CHANGING HORIZONS KEY ISSUES
32_SECURITIES.BNPPARIBAS.COM WINTER 2016 | QUINTESSENCE_33
CHANGING REGULATION
CHANGING TECHNOLOGY $15bn-$20bn
The amount blockchain could save banks in cross-border payments, securities trading
and regulatory compliance costs by
2022“Blockchain
technology continues to redefine the global financial economy”
Bob Greifeld, Nasdaq chief executive
In June, Nasdaq used blockchain technology to
support its new private share-trading market
“For better or worse, ’til death do us part, because the blockchain is forever,”
The blockchain-recorded message logging the world’s first blockchain
wedding, between David Mondrus and Joyce Bayo, October 2014,
Orlando, Florida
of asset owners look at risk on a daily basis
41%*10 of 41*
G20 countries who have implemented primary
legislation to support automatic exchange of information
130 of 193*UN Member States who have siged up to the OECD’s global
initiative on tax transparency
1 in 4* asset owners
view growing complexity of risk management as the biggest challenge
over the next year
Five critical issues are set to dominate financial services in 2016. Here are the words and trends you won’t be able to avoid.
“The work on tax is the
G20 at its best” Barack Obama
SPEED
OF GR
OWTH
INDIA
CHINA
INDONESIA
7.3%6.9%4.7%
15% - 20%43%*
50%*
45%*
68%*
33%*
Percentage of total private banking costs spent on compliance
Cited having the correct data for decision-making as the major challenge in risk mamagement
Cited having the correct data to meet regulatory reporting requirements as the major challenge
South America
Asia Pacific
EMEA
2015 GROWTH COMPARATORS
CHANGING HORIZONS Convergence of developed markets growth with growth in emerging markets
“In Asia Pacific a well-managed middle office function can add real value to
an organisation”Mostapha Tahiri,
Head of BNP Paribas Securities Services
Singapore
CHANGING BUSINESS MODELS
*BNP PARIBAS SECURITIES SERVICES GLOBAL RISK SURVEY 2015
BANKING BANANA SKINS 2015: THE CSFI SURVEY OF BANK RISK
*GLOBAL FORUM OF TRANSPARENCY AND EXCHANGE OF INFORMATION FOR TAX PURPOSES
*BNP PARIBAS SECURITIES SERVICES GLOBAL RISK SURVEY 2015
OUTSOURCING AND RISK MANAGEMENT: THE NEXT FRONTIER?
“The single biggest existential
threat out there is cyber”
Mike Mullen, former Chairman, US Joint
Chiefs of Staff
OUTSOURCING AND THE COST OF COMPLIANCE
CHANGING ATTITUDES TO RISK
Cybersecurity spending will grow twice as fast as physical security spending over the next five years
Growth in advanced economies Growth in emerging markets2014
1.8% 2.1%
2015
2.4%
2016 2014
4.6%
2015
4.2%
2016
4.7%
n Pale green = Membersn Grey = Non-membersn Yellow = Expressed interest
*117 ASSET OWNERS WITH USD 6 TRILLION AUM, BNP PARIBAS SECURITIES SERVICES GLOBAL RISK SURVEY 2015
SS&C TECHNOLOGIES 2014
Asset owners who outsource at least part of their risk reporting varies by region
Signatories to the OECD’s Global Forum on Transparency and Exchange of Information for Tax Purposes
*GARTNER 2015 ** MARKETS & MARKETS 2015
THE FINTECH 2.0 PAPER (SANTANDER INNOVENTURES, ANTHEMIS AND OLIVER WYMAN)
BUZZWORDS OF 2016
Latest poll of senior bankers and regulators shows
criminality (cyber attacks in particular) has risen from ninth last year to
second place in the table of most serious threats
2015 $77BN*2020 (PROJECTED) $170 BN**
GLOBAL CYBER SECURITY MARKET
GLOBAL PHYSICAL SECURITY MARKET 2015 $65BN**2020 (PROJECTED) $105 BN**
2015 GROWTH
IMF 2015, THE ECONOMIST POLL/ EIU FORECAST
CENTRAL AMERICA 2015 (IMF ) 4.25%
CHILE 2.8%COLUMBIA 3.3%
MEXICO 2.4%
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