How can the transformation process succeed?
Dr. Lars A. Ludwig has been an expert in business software in the finance sector and a managing director for more than 25 years Targens. With his passion for innovation and organizational development, he was awarded the highest German IT award in 2011 "CIO of the year “. He has a wide range of experience from AI research and management consulting to software engineering, especially in the field of financial services. Targens supports banks and insurance companies with tailor-made solutions.
” data-image-headline=”
Dr. Lars A. Ludwig has been an expert in business software in the finance sector and a managing director for more than 25 years
Dr. Lars A. Ludwig has been an expert in business software in the finance sector and a managing director for more than 25 years Targens. With his passion for innovation and organizational development, he was awarded the highest German IT award “CIO of the year” in 2011. He has a wide range of experience from AI research to management consulting to software engineering, especially in the area of financial services. Targens supports Banks and insurance companies with tailor-made solutions. © Copyright: www.werbefotografie-stuttgart.de
–
In a first step, financial institutions have tackled the identification of relevant positions and a list of the affected products as well as the evaluation of financial, legal, regulatory and operational risks. It was important to note that the new reference interest rates are integrated in all new and old contracts that run beyond 2021. Customers must also be informed about the contract changes. Since many different customer groups are affected by the reform, targeted communication and transparency are particularly crucial.
The next step was concern analyzes. Fallback clauses had to be identified and contracts checked for fallback clauses before further scenario analyzes could be carried out. An implementation plan could then be drawn up that determines the effects on the bank’s product portfolio and the necessary changes to infrastructure and processes. Many banks are currently already in the process of implementing an IBOR reform program including budget, human and resource allocation.
As a result of the replacement, manipulations will be much more difficult in the future than in IBOR times. But one thing is also clear: the changeover to the new reference interest rates cannot succeed overnight. Financial institutions should expect that the transition process will not be completed with the replacement of IBOR at the end of 2021, but will keep the industry busy for several years.
– .
