Tea/Coffee break

Evolving Basel IV: Impacting bank capital management

Basel I, II and III focused a lot on the insights that historical data from within the institution provided in benchmarking and assessing risks at the institutional level. It then tried to expand to transactional and trading data. Now new arrays of data sitting outside the institution are proving to be as important in developing new paradigms to assess credit and transactional level profiles. The implementation of the Basel IV framework is already a remarkable challenge within the banking landscape and will be significant throughout the banking industry. As part of its requirement, capital calculations across all risk types will be fundamentally amended.

Cybersecurity vs Innovation and Risk vs Return: Striking the right balance between digital innovation and security

Technology and data advances will enable banks to provide customers with a hyper-personalised and largely automated service within the next decade, replacing the traditional retail products-based approach. As customers start to take more control of their own personal data through digital ID profiles – in order for banks to extend digital evolution – they will have to find the right balance between innovation and risk management.

In this session we will discuss how banks can use their trusted position to build a closer relationship with customers, as well as how banks can expand their role at the centre of a more platform-based financial services model.

Networking luncheon

Is regtech less or more? What the future holds for a meaningful paradigm around regulation

Significant advances in software applications are making “regulatory technology” (regtech) viable solutions for financial institutions to meet the demands of regulatory compliance. Developments in artificial intelligence, big data and cloud computing potentially give regtech the potential to lower the cost of compliance and process vast amounts of data with higher precision than the legacy systems of financial firms.

There are a number of exciting changes on the horizon. Financial institutions have only begun to explore the potentials for regtech to help them keep up with the increasing demand on financial regulations while becoming more proactive in using some of these requirements as guides in decision making. But before that, we have to ask ourselves if there is an overall philosophy that will guide the regulators and the regulated.

How will machine learning and AI enhance compliance and due diligence?

As financial institutions are still facing challenges from the high cost and manual processes of conventional know your customer (KYC) and customer due diligence (CDD), artificial intelligence (AI) and machine learning have allowed banks to go above and beyond traditional CDD efforts and increased accuracy of risk scores for areas such as anti-money laundering (AML).

In this session we will discuss the aid of utilising AI and ML-powered solutions to investigate customer transactions and relationships, as well as the role of AI in AML for sustainable compliance. Can AI and ML facilitate advanced and adaptive real-time transaction monitoring? To what extent will big data analytics and automation impact CDD solutions? To what extent are AI and automation KYC costs and complexity containment factors?

Technology risk and operational resilience

Operational resilience is now as important to the financial services industry as financial resilience. Mitigating the risk and impact of service outages and becoming resilient to cybersecurity threats is increasingly vital to institutions’ financial wellbeing. Building operational resilience is high on institutions’ and regulators’ agendas around the world as both work to protect customers, stakeholders and the economy.

In this session we will discuss the key steps in the journey to operational resilience. This will involve governance, strategy, business services and information security. How do we structure the risk function around new technology risks? How can we achieve business resilience in the face of digital transformation, cybersecurity, AI and data developments?

Networking tea break

Day 1 - Closing keynote