Webinar - Implementing Operational Risk Management in Foreign Exchange Activities

Tuesday December 13 - 9:00 AM PST / 12:00 PM EST

This intensive on-line webinar details how the FX trading process works, what are the risks and how these can be managed and mitigated effectively.

The foreign exchange market is the largest and most liquid sector of the global economy. According to a survey conducted by the Bank for International Settlements, foreign exchange turnover averages over $5.5 trillion per day. Put another way in three days foreign exchange turnover is sufficient to cover world trade in a year.

The increased complexity of the market plus higher trade volumes have necessitated constant changes in trading procedures, trade capture systems, operational procedures, and risk management tools.

This webinar will provide a solid foundation to all parties involved in foreign exchange activities whether at executive, marketing, audit or operational levels into how the actual trading processes work, what the risks are and how these can be mitigated by using clearly defined standards of best practice.

______

This course is approved by NASBA (National Association of State Boards of Accountancy). Attendees at the Live Webinar are eligible for 1.5 CPE credit up on full completion of the course.

FURTHER DETAILS AND REGISTRATIONS>>
 

Use coupon code 335840 and get 10% off on registration

Digital Banking - Some banks just can't get it right

By Stanley Epstein - Principal Associate - Citadel Advantage Ltd -


I really am a really big fan of digital banking. Banking digitally is a positive change from the way banking and banking transactions were carried out in the past.

I really like the way it has changed my life for the better.

I like the way it has given me a new freedom to do my banking when I want to, where I want to and to a large degree how I want to.

There is something empowering in being able to attend to virtually all your banking needs from the comfort of your own office. A massive plus is that you have all the other relative information that you may need close at hand; you can look things up, you can check things, and you can interact with your bank from a “strongpoint”, namely from your own desk.

A particular highlight of digital banking is that there are no queues, no surly or indifferent staff, and the fantastic ability to do my banking at 1.00am if I so choose.

I also like the little extras that I didn’t expect and that have now become a nice part of my new digital arrangement with my bank and how I manage my affairs. Extras like friendly little reminders or comments that arrive comfortingly on my mobile telling me I am close to my limit or confirming a credit card transaction.

Of course, all of this comes at a price and it somehow rankles that I am to pay a fee for every little thing that I do. After all, I am doing the bank’s work by entering my own transactions, and feel that to pay for this privilege is a bit of a cheek. However, the question of bank fees is another issue. Everything else aside, I would say that I am pretty satisfied with this new digital way of doing things.

That said I have a couple of bones to pick with my own bank when it comes to some failings in this new digital world. The name of my bank will remain anonymous. They know who they are, and hopefully someone from my own bank will read this and take note. I am sure that many other banks will recognize some of the problems that I list below too, and that they too, will take action.

1. Bank statements (digital on-line version). Ever since I can remember, bank statements displayed on-line, start with the first or earliest transaction, displayed at the top of the screen and subsequent transactions are shown below each other in date order. So it was with my bank for all on-line accounts (cheque, foreign exchange, investments, mortgage). At least, it was so, until about a month ago when for reasons unknown, the online cheque account statement began to appear backwards! By backwards, I mean that the latest transaction appeared at the top of the page with preceding transactions slowly being pushed down as new ones appeared. It would have been nice if the bank had bothered to tell its clients of this change, but that was not to be. From what I hear from other clients of the bank there was massive confusion among customers if not downright anger. Not a clever move.
2. Terminals. As many banks have done, my local bank branch has dispensed with tellers. The lobby, as you enter the bank proper, has an impressive array of terminals, including ATM’S, where clients who still wish (or need?) to have a branch “experience” can transact their business. As with any system, there are many occasions that a transaction cannot be completed for any number of reasons. When this happens, the appropriate reason should be stated on the terminal so that the client is aware of what the real problem is. Giving a stock answer that “this transaction could not be completed”, is simply not good enough. It can easily lead to panic attacks (best case) or even heart attacks (worst case) among some bank clients. Could the transaction have failed because my balance is insufficient (‘OMG what has gone wrong with my finances?’) or is it a system problem (irritating, but I’ll live)? Why not add an extra line and tell the customer why the transaction could not be completed, like “your balance is insufficient”, or “there was a system problem” or perhaps “SNAFU” for this one would be even better?
3. Cash dispensing at ATM’s. Yes, even in this digital age, there is still a need for some cash. Unfortunately my bank believes that cash withdrawals mean dispensing the largest denomination banknotes possible. Giving your customer the largest denomination notes possible, is not a service, it’s a burden. Cash generally is used only for small transactions, and a client with no human teller to go to, is really in a bind. If the bank won’t allow denomination choice at the ATM at least offer a change machine!

These three examples are currently my own pet hates. I get the feeling that many banks, having switched to digital, often do things that suits the bank best, with no concern for their client’s needs. Please banks, my own included, take heed of what your clients say. Please get digital banking right.

Are mobile payments a fintech quagmire?

By Stanley Epstein - Principal Associate - Citadel Advantage Ltd.

oOOo

A while back I wrote an article in which I expressed my concerns about the future of mobile payments; “Why I am worried about the future of mobile payments”.

In essence, the problem that I focused on is this - there are just too many forms of mobile payments being offered by too many organisations and by too many banks. This approach creates confusion. It come about because everyone is bent on promoting their own form of payment mechanism in the hope that it will be the next “big thing”.

There is nothing new in this approach. Ever since banks and technology began to come together beginning in the 1970’s, there has existed this weird notion that if a bank can create something unique they would be able to capture the market, beat the competition and make a fortune.

Of course this notion is totally false.  We have seen this proved on countless past occasions whenever new innovations have just failed to take off, simply because banks failed to note that the key to success is co-operation.

