Wealth management is evolving rapidly, driven by generational shifts, changing advisor roles, new business models, regulatory demands, and a growing preference for low-cost passive products.

In response to these changes, our fintech client partnered with one of the world’s largest financial institutions to develop a next-generation, open-source, front-to-back wealth management platform.

This innovative platform aims to:

• Boost efficiencies and revenue opportunities for financial advisors
• Create richer client experiences
• Digitize enterprise-wide operations

Unleashing the Power of AI and Real-Time Insights

We architected and platformed a highly connected, extreme-scale data solution powered by AWS that unlocks actionable, real-time insights from billions of records and integrated data sources. AI-enabled predictions equip wealth management partners to support clients more efficiently and build a competitive advantage.

AI delivers proactive insight on potential risk profiles and incentives based on internal and market dynamics to accelerate responsive client services and performance reporting.

Read the Full Story: Speeding Insights and Powering Investment Experiences

The Transformative Power of Digital Expertise

In a rapidly evolving wealth management landscape, staying ahead of the curve requires innovation, agility, and the right partnerships. Whether you’re looking to optimize your wealth management platform or embark on a comprehensive digital transformation journey, we’re here to help you succeed.

We’ve been trusted by 16 of the top 20 global wealth and asset management firms, and as an AWS Advanced Consulting Partner, we help firms tackle their toughest cloud challenges. 

Interested in a deeper dive? Contact us today to jump-start your digital transformation journey.

In today’s competitive climate, an exceptional customer experience (CX) is no longer a luxury, but rather an essential pillar of business success. Providing a seamless, personalized journey has become the cornerstone of brand loyalty, customer retention, and revenue growth. Customers expect positive omnichannel experiences, and brands that fall short of these expectations will not only miss out on current revenue, but also risk future sales due to negative perception and reputation challenges.

With brands stretching across digital and physical properties, building an omnichannel customer experience can seem daunting. Partnering with an experienced consulting partner provides a strategic and custom approach, enabling organizations to activate and engage their customers at every touchpoint. According to the Forrester report, “Clients lean on their providers to spark change within their organizations: to support customer-focused culture shifts, help them develop more customer-friendly products and services, and understand and amplify the growth potential of creating better customer experiences.”

Forrester’s State of CX Teams Survey, 2024, reported that “half of CX decision-makers say that improving CX is the top priority for their organization’s executives; nearly 60% say that their organization’s CX program is responsible for the CX strategy. In fact, two-thirds of CX decision-makers say that they plan to increase spending with CX strategy consulting services in 2024.”

The Customer Experience Strategy Consulting Services Landscape, Q2 2024

Perficient is proud to be recognized as a large consultancy in The Customer Experience Strategy Consulting Services Landscape, Q2 2024 report with an industry focus in financial services, healthcare, and manufacturing/production of consumer products, and a geographic focus in North America, EMEA, Asia Pacific, and Latin America.

Our CX Capabilities

Forrester carefully researched each service provider in the report through a set of comprehensive questions and identified three core business scenarios – vision and strategy setting, business assessment/analysis, and customer research. According to Forrester, “These are the business scenarios that buyers most frequently seek and expect CX strategy consulting services providers to address.” We believe as a leading digital consultancy that helps clients imagine, create, engineer, and run digital transformation and CX solutions, that we in turn, help organizations drive growth, efficiency, and differentiation in these three areas.

Through our customer experience and digital marketing practice, we use behavioral insights and predictive modeling to give a deep understanding of customers and their brand interaction so that organizations can influence behavior and build a relationship with them through positive interactions that are scalable across touchpoints.

One of the ways we help organizations optimize their CX is through our Journey Science jumpstart, a 6 week approach that uses research, data-driven insights, and continuous optimization to help organizations deliver frictionless experiences. This proprietary approach employs behavioral insights and predictive modeling to give organizations a deep understanding of their customers and their interaction with a brand so businesses can influence behavior and build a relationship with customers through positive interactions that are scalable across touchpoints.

In addition to the core business scenarios in this report, Forrester also references seven extended business scenarios that are important to certain buyers looking for CX services.

Forrester asked each vendor included in the Landscape to select the top three business scenarios for which clients select them and from there determined which are the extended business scenarios that highlight differentiation among the vendors. We are shown in the report for having selected organization transformation, technology transformation, and experience design as some of the top reasons clients work with us out of the listed extended business scenarios.

Learn More About Perficient’s CX Services

Whether your business is just starting its CX journey or seeking to enhance its current efforts, partnering with the right service provider can make all the difference. With a team of more than 125 CX professionals, Perficient combines data-driven insights with human-centered methodologies to maximize business impacts. Contact us now to discover how our expertise can take your business to new heights.

Download the Forrester report, The Customer Experience Strategy Consulting Landscape, Q2 2024 to learn more (Link to report available to Forrester subscribers and for purchase).

Carolina Cansino has more than 18 years of IT experience, and during that time, she has spent 13 years working in the financial services industry. She is hard-working, caring, collaborative, and always going the extra mile for her clients and colleagues. Carolina is based in Mexico where she contributes to the vibrant and welcoming office culture. She is an active participant in work and social events, including volunteering with Tecnológico de Monterrey and leading a weekly Agile guild, which in turn motivates everyone around her. 

We recently had the opportunity to sit down with Carolina and learn about her experience at Perficient, her career journey, and much more. She shared insightful anecdotes and pertinent advice that is sure to inspire anyone! 

