27 November 2014

44975

Retired Member

699 | posts 2,194,722 | views 833 | comments

Financial Services Regulation

This network is for financial professionals interested in staying up to date on financial services regulation happening anywhere in the world. CFOs, bankers, fund managers, treasurers welcome.

New capital regime calls for increasd operational efficiency

06 January 2014  |  1890 views  |  0

Money, as they say, does not grow on trees. Balance sheets must balance, and capital requirements must be met. Next year will see the implementation of the new European capital regime - the Capital Requirements Directive (CRD) and Capital Requirements Regulation (CRR).

Essentially, banks will be required to hold higher ratios of capital in relation to their lending. And unless banks want to see their balance sheets suffer, they will need to find ways of freeing up extra capital in order to satisfy the regulations.

One of the quickest and easiest ways to free up capital is to improve operational efficiency. In today’s financial sector, manual processes such as data entry still take up a huge amount of time and resources. What’s more, these processes are often outsourced to countries beyond the UK, raising issues of data security and customer privacy. By implementing simple data capture solutions, banks can eradicate the time-consuming, error-prone manual processing of electronic and paper documents, and eliminate the need to transfer sensitive information overseas. This greater efficiency ultimately drives down costs.

As the amount of data generated by the global population increases exponentially, the need for smart, integrated information policies has never been more apparent. Yet paper continues to be one of our primary tools for consuming and interacting with information. How can banks reconcile the versatility of paper, with the regulations and demands of today’s digital economy? The answer, quite simply, is data capture.

So long as paper remains a key component in our information architecture, solutions that extract data and direct it into workflows will be invaluable for financial institutions across the globe. Furthermore, data management tools such as these create visibility over the entire spectrum of information within a business. Due diligence procedures are simplified, potential pain points are identified earlier, and overall operational efficiency is increased. As capital is squeezed under the new 2014 regulations, banks will either need to explore solutions such as these, or else start explaining to shareholders why their bottom line is disappearing

TagsRisk & regulationRetail banking

Comments: (0)

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

Latest posts from Retired

7-day account switch: customer empowerment or indifference

18 June 2014  |  1897 views  |  1  |  Recommends 0 TagsRisk & regulationRetail banking

On Reinventing Money.

03 June 2014  |  1279 views  |  0  |  Recommends 0 TagsPaymentsInnovation

Operational Lessons for New Boutique Asset Managers

27 May 2014  |  656 views  |  0  |  Recommends 0 TagsRisk & regulation

Trading System Failures Cannot Be Our Norm

21 May 2014  |  1513 views  |  0  |  Recommends 0 TagsRisk & regulationInnovation

Around the Clock Tweeting

15 May 2014  |  1984 views  |  0  |  Recommends 0 TagsMobile & onlineRetail banking
name

Retired Member

job title

company name

member since

2014

location

Summary profile See full profile »

Retired's expertise

What Retired reads
Retired writes about

Who is commenting on Retired's posts

Rasvan Stanescu
Sian Bentley
Tony Wenzel
Jorge Yui
Ketharaman Swaminathan
Mark Pavan
Vishal Chaturvedi
Matt Scott
Geoffrey Barraclough
Thad Peterson
Marinka Ryan
Alexander Peschkoff