The conference

Sibos 2018 - Conference programme preview

 

We are currently putting together a rich conference programme that will be available in full end June 2018.
Below is a selection of sessions we have drafted for the main conference programme.

All sessions are built under the theme “Enabling the digital economy” and categorised under the following Sibos streams:

The traditional multi-bank correspondent banking model may not stand the test of time. While many proof of concepts and market initiatives are focussed on a distributed ledger approach why not look at a centralised alternative. Based on the growing success of cloud solutions and API usage, could we build a super centralised and virtual model? A system where cross-border transactions and their lifecycle sit virtually in a cloud with banks interacting with a central cloud utility and updating the transactions through APIs? This session will debate the potential of such an approach – How could it be run? What technology would be required? Who would manage it?

Corporates rely on the smooth running of cross-border payments as a key enabler to conducting international business. So far, we have seen new initiatives that improve the tracking of payments sent as well as providing a confirmation of credit back to the payer – services mainly focused to the buyer’s side. How can banks further enhance their payments and financial service offering, by providing enhanced services to the corporate seller’s side? New value added services like advanced visibility on incoming payments that could optimise corporates' liquidity or a request for payment that could speed up their supply chains and ease reconciliation. This session will explore the challenges, needs and wishes of corporates on the beneficiary side, and the services banks could offer in response.

As cross-border payments become ever more automated and regulated, FinTechs become ever more competitive and global ecommerce players become financial service giants – banks must invest in emerging technology and reimagine their client services. Mid-size banks are under particular pressure with costly branch networks and limited in investment options due to lack of scale. In this fight for survival, banks will need to make fundamental choices over where their competitive advantage lies and what they believe their business model will look like in the future. Join this session to discuss about the options open to banks reimaging their future – reduce breadth of services, focus on what they do best, or become a super-efficient scale payment factory?

There has been unprecedented focus on digitisation of entire trade finance ecosystem across the banking industry. Countries are coming up with their digitised trade platforms and opportunities to collaborate now extend beyond the traditional trade finance players. In a fast evolving landscape, what will the future of trade look like? Will we see emergence of multiple government driven trade platforms? How do banks and corporates respond to these developments? The importance of standards and a common language for trade finance gains even more importance in these times.

After a steady run towards globalisation for 20 years, world trade is potentially facing protectionism in for the first time in 21st century. Trade finance revenues at top banks saw further decline recently despite higher interest rates and commodity prices. Faster payment settlements will bring down working capital needs and emergence of alternative trade finance providers will present new challenges for banks while compliance and fraud risks remain a threat. With this challenging background, what are the key focus areas for banks as we progress towards a more digitised world of trade finance. Will higher regulation make trade a less lucrative product for the industry going forward?

New technology and open banking is driving a digital transformation in the corporate to bank landscape. This transformation is changing bank business models and creating a rich ecosystem of third party solution providers that will help treasurers address their key industry challenges in ways that have so far been unimaginable. And yet, treasurers will have to leverage those opportunities in a world where cyber-threat, regulation and the need for agility are only increasing. In this treasury panel session we’ll hear about how treasurers from leading multinationals are navigating this new world and how new technology and open banking is shaping the bank partnership of the future.

Technology, regulation, customer demand and social demographics are driving dramatic change in the way financial and other services are being created and delivered. In the financial industry, we hear more and more about the concepts of ‘open banking’ and ‘banking-as-a-platform’. In the long term, banks will need to find a new place in a global market where products, services and finance are increasingly integrated. But what exactly is opening banking and what does it mean in practical terms for banks? As non-bank entities gain ever greater access to customers and their data, how will banks stay relevant and competitive? How do they combine the power of their traditional assets – customer base, customer data, balance sheet and talent – with the new concept of banking-as-a-platform? How do they develop strategies to access, use, and build upon the data they have in order to add value to their customers? And given the opportunities that banking-as-a-platform may offer, how can banks develop a partnership strategy that provides value to their customers but does not diminish their customer relationships?

Recently, the FX industry has been suffering from a lack of trust in how it functions. This session will explore the FX Global Code, a set of principles launched to restore the public’s good faith in FX markets and address the potential knock-on implications in other segments, such as correspondent banking. Among the principles in the Code are recommendations on how payments should be made and checked, and the need to support netting and payment-versus-payment processes whenever possible. As the correspondent banking world is itself is addressing inefficiencies and costs, can correspondent banks meet the new needs of the FX industry, or will it risk disintermediation?