Can you please tell us more about your role at Perficient? 

I’m currently assigned with a financial services client to improve and enhance their systems and data relating to collateral management. I’m part of an Agile team with a mix of Perficient colleagues and people working directly for the client. Perficient has a big presence with this client in different areas of the business, which has allowed me to work in a variety of areas, including client reporting and trading. I enjoy learning about different areas of the business while building rapport and trust with the client. This gives our team the opportunity to better understand our client’s pain points, provide feedback, and offer better solutions.  

What do you enjoy most about the project you’re working on? 

My team. Everyone is very smart, and I’m able to learn from my team members how the system works behind the scenes. This is super useful when translating technical language and systems to the business side. We have a great team made up of developers, QA, the product owner, and another business analyst making it a dream team!  

Another element that I like about this project is the clear line between our work and the impact it has on the client. I can see the value and get instant feedback about how our team’s dedication makes our client’s job easier, and that is always great to hear. 

Read More: People of Perficient: Meet Hugo Cardenas, Lead Software Developer 

How do you explain your job to family, friends, or children?  

I normally say that I am a bridge, or a translator, between what the business wants and how our team can make that happen. The client will come to me and explain what they hope to achieve, and I collaborate with the developers and the rest of the team to make that a reality. There’s normally some back and forth, so I need to have knowledge of both areas. It’s the best of both worlds! 

Explore More: Perficient Latin America 

Whether big or small, how do you make a difference for our clients, colleagues, communities, or teams?  

I make a difference for the people I work with. Ever since the beginning of my career, I have had the fortune of working with very strong and smart women that have taught me the way. Now that I’m in a position to teach others, I really enjoy mentoring. I try to give a different perspective, answer questions, and instill confidence in others. I’ve noticed that a lot of people have the right knowledge, but if someone doesn’t give you the confidence to do it or say it out loud, you may be shyer to do so. I really like to help people grow and provide support as my way of paying it forward. 

I participated in Perficient’s Leading with Impact program, which provided me the opportunity to connect with a cohort of Perficient colleagues across the organization to learn and share insights to become a better leader. I’m always looking for better ways to communicate and help others, and this type of training was beneficial to growing my leadership skills and understanding different points of view.  

One of my main takeaways is to have an open mind. Perficient is a global company, and I get to work with people from different regions who all have unique life experiences and perspectives. It was enlightening to place myself in other people’s shoes, which inspired me to consider how they might like to receive feedback and be recognized. The program gave me a lot of new ideas, and I will continue to seek new learning and growth opportunities. 

Learn More: See How Perficient Colleagues are Making a Difference 

Have you had any milestone moments in your career at Perficient? 

I’ve had a few, but most recently I was recognized by my client’s Business Analysts Community of Practice for all my efforts. They started this initiative to nominate and recognize someone quarterly, and I was not expecting to receive this recognition at all. It felt so great because I received a lot of positive feedback from the other business analysts on how the way I do my job makes a difference. I was humbled that so many people felt motivated to nominate me, and it meant a lot to know that my efforts are making a difference. 

What advice would you give to colleagues who are starting their career with Perficient? 

Don’t be afraid to ask questions. It’s always better to ask questions early than to let them pile up. When you display genuine curiosity, people will normally lend a helping hand. Also, don’t be afraid to be yourself and let your personality shine. If you can communicate confidently, it will get your point across better.  

Read More: People of Perficient: Meet Lorena Garza, Sr. Security and Compliance Analyst 

What are you passionate about outside of work?

I am a mother to a six-year-old, and I love seeing him grow and learn. It’s always fun to see him be curious, ask questions, and just be himself. He teaches me more than I can teach him. 

I also really like theater. I am part of a theater group within my local community where I attend weekly performing classes. I’ve performed a monologue, participated in an improv event, and started rehearsing for our upcoming play.  

Additionally, I enjoy writing. My writing experience includes the monologue I performed as well as writing short stories for my kid. Some of my other hobbies include aero yoga and reading. I also always prioritize time for myself and my family because that makes me happiest and feel complete. 

SEE MORE PEOPLE OF PERFICIENT 

It’s no secret our success is because of our people. No matter the technology or time zone, our colleagues are committed to delivering innovative, end-to-end digital solutions for the world’s biggest brands, and we bring a collaborative spirit to every interaction. We’re always seeking the best and brightest to work with us. Join our team and experience a culture that challenges, champions, and celebrates our people. 

Visit our Careers page to see career opportunities and more! 

Go inside Life at Perficient and connect with us on LinkedIn, YouTube, Twitter, Facebook, TikTok, and Instagram. 

A top-leading bank, grappling with business and regulatory challenges, faced scrutiny after failing the Federal Reserve’s annual stress test. Addressing these deficiencies required a comprehensive approach, leading to the establishment of critical programs like the US Bank Holding Company (BHC) regulatory and comprehensive capital analysis and review (CCAR) program.

To bolster its capabilities and ensure compliance, the bank sought assistance from Perficient in delivering exceptional project and program management services to tackle its significant hurdles.

Perficient’s Project and Program Initiatives

Our involvement encompassed various facets of project and program management, including:

• Establishing foundational capabilities to foster smart, effective, and compliant business practices.
• Supporting the change management team in building a robust governance structure for program PMO activities.
• Partnering with stakeholders across risk, finance, technology, and operations, Perficient ensured seamless execution of capital and risk transformation (CART) PMO governance and oversight.

