which puts capital increase factor in the range 2.4 and 1.5.

An article by GFT DevOps specialists on "The New Normal" of IT and its need for technology which enables compliance requirements to be changed with higher levels of frequency, predictability and transparency.

GFT collateral specialists, led by Nick Nicholls, analyse how Triparty facilities could be an integral part of the holistic model.

Digitalisation within the financial industry will affect how banks will actually implement new digital processes within their own branches. Doing so will turn bank branches into important pieces of the overall jigsaw puzzle of future banking.

If there was some expectation that 2016 would be the year in which the regulatory tide facing banks would begin to recede, many will be left disappointed. A sense of regulatory fatigue within the industry is understandable, but if anyone thought that the regulatory challenge would become easier in 2016, then they are sadly mistaken.

GFT specialists look into the recent Blockchain phenomenon and provide a blueprint for initiating business change.

Digital transformation in financial services is now in full swing. Customer expectations are changing, technology is continuously evolving, and financial products and services are being reinvented.

Self-learning, intelligent customer scoring offers financial service providers a made-to-measure forecasting model for individual customers.

In our point-of-view, we provide background information and insights into the world of digital banking. Our checklists allow you to assess the specific level of digital maturity that your bank has already achieved.

As the trading world continues down the path of electronification, innovators turn to gamers for solutions, exploring Augmented Reality as a technology that can reduce information overload and improve real-time decision-making.

The GFT Digital Banking Survey 2015 revealed that customer loyalty and retention belong to the most important elements in banks´ digitalisation strategies. PFM is an ideal tool to achieve this goal and create “stickiness”.

Against the backdrop of the ever-increasing importance of collateral from a trading, risk and capital management perspective, holistic management of collateral is rapidly becoming a necessity.

The next great leap in IT outsourcing. The first decade belonged to India, so where next? The need for a global IT location and outsourcing strategy has never been more important for mid-size and large financial services institutions.

Planning to kick off a change programme? Excited yet concerned about the prospect of the challenge? You’re right to be cautious.

The role of the CDO is wide and varied. As more and more organisations have to deal with larger volumes of data, the opportunities and challenges are vast.

It is a well-known phenomenon that back office operations have historically lacked major investment. So why is it now the flavour of the month?

Choosing the correct governance methods for a project is always going to be tricky. Over the last 12 months there has been a marked increase in wholesale and investment banking in a desire to become ‘agile’, often without fully understanding the prerequisites for success.

As the introduction of T2S approaches quickly, Europe is bracing itself for a transformed market with fewer international barriers.

Collateral management is now under unprecedented levels of close scrutiny. Historically a support function, it has now moved centre stage, partly due to high-profile examples of what can happen if you lose control.

GFT specialists analyse the current state of BCBS239 and discuss where G-SIBs and D-SIBs go from here to complete their compliance journey.

Aggregating company-wide financial and risk information has arguably always been one of the most daunting challenges for large banks and other financial institutions.

GFT conducted an online survey between March and April 2015 focussed on retail banks in Spain, Germany, Italy, Switzerland, Brazil and the United Kingdom. The survey was completed by 124 business and technical decision-makers with responsibility for various aspects of digital banking.