In the evolving compliance landscape, new technologies play a critical role in helping the industry unite to combat financial crime. Although in its infancy, AI technology has the potential to be applied in a broad range of areas and provide business insights to drive innovation, improve the effectiveness and efficiency of processes and mitigate compliance and fraud risks. Machines can also play a critical role in dealing with the data challenges linked to higher levels of information, and data processing associated with the increasing flow of international transactions. Together, are AI and robotics a magic bullet to reduce cost and increase effectiveness? And what are the associated risks? Could wrong application lead to unexpected consequences and systems with implicit bias? Will these technologies be transformational or functional? As we embark on the RegTech journey, how can banks convince regulators that the technology works? And does all the hype have a real-world application in such a key risk area?

With the rapid rise of cryptocurrencies over the last few years and many instruments seeing significant price growth, is the intent behind their creation leading to greater financial crime risk? With many cryptocurrencies un-regulated, and multiple regulatory jurisdictions calling for greater control, seeking to enshrine them within AML and CTF financial legislation, what are the risks posed? With this in mind, how can financial institutions remain vigilant and agile to stay ahead of iniquitous actors in an increasingly virtual, mobile and hyper-connected world. And given the challenges of detecting illicit financial activity using established currencies and payment methods, how can we combat criminal activity linked to cryptocurrencies? Who will bear the responsibility for financial crime compliance? Will FinTechs be held accountable, or will banks need to add this to their overflowing portfolio of responsibilities? And how will cryptocurrency-related crime regulation evolve over the next 12-24 months? With a strong link to new technologies, could cryptocurrencies bring benefits as well as risks? Or are the compliance ramifications too great?

As the global trend towards real-time payment systems continues to accelerate, many industry stakeholders fear increased fraud – and rightly so. One of the most pressing issues for banks, system operators and regulators is how to increase speed without sacrificing security. In this new payment landscape, can technology contribute to fraud and financial crime prevention, rather than simply speeding up payments? And in a world of instant payments, how much risk is too much? Are regulators ready to adapt a risk-based approach across the board, or does a zero tolerance approach for certain compliance activities still stand? As new payments bring about new methods of fraud, how are financial crime compliance teams shifting their focus to prevention rather than detection?

In a quest to identify and disrupt financial crime, there has been an upsurge in forging public-private partnerships (PPPs) between law enforcement and financial institutions - as no single party can accomplish this alone. That is why it’s imperative that public and private sector organisation work with each other to exchange data, harness their expertise and share information across borders. Can this model increase efficiency as well as effectiveness, for example by enabling banks to create better SARs through law enforcement feedback? And have we seen any effectiveness indicators so far? Can we expect the model to grow, and become multi-jurisdictional? And what are the risks linked to data privacy and personal liberty?

Asset managers around the world have raised the bar, introducing new business models with the potential to disrupt the post-trade ecosystem. In this session, you will hear the latest from asset managers and platform providers, sharing their views on the latest trends, potential impact across the ecosystem and why moving beyond comfort zone may be necessary for survival in an increasingly competitive market.

Increasing regulatory reporting requirements are impacting financial institutions with increased costs and additional risks of being hit with large fines. Compliance with “pilling up regulations” uses up scarce capital and human resources consumes IT budgets and puts unnecessary pressure on margins. As a result, some financial institutions are reconsidering how they manage operations in order to comply more efficiently with ever-changing regulatory requirements. Others are making adjustment to value propositions and putting innovative product development on hold. The end goal of these regulatory investments was to make markets, safe, drive down costs and improve transparency to protect the end investor. How have end investors benefited from key regulations to date? And what return on this investment has been seen by the institutions?

With the industry witnessing an unprecedented pace of change in technology, this session will explore whether businesses can harness their development in emerging technologies to meet big data challenges. In this session we will discuss how firms are looking to develop and deploy technology to maximise data and explore the underlying benefits and use cases. Panellists will also consider the challenges in the race for information, including data privacy, integrity, cyber and the impact on regulation.

Capital markets are in need of a major transformation that generates sustainable profitability and growth for financial institutions. In this session, our panel of industry expert will evaluate the industry’s response to increased regulation and new technologies. Has it been tactical, reactive and short sighted? Is there a need to redefine and transform capital markets and if so, how do we tackle the enemy within, address the threats of the status quo and break down the barriers of vested interest in favour of a common goal?

