FinTalk by VERMEG

Welcome to FinTalk by Vermeg, the leading podcast in financial services that addresses the most pressing topics in the regulatory reporting and Regtech industry.

In this episode, our host Jawad Akhtar is joined by renowned industry expert Kasia. Together, they delve into the significance of diversity and inclusion in the workplace and how it can lead to improved financial performance and productivity.

This episode of FinTalk by Vermeg covers:

• The measurable benefits of diversity within companies
• The current landscape of women in tech leadership positions
• The importance of cultural intelligence over mere statistical diversity
• The role of data in driving diversity and inclusion initiatives

When regulatory reporting is a burden and cost shared by all, it’s an area ripe for collaboration, and one growing movement to make that happen is that of open source software.

Instigating that evolution is FINOS, and their CTO Jane Gavronsky joins us on FinTalk to discuss the virtues and value in both open source principles and the culture surrounding it.

We also hear from our own Global Head of Regulatory Product, Malcolm Arnold, about the potential future implications and who needs to drive the buy-in to open source projects.

This episode of The VERMEG podcast covers:

• The basics of what open source is
• How culture plays a role in the success of open source
• Ways in which open source software can help with governance, controls, and data lineage
• Who needs to drive the movement for open source

Welcome to FinTalk, the leading podcast in Financial Services that addresses the most pressing topics in the FinTech and RegTech.

In this episode, our host Jawad Akhtar talks with Mark Davies, Partner at Element22, to shed light on ESG data and the European Union regulations shaping the banking industry. They discuss the importance of sustainability reporting, EU Taxonomy, data collection strategies, climate risks, and how financial institutions can adapt to regulatory changes while ensuring quality data.

This episode of FinTalk covers:

The intricacies of EU sustainability reporting, specifically NFRD and CSRD, and their impact on ESG reporting in banking.

Navigating essential metrics such as Green Asset Ratio (GAR) and Banking Book Taxonomy Alignment Ratio (BTAR), and understanding the role of EU Taxonomy in sustainability.

Strategies for data collection to address challenges and enhance data quality in sustainability reporting.

The significance of geographic data and climate information in analysing climate risks for the banking industry.

How financial institutions can stay updated with evolving regulations and leverage third-party tools for compliance and reporting.
Episode highlights:

“CSRD will actually expand its scope slightly, well, significantly actually, rather than just the largest exchange listed corporates being in scope for NFRD, under CSRD, the expectation is that approximately 50,000 corporates across Europe will be covered by that, based on having more than 500 employees and a number of different financial metrics in terms of the size of the organization. But in short, the green asset ratio depends on data that's being published by those organizations.”

Mark Davies.

“The EBA have published a really simple summary, two-pager I think it is, that explains the requirements for Pillar 3 disclosures around ESG and the expectations around that. Actually, it's an excellent document in the sense that it brings it up to a level that anyone can read and understand. I would begin there, understand those requirements. The key deadlines, there's a date of December 23, so the end of this year, for reporting the Green Asset Ratio, and the middle of 2024 for the BTAR ratio, banking book taxonomy alignment ratio”

Mark Davies.

“Clearly the Green Asset Ratio, I'd say because the deadlines are actually slightly earlier than the BTAR ratio deadlines, the information that's required to satisfy the GAR is probably the first place to begin. That would include capturing information from NFRD statements for large lending and financing customers. That would be a logical place to begin. The next piece of the puzzle I would say is then probably to start to think about some of the climate specific information. Having a good understanding of your three sectors is going to be critical because that will drive which aspects of the EU Taxonomy Compass and therefore the detail around your sustainability activities.”

Mark Davies.

Links & references:

VERMEG:

https://www.vermeg.com/

https://www.linkedin.com/company/vermeg/

Jawad Akhtar:

https://www.linkedin.com/in/jawad-akhtar-313562b/

Mark Davies:

https://www.linkedin.com/in/markdaviesdata

Element22 Link:

https://element-22.com/

Welcome to FinTalk by Vermeg, the leading podcast in the fintech industry that addresses the most pressing topics in the financial services industry.