Another key initiative was implementing the OCC Heightened Standards guidelines, which our team utilized as a means to strengthen the bank’s governance and risk management practices.

Perficient provided invaluable support toward:

• Managing plan development and execution through to completion
• Aligning and prioritizing internal initiatives with OCC guidelines for enhanced governance across the three lines of defense (Management, Risk and Regulatory Compliance, Internal/External Audit)

Perficient was also pivotal in coordinating and supporting oversight of the CCAR process by:

• Conducting review and challenge sessions
• Developing forecasting models
• Facilitating process improvements to enhance execution efficiency

In addition to regulatory compliance efforts, Perficient spearheaded initiatives to address operational risks, enhance fraud risk management, and optimize software development life cycle processes. By conducting gap assessments, prioritizing remediation actions, and implementing comprehensive project plans, Perficient ensured the bank was well-equipped to mitigate risks effectively going forward.

Tangible Outcomes

The success of Perficient’s engagements is evident in the tangible outcomes achieved. Following our work, the bank was able to reap the benefits of:

• Improved risk measurement
• Enhanced capital allocation
• Effective responses to regulatory requirements

Ultimately, our team’s diligent project oversight and subject matter expertise enabled the bank to anticipate, evaluate, and mitigate risks proactively, thereby safeguarding its reputation and ensuring long-term resilience.

Interested in how Perficient can transform your business? 

Contact us today to learn more or visit our Financial Services page to discover other ways we provide our expertise. 

Insurers are constantly striving to improve their operations, provide better experiences for customers, and minimize risks. Perficient insurance experts were interviewed for Forrester’s report, “The Top Emerging Technologies In Insurance, 2024,” and discussed technologies expected to emerge in the insurance industry over the next five years, considering them now, and in the short-term, medium-term, and long-term future.

Perficient’s Inclusion in Forrester’s Recent Report

Perficient, specializing in digital transformations, proudly acknowledges the thought leadership of Brian Bell and Monica Gernert quoted in Forrester’s report, “The Top Emerging Technologies In Insurance, 2024.” The report explores the potential of innovative technologies with “…particular emphasis on generative AI (Artificial Intelligence), as it not only delivers benefits now but also underpins technologies such as autonomous workplace assistants, embedded AI, and edge intelligence.”

Monica Gernert, a project manager, and insurance expert at Perficient, provided a critical perspective around genAI that’s quoted in the report. She underlines the necessity for insurers to establish a solid foundation comprising document digitization and a robust data fabric to ensure success with these technologies stating, “GenAI outcomes will only be as good as the data.”

Brian Bell, Perficient’s Insurance Principal, who was also quoted in the report, highlights the significance of another emerging technology: critical event intelligence. According to Forrester, critical event intelligence is defined as an “Intelligence that uses real-time data from sources such as social media, blogs, news feeds, online forums, IP addresses, latitude and longitude, and device GPS to assess potential threats from location-specific events, especially for physical risk.” Brian’s quote emphasizes the potential of critical event intelligence within the industry, stating, “This is where the rubber hits the road. This kind of intelligence proves the noble purpose of insurance.”

Addressing AI Bias in Insurance

While emerging technologies such as AI have undoubtedly brought numerous advancements to the insurance industry, it is essential to acknowledge that their broader adoption may also bring challenges, as highlighted by Forrester: “Bias, hallucinations, privacy, and security.” And, while AI itself doesn’t inherently produce bias, models trained on biased data can exacerbate certain prejudices in decision-making processes.

Traditional life insurance underwriting, typically relying on factors like age, gender, zip code, smoking status, and marital status, has already contributed to narrow risk definitions for insurers. Going forward, addressing bias at its root in data collection and promoting inclusive practices are imperative for ensuring equitable outcomes in the insurance sector.

Read More: Perficient to Lead Discussion on Bias in AI at ISITC Securities Operations Summit

Success in leveraging these technologies hinges on addressing current data gaps, establishing robust infrastructure, and fostering a culture of inclusion and education within the industry.

Learn more about Forrester’s perspective and gain a more comprehensive understanding of the current state of the industry by reading Forrester’s full report: The Top Emerging Technologies In Insurance, 2024.

Unlock Your Potential with Perficient

Our experts are committed to driving innovation and guiding insurers on their digital transformation journey, ensuring they are well-prepared to navigate the opportunities and challenges presented by technologies like genAI.

Interested in learning more? Contact us to learn how to optimize your insurance practice today.

Influenced by an array of factors spanning from the transfer of generational wealth to technological progressions, Gerardo Montemayor, Perficient’s Principal in Wealth and Asset Management, has offered valuable insights into the trends poised to reshape the industry in the approaching year.

1. Wealth Transfer

As older generations are seen passing on their wealth to the younger generations, the imperative for wealth managers to tailor their services to meet the diverse needs of different-aged cohorts becomes increasingly apparent. Going forward, as firms begin to navigate this intergenerational wealth transfer process, it’s important to remember the following:

• Diverse Needs Across Generations: Each generation has distinct financial goals and preferences, requiring wealth managers to customize services that cater to the varied needs of clients across age groups.
• Adaptive Strategies: Institutions must adopt flexible strategies to accommodate shifting dynamics within families, ensuring seamless wealth transfer and preservation across generations.
• Technology Integration: Leveraging technological advancements such as digital platforms and communication tools can enhance the efficiency and accessibility of wealth management services, especially for younger generations accustomed to digital interfaces.
• Education and Guidance: Providing education and guidance on financial literacy and wealth management practices across generations will be paramount for ensuring the long-term preservation and growth of family wealth.