If they cooperate everybody wins. If they don’t cooperate we end up with multiple failures.
If there are too many payment mechanisms and too many payment apps all that will be achieved will be a multitude of duplicate systems. These systems will often be inadequate in their own right too as they fail to adequately address user needs. These users will be totally frustrated as too will be the retailers. Very rapidly these mechanisms will fall into disuse and be abandoned.

The key to success is a single simple uniform and universal mechanism available to all users, sellers, banks and technology vendors.

So now I fast forward from these sentiments which I jotted down in March 2015.

In recent weeks two articles have grabbed my attention. Both point to the sorry state of mobile payments today.

The one article is “Mobile banking adoption growth is slower than you think”. Here Stephen Greer makes it clear that there is a disconnection between the hype surrounding mobile banking and the reality of how consumers actually interact with financial institutions. He points to the facts that a recent iteration of the Federal Reserve’s “Consumer and Mobile Financial Services 2016” survey report shows that mobile banking adoption is really slow. Among the reasons for the slowdown is the fact that 86% of respondents say that they don’t use mobile banking because they can achieve their banking needs without it. Many consumers are perfectly fine solely using online banking or ATM’s or branches.

Their reasons for non-adoption are that many apps are not mature enough (39% said the screen was too small; 20% said apps were too difficult to use). And what applies to mobile banking applies to mobile payments as well.

The second article was even more damning. “This new app proves mobile payments are a mess” states that basically there was a time when to make a purchase was a simple process. You gave the cashier money or a credit card and you would get your purchases and maybe some change and maybe a receipt and off you would go. But today in many places that have embraced mobile payments, a multitude of the different services and apps has left the process at the checkout counter a confusing mess.

Different stores accept different payment mechanisms. This means that users have to have a multitude of different apps on their mobile phones as they don’t all work the same way. This leads to confusion and delays to the frustration of all concerned.

Different retail outlets have joined the fray as well.  In the U.S. Walmart refuses to accept Apple Pay because it wants to promote its own mobile wallet app.

So the intervening year and a half since I expressed my concerns have left me even more skeptical then I was then. No one, either banks or retailers seem to see how this misguided notion of beating the “competition” is not working. In the end the people who matter, the consumer, are going to turn their backs on this disorganized mess.

And that would really be a pity. 

Nine Characteristics of a Project Manager

By Stanley Epstein - Principal Associate - Citadel Advantage Ltd.

So you are an aspiring project manager? You have done the training. You have passed the exams. You have a certificate to prove it.

Now the really hard test begins. Are you going to make the cut in the project management world? What are the key characteristics that a good project manager should have?

As one would expect, project managers come from all walks of life, with different professional backgrounds, different experiences and different skills.

Despite this however there are certain key characteristics that all good project managers’ have in common. Despite the huge diversity that project managers display there are personal traits that good ones all have in common.

To start with they like managing projects. If any of you are not entirely sure of what a project really is please take a moment or two to get you bearings by reading my article “The seven key characteristics of a project”.

Managing projects is not something people are neutral about. You either like it or you don't. Why would anyone want to do a job in which one can fail so spectacularly? If you succeed people will simply shrug their shoulders and say you just did your job?

Some people delight in the challenge and like the feeling of accomplishment, of getting something done that may not have happened without them.

So what makes a good project manager? What are the key characteristics of a good project manager?
Well, good project managers:

1. Are hands on – the actually manage rather than simply co-ordinate, or preside over.
2. Are natural planners – the planning of what needs to happen and what needs to happen next is a reflex part of their actions.
3. Don't like surprises – and if you don’t want surprises you need to plan thoroughly to try to prevent them popping up.
4. Are really effective fire-fighters - when the inevitable surprises or other missteps do occur they are able to sort them out quickly and decisively.
5. Reward and punish and punish fairly as it is due – remember that not dealing with someone who isn't pulling their weight can not only destroy team morale but the project itself.
6. Are good motivators and good team builders.
7. Address conflict immediately and decisively rather than leaving things to fester – remember problems need to be nipped in the bud.
8. Do not hide in an office, they are not desk bound – they walk around and ideally locate themselves physically in the middle of their team so they are approachable.
9. Get consensus whenever possible but dictate when necessary.

Remember that project managers not only need all the personal skills that any manager needs; they also need to know how to manage projects; they need people management training -  leadership skills, influencing skills, appraisal skills and so on.

Most of all, good project managers MANAGE. They do not just get swept along with the tide and hope that it all pans out.  A good project manager grabs the project by the scruff of the neck and manages it.

And a final question; how many project managers should a project have? Why, one of course. The project manager may need others below him to manage parts of the project or specialist teams, but there is only one project manager accountable directly to the project sponsor.

ComplianceOnline Banking Summit 2016 - New York 27/28 October

Banking and financial services play a vital role in today’s globalized economy. The banking industry is the most heavily regulated and the regulators are demanding a far greater level of insight and awareness about the risks banks manage, and the effectiveness of the controls they have in place to reduce or mitigate these risks. This banking summit will discuss numerous banking regulations and will feature key topics including risk innovation, modelling and simulation.

The banking industry is more often the target for cybercrimes including financial fraud, identity theft, data manipulation, and persistent hacking attacks on payment systems and other critical information systems and communication channels. This BFSI summit brings together banking security professionals, regulators, banking specialists, risk managers, asset managers and supervisors to debate the threats to data security to the global financial services industry.

The panel discussions, debates, workshops and exhibitions will also throw light on the direction the industry will take in the future – making it all the more important for today’s banking professionals to actively take part in this Summit.

For more DETAILS and REGISTRATIONS CLICK HERE>>