Insights

Difficulties in explaining machine learning (ML) models is causing concern as banks look to the technology for default risk analysis, according to market participants.   “Many different types of ‘black-box’ models have been developed out there even by banks claiming that they can accurately predict mortgage defaults. This... read more

As the US Consumer Financial Protection Bureau (CFPB) turns its attention to applications of machine learning and alternative data within credit markets, small businesses are likely to feel the advantages of the technological developments, says Brock Blake, CEO of Lendio. “With the CFPB's regulatory support, more fintech innovators... read more

For traders, billions of data points have become available over the past few years – useful in the search for arbitrage only when the appropriate management and direction are applied to them. The surge in big data has created an ever-growing market for data management tools, driven in large part by technology, with machine learning and... read more

Nishkama Capital, a long/short equity fund based in the US, became one of the first adopters of Eze Eclipse, SS&C Eze’s born-in-the-cloud investment management solution, in 2017. Thanks to the platform’s adaptability and continued support from the Eclipse team, Nishkama’s operation was able to get up and running quickly, and... read more

Global Investment Performance Standards (GIPS) are voluntary, ethical standards based on the fundamental principles of full disclosure and fair representation of investment performance. As investor expectations increase and product innovation develops, the standards are evolving to remain relevant and maintain their core purpose: ensuring... read more

“We are seeing some companies looking to establish a payment system that bypasses our banks and our currency,” US Federal Reserve governor Lael Brainard said in early August, announcing the central bank’s plans to launch a new payments network. “Facebook's Libra project raises numerous concerns that will take time to... read more

“This is the beginning of de-globalization and balkanization of the global economy and de-coupling between the US and China,” said economist Nouriel Roubini, in a recent post. “No wonder we are back in risk-off mode markets are sharply down. Even Fed easing cannot backstop markets hit by a double negative supply shock: trade and... read more

US regulators should avoid using punishing fines as a first response to data breaches at banks and focus on building prevention solutions, say security experts. Doug Wick, vice president at data security firm ALTR, believes that regulators have been successfully affecting change at banks for decades. “But they aren't good at... read more

The announcement of the closure of FIS’s acquisition of Worldpay last week is part of a continual expansion strategy into new markets and opportunities, according to Alison Wilkes, head of banking and payments, Europe at FIS. “Where we see opportunities to grow our solution set and our reach for our customers – that’s key... read more

With investment in UK fintech firms increasing year-on-year, market participants are debating just how new prime minister Boris Johnson might affect the industry. “I believe the new PM is increasing the level of risk and, in the short-term, reducing the level of return. That’s a double-whammy. So, it’s highly likely that... read more