In this episode, our host Jawad Akhtar is joined by renowned industry expert Zahra Shah. Together, they delve into the intricacies of digital transformation in banking, focusing on legacy banking systems and the driving forces behind this transformation.

This episode of FinTalk by Vermeg covers:

• Impact of Digital Transformation on Legacy Systems
• Regulatory Compliance in Fintech
• Current Trends in Technology
• Board-Level Digital Strategy
• Cultural Change in Transformation Programs

Episode Highlights:

• Zahra Shah's insight on Legacy Systems: "The best way to get value using digital transformation is to use add-ons or APIs so you don't have to start from scratch."
• Zahra Shah on Regulatory Compliance: "Regulatory compliance is the biggest driver because of potential loss of reputation, loss of business, and fines."
• Zahra Shah on Cultural Change: "If you haven't incorporated a cultural change with the digital transformation, then it will not succeed."

Listen to the full episode now on your favourite podcast platform and stay informed about the latest trends and regulations affecting your business.

Welcome to FinTalk, the leading podcast in Financial Services that addresses the most pressing topics in the FinTech and RegTech.

In this episode, our host Jawad Akhtar talks with Paul Whitmore, Global Head - Counterparty Risk Solutions at Fitch to illuminate the Basel III final reforms and their global banking implications. They discuss the SCRA and ECRA approaches, the surge in interest in Basel III reforms amidst the COVID-19 pandemic, the role of different ratings, grades, and agencies in shaping banks' strategies, and much more.

This episode of FinTalk covers:

• Understanding the Basel III reforms and their impact on banking, particularly focusing on SCRA and ECRA approaches.

• The importance of quantitative impact studies in understanding and managing the implications of these reforms.

• The role of ratings, grades, and agencies in helping banks devise effective strategies.

• Exploring the unique implications for unrated banks within the Basel III regulatory framework.

• An in-depth discussion on the different interpretations and implementations of Basel III reforms across various jurisdictions like the EU, UK, and US.
Episode highlights:

“I'll give you an example. So the Canadian regulators that came into effect this year, they've given banks an option of how to treat unrated banks. You can use the simplified approach. Soone risk weight for all unrated banks, but you've got to stick with it. You can't swap and choose or you can adopt the SCRA. So most Canadian banks have opted for the simplified approach. "Let's just stick with I think it's 50% risk weight. That's not a bad compromise. We might not benefit from a 30% or a 40% risk weight, but we are avoiding the 150% risk way." So it was the regulators of Canada to make that decision on what's best for their country. And every country will implement something slightly different I think.” - Paul Whitmore (09:32)

“So this will probably have the largest impact. I think what people have to try and think about is it's not just this unrated bank thing. It's how bank exposures are being treated by all of the Basel proposals. So no longer can you estimate your own LGD. Okay, you could use your own rating assessment previously.” - Paul Whitmore (13:11):

“Okay, so that again, the framework is still being adopted, but there's nuances and every jurisdiction is going to have a slightly different flavor to it. Australia didn't implement the SCRA. They're fully on board with the Basel III final reforms, but decided on a simplified approach again. They felt after speaking to three or four of the larger banks in Australia, they said APRA felt that the SCRA was too complicated, which I don't think it is. As these banks were laughing at that saying, "Well, we all said it was a great approach, that APRA decided that it was too complicated to implement at this time." So they've gone for a simplified approach again.” Paul Whitmore (16:56):

Links & references:

VERMEG:

https://www.vermeg.com/

https://www.linkedin.com/company/vermeg/

Jawad Akhtar:

https://www.linkedin.com/in/jawad-akhtar-313562b/

https://www.linkedin.com/in/paul-whitmore-92a90412/

Fitch Solutions: Data, Research & Analytics for Credit Risk & Strategy