1、The Great ResetChallenges and solutions for global banks in 2022 and beyond2 Methodology 3 Findings4 Executive summary 5 Challenges PART 1:Changing workforce 7 Resourcing boom9 Hiring and retaining talent 10 Remaining resilient PART 2:Technology expectations12 Targeting risk with AI13 Digitizing ris

2、k and compliance14 Hyper-competition15 Ripe for automationPART 3:Building partnerships17 The value of innovation18 Flexible solutions21 Making the case23 ConclusionContents1|The Great Reset|Confirmation part of Thomson Reuters25%20%15%10%5%0MethodologyIn Q1 of 2022,World Business Research(WBR)Insigh

3、ts surveyed 200 heads of risk,technology,operations,and similar from sell-side banks across America,Europe,the Middle East,and Asia Pacific to understand how they are tackling 2022s top challenges.The survey was done at the request of Confirmation,part of Thomson Reuters.This report explores how org

4、anizations are turning to innovation and the digitization of operations to gain an edge in an era of heightened regulatory pressure.The survey was conducted by appointment over the telephone.The results were compiled and anonymized by WBR Insights and are presented here with analysis and commentary

5、by Thomson Reuters and a select group of banking leaders from across the globe.The Great Reset|Confirmation part of Thomson Reuters|2Which country are you currently working in?Which of the following best describes your job title?USA 8%Singapore 7%Hong Kong 7%Germany 7%France 7%UK 7%Canada 7%India 7%

6、China 7%Switzerland 7%Columbia 7%Brazil 7%Mexico 7%New Zealand 6%Ireland 6%Head/Director/VP InnovationChief Operating OfficerHead/Director/VP OperationsHead/Director/VP RiskHead/Director/VP TechnologyFindings3|The Great Reset|Confirmation part of Thomson Reuters Banks are gambling on talent and tech

7、nology at a time of great opportunity and risk Client-facing roles and skills are in high demand Teams are growing and hybrid workforces are becoming the norm Risk and compliance remain top priorities in the wake of regulatory pressure Digital transformation efforts put in place during the pandemic

8、are paying off Great demand exists for further automation of systems and controls More must be done to win buy-in from boards and senior executives on technology change projects Time to be bold:embrace the challenge and opportunity of technological changeExecutive summaryThe Great Reset|Confirmation

9、 part of Thomson Reuters|4Banks rebounded strongly from the pandemic,surprising even regulators at how speedily they returned to profitability.Sensing it may be a short-lived bounce,firms are optimizing business models and targeting more efficiencies through automation.Confirmation surveyed executiv

10、es at 200 of the worlds biggest banks to discover how they are overcoming the challenges of today and tomorrow after navigating two years of disruption and economic shock.The theme of investment in technology and people runs through the responses.Newly digitized operations and services performed wel

11、l under stress,feeding the appetite for further technological change within organizations that believe now is the time to be bold.A race for talent in dealmaking and client management is taking place,with anticipation of increased competition from encroaching fintech companies and rivals who have sp

12、ent big on Artificial Intelligence(AI).Customers have moved business to digital channels,which has put a premium on technology thats able to bridge the gap and forge data partnerships inside organizations.Senior executives,including heads of technology,operational risk,and group leaders at the bigge

13、st names in investment banking also noted the challenge and opportunity of balancing rapid technological change with tougher regulatory expectations.Regulatory pressure and staffing uncertainties are considered key threats,other concerns regard the physical and cybersecurity of organizations.Remote

14、working may not always be the answer,so hybrid workplaces must be as safe-and fair-as possible.Optimism is generally high,there are barriers;technology evangelists still take the lead on innovation and digitization projects and have communicated frustrations with the lack of interest from boards.How

15、 to get their buy-in?Effectively communicating the central role technology plays in the future of the business by emphasizing its success in the recent past is a key goal in the coming year.This report breaks down the survey in full.ChallengesThree key issues,bulleted below,are weighing heavy on the

16、 minds of bank executives.5|The Great Reset|Confirmation part of Thomson ReutersThere has never been a more important time to rely on business continuity plans.Operational resiliency has not been tested as it currently is for a number of years.”When the unexpected happens,we have processes in place

