Financial institutions must correspondingly make dramatic improvements in their systems infrastructure to support these new requirements. Those that do not make a step change will be forced to hold more capital and liquidity, will be less operationally efficient, will have less satisfied customers, and will be adversely selected against on credit. But doing so can be surprisingly difficult.
In this paper, Solid Foundations: Effective Systems Strategies for Enterprise Finance and Risk Analytics we demonstrate that there are paths that have proved promising, but different strategies might be most effective across the trading book and lending book. We see most potential in a “Central System” solution for the trading book but in a “Thin Layer” approach for the lending book.
Dov Haselkorn – Partner in the Americas Finance & Risk and Strategic IT & Operations Practices