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We write about financial industry trends, the impact of regulatory changes and opinions on industry inflection points. https://www.acuitykp.com/

Published on May 11, 2021 by Zahin Mohammed

Since the concept of environmental, social and governance (ESG) factors was introduced at the Who Cares Wins conference in 2005 1, it has gained significant traction among investors, asset managers and policy makers. In less than two decades, ESG and sustainable investing has grown more than 10-fold, with total assets under management associated with the theme now exceeding USD1.65tn 2. Growth was fuelled by both client demand and an unprecedented level of product development, with the total number of sustainable funds globally reaching 4,153 3at the end of December 2020.


Published on May 7, 2021 by Mamatha Subbaiah and Venkatesh Krishnamurthy

The London Interbank Offered Rate (LIBOR) is a globally accepted key benchmark interest rate used by the major global banks to lend to each other. LIBOR played a crucial role in global markets, acting as a reference rate for financial contracts and a yardstick for measuring funding costs and investment returns for a wide array of financial products, including adjustable-rate mortgages (ARMs), credit cards, floating-rate loans and swaps.

Due to the element of judgment involved in a bank’s credit risk, coupled with the global financial crisis of 2009 and…


Published on April 8, 2021 by Avishek Suman

Executive summary A host of factors are making China’s A-share market attractive to global fund managers, while at the same time, Chinese fund managers are increasingly investing in selected overseas markets for purposes of diversification and stability. Sell-side firms, on the other hand, are looking for ways to ramp up their coverage of the China market, where broker research is still patchy. …


Published on March 26, 2021 by Arjun R D

Exponential growth in personalisation initiatives, powered by an unparalleled level of access to massive datasets, has increased customer-centricity across global corporations including financial institutions. There are thousands of professionals working across business functions to make sure customers are engaged at every stage of CLM.

For example, a banking customer could own products such as deposit instruments, loan instruments and investment products. Different types and volumes of datasets emerging from unit-level legacy platforms often present serious challenges to arriving at a single version of the truth. …


Published on May 3, 2021 by Namrata Deka

Highlights:

  • Latin American (LatAm) cross-border corporate issuance has been strong since 4Q20 as investors have sought higher yields due to the US benchmark interest rate remaining at sub-zero levels amid the pandemic
  • Total LatAm and Caribbean (LAC) issuance grew by 23% y/y in FY20; issuance in January 2021 alone represented c.22% of total FY20 issuance
  • Rising US Treasury yields have made investors wary of investing in emerging-market (EM) credits, but higher yields and ample market liquidity are likely to keep demand for LatAm corporate issuance afloat

Hunt for yield drives investment in…


Published on May 3, 2021 by Manoj Fernando

Using stream-processing technologies to build a highly scalable AML pattern-detection and alerting platform

If your AML detection platform can flag a potentially fraudulent transaction only way after the event has occurred, it is probably not serving its purpose very well, is it? At the same time, if your AML validation process causes significant delays to the main transactions workflow, that’s not going to please your customer either.

So how do we tackle the issue of scaling an AML detection platform to support millions and millions of events, without compromising the number of…


Published on April 21, 2021 by Arnab Banerjee

The public, media, experts and analysts now talk about the world before the pandemic and the one since. Things have changed significantly in most spheres of life — some for the good and some for the not-so-immediate good.

In terms of economies, we have seen multi-layered and both short-term and long-term impacts on global economic structures and consumer behaviour. Heightened uncertainty led to a drop in consumption and investment by consumers, investors and international trade partners. The global economy was concerned about the impact of a US-China trade war and the US…


Published on April 28, 2021 by Rajeev Sinha

“Give me six hours to chop down a tree, and I will spend the first four sharpening the axe.” This quote by Abraham Lincoln is perfectly suited to the craft of writing requests for proposal (RFPs) for financial services, and has lessons for the wider RFP community.

As RFP teams often operate within a fluid environment, writers are expected to prioritise either meeting client deadlines or producing bespoke proposals — the latter requires not only dedicated time and effort, but also a perfect game plan. …


Published on April 29, 2021 by Vipul Gupta

On 11 March 2021, President Joe Biden signed into law the USD1.9tn COVID-19 stimulus package to support financially vulnerable families and speed up US economic recovery. This is in addition to measures such as the Coronavirus Aid, Relief, and Economic Security (CARES) Act of March 2020 and the Consolidated Appropriations Act of December 2020.

The package provides the following:

  • USD750bn for pandemic control and vaccination, aid to state and local governments and federal spending
  • USD600bn including the USD1,400-per-person cheques as direct help for families, and expansion of child tax credit
  • USD400bn as…

Published on April 15, 2021 by Chiranjita Chintamani

Overview

The past year’s unprecedented circumstances have caused damage, both direct and indirect, across sectors. The global pandemic and the subsequent lockdowns and economic shutdown have not only affected big businesses but also resulted in many small businesses shutting down and employees being laid off. This wave of furloughs and layoffs has impacted the paying capacity of borrowers and contributed to increased mortgage delinquencies in the commercial real estate (CRE) sector.

What exactly is delinquency? In simple terms, it refers to unpaid debt and in the case of mortgage delinquency, refers to…

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