17、to service our clients.The pandemic brought a lot of that to life for so many corporations.The best way to meet those ongoing challenges and achieve our goals is to go as digital as we can.”Peter BarnesGeneral Manager Operations,Bank of New ZealandSenior Manager,Bank OperationsTop 10 North American

18、Bank010203Workforces are still being reconfigured,leaving gaps in security.The pandemic forced employees away from offices,with many planning to stay remote even post-pandemic.Cybersecurity issues surrounding remote work are a constant worry.Investment in compliance is a major priority,given the wid

19、ening of regulatory responsibilities and stiffening of penalties.Compliance solutions have to cover new and alternative areas such as video conferencing,remote work,and new chat channels.Physical security and safety CybersecurityRegulatory compliance The Great Reset|Confirmation part of Thomson Reut

20、ers|6Our survey will explore how banks are responding to these issues,and what they are prioritizing operationally.On the coming pages we will lay out the findings in full.28%36%37%27%35%44%26%30%44%17%29%45%InfoSecResilienceBusiness continuityTechnologyThird partyRegulatory complianceTransaction pr

21、ocessing and executionPeopleCyber securityConductFraudPhysical security and safetyWhat are the top risks your business is facing this year due to COVID-19?7|The Great Reset|Confirmation part of Thomson ReutersTechnology has powered the reimagining of the workplace.Banks are busy hiring(66%),and whil

22、e there is still a dearth of talent to fill demand,the process of finding,hiring,and retaining employees has been transformed by automated and virtual processesIt has shrunkIt has grownIt has stayed the sameOne of our mantras is technology first,but human when it matters.Our business is one of custo

23、mer service,where customers still want to speak with humans despite our technology advancement.We must maintain our relationship management skillset to ensure we are available if and when our customers may want to talk with us.”PART 1Changing workforceResourcing boomPeter BarnesGeneral Manager Opera

24、tions,Bank of New ZealandHas the size of your team changed?007028%Pre-pandemic in office,in-person40%HybridThe Great Reset|Confirmation part of Thomson Reuters|8Remote working challenges remain to be addressed,as respondents expect the hybrid workforce model to remain the most popular cho

25、ice(40%).Many banks recognize that remote and hybrid work are no passing fad,and must be a part of their talent strategy in order to attract and retain the best talent.Resourcing has been the primary driver of much of this hybrid strategy,but stakeholders across the business from IT and risk to lega

26、l,technology,payroll,compliance and finance are all included in the implementation process to ensure it is operationally viable.We asked survey respondents how resourcing had changed.This is what they said:“COVID changed the entire resourcing process and gave rise to the requirement of contingent re

27、sourcing.”“The number of steps involved have reduced and virtual assistants have made the process faster.”“The reach of resourcing has improved since technology solutions were introduced.”“Resourcing isnt a time-consuming process like before.”“Resourcing is more advanced and is heavily supported by

28、technology.”What workforce model do you believe will be required in the next two years as a result of the pandemic?32%Virtual9|The Great Reset|Confirmation part of Thomson ReutersViewed through the lens of organizational priority,the need for dealmaking and client-management talent in the front offi

29、ce is expected to sharpen,some 92%of respondents say.The theme of the Great Reset across the employment market has been particularly felt inside big banks,where recruitment has been busy and employees expect a hybrid strategy.There are tax,compliance,and other aspects of managing remote and hybrid w

30、orkforces that still have to be worked through to ensure they are sustainable,some respondents reported anonymously.We asked our respondents which skill they believe will be most in-demand.Here is what they told us:“Customer acquisition,for both the business and individuals.”“Customer management.”“B

31、uilding customer relationships is that one top skill.”“Customer management skills will be in high demand.”Hiring and retaining talentWhere do you see new skills being required the most across the business,regardless of the future workforce model?Customer service skills are going to be the most in-de

32、mand.Whether it is a phone call or a text exchange,there will always be a need for that human customer relationship management.AI is not quite at the stage to do complex and ambiguous tasks,so people who can engage with customers are important.”Brendan MurtaghHead of Customer Service Model,Customer

33、Service and Operations,Commercial Banking,NatWestFront officeBack officeMiddle office92%6%2%The Great Reset|Confirmation part of Thomson Reuters|10The overwhelming majority of respondents said that prioritizing system upgrades will go a long way to improving operational resilience.IT investments hav

