Insurers must address fundamental strategic issues. It is more important than ever to anticipate emerging trends and prepare for change. For insurers to keep up, they need to leverage targeted technologies to increase digital maturity across the entire customer relationship and value chain and provide their customers with a seamless, unique and tailored service experience. Tomorrow's insurers will have little in common with those of today. Six theses on how new technologies and the availability of enormous amounts of information will fundamentally change the world of insurers.

InsightSteffen Reisch-Meissner4. Mai 2022data analytics, information processing, insurance of tomorrow, digitization

Resolvability Planning in Progress

About eight years ago, the Single Resolution Mechanism entered into force and only shortly after, the Single Resolution Board (SRB) began its work in Brussels. Since then, many areas of resolvability planning have progressed well and banks are receiving ever more specific guidance and obligations. An overview of recent publications and current priorities.

InsightRaphael Steßl27. April 2022Blo, Aufsichtsrecht, Abwicklung, Bail-in, SRB, Bafin, resolution, regulatory, EfB

Success Story: Market Data Cost Reduction through Decommission of Feed

ProjectGuest User9. März 2021market data, bloomberg, cost reduction, snapshot data, feed, data license, market data supply, cost savings

Machine Learning in Finance: An innovative approach to analysing Hidden Reserves / Losses processes and other financial parameters

The wider acceptance and active development of machine learning techniques and data analytics have made it possible to optimize and automate business processes. This presents a lucrative opportunity for banks to redesign their operations to cut processing times and improve transparency. We present the potential of these techniques by applying a machine learning approach to a hidden reserves/losses process that can often be found in the finance departments of banks.

InsightIvan Balashov26. Januar 2021ML, Machine Learning, Finance, Lasso, Regression, HRL, optimization, automation

Implementing the IBOR-transition in and around Loan IQ

In recent years the financial system’s regulators have worked towards discontinuing the existing reference rates for unsecured lending within the interbank market (IBOR, Interbank Offered Rate). Consequently, the important LIBOR (London Interbank Offered Rate) will most likely not be published anymore already by end of 2021.

That is why banks need to adapt their IT-systems towards a new interest-methodology to be able to offer lending being based on the new reference rates.

InsightJan Eric Filipczak21. Juli 2020Loan IQ, RiskFreeRates, IBOR, LIBOR, Lending

Hedge Accounting [Part 2]: Prospective Testing and the Risk Induced Fair Value

According to IFRS9, the prospective test is, with a few exceptions, to be used for assessing the effectiveness of hedge relationships. In the second of two parts, we present the implementation of the prospective test according to the Risk Induced Fair Value approach as well as its challenges in implementation.

TopicIvan Balashov17. Juni 2020Hedge, Accounting, HedgeAccounting, Effectivity, Derivative, RIFV, RiskInducedFairValue, IFRS, IAS, IFRS9, IAS39, Prospective Testing, quantitative, Dollar-Offset, prospective

Hedge Accounting [Part 1]: Prospective Testing and the Risk Induced Fair Value

The IASB regulations in the IFRS 9 Standard came into effect within the EU on 1 January 2018 with the aim to replace the previous approach of the IAS 39. In hedge accounting, the prospective effectiveness test becomes increasingly important in this new standard. Companies are also given the option of initially continuing to account for the effectiveness of hedge relationships in accordance with IAS39. The first part of the two-part article presents the effect of the regulatory requirements on the prospective test.

TopicIvan Balashov9. Juni 2020Hedge, Accounting, HedgeAccounting, Effectivity, Derivative, RIFV, RiskInducedFairValue, IFRS, IAS, IFRS9, IAS39, Prospective Testing

The Future of Payments: SWIFT, TARGET2 and ISO 20022

In the course of teh transition to ISO20022, the European payments infrastructure will change fundamentally and enormous opportunities in terms of process efficiency and an optimized customer experience will open up. Even though the integration of the standard is not mandatory from a regulatory perspective: To keep pace with international developments, extensive implementation projects lay ahead of European banks. In this article, we provide a brief overview of what is at stake and when the changes will take effect.

TopicGuest User24. März 2020Payments, ISO, ISO 20022, TARGET2, SEPA, EBA, STEP1, STEP2, EURO1, Bundesbank, TARGET, UNIFI, SWIFT

TRENDS and Insights

Building bridges - Excerpts from our work and current industry topics