More voting at IPS2010, with some interesting views expressed.
The session opened with three short questions which were quite telling.
Does the banking industry need to change as a result of the financial crisis?
Most of the audience are from banks, so that’s quite telling … and who exactly were the 1 in 20 who voted ‘no’? Oh yes, about 5% of the audience were from regulators (lol).
Which areas will be impacted the most by changes made to avoid another financial crisis?
29.9% Regulations to limit bank activities
20.1% Increasing needs for transparency in bank reporting
19.4% Changes to bank governance
11.8% New capital adequacy rules
10.4% New liquidity rules
8.3% Limitations on bank compensation structures
I was surprised by the bonus scheme limits being bottom of the list … or, bearing in mind it’s mainly bankers in the room, was I?
Are regulators co-operating closely enough to deliver a regulatory regime that is consistent?
36.4% Not really
Bit of a silly question really, as when did a regulator ever draft a regulation that was consistently implemented (see PSD, MiFID, Faster Payments …).
Anyways, we then had lots of dialogue about regulations and rules with the FSA Japan, Banque de France, Sir John Gieve (formerly of the Bank of England), Clifford Chance (lawyers) … all good stuff and source of commentary and blogging later.
After coffee, we then went into a corporate treasury focused stream with seven more questions for the crowd.
Are you from:
58.5% A bank or payment services provider
11.5% A corporate user
Has the financial crisis increased or decreased your efforts to rationalise your banking partnerships?
72.9% Yes, we are rationalising
27.1% No, we are staying as we are
Has SEPA made payments easier and cheaper for corporates?
38.9% Yes, SEPA has made it easier and cheaper
41.7% No, SEPA has not made it easier and cheaper
19.4% Don’t know
Which area needs the most support for a corporate treasury operation?
35.9% Working capital
31.1% Liquidity management
20.8% Operational efficiency and BPR
12.7% Risk management
Is your organisation working on full automation or outsourcing of the procure-to-pay cycle?
30.7% Yes, we are working on this
27.3% We are planning to
19.3% No, but we might in the future
22.7% Not interested in this
How would you define the best payment services providers?
61.9% Excellence in End-to-End Processing
13.3% Operational Excellence
12.4% Good Value for Money
3.8% Provides Working Capital Support
In five to ten years, which of these are best placed to service corporate needs?
9.4% Corporates’ in-house banks
7.5% Technology firms
Bearing in mind that almost 60% of the audience came from a bank (Question 1), this answer may be somewhat skewed!