2. Client Retention

In the context of sluggish economic growth, the importance of client retention has become paramount for wealth management firms. This imperative is underscored by the increased likelihood of younger generations requiring financial assistance once wealth has been transferred. Firms strive to sustain profitability and foster enduring client relationships, recognizing that even minor improvements in client retention rates can lead to significant enhancements in profitability.

To achieve this, wealth managers should go forward to:

• Focus on personalized services, trust-building, and offering valuable insights to enhance client satisfaction and loyalty.
• Emphasize client retention to help boost profitability, strengthen market resilience, and sustain growth over time.
• Continue to adjust your services to meet evolving client expectations, ensuring ongoing satisfaction and loyalty.

These efforts will not only fortify long-term profitability but also enhance market resilience.

3. Regulatory Compliance

Evolving regulations, coupled with the proliferation of cyber threats, necessitate a proactive approach toward safeguarding sensitive financial information and ensuring compliance with stringent regulatory frameworks. Wealth management firms are expected to prioritize technology initiatives aimed at fortifying cybersecurity defenses and enhancing regulatory compliance protocols to mitigate risks effectively.

Firms should begin including the following into their practice to begin safeguarding their organization:

• Proactive Cybersecurity Measures: Implement proactive cybersecurity measures to safeguard client data and protect against potential breaches.
• Enhanced Regulatory Compliance: Firms need to invest in resources and technologies that ensure adherence to regulatory requirements to mitigate compliance risks.
• Technology Investments: Wealth management firms need to prioritize investments in advanced technologies such as artificial intelligence (AI) and machine learning (ML) to bolster cybersecurity defenses and streamline regulatory processes.
• Cybersecurity Training and Awareness: Begin to invest in training programs and awareness campaigns to enhance cybersecurity awareness across an organization.
• Collaboration and Information Sharing: Engage in partnerships and information-sharing initiatives that strengthen cybersecurity posture.

Learn More: Strategies + Solutions to Ensure Regulatory and Compliance Excellence

Our Expertise

Our client tasked us with creating a centralized operating model for their risk and regulatory project management team, along with offering regulatory project management assistance. To meet this demand, we assembled a team consisting of senior business analysts, project managers, and program managers. Additionally, we crafted a playbook to guide the team in executing all regulatory request activities effectively. This initiative allowed our client to promptly address urgent matters, those requiring immediate attention, and regulatory consent orders. Ultimately, we delivered real-time Power BI reporting, implemented robust processes for artifact lifecycles, and enhanced the overall regulatory compliance practices.​

4. Sustainable Business Models

The movement toward sustainable and socially conscious investment strategies is gaining traction within wealth and asset management circles. This trend reflects a broader commitment to integrating principles that prioritize stable, long-term performance.  

Here’s why this shift is significant:

• Value-Driven Approaches: Adopting investment strategies that prioritize both financial returns and positive societal impacts while also recognizing the inherent value in aligning investment decisions with broader ethical principles.
• Evolving Investor Preferences: A growing investor preference for socially responsible investments, prompting wealth managers to incorporate considerations beyond traditional financial metrics when constructing portfolios.
• Sustainable Growth: An emerging emphasis toward stability and sustainable growth trajectories underscores the importance of businesses adopting models that promote both financial resilience and positive societal contributions.
• Regulatory Dynamics: Regulatory bodies are playing an active role in promoting sustainable finance initiatives, compelling wealth managers to align practices with evolving regulatory requirements.

5. Data Analytics and Machine Learning

Wealth and asset management is increasingly being shaped by a reliance on data and advanced analytics. The pressure to capitalize on opportunities presented by big data and related technologies like cloud computing, artificial intelligence (AI), and machine learning is driving significant shifts in the industry that include:

• Data Integration and Transparency: Enhancing transparency, with a focus on improving analytics and risk management; the complexity of data and its application still presents its challenges, however.
• Adoption of New Technologies: Investing in digital tools and outsourcing opportunities to leverage modern technologies such as machine learning and AI.
• Outsourcing: Many firms are finding that outsourcing data management infrastructure and operations is beneficial to ensure smooth data integration adaptability across front, middle, and back-office functions.

Streamline Your Processes

Our client needed a software solution to support and facilitate credit card issuing and processing and replace a system that relied on manual data entry.​ We migrated CIS to Visa Payables Automation and FIS Payments One Credit to create an end-to-end credit card processing platform that supports automation, increases visibility and control, and integrates with other technologies.​

6. Artificial Intelligence

Artificial Intelligence holds immense potential to revolutionize various facets of wealth and asset management, offering unprecedented opportunities for efficiency, automation, and data-driven decision-making.

Some key areas where AI can catalyze transformation include:

• Portfolio Optimization: AI-powered algorithms can analyze vast datasets, identify patterns, and optimize investment portfolios to maximize returns while minimizing risk.
• Risk Management: AI algorithms can assess market dynamics in real time, detect anomalies, and mitigate potential risks, thereby enhancing the resilience of investment strategies.
• Personalized Wealth Management: AI-driven analytics enable wealth managers to deliver personalized recommendations and tailored investment strategies that align with individual client preferences, goals, and risk profiles.
• Compliance and Regulatory Reporting: AI-powered solutions can streamline compliance processes, automate regulatory reporting, and flag potential compliance breaches, thereby enhancing operational efficiency and regulatory adherence.
• Predictive Analytics: AI and predictive analytics will begin to drive operational efficiency and enhance the decision-making process.