Recently, the FX industry has been suffering from a lack of trust in how it functions. This session will explore the FX Global Code, a set of principles launched to restore the public’s good faith in FX markets and address the potential knock-on implications in other segments, such as correspondent banking. Among the principles in the Code are recommendations on how payments should be made and checked, and the need to support netting and payment-versus-payment processes whenever possible. As the correspondent banking world is itself is addressing inefficiencies and costs, can correspondent banks meet the new needs of the FX industry, or will it risk disintermediation?

Technology can overcome barriers and borders, providing vast economies of scale and seamless connectivity, but increasing number of barriers are emerging by jurisdictions variously trying to establish domestic norms over remotely provided services and/or to defend or improve their industrial and economic positions. Where does this end?

Will barriers proliferate? Where will we see them? What effects will this have on technology-dependent industries, such as the financial industry? What effects will this have on the evolution of emergent technologies such as AI, and their deployment in the FS sector?

A number of countries are considering or are in the process of issuing their national cryptocurrency. Amongst others, the drivers for this transformation include reducing the cost of handling physical cash and also getting rid of the black economy. How far have these initiatives matured? What does it take to make the leap? How does such a new payment method co-exist or compete with other electronic payment instruments, and in particular instant payments? During this session the panellists will attempt to answer some of these questions and discuss where the industry is heading towards in this space.

Can emerging markets leap frog on the current innovation waves? Emerging markets were typically identified by less effectiveness. Second or third tier MIs used to be less efficient but are now better equipped, or less hampered, to apply new technologies that enable them to be as effective as major infrastructures, if not more. Are the leading MIs suffering from their legacy to adopt new solutions in a massive way?

New technologies take up rapidly, also in the MI space. They appear in multiple shapes and forms and address problems that often still need to be discovered. Will the winners be driven by an efficient community take up of DLT, big data analytics and APIs, or by individual investments, such as AI, machine learning and robotics? What role will competition forces play in this take up? Where will MIs invest first, knowing they are starting to lose their monopolistic position? Will new technologies also address new functionality requirements such as synchronisation of settlement across jurisdictions, interoperability between low and high value systems, new liquidity management functions, ...?

Large, mature organizations have (mostly) comprehensive cyber and fraud-prevention plans in place to protect themselves. But how do we do the same for small, regional firms that don’t have access to the resources, budgets or deep skills? How far can we get with rolling out coordinated practical, cost-effective solutions – security policy templates, education and staff training and the sharing of information within trusted local communities? Does this give enough of a head start, or do we need all the expensive tools and an army of skilled staff?

Arguably the biggest cyber-security risk simply ‘people’. From insider threats to acute skills shortage, poor diversity, patchy representation at Board-level and all the while the internal staff are still clicking on the damn phishing link. Are the solutions to cyber-security closer to home, and in our own hands? Is it all just over-blown hype that can be managed just like any other risk with a bit of education and discipline, or will people always be the biggest intangible and the cause of the biggest headaches?

The past year has been instructive in shedding light on the future trajectory of the Blockchain technology. During this session we will explore the current state of play with blockchain in financial services, looking at the challenges and opportunities of implementing the technology, and examining a number of use cases, for many of which proofs of concept are already under way.

Cloud and API technologies offer an immense opportunity to create a reliable, scalable global platform for the financial community - that is if data privacy, security, and operational transparency are dealt with. Are a shared infrastructure, consistent APIs and on-demand scaling the key to rapid global adoption of financial services at a reduced cost? Can the community afford to wait for a giant infrastructure to take a lead? Can Quantum computing become affordable only as a shared infrastructure under cloud?

Artificial Intelligence and its advanced technologies are set to transform business in ways we’ve not seen since the Industrial Revolution. In financial services too. To ride the rising wave of AI, financial services companies will have to navigate evolving standards, regulations and risk dynamics. During this session, we will discuss how financial services can best integrate AI into their operations and how to harness its potential with real life examples.

In today’s environment the dynamics in the workforce are changing dramatically. Not only are business needs evolving rapidly requiring a change from traditional business models, technology changes are influencing the nature of jobs and our approach to work. It is also becoming more widely recognised that diversity and inclusion needs to be a HR priority to promote diversity in thought and evolve organisational culture. Hear from experts on how the evolution of technology, the evolution of the payments industry and all cultural and Human Resources changes will force traditional organisations to rapidly evolve if they want to remain relevant in the changing landscape. Join this session to learn what your organisation can do to pivot in the right direction and become future proof.

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