As the law on CO2 reduction going to a public vote later this year shows, climate change risk and environmental, social, and governance (ESG) issues are now a priority. Banks need to establish a strong control environment for ESG issues. With this comes an increased focus on the quality of data about the risks. Internal audit (IA) can bring the same structure and rigour to processes, controls and governance for ESG risks that they apply to internal controls in other risk areas.
The Swiss mortgage lending landscape in transformation - Platforms as one of three underlying drivers
This article is a continuation of our editorial "Strategic trends and implications for bank operating models". As part of the debate on how Swiss banks can transform their operating models towards the 'new normal', we discuss the possible future role of lending platforms.
Opportunities in the financial services industry with crypto assets have never been more promising than they are today. We are developing a series of blogs on crypto assets, with topics ranging from current market trends, to technological advancements, crypto asset-related regulation and integrating crypto asset offerings into banks’ portfolios. This is the first blog in this series; we hope you will enjoy reading it.
Changing FSI CRO priorities one year into the COVID crisis – Insights from the 9th Deloitte Risk Executive Network (REN)
In 2018, Deloitte Switzerland launched a Risk Executive Network (REN) for CROs in leading Swiss banks, to exchange views on risk in the financial services industry. The REN holds three events each year, attended by up to 15 CROs from leading financial institutions. The impact of COVID-19 on financial institutions, the economic downturn and the changes brought about by working from home all have far-reaching implications for risk, compliance and regulatory management functions. Prior to the regulatory measures that were taken in response to COVID-19, risk management in banks was concerned primarily with issues of scale and scope. Priorities have changed as expectations about the future have adjusted to today’s uncertain environment.
Over the past year, it has been rare to see a day without a climate change risk - related announcement by a financial institution, banking industry organisation or regulator. And a number of them touch on governance issues.
This article is the first in a series on how Swiss banks can transform their operating models towards a new normal. The Deloitte Financial Services Transformation team will be publishing on an ongoing basis its perspectives on the key implications, international best practice and potential solutions that banks might implement.
The impact of COVID-19 on financial institutions, the economic downturn, and changes to working practices have had broad implications for risk management. How has risk management already responded and what are the implications for strategically restructuring risk functions?
The ever-evolving role of an Automatic Exchange of Information (AEOI) responsible person - Join our live training on 3 March at 16.00 CET
Both US FATCA and the OECD’s Common Reporting Standard (CRS) require Financial Institutions (FIs) to put in place processes, procedures and overall governance to enable accurate reporting of information about the FI’s account holders and/or controlling persons thereof, to certain tax authorities. These rules, which are commonly referred to as the Automatic Exchange of Information (AEOI), have become business as usual over the past six years. However, these rules are practically complex to implement and maintain, and can expose FIs to significant risks. Key challenges include manual processes, local expertise requirements, systems interfacing, documentation and data deficiencies, and requirements that are often unclear and continuously change. Jurisdictions around the globe are starting to take audit action.
The lockdowns of 2020 have accelerated the adoption of digital channels by as much as five years. When potential clients change how they interact with their financial providers, banks are prompted to act. They have to adjust their mortgage distribution strategy to maintain or increase the level of leads and therefore mortgage volumes. Online and mobile channels are finally starting to live up to their potential. For example, the percentage of clients taking out mortgages online has increased around 15 percentage points compared to pre- COVID – a trend that is expected to continue. Similarly, phone and video advisory has finally made a long-awaited breakthrough.
Over the past decade, Swiss financial institutions, banks, insurance companies and asset managers have been facing challenging times, and this has resulted in the number of key performance indicators deteriorating. In parallel to this, a number of new entrants came into the market: Fintech, Insurtech, new banks which have grabbed market share from the traditional players in order to gain market share. Watch Deloitte Switzerland’s Financial Services Industry leader Jean-Francois Lagasse’s video statement to find out how financial services companies need to embrace change to win in the marketplace and read this blog post for more detailed information.