By embracing these emerging trends and harnessing the power of technology, wealth managers can navigate the complexities of the modern financial landscape and unlock new opportunities for sustainable growth and value creation.

Our Expertise: Speeding Insights and Powering Investment Experiences

Unlock Your Potential with Perficient

Leading financial institutions count on our financial services and insurance expertise to solve complex digital challenges and compliantly drive growth.

Interested in a deeper dive? Contact us to jump-start your journey today. 

This post was co-authored by Perficient’s Wealth and Asset Principal: Gerardo Montemayor

Protecting financial institutions from the perils of high-level embezzlement requires a proactive approach rooted in ethical conduct and stringent compliance measures. To fortify defenses against such threats, financial entities must implement proactive measures aimed at ensuring ethical conduct and compliance within their organizations.  

This blog outlines five key strategies to safeguard your business and mitigate the risks associated with senior-level embezzlement. 

SEE ALSO: A Guide to Fortify Your Institution Against Senior-Level Embezzlement Risks

1. Code of Conduct and Ethics Training

Regularly educate employees, especially senior management, on ethical conduct and the consequences of fraudulent activities.

Foster a strong ethical culture within the organization by addressing topics such as:  

• Ethical decision-making 
• Compliance with laws and regulations 
• Role-specific training 
• Continuous educational resources and updates 
• Leadership and culture examples from senior management 
• Online sources and support

2. Whistleblower Mechanisms

Encourage and support the reporting of suspicious activities through anonymous whistleblower hotlines or platforms. Create a culture that values transparency and integrity through implementing mechanisms like:

• Hotlines 
• Internal reporting systems 
• Legal protections 
• Third-party reporting services 
• Policy awareness and continuous training

3. Background Checks and Screening

Conduct thorough background checks on employees, particularly those handling sensitive financial information or holding senior positions.

These checks help in making informed decisions around the following:  

• Hiring 
• Partnerships

4. Rotation of Responsibilities

Implement periodic rotation of job responsibilities to prevent any single individual from having prolonged, unchecked control over financial matters.

This helps in: 

• Facilitates cross-training among employees 
• Aids in early detection of anomalies 
• Risk mitigation of fraud or errors 

5. Regular Audits and External Reviews

Conduct both internal and external audits regularly to detect irregularities or discrepancies in financial records. Engage independent third-party auditors to provide an unbiased perspective and valuable insights into areas of improvement.

Regular audits and reviews can:  

• Identify weaknesses  
• Provide compliance assurance 
• Mitigate risks and other gaps  

Periodically seeking the expertise of external auditors or consultants to review internal controls can offer additional assurance and recommendations for enhancing your institution’s overall security and compliance framework.  

By implementing these proactive measures, institutions can effectively mitigate risks associated with senior-level embezzlement while supporting a culture of accountability, transparency, and integrity across all levels of the organization. 

Reach out today to discuss your compliance efforts with our regulatory and risk services experts.  

Our Expertise 

Perficient’s Risk and Regulatory CoE was established to confront potential compliance issues. This proactive approach enables our clients to mitigate legal and financial risks while upholding a positive reputation and maintaining stakeholder trust. 

Understanding the intricacies of the risk and regulatory landscape is fundamental to our team members within the Risk and Regulatory CoE. With over 500 financial institutions relying on Perficient’s expertise, we equip them software and technologies to navigate these challenges seamlessly. 

Learn More: Risk and Reputation Matter  

On December 13, 2023, the Securities and Exchange Commission (SEC) made a landmark decision by voting to adopt significant rule changes mandating central clearing of certain secondary market transactions within the U.S. Treasury market.

These transactions include repurchases (repos), reverse repurchases (reverse repos) and U.S. Treasury securities. The rule change, one of the most substantial reforms in decades, aims to reduce risk and increase efficiency in the U.S. Treasury markets by introducing a clearinghouse to facilitate transactions between buyers and sellers.  

Changing Treasury Market Regulations

According to an SEC press release, The Treasury Market, valued at  $26 trillion, serves as the backbone of our capital markets. However, only a small portion—20% of repos, 30% of reverse repos, and 13% of Treasury cash transactions—are centrally cleared via the Fixed Income Clearing Corporation (FICC), the only Covered Clearing Agency (CCA) offering clearing services for such transactions.  

Covered Clearing Agencies (CCA) act as an intermediary between buyers and sellers, ensuring efficient transaction settlement by netting transactions on behalf of each counterparty and requiring margin from both parties to mitigate the risk of default. The low percentage of Treasury securities cleared through CCAs underscores significant industry-wide risk, which centralized clearing requirements aim to mitigate. 

To support the migration, the Fixed Income Clearing Corporation (FICC) must: 

• Establish policies and procedures outlining how participants will clear all eligible transactions.  
• Develop policies and procedures to calculate, collect, and hold a participant’s margin, separating proprietary and customer transactions. 
• Implement policies and procedures to facilitate access to clearance and settlement services.  
• Propose rule amendments for Rule 15c3-3 (the Customer Protection Rule) to permit margin required and on deposit to be included as a debit in the customer reserve formula. 

