The financial industry is for the first time in history exposed to many of the same challenges facing almost every other industry:
- A downward pressure on revenues driven by a greater cost awareness among customers, increased regulatory pressure, and efficient new entrants competing in select niches
- Increased costs due to an ever-increasing level of regulation and the constant need to improve and develop core technology platforms
- Finding and retaining top talent has become increasingly difficult over time, due to a combination of the many forms of bad will suffered by the industry since the 2007 credit crisis, and the emergence of new hot sectors such as tech able to lure top talent away from the financial sector
- This means that financial services companies that want to stay profitable must adapt their strategy and toolbox to a new reality.
Allowing ourselves a simplified view of the main components of a financial institution we divide them into four areas:
- Product development
- Service delivery
- Regulatory compliance
- Balance sheet management
Many of the increasingly difficult challenges within these areas are centered around risk management;
- new products must help customers manage risk without introducing unknown or difficult-to-hedge risks for the financial institution;
- a new breed of customers demand fully digital services and consistent risk analytics across all channels
- regulators put a pressure on financial institutions to create fully automated customer risk management processes to cope with the increased regulatory burden
- increasing demand for sophisticated balance sheet management requires a finely adjusted set of industrialised risk analysis and reporting tools, as the cost of semi-manual processes may otherwise become untenable
To successfully overcome these risk management challenges, we believe that an enhanced toolbox is required.
What we provide
The dominating component of an enhanced risk management toolbox, is people with a combination of excellent technical specialist skills and deep functional business knowledge. In this case, the relevant combination of skills is in-depth financial markets expertise, experience of designing large-scale risk calculation and data warehouse applications and a deep understanding of the mathematics involved in measuring and managing financial risk - a combination of skills we are uniquely well positioned to provide.
We believe that specialisation and an entrepreneurial approach is a prerequisite to be able to replace process and standardised solutions. The ability to provide out