TCS BaNCS Research Journal Issue 15 – Frictionless finance
In this issue of the TCS BaNCS Research Journal, we cover a range of topics sharing our latest research and results from financial solutions that support customers from the smallest micro-business to the largest enterprise.
In the front office, we demonstrate how to automate document production and reduced turn-around time in commercial lending, enable faster response times for investors in cross-border financial instruments, and expand financial inclusion for MSMEs.
In the middle office, we show automated approaches to regulatory reporting for non-performing loans, describe a range of solutions for messaging and interoperability across various payment networks, and explore a new approach to authenticate identity using sound.
In the back office, we show how a client eliminated ATM and POS downtime for quarterly software upgrades throughout a large transformation initiative, highlight benefits from a recent core transformation initiative, and imagine new applications for generative AI in payment processing.
What these research topics have in common is that they point toward the frictionless future of financial services.
Single event processing in corporate actions
Traditionally, large custodian banks had multiple position-keeping and asset servicing systems servicing their different entities. The biggest drawback of this decentralization model was that the same event was being processed multiple times across all the different entities of the same bank. Single event processing ensures that a corporate actions event affecting different positions, businesses, and entities is processed only once.
Eliminating friction in report generation, relationship-based pricing, and cross-entity transactions
When one of our North American clients went live on TCS BaNCS, it marked a major milestone in the North American banking industry’s march towards modernization. In this article, we describe three before-and-after scenarios that demonstrate how TCS BaNCS built frictionless digital financial journeys for the bank and its customers.
Optimizing commercial lending for convenience, speed, and agility
Commercial loan assessment has always been long-drawn. High-ticket loans require detailed assessment, multiple validations for authenticity/ accuracy of documentation, multiple levels of approvals, and back-and-forth communication between a borrower and the financial institution. Analogous to retail lending, commercial borrowers are also looking towards agile and nimble lenders/ FIs who can provide a swift, frictionless experience. Recent strides by fintech organizations and central governments towards digital initiatives are pushing the boundaries of the art of the possible.
Zero-downtime operations during agile rollouts
A leading bank in Switzerland adopted agile delivery as part of a transformation initiative, and the result was a greater number of planned shutdowns of the bank’s entire network. Find out how TCS worked with the bank to reduce the impact of these agile upgrades using a Digital Minimal Core that even during a software upgrade, provided a real-time feed of transactions across customer channels, ensured longer availability of ATM and POS services, and maintained consistent availability of accurate balance inquiries.
From the front office to the back office, be it retail or commercial banking, be it the custody value chain or a private wealth management scenario, we constantly seek new ways to create smoother customer journeys. Equally important though is knowing when friction is necessary. Just as a frictionless highway would be unsafe, so would be a ‘one-click’ SMS that empties your bank account. Our goal is to have frictionless customer journeys leading to the moments where friction is necessary and appropriate….
Unlocking the possibilities of frictionless payment experiences with Generative AI
AI (artificial intelligence) is a broad term that refers to the ability of machines to perform tasks that would typically require human intelligence, such as perception, learning, reasoning, problem-solving, and decision-making. It can be divided into two main categories: (i) Narrow or specific AI and (ii) Generative AI. Generative AI can have several applications in the world of payment processing. This article unravels frictionless payment experiences using Generative AI.
Automated and seamless loan management for a leading Canadian bank in India
A leading Canadian bank with a significant commercial presence in India automated loan management to comply with the Reserve Bank of India’s Income Recognition and Asset Classification (IRAC) norms for classifying assets and providing for bad loans. Find out how TCS provided a comprehensive solution to automate the monitoring of assets, account for bad loans, and report on non-performing loans (NPLs) in full compliance with IRAC.
Revolutionizing digital contracts: TCS BaNCS’ blueprint for seamless, democratized contracting
Financial institutions need the agility and flexibility to customize document templates at speed and scale while still ensuring specificity in specific contractual documents, appropriateness for the lending context, and compliance with regulatory guidelines. TCS BaNCS has pioneered a novel mechanism for managing the production of a large volume of contractual and assessment-related documents, putting document template management into the reach of virtually any financial institution.
Let’s make some music
While Alexa, Siri, and others have been around for a while and require a human being to communicate with them using voice. Now, imagine if all these devices can communicate with each other when in proximity, without the need for office/network/wi-fi, and in a manner that is inaudible to the human ear. This article focuses on unlocking the limitless possibilities with ultrasonics for frictionless digital banking.
Frictionless payment journeys in Switzerland
ISO 20022 standards have set up the base for frictionless payment processing across the country, which adds up to more than CHF 3 BN per year, making Switzerland a leading player in the adoption of ISO 20022-based payments. This article explains the evolution of payment processing in Switzerland and how payment journeys can be supported in a frictionless way with TCS BaNCS for Payments.