Important Compliance Dates 

The SEC will enforce the new requirements using a phased approach: 

• By March 31, 2025, the FICC must propose necessary rule changes regarding the separation of house and customer margin, the broker-dealer customer protection rule, and access to central clearing.  
• By December 31, 2025, direct participants must clear eligible cash transactions through a CCA. 
• By June 30, 2026, direct participants must clear eligible repurchase and reverse repurchase transactions through a CCA. 

Your Expert Partner

For organizations navigating risk and regulatory challenges, our financial services expertise coupled with digital leadership across platforms equips the largest organizations to solve complex challenges and drive growth compliantly.  

Contact us today to discuss your specific needs. 

This blog was co-authored by Perficient banking expert: Scott Albahary

A slowing global economy, coupled with a divergent economic landscape, poses challenges for the banking industry in 2024. Driven by technological advancements, regulatory changes, and shifting consumer preferences, the banking industry must evolve and respond accordingly.

As institutions adapt, Perficient’s financial services expert, Scott Albahary, has identified six key trends to shape the banking landscape in the year ahead.

1. Credit Scoring and Decisioning

Influenced by the pandemic and subsequent economic shifts, has necessitated a more sophisticated approach to credit scoring and decision-making. Banking institutions are responding by integrating advanced technologies, particularly artificial intelligence and data analytics, into their lending operations to enhance efficiency and adaptability.

The emergence of modern alternatives to traditional credit scoring signifies a broader movement toward financial inclusion. By harnessing alternative data sources and supplementing conventional credit reports, institutions can offer fairer assessments of creditworthiness, extending credit opportunities to underserved populations. Through the analysis of diverse data sets, automation of loan processing, and consideration of varied factors, financial institutions are not only increasing customer satisfaction and reducing operational costs but also fostering resilience in the face of evolving economic landscapes.

Going forward, banks should:

• Implement AI-driven systems to streamline credit decision processes, reducing decision times, and enabling faster responses to loan applications.
• Utilize advanced algorithms and data analytics to enhance risk assessment methodologies, allowing banks to identify and mitigate default risks more effectively, thereby making more informed lending decisions.
• Leverage data analytics tools to optimize portfolio performance by identifying trends, patterns, and potential risks, enabling banks to make proactive adjustments and maximize returns.
• Explore and integrate alternative data sources and innovative scoring models to offer fairer assessments of creditworthiness. This approach extends credit opportunities to traditionally underserved populations, promoting financial inclusion within the banking sector.

2. Embedded Finance

Embedded finance, characterized by the integration of financial products into non-financial apps or websites, is gaining significant traction, especially in the commercial side of the banking industry. As new regulations come into play, embedded lending is becoming increasingly prevalent, highlighting the need for banks to leverage data analytics and automation effectively while ensuring compliance with regulatory standards.

Embedded finance offers banks in the commercial sector numerous advantages, including:

• Smooth integration of financial services: Embedding financial services into non-financial platforms allows for seamless integration, providing customers with a unified experience.
• Enhanced consumer access to credit: Enables consumers to access credit more conveniently, thereby improving the accessibility and usability of financial products.
• Increased data analytics: Recognizing the importance of data analytics and automation is pivotal in successfully implementing embedded finance solutions. Intelligent automation and other data analytic tools enable banks to optimize processes, enhance decision-making, and improve customer experiences.
• Facilitation of embedded lending while ensuring compliance: Embedded finance initiatives must adhere to regulatory requirements. By prioritizing compliance alongside embedded lending, banks can mitigate risks and ensure trust in their financial services offerings.

3. Banking Rewards and Loyalty Programs

Throughout the year, banking rewards and loyalty programs will take on increased significance, highlighting the critical role of personalization in enhancing customer retention and maintaining competitiveness in the face of external pressures such as money markets. Banks are recognizing the need to analyze customer data and behavior patterns comprehensively to tailor rewards programs to individual preferences, thereby fostering stronger relationships and increasing loyalty.

To remain relevant and competitive, banks should seriously consider upping their rewards and loyalty programs, ensuring they reflect the following characteristics:

• Showcasing individualized incentives, preferences, and rewards based on customers’ unique spending habits and behaviors. Personalization not only enhances the customer experience but also strengthens the bond between banks and their clientele.
• Offering customized loyalty programs that stand out from competitors. By providing unique benefits tailored to specific customer segments, banks can attract and retain customers more effectively.
• Understanding customers’ preferences and behaviors allows banks to deliver tailored experiences that resonate with individuals, ultimately driving loyalty and long-term engagement.

As conversations around the competitive landscape intensify, banks must prioritize enhancing their rewards and loyalty programs to not only retain existing customers but also attract new ones. By embracing personalization and customization, banks can strengthen their position in the market and build lasting relationships with customers.

Improve the Customer Experience: Our Success in Action

Our client sought ways to improve its feedback processes to more accurately collect and respond to feedback, both internally and externally.​ We implemented artificial intelligence (AI) and natural language process solutions to analyze feedback across multiple channels. The system can accurately identify feedback across claims, sales, and internal employees, and resulted in data being processed 5 times more efficiently and a 98% reduction in response time. ​

4. Operational Resiliency

In an environment marked by heightened regulatory scrutiny and evolving customer expectations, operational resilience stands as a paramount concern for banks. To address this, institutions are increasingly turning to technology-driven solutions aimed at enhancing service reliability, compliance, and security.