34、e to be future-proofed,so firms will consider what additional data they need to capture in the future and how their systems integrate with newer technologies.Remaining resilientSystem upgradesReviewing roles/responsibilitiesImproving risk and controlMore targeted management information(MI)Automation

35、 of processesStandardizing dataProcess mappingStrengthening risk-control documentation0%40%10%50%80%20%60%90%30%70%100%OtherWhat are the focus areas for driving operational resilience at your organization this year?“New risk and compliance modules and policies have been created for this purpose.”“Wi

36、th such huge transformations,its about taking one step at a time and not considering wholesale changes.”11|The Great Reset|Confirmation part of Thomson ReutersWe asked our respondents how their organizations are planning to strengthen operational resilience:“New risk management solutions are being i

37、nvested in.”“Digitization is playing a vital role in this for us.”“By automating and reconfiguring risk and control with digital upgrades.”The Great Reset|Confirmation part of Thomson Reuters|12The fight against money laundering is never-ending,with criminals constantly shifting tactics and finding

38、new ways to wash dirty money.Respondents who cited digitizing risk and compliance as an immediate priority will be familiar with the pressures that surround anti-money laundering measures.Regulators are putting on more pressure,and geopolitical risks are heightened by conflicts that put providers of

39、 global financial services in the crosshairs.Respondents believe the increasing digitization of the global economy,along with the emergence of cryptocurrency,has heightened money laundering risks.Innovative technologies,robot processing,and further automation of Anti-money Laundering(AML)systems and

40、 controls are the main defenses to help clean up the financial system and are a current implementation priority.Anti-money laundering(AML)and know your customer(KYC)ClassificationOnboardingSystem integrationDocument filingWhich business processes are currently benefiting from more intelligent workfl

41、ows?PART 2Technology expectationsTargeting risk with AI0070From a volume perspective,we look at where the client and operational pain points are the greatest.Those journeys are prioritized because they provide us with the greatest benefits if we move toward automation.”Divya AggarwalGloba

42、l Product Manager DigitalTop 10 Global BankOutlay on risk and compliance technology is set to be significant given the importance placed on the functions.C-suite respondents say further automation of compliance and reporting requirements is a priority.Fraud-fighting processes are also ripe for autom

43、ation,as organizations remain concerned that the disruption caused by COVID-19 was too easily exploited by criminals.As highlighted in our 2021 report,Letting go of legacy IT systems,attitudes have been shifting towards machine learning and AI as applied to regulatory compliance and security;the ado

44、ption of electronic confirmations has become a priority to move on from centuries-old paper and manual processes.This years responses indicate this trend is continuing.Digitizing risk and compliance13|The Great Reset|Confirmation part of Thomson ReutersThere is a fine line here,but to ensure resilie

45、ncy in your platforms you should take advantage of any available system upgrades if you can afford them.There is a large variation in what software providers will provide to you around the world.You need to make sure you are taking those upgrades based on your priorities and when they are available.

46、”Peter BarnesGeneral Manager Operations,Bank of New ZealandWhat digital initiatives are you prioritizing this year to strengthen the business?0%20%10%30%5%25%15%35%Risk and complianceInformation technologyFinanceCustomer serviceFraud mitigationMarketingThe Great Reset|Confirmation part of Thomson Re

47、uters|14In response to regulatory pressure,banks are trying to get ahead of the game by monitoring regulatory changes,building state-of-the-art compliance models,and organizing systems and controls to respond to regulatory investigations.Remaining competitiveIncreasing operational efficienciesEnhanc

48、ing customer experienceComplying with more stringent regulatory requirementsCost savings0%10%20%30%5%15%25%35%For any global organization,managing risk is fundamental,and a top priority should always be to maintain full regulatory compliance.That is critical for any organization,particularly for Deu

49、tsche Bank,that operates in a global space with complex regulatory frameworks.”Jose-M(Chema)BueyDirector,Head of Core Platform Accounts Solutions,Cash Management Global Liquidity Products,Deutsche BankBanks with little or no physical presence have been finding customers and growing their market shar

50、e at the expense of larger,well-established incumbents.They have achieved this progress by automating numerous processes.It is clear how machine learning tools can match the output of hundreds of humans and find patterns in the data,saving time and money.Larger banks are increasingly aware of how au

