29 November 2014

Gary Wright

Gary Wright - BISS Research

277 | posts 919,429 | views 369 | comments

Post-Trade Forum

The Post Trade Forum's aim is to propagate debate and discussion between senior practitioners in Post Trade Operations in the global securities market; to bring about increased awareness and knowledge across both buy-side and sell-side financial institutions in financial products and be a focal point for firms and practitioners to air views.

Bringing greater efficiency to payments

14 August 2012  |  2731 views  |  0

The payments industry has been a sticking point in financial services for quite some time. Vested interests and a concentration of far too much business between too few banks have created development inertia, best evidenced by the SEPA slow train. SEPA was virtually a universal agreed development, if you take banks out of the equation. However, the majority of banks have tried as many ways as humanly possible to slow the introduction of SEPA and limit its use. It was only once politicians and regulators took a hand that an impetus was introduced and SEPA started to achieve what it set out to do. Literally years were lost and heaven knows how much cost and lost opportunity as a result.

Today the financial services industry will be faced with another challenge as Legal Entity Identifiers become a reality. To date great progress has been made on the design of the new standard and a global structure of ownership and distribution is being organised. The scope of LEIs is a vital question that has to be answered, so that all types of financial services firms can mobilise and plan how to gain maximum benefit from this identity standard. I hope that unlike SEPA (although granted it’s an entirely different matter) the banks go for LEIs in a very big way, as it has multiple areas and levels of operational and risk benefits.

For payments, the opportunity is to tie together the payment and settlement instruction, enabling the possibility of guaranteed DVP (Delivery vs. Payment). The risk reduction would be enormous, for the bank, its customers and the overall finance industry. No longer would we have vertical silos and various databases involved in a payment instruction, with the huge likelihood of settlement failure, or at the very least operational intrusion. The customer account would be a single focus of all its activity enabling better risk management. If this became the case within some FIs and was then operated across markets, it would have a cumulative, positive impact, reducing risks on a scale not seen before.

LEIs have the potential to be the single most beneficial global industry project ever seen, providing far greater benefits than any previous standard. However, it needs the imagination and the commitment of FIs and their employees, to overcome any problems and steamroller through to implementation. You can hear about LEIs and their impact on payments at the next Post Trade Forum debate hosted by BT on the morning of the 25th September.  

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Latest posts from Gary

Wealth Management - Turkeys Vote for Christmas

27 September 2013  |  2658 views  |  0  |  Recommends 0

The future of systems in financial services

29 July 2013  |  2604 views  |  0  |  Recommends 0

Social media and trust in financial markets

25 June 2013  |  4893 views  |  0  |  Recommends 0

Technology changing the markets

25 June 2013  |  2547 views  |  0  |  Recommends 0

Technology begins to change

14 June 2013  |  2106 views  |  0  |  Recommends 0
name

Gary Wright

job title

Analyst

company name

BISS Research

member since

2007

location

London

Summary profile See full profile »
CEO of B.I.S.S. Research, founder of the BISS Independent Accreditation for all systems and servi...

Gary's expertise

Who is commenting on Gary's posts