Global loan originations have declined since COVID and the trough of interest rates in April 2020. For example, in the U.S., loan originations fell from $4.51 trillion in 2021 to $1.50 trillion in 2023. Currently, interest rates in the U.S. are declining, and mortgage originations in the first three quarters of 2024 have increased by 9% over the prior year. The U.S. lending industry [...]

  In 2025, the financial services industry will continue to build out its AI, GenAI, cloud delivery, and process automation capabilities. NelsonHall’s recent survey of financial services executives identified that: Operational transformation is highly important to 92% of retail banking companies and 93% of commercial banking companies  Current operating models and pr[...]

  I recently attended the Genpact AI conference, where the Genpact employees I spoke to were energized by the changes AI is bringing and are focused on helping clients operationalize emerging technologies at scale. The company is investing in tools to provide greater ongoing feedback from employees: an HR executive described how they use an employee feedback system combined with a bene[...]

  In July, I published a blog outlining the latest evolving practices in core banking platform transformation. In this new blog, I outline Capgemini's approach to addressing core banking transformation challenges with its clients. The imperative of platform transformation Demand for core banking platform transformation continues to proliferate to enable banks to: Reduce[...]

  At its recent thought leadership forum, Confluence 2024, Infosys set out its roadmap for achieving a leadership position in AI services. Despite the hype in the marketplace, Infosys finds its clients are taking a thoughtful approach to implementing AI. Clients want to carefully evaluate the realistically achievable ROI if they bring a project to full operational deployment. Once t[...]

  Banks are undertaking core banking transformation projects at an accelerating pace. Typically, two-thirds of these transformation projects will fail. Most either fail to implement a new solution altogether, leaving the bank with the original legacy system, or (in the case of a successful implementation), fail to deliver the anticipated value. Some projects, such as those at TSB Bank [...]

  Financial institutions are data-driven businesses, and because of decades of investment in technology, banks process data using heterogeneous legacy environments. Modern AI and GenAI solutions promise to enable banks to manage and analyze data more effectively. However, adopting new AI solutions is lagging far behind the market hype. In this blog, I look at how TCS is helping clients[...]

  I recently attended the EY Global Analyst Summit 2024, the theme of which was Rethink! The conference sought to answer the question, “How is EY rethinking the value it delivers?” and this blog looks at how EY is rethinking its activities in support of the BFS industry sector. EY has been growing its business rapidly, with the most recent numbers showing 15% revenue gro[...]

  Financial institutions have complex portfolios of products presented to customers in a siloed, product-centric fashion, which makes shopping for financial products inefficient and reduces the overall customer experience. However, digital delivery promises to improve customers' shopping experience, CX, and CSAT.  Some firms in other industries have been doing this successf[...]

  NelsonHall recently attended the Infosys U.S. Analyst Day in Dallas, the theme of which was “Being AI First”. It demonstrated clear progress since last year’s conference in Infosys’ thinking and approach to the critical steps for effective implementation and operational deployment of AI. Key components of AI-led operational transformation Infosys and its[...]

  Financial institutions are rapidly starting or growing existing wealth and asset management businesses. In the U.S., wealth assets under third-party management have grown over the last five years by 16.8% CAGR to 2023 (Source: Statista). Wealth advisors are looking to continue to invest in and grow their wealth management businesses because they see continued growth coming from: [...]

  In 2024, the financial services industry will face strong economic headwinds. Usually, this is a formula for downsizing and consolidation. However, today’s headwinds are so strong that the industry will need to: Assess and restructure its supply chains to address new priorities such as ESG reporting Accelerate customer experience transformation to increase personalizati[...]

  ESG services are an emerging set of tracking and reporting capabilities for enterprises. Emerging technologies do not mature in a straight line but cycle through peaks and valleys of development and adoption as they mature. In the past year, ESG services have passed from the euphoria stage of market adoption to the valley stage as the hype has been confronted by the real-world challe[...]

  Financial institutions use legacy ERP solutions to monitor, control, and report on their business activities. At large institutions, most of these solutions were deployed in the 1990s and have inflexible architectures that need the requisite functionality to report on modern products, regulations, and industry practices. In this blog, I look at how Capgemini is helping clients tackle[...]

  Compliance is driving the adoption of ESG initiatives by enterprises, and currently Europe is ahead of other markets in the rigor of its ESG-related legislation and regulatory code. In this blog, I look at what Unisys is doing to make it easier for enterprises to comply with Germany’s Supply Chain Act. Background In 2023, several new regulations have increased compliance [...]

  NelsonHall has just completed the research for a market assessment and forecast report on Transforming Intelligent Automation Services in Banking. We found that banks have accelerated the adoption of IA services in operations over the past two years, a shift that has been driven by: Declining operating margins on legacy businesses Pursuit of new customer demographics to repla[...]

  Capgemini has partnered with Microsoft to develop and market a dynamic hyper-personalization offering for the financial services industry. This blog explores how hyper-personalization capabilities can be adapted to the unique needs of the financial services industry. Background Enterprises want to increase the personalization of their offerings to customers to increase CSAT an[...]

  The securities industry is moving towards shorter settlement cycles to reduce risk and increase efficiency. The last reduction in settlement windows in the U.S. was in September 2017 when settlements moved from T+3 (three-day settlement) to T+2. In February 2023, the U.S. SEC announced that all companies trading securities on U.S. exchanges needed to move to T+1 settlement by May 28,[...]

  The lending business is highly cyclical due to its sensitivity to interest rates, economic cycles, and capital availability to fund loans. According to the Mortgage Bankers Association, these factors are currently driving down mortgage originations, which have fallen 60% y/y in the U.S. in Q4 2022. The decline in originations pressuring the margins of this high-cost activity is th[...]

  In the financial services industry, there was an initial expectation that demand for intelligent automation (IA) would fall off as clients changed platforms and moved to a microservices architecture. Instead, the application of IA in financial services has grown rapidly. The initial evidence from my current study shows that despite challenges deploying the technology effectively, the[...]