51、tomation can make them more competitive.Hyper-competitionOver the next five years,digital solutions to serve the client are more important than anything else.Enabling them to do things on their own,anytime anywhere,is the goal.The more technology we can introduce,the better position well find oursel

52、ves in.”Senior Manager,Bank OperationsTop 10 North American BankWhat do you see as the biggest driver for implementing automation?15|The Great Reset|Confirmation part of Thomson ReutersGeography matters less in finance today,and for most banks the battle for customers will be played out online,digit

53、ally via apps and through devices,hence the need to scale up niche offerings.For almost one-third(32%)of respondents,automating processes is the best way to stay competitive.A customers behavior is also affected by how they interact with other industries,such as with an online retail store.Customers

54、 demand speed and integration,and they want insights from their entire end-to-end journey.Clients are not looking for this only from a specific industry,but from every touchpoint they have,including financial services.Banks are integrating into other platforms where the customer experience may diffe

55、r from what traditional banks are offering.Competition plays a very important role in driving automation.”Divya AggarwalGlobal Product Manager DigitalTop 10 Global BankRobotic Process Automation(RPA)is the bottom level of automation,and banks report enormous enthusiasm for simple tools that can carr

56、y out repetitive tasks very quickly with little or no human input.At the top is artificial intelligence or autonomous intelligence,where software can make intelligent decisions while still complying with risk or controls.In between is intelligent automation and process orchestration,which involves m

57、aking smarter bots.Ripe for automationIn a generic sense,automation allows organizations to save time on the mundane,repetitiveness tasks.Automation helps to get things done quickly and simply,and it also drives customer satisfaction.”Divya AggarwalGlobal Product Manager DigitalTop 10 Global BankThe

58、 Great Reset|Confirmation part of Thomson Reuters|16One of the top priorities of our technology transformation roadmap is to shape the future of financial services by leveraging innovation and promoting new digital solutions which improve our end-to-end client experience.Increasing our front-to-back

59、 effectiveness via automation and process simplification is also critical in order to provide our clients with more reliable and stable platforms.”Businesses without an automated reconciliation system face a whole host of risks.Fraud is an obvious one,both internal and external.However,it can be red

60、uced if people are aware that the reconciliation function is automated.Timely management assurances and reviews of these reconciliations can help.For me,the more automated technology we have,the better the customer experience.Not having an automated reconciliation system can result in a poor custome

61、r experience which may contribute to customers leaving,which will negatively impact the brand and reputation.”Jose-M(Chema)BueyDirector,Head of Core Platform Accounts Solutions,Cash Management Global Liquidity Products,Deutsche BankPeter BarnesGeneral Manager Operations,Bank of New ZealandWhich proc

62、esses will be automated in the next two years?The clear benefits of implementing an automated system include improving efficiency,promoting transparency,and minimizing operational risk.For consumers,the digital payment transformation is well underway,as online bill pay and cashless payments are comm

63、onplace.For banks,a similar revolution is taking place behind the scenes.Automatic bank reconciliation,or auto-reconciliation,is speeding up the accounting process,ensuring financial data is aligned with bank statements and accounting software information and that matching transactions are identifie

64、d for reconciliation.0%20%10%30%40%50%60%Trading reconciliationManaging vendorsDistribution of client statementsClient account managementValuation and reportingClient complaints managementInnovation can be difficult for large banks;naturally they are not as flexible or nimble as rival start-ups,and

65、are better at implementation than creativity.That reputation is being shed.Many organizations are starting to focus on the idea that innovation can help them meet financial-growth objectives.Automating customer service and using AI and machine learning to serve clients has a direct impact on the bot

66、tom line,as it is central to bringing in and retaining business.Customers today also expect a level of technological sophistication from their financial services provider,both in the services provided and the organization itself.PART 3Building partnershipsThe value of innovation17|The Great Reset|Co

67、nfirmation part of Thomson ReutersSomething that I have seen a lot of late,which definitely accelerated during the pandemic,is the movement towards real-time treasury where instant payments and APIs are becoming critical in the agenda of our clients.Many of our clients have put more emphasis on the

