“Companies can no longer have all their eggs in one basket,” Paul Simpson, head of equity asset service at Bank of America Merrill Lynch, told delegates – as had been demonstrated by the fact that even some of the world’s largest, most advanced corporations have suffered security breaches. “We’ll have to continue spending money [to address the issue] and the focus will be on uncovering the weakest link in the chain.”
Simpson forecast that information security is set to become the number one challenge. “Expect strong innovation in that space and the entrance of some new players into the industry,” he forecast.
Global corporations operating in more than 10 countries worldwide would develop “multiple contingency plays”, focus more on both the security of information and types of information that they used, and compete increasingly keenly with one another for top talent and individuals with the ability to identify the weakest links in the business model.
Key Corporate Trends
In addition to the increased focus on security, Simpson said that another key corporate trend identified by BofA Merrill is the growing demand for bank-agnostic standards. These are any that provide easier integration, accelerated onboarding , a multibank approach for payments contingency and ‘flawless’ integration.
Innovation is geared toward increasing efficiency through streamlined solutions such as intelligent receivables and digital disbursements. By contrast, the US is still far too reliant on paper-based payments, although the past two years have seen some improvement in the situation.
The concept of peer-to-peer (P2P) payments is being adopted and leveraged by more companies, particularly those in the insurance sector, and the cost is being driven down.
“SWIFT’s Innotribe is interesting as it is commercialising innovation and proving itself nimbler and quicker to respond than the banks,” said Simpson.
Apple Pay’s launch was a prime example of how existing infrastructures could be fully leveraged, he added. “Young people use the smartphone as a source of both interaction and transaction. That means that some infrastructures that have been in place for years will no longer continue to be applicable.”
Taken to its logical conclusion, that could spell the ultimate demise of the traditional bricks-and-mortar bank.
The Indo-US trade corridor is expected to grow to $500 billion by 2025. Currently, the two-way merchandise trade between these two countries is at $66.7 billion.
There has been an uptick of treasurers inquiring about interest rate risk management in recent months as interest rates in the US and UK have started to show a rise in momentum, said Chatham Financial at the annual Bellin treasury conference.
A series of governments are now very worried about the idea of bitcoin and these currencies because customers would be able to make sustainable ongoing transactions and payments without having to ever introduce the use of a typical financial model or banking system. To combat this potential threat, several countries including major central banks like the Bank of England and the Bank of Israel will be launching their own version of a cryptocurrency. This could bring big advantages to customers.
PSD2 is set to remake the EU payments marketplace. This deliberate public policy exercise is going to regulate and demonstrate what next generation financial crime competencies must be and cement the standard going forward.