The controlled integration of AI, intelligent automation, and machine learning empowers banks to achieve the following:

• Leveraging AI and machine learning enables banks to deliver personalized services, thereby enhancing customer satisfaction and fostering loyalty.
• Automation of tasks not only reduces costs and errors but also liberates resources for higher-value activities, thus streamlining operational efficiency.
• Empowers banks with actionable insights, enabling faster and more informed decision-making processes.
• Instrumental in proactively identifying potential risks and issuing alerts, thereby enhancing the institution’s ability to respond swiftly and mitigate adverse outcomes.

Perficient’s Expertise

A client needed to improve its loan operations to overcome challenges with productivity reporting, system maintenance, ​and time-consuming compliance processes. We facilitated a low-risk, efficient transition from a legacy enterprise content management platform to IBM FileNet P8 ​and enhanced the P8 environment with Trex, our proprietary transaction-processing application framework.

The solution automated content-centric workflows for loan documentation review, loan operations, quality assurance, ​and closed loan processing.​​​

5. Debt Collections

During times of financial difficulty, considered customer communications are essential. Modern technologies, such as machine learning models, offer banks the opportunity to enhance efficiency and compliance throughout the debt collection process.

AI-powered debt collections allow banks to achieve to meet objectives, such as:

• Facilitating faster resolution of outstanding debts: Automating routine tasks like reminders, follow-ups, and data analysis, streamlines the debt collection process and enhances operational efficiency while ensuring adherence to compliance standards.
• Tailoring collection strategies: Personalization is key in debt collections. AI enables banks to tailor collection strategies based on individual circumstances, thereby increasing the likelihood of successful debt recovery while preserving positive customer relationships.
• Utilizing more data analytics: Through the analysis of vast data sets, AI technologies identify trends, predict payment behavior, and optimize collection strategies. This data-driven approach empowers banks to make informed decisions and allocate resources effectively, enhancing overall debt recovery outcomes.
• Ensuring regulatory compliance: AI-driven debt collection systems standardize collection practices and flag potential risks, thereby reducing legal and reputational liabilities associated with debt collection activities. By ensuring compliance with regulations, banks mitigate risks and maintain trust with customers and regulatory authorities alike.

6. Fraud Detection

Banks are increasingly turning to AI-powered solutions to effectively detect and prevent fraudulent activities. Through advanced AI algorithms, banks can swiftly identify and mitigate emerging fraud risks while ensuring regulatory compliance and safeguarding customer data. The advent of generative AI introduces disruptive capabilities across industries, particularly in fraud detection and transaction security enhancement. Key advancements include:

• Synthetic Data Generation: By creating synthetic datasets that mirror real-world transactions, banks can train fraud detection models on diverse and realistic data sets without compromising customer privacy. This approach enables banks to enhance the robustness and accuracy of their fraud detection systems.
• Novel Pattern Detection: AI-powered systems excel in uncovering previously unseen patterns and anomalies within transaction data. By leveraging these capabilities, banks can enhance the effectiveness of their fraud detection systems by identifying emerging fraud schemes and swiftly adapting to evolving threats. This proactive approach strengthens the overall security posture of banks and mitigates potential financial losses due to fraudulent activities.

Looking Ahead

The banking industry in 2024 is characterized by innovation, resilience, and a relentless focus on customer-centricity. By embracing emerging technologies, leveraging data analytics, and adapting to regulatory changes, banks can position themselves for sustainable growth and success in the coming year.

Staying ahead of these trends will be critical for banks to meet the needs and expectations of their customers while driving operational excellence and mitigating risks effectively.

Interested in optimizing your banking practice?

Contact us today or explore our comprehensive financial services offerings to learn more.

With new risks, shifting market dynamics, and the unstoppable march of technology, the insurance industry finds itself at a crossroads. The imperative for transformation has never been clearer, and this is highlighted in Forrester’s report, The Future Of Insurance.

Embracing Change

The report states, “The business of insurance is in a heightened state of transformation…,” and insurance leaders must proactively “…change their business models, products, and processes over the coming decade to thrive in this volatile environment.” Perficient’s insurance experts, who were interviewed for this report, echo this sentiment, emphasizing the need for insurers to embrace innovation to stay relevant.

A Call for Transformation

• Forrester’s “Six Factors [that] Will Challenge Insurers’ Profits In The Next Decade”:

1. Geopolitical uncertainty
2. Challenging economies
3. Risk protection gap
4. Technological advancements
5. Regulatory changes
6. Climate change

• Embrace Technology Transformation: Recognizing and embracing digital innovation is not just advantageous; it’s essential for survival amidst evolving consumer expectations.
• Better Pinpoint Your Risk(s): Predictive analytics to better target risks, artificial intelligence to identify fraud, and intelligent automation to improve operational efficiency are at the heart of insurance digital transformation moving forward.

Evolution of Business Models

Embedded Insurance represents a rapidly evolving distribution channel, with a significant emphasis placed on adapting insurance distribution to align with consumer preferences. One of Perficient’s insurance experts, Brian Bell, Insurance Principal, further speaks on this trend stating, “It is projected that up to 25% of the total P&C premium could flow through embedded distribution channels by the end of the decade.”

Embedded insurance enables consumers to purchase coverage the moment they are most inclined to do so, thereby broadening purchase opportunities for carriers and partners alike. The transformation potential of embedded insurance offers enhanced convenience and control throughout the purchasing process.

A robust digital strategy and API development plan are imperative for success:

• Partnerships and experiences serve as extensions of carrier brands, necessitating careful cultivation.
• The digital experience demands real-time, frictionless interaction facilitated by robust cloud infrastructure and API programs.