68、importance of getting real-time visibility of their cash balances so they can manage their liquidity in a more efficient way”Our customers are going through great change,and they need support.They are using new tools,as are we.Understanding and investing in customer service management ensures the re

69、lationship with our customers remains strong.Often that will involve better technology,such as data analytics;data is central to everything.”Jose-M(Chema)BueyDirector,Head of Core Platform Accounts Solutions,Cash Management Global Liquidity Products,Deutsche BankBrendan MurtaghHead of Customer Servi

70、ce Model,Customer Service and Operations,Commercial Banking,NatWestHow important is innovation to meeting financial targets in the business?Extremely important23%Very important47%Somewhat important30%The Great Reset|Confirmation part of Thomson Reuters|18Where internal innovation is either out of re

71、ach or not feasible given the expectations,outside partnerships become key.Fintech vendors have matured,and many have firmly established themselves while growing their influence.As business continues to move online,migrating from a geographic-centric marketing approach to a segment-centric approach

72、may require bringing in an outside solution.What banks want from their vendors is flexibility and robustness,such as the ability to tailor a solution once implemented.What is the most important factor when outsourcing a service/working with an outside service provider?Historic surveys by Confirmatio

73、n have frequently identified the prevalence of partnerships between banks and fintech firms who look to provide solutions banks cannot build themselves,and this trend continues to grow.Flexible solutionsStaying current on digital solutions for clients,to enable them to do things on their own from th

74、e comfort of their own home,or wherever they may be,is vitally important.”I think the flexibility is more front and center,and the ability within partnerships to change things within reasonable parameters has become more important.Banks and organizations are always having to look hard as to what the

75、 right services and products are,and those can change quickly.”Senior Manager,Bank OperationsTop 10 North American BankBrendan MurtaghHead of Customer Service Model,Customer Service and Operations,Commercial Banking,NatWest0%5%10%20%30%15%25%35%FlexibilityRobustnessSpeed to marketTrustCostSecurityFr

76、aud mitigation is one aspect very high on the agenda of our clients.We have been partnering with fintech companies and other peer banks in the last year to create solutions that can mitigate such risks.For example,we recently partnered with SWIFT(Society for Worldwide Interbank Financial Telecommuni

77、cation)and other banks to create an industry-wide pre-validation solution that allows clients to validate a beneficiary account in real-time before they execute the payment.This is a clear example of how banks and fintech companies can come together to develop a solution that can benefit clients to

78、ensure that their payments are more efficient,but also that they have less risk making those payments.”Jose-M(Chema)BueyDirector,Head of Core Platform Accounts Solutions,Cash Management Global Liquidity Products,Deutsche Bank19|The Great Reset|Confirmation part of Thomson ReutersThere are roughly th

79、ree partnership types of note:010203Operational technology partnerships aimed at improving a banks processes,monitoring capabilities,or technical infrastructure.Customer-oriented partnerships in which a bank directs a fintech to improve customer-facing aspects of its business(e.g.,account opening)wh

80、ile the bank continues to interact directly with its customers.Front-end fintech partnerships in which a banks infrastructure is blended with technology developed by a fintech.The fintech would interact directly with the end-customer in the delivery of banking products and services in this example.T

81、he Great Reset|Confirmation part of Thomson Reuters|20Several considerations were identified by respondents as important when establishing effective partnerships with third-party fintech firms.The first is a commitment to innovation shared by the banks senior management and board,has firmwide buy-in

82、,and is nurtured in an environment where technology professionals are part of the banks strategy and broader team.The second is joined-up priorities and objectives between the fintech and bank.A mutual emphasis on the importance of compliance with banking regulations,for example.The third is a forwa

83、rd-thinking approach to connectivity,where an integrated process allows information to flow through systems,creating a less siloed and more holistic way of working across processes.Its not always the case that these considerations are met,as evidenced in further responses regarding firmwide buy-in,e

84、nthusiasm,and integration struggles.We have several areas of the bank look for trends and then identify use cases through which they can experiment with a technology.When we bring a solution into our financial institution,we have to make sure that our clients are taken care of first.We are a very ri

85、sk-based institution.Senior Manager,Bank OperationsTop 10 North American BankLack of proof in the return of the investment is the largest barrier when implementing automation.We are taking time at a customer level to ensure our investments in automation are for the right reasons.”The regulatory and

