Mindtree’s Banking Solutions
Current fiscal will be challenging at the same time interesting for the market players as globally new and emerging technologies are disrupting and transforming traditional trade practices. In parallel for Europe, a deadline is approaching (25 May 2018) for implementation of a new regulation on data protection that will contribute to this transformation for anyone doing business within the European Union (EU). The General Data Protection Regulation (GDPR), the European Parliament and the European Commission intend to strengthen data protection for all individuals within the EU. Non-compliance can lead to a fine of up to 4% of the annual global turnover of the organization. The GDPR includes a number of provisions affecting digital identity governance that provide individuals with control over their personal data. Key provisions are:
Banks and Financial Institutions (FIs) are at increased risk today, given the rising sophistication of financial crimes, worldwide. Existing rule-based alert systems fall short of requirement as they address only a known set of scenarios. Result, a high percentage of false positives and negatives while missing out on the truly suspicious ones. This further leads to revenue loss, heavy penalties for non-compliance and loss of brand reputation and image.
The new regulatory environment is forcing finance and product controllers to adhere to strict operating and reporting standards. Given the fragmented reconciliation processes, being able to automatically handle exceptions and correct source systems is very difficult. General Ledger, Cash/Nostro, OTC derivatives, Trade Confirmations are few of the workflow areas which need to be optimized to enable seamless reconciliation.
Restoring trust may be touted as the biggest test for global banks today, but it’s also the greatest opportunity for their competitors. From retail customers to high -net -worth investors and corporate clients alike, banking and investment management has entered a new competitive era where customer service and managing the customer experience are clear differentiators – crucial for success. As clients demand more in terms of customer experience, personalization and with competition so rife, it is important to capitalize on your ability to on -board clients in the most efficient and effective manner.
Past iterations of digital initiatives within the banking and financial services industry have mostly focused on digital channel enablement and multi-channel delivery. Attempts have been made to reduce costs and gain market share through self-service and serving existing capabilities over digital channels that are in vogue at the time. By and large, the impact of emerging digital channels on overall customer experience (CX) has gone unexplored. And to top it, client service capabilities around digital offerings have ranged from sub-optimal to non-existent. Not surprisingly, most banks have not been able to achieve measurable return of investment (ROI) from their digital investments. When new channels have been created, they have cannibalized traffic from other channels and seldom created net new business. In most cases, anticipated savings have also not materialized.
Mindtree’s Blockchain-based solution enables a new, smarter approach to over-the-counter (OTC) contract management. Using a distributed shared ledger based on Blockchain technology, banks can deploy a faster, more efficient and more secure solution for the trusted and transparent exchange of documentation related to an OTC transaction, including:
For years, corporate lending has been considered too subjective and relationship-driven for automation. Banks rely on a combination of disparate IT systems, word documents, spread sheets and email to complete an approval process. Increasingly, both internal and external stakeholders are seeking a modern IT solution to enable banks to:
Foreign Account Tax Compliance Act (FATCA) is a US legislation to prevent tax evasion by US citizens, through the use of offshore accounts. It requires Foreign Financial Institutions (FFIs) to register with US Internal Revenue Service (IRS) and report certain information about US account holders to the IRS, either directly or through the home country tax authority. It also requires Non-Financial Foreign Entities (NFFEs) to disclose the identity of their US owners to the IRS. FATCA imposes a penalty of 30% withholding tax on payments made to non-participating FFIs and recalcitrant account holders, who refuse to participate with the IRS.
The Banking Financial Services (BFS) industry is one of the most data-intensive industries that operate in a highly regulated market. The volume of data and analytics that would be required in the future exceeds the current processing capabilities. The global compliance landscape in BFS is expansive, covering a large number of regulations around finance and risk management functions, spanning KYC, monitoring transactions against potential money laundering or fraud, financial reports, risk assessment and exposure reports, periodic disclosures and so on. Most of these functions are manual in banks, which make these activities time consuming and susceptible to errors.