Publications

Central Banks are assessing the possibility to release National Digital Currencies that could potentially substitute cash. This idea will allow Central Banks to have absolute control of all the money supplies. On top of that, they will compete with Commercial Banks for deposit accounts. An important technology that can contribute to this development is Blockchain. The distributed ledger technology makes it possible for anyone to open a deposit account directly at the Central Bank. This feature alone will remove direct intermediation as it also opens the possibility to create a full reserve banking system. However, there is a catch. The theoretical benefit of a full reserve banking system does not consider the natural hierarchy of money. If a Central Bank controls a fixed amount of money in the economy than additional “cash” products will be developed, which will lead to an expansion of the overall quantity of money. A Digital National Currency can also prevent financial crime and support the overall monetary policies but it also represents a threat in consumers privacy finances. Currently the European Central Bank, the Bank of England and Sweden Central Bank are assessing the possibility of adopting a digital currency as an alternative form of payment. Essential characteristics are yet to be defined. In line with the above, FiSer has written a paper that provides recommendations for the adoption of Digital Euro where we discuss desirable characteristics, the implementation approach and adoption challenges.

The U.S. government has fined Rabobank National Association, a California-based subsidiary of Coöperatieve Rabobank U.A. (Rabobank) with EUR 298 million after admitting deficiencies with the Anti-Money Laundering (AML) compliance program. Money Laundering is a threat to the long-term sustainability of businesses. In the eyes of the regulators, AML is critical because it compromises a company’s image and reputation. From 2010 to 2017, 21 of the most significant banks in Europe had to pay a fine of approximately EUR 4,198 million for violating AML compliance rules. In the Positioning Paper ‘AML Management: Challenges and Opportunities’ we analyse the operational issues that cause such high fines and we also take the time to discuss the current challenges that Financial Institutions are facing. Finally, the Paper explains how innovative technologies are supporting the Compliance function and how FiSer Consulting can help in the transformation process.

The implementation of PSD2 will enable Third Party Payment Providers in executing payments on behalf of their customers, thus heightening the risk of fraudulent transactions. This is the main reason why the European Banking Authority (EBA) has developed Guidelines in cooperation with the European Central Bank (ECB) to ensure implementation of high-level fraud reporting requirements under Article 96(6) of the regulative law PSD2. The fraud reporting component under PSD2 expects Payment Service Providers to provide high-level data on a quarterly basis and more detailed data on a yearly basis. In the Positioning Paper ‘Fraud reporting under PSD2’ we outline the data requirements per Payment Service under the fraud reporting component as well as data management principles and how FiSer can help in the transformation process.

Open Banking is emerging across worldwide global banking. The concept makes use of open Application Programming Interfaces (APIs) that enable third party developers to build applications and services. The concept sets a framework for security and consumer protection as data sharing increases. In our latest paper ‘Open Banking: Impact, Challenges and Strategies in Financial Services’, we discuss topics related to Open Banking, such as impact and strategies in Financial Services.

Trade finance is going through a technological revolution. There are a handful of financial institutions attempting to incorporate Blockchain technology applications in the trade finance process. This way, banks can increase the cross-border financing to SME’s and bloom their businesses. The promise of the Blockchain is that it has the ability to streamline the trade finance process and that it has the potential to achieve full transparency in the supply chain. Still, there are challenges that need to be addressed. In the positioning paper ‘Blockchain: The key to Trade Finance Challenges’, we discuss such challenges as well as how Blockchain’s implementation frameworks create solutions for trade finance. To support this, we use relevant case studies.

An increasing number of financial service institutions are introducing an Agile way of working as a formula for a greater chance of success.  Financial insitutions are aiming to adopt the trend eversince it was introduced. Agile is said to have great benefits in terms of increased innovation pace, competitive business, mobility and flexbility, reduced costs and improved productivity. Apart from advantages, Agile also has its drawbacks. The most challening part for financial insitutions is implementing Agile development schemes while also having to considering the operational functions. In ‘Change Management Agile Roll-Out’ we dive into the components of Agile and we also give solutions for succesfully implementing the Agile concept in the operational functions using a Change Management framework.

The Basel Committee on Banking Supervision is revising methodologies for the determination of capital requirements. While rules introduced by Basel III increased the amount of capital that banks must hold, recent developments proved that even stricter rules should be applied. This is where the Basel IV framework was introduced. In ‘The evolution of Basel IV: implications and implementation challenges’ we solely focus on Basel IV, i.e.: its original foundations, the challenges under Basel III and the current Standardised approach, capital requirements for each of the revisions, timelines, implementation challenges and overall implications.

After many years of discussion and consultation, the International Accounting Standards Board (IASB) published the new accounting standards for insurance contracts, also known as IFRS 17. The implementation program is set for January 1st, 2021, which gives insurers little time to prepare for the implementation of the standard. With its revolutionary scope, IFRS 17 is perceived as a big game-changer for the insurance industry. The changes apply to the valuation of insurance contracts, enhancing the comparability and transparency of insurers performance across companies, geographies and business lines. IFRS 17 will have major consequences for existing financial reporting, operations and data management. In ‘IFRS 17: Impacts and Implementation Approach’ we will outline why IFRS17 was introduced, give an overview of its key components, assess possible impacts as well as actions to be considered in order to adopt IFRS 17 successfully.

The introduction of new regulations and the proliferation of emerging technologies are changing customers’ expectations of banking products and services at the speed of light. As a result, financial institutions have to change the way they operate, and how they offer their financial services and products. In order to meet customer expectations, while at the same time remain compliant to new and extended regulations, financial institutions need to stay on top of the technological pace. In our paper, we discuss how the customer domain will continue to be impacted by both new regulations and innovative technology developments in the years to come. More specifically, we outline developments in the area of Anti-Money Laundering and Counter-Terrorism Financing (AML / CTF).

As Robotic Process Automation (RPA) usage gathers more traction every day, its importance cannot be overlooked any longer. Slowly but surely, we are getting a glimpse into future ways of working and RPA is leading the way forward for new innovative technologies. The financial services industry is now seeing significant value in the use of the technology. RPA has the potential to become a fundamental tool in helping businesses become more efficient and cost effective, while enabling growth and added value to existing business processes. It is inevitable that its here to stay. In ‘Robotic Process Automation’: ready, set, go?’ we expand on topics related to RPA, from its definitions and principles to its core benefits and regulatory-compliance impact, as well as how we can assist, and ready your organisation for implementation.