86、legality of rolling out the new initiative plays a role in the decision of whether we move ahead or not.”Brendan MurtaghHead of Customer Service Model,Customer Service and Operations,Commercial Banking,NatWest Divya AggarwalGlobal Product Manager DigitalTop 10 Global Bank21|The Great Reset|Confirmat

87、ion part of Thomson ReutersInnovation is critical to business survival and one of the hardest things to get right.The true measure of success is not how many new ideas you can come up with,but how much traction you can achieve when these ideas get to market.The view amongst respondents is adopting t

88、hose innovations is much harder than generating them in the first place.For the majority of firms,technology teams(43%)still take ownership of new ideas,but many report difficulties in obtaining senior approval to move innovation forward.Over a third(35%)said the main barrier to further automation i

89、s lack of interest from the boardroom.Making the case0%10%20%40%30%50%Who in your organization owns innovation and improvement?Technology teamsInnovation hubsBusiness leadersThe Great Reset|Confirmation part of Thomson Reuters|22Survey respondents indicate a scarcity of technology expertise on board

90、s is often the main roadblock to adoption of innovative ideas.Investments in automation and AI-powered analytics are soaring,but often the lack of a fully fleshed out digital strategy can hinder progress.Often this can be down to a board not having a Chief Information Officer(CIO)or Chief Technology

91、 Officer(CTO)present.What do you see as the biggest barrier for implementing automation?Regional variations in the attitude toward automation adoptionLack of buy-in from the boardCompliance issues /complicationsLack of proof in the return on investment15%35%34%16%23|The Great Reset|Confirmation part

92、 of Thomson ReutersConclusionThe pandemic pushed resilience capabilities to the limit,but banks emerged stronger,leaner,and with new digital solutions in place to prepare for future challenges.Confirmation polled 200 bank executives and found that technology implemented during the pandemic powered t

93、he recovery but has also altered the identity of organizations,putting them on a digital-first footing.Following two years of economic uncertainty there is enormous optimism within capital markets that fresh ways of working and delivering services have taken hold.While remote and hybrid working patt

94、erns have torn down long-standing employment and customer service barriers,a new set of risks have emerged from the digital world.Tensions are high within international communities,as the threat of both sanctions and cyberwarfare pose headaches for leaders to address.A general increase in digitized

95、services has also broadened customer touchpoints and created more avenues for fraud or malfeasance to cultivate.There is a sense that now is the time to accelerate major automation projects and system overhauls,as the post-COVID successes may be short-lived if the global economy retracts again.Respo

96、ndents report that over the next two years,most firms will create a hyper-automation plan to go beyond pockets of upgrades to transform wider operations.Competition is also causing a shift to mobile channels and a focus on different demographics,ensuring any change project must be speedy,secure,and

97、efficient.This is likely to involve working with outside partners who are closely aligned with the banks standards and thinking for best-in-class solutions.At the macro level,a focus on employee well-being and retention is altering how organizations approach management and the actions they usually t

98、ake to keep staff engaged.Robust compliance policies reduce the chance of regulatory penalties and can support more sustainable businesses that reflects the values of modern consumers.Investments in regulatory technology will continue as banks push for better customer experiences,to improve their ow

99、n infrastructure and resilience,and to further strengthen the financial system.Those who are bold and brave with their choices now are best placed to emerge victorious in the new environment,generating greater profits while remaining sustainable and operationally robust.The Great Reset|Confirmation

100、part of Thomson Reuters|24Confirmation is the leading digital platform and global network trusted by over than 16,000 audit firms,4,000 banks and departments,and 5,000 law firms to quickly and securely verify financial data.Confirmation invented electronic confirmations nearly 20 years ago,reshaping

101、 the audit confirmation process.Today 1.5 million auditors,bankers,and financial professionals around the world trust Confirmation to validate data and identify fraud.Learn how we can help you at WBR Insights use research-based content to drive conversations,share insights and deliver results.They h

102、ave a network of high-level decision-makers in Europe and Asia from industries including:Retail&eCommerce,Supply Chain&Procurement,Finance,as well as many more.From white papers focused on your priorities,to benchmarking reports,infographics,and webinars,they help to inform and educate readers.About Confirmation,part of Thomson ReutersAbout WBR Insights