READ MORE: Data, Personalization, and Embedded Insurance

Future of Insurance Product Design

Going forward, insurance products will be characterized by high levels of individualization, holistic approaches, anticipatory measures, and inclusivity. Strategic investments toward smart and innovative technologies like artificial intelligence and generative automations will lead to improved efficiency and elevated customer experiences, particularly within the insurance sector.

Artificial intelligence (AI) emerges as a pivotal force within the insurance industry, especially for regional carriers seeking to thrive in a competitive and dynamic market. These insurers grapple with challenges such as customer retention and brand recognition, underscoring the growing importance of AI solutions for their success.

AI brings significant value to insurance practices in key areas:

• Process Automation: AI streamlines tasks like claims processing and underwriting, reducing operational costs and enhancing efficiency.
• Risk Assessment: AI algorithms analyze extensive datasets to assess risk accurately, empowering carriers to offer personalized policies and pricing while mitigating potential risks.
• Personalized Customer Interactions: By harnessing AI to analyze customer data, carriers can deliver tailored recommendations and experiences, fostering enduring customer loyalty.
• Pricing Optimization: AI optimizes pricing strategies by scrutinizing market trends and customer behavior, enabling carriers to offer competitive premiums while ensuring profitability.

LEARN MORE: How Can Regional Insurance Carriers Harness the Power of AI?

Strategies for Success

• Prioritize customer-centricity, operational efficiency, and financial stability.
• Blend automation with empathy to deliver superior outcomes.
• Embrace technology to streamline expenses and drive revenue growth.
• Harness various insurance assets, including platforms, to unlock business value.

Navigating the Future

The business of insurance stands at a pivotal moment in its history. Those who heed the call to transform and innovate will carve out a prosperous future, while those who resist change may find themselves struggling to stay afloat. One thing is certain: the only way forward is through evolution and adaptation.

Unlock Innovation

In navigating the insurance landscape, we believe our thought leaders play a pivotal role in guiding companies towards success. By embracing transformation, adopting agile methodologies, and leveraging innovative technologies, insurers can position themselves as industry leaders in the digital era.

To learn more, download The Future Of Insurance, available to purchase or to Forrester subscribers.

The future of insurance is ripe with opportunities for those willing to embrace transformation. Contact us today to learn more about our insurance offerings.

This blog was co-authored by Perficient Risk and Regulatory CoE Member: Alicia Lawrence

The announcement of significant amendments to the New York State Department of Financial Services (NYSDFS) regulations on December 1, 2023, represents a pivotal moment for entities operating within New York’s financial sector.

The NYSDFS Part 500 amendments signal a crucial shift in the financial services regulatory landscape and underscore the importance of robust governance, risk management, and compliance frameworks.

Embracing these changes enables entities to:

1. Fortify operations
2. Safeguard stakeholders
3. Instill trust within the broader financial community

NYSDFS Part 500 Enforcement Commences April 29, 2024

Enforcement of the new NYSDFS Part 500 amendments is slated to commence on April 29, 2024, marking the dawn of a new era in compliance, particularly in domains such as risk assessments and asset inventory management for information systems.

Impacted institutions are subject to significant fines relative to the level of non-compliance identified by the regulators. 

Compliance Requirements

Institutions falling under the purview of the NYSDFS Part 500 amendments encompass a diverse spectrum, all mandated to adhere to these regulations.

These regulations impact entities operating within New York’s financial sector:

• State Chartered Banks
• Licensed Lenders
• Private Bankers
• Foreign Banks (licensed to operate in New York)
• Mortgage Companies
• Insurance Companies
• Service Providers

Recommended Next Steps From Our Risk and Regulatory Experts

Perficient’s risk and regulatory experts have deciphered the Governance, Risk, and Compliance (GRC) requirements outlined in the new NYSDFS Part 500 amendments.

We recommend that impacted organizations prioritize the following actions as part of a holistic approach to the regulation:

• Risk Assessments: Conduct comprehensive risk assessments, comparing existing processes, policies, and standards to industry benchmarks while identifying emerging risks and potential gaps.
• Control Testing and Gap Analysis: Evaluate controls to gauge their effectiveness in mitigating risks. By aligning with recognized frameworks such as NIST, COBIT, ISO, and FFIEC CAT, institutions ensure that all controls meet regulatory standards and address identified weaknesses.
• Issues and Findings Management: Document issues and gaps identified during risk assessments and control testing, crucial for compliance. Diligently manage issue remediation plans, monitor progress, and validate closure to ensure adherence to regulatory mandates.
• Reporting: Have access to comprehensive reports showcasing ongoing compliance efforts. These reports will provide insights into regulatory compliance, summarize remediation activities, and offer trend analysis to facilitate informed decision-making.

Looking Ahead

With the enforcement deadline of April 29, 2024, fast approaching, financial institutions subject to NYSDFS Part 500 amendments must accelerate their compliance initiatives.

Our Risk and Regulatory Center of Excellence (CoE) remains at the forefront of evolving financial rules and regulations, ensuring readiness to tackle emerging challenges and safeguard financial institutions and their customers. Perficient’s CoE guidance underscores the significance of aligning with regulatory requirements to uphold the integrity and security of New York’s financial ecosystem.

Learn more about our Risk and Regulatory Solutions and discover how Perficient can fortify your business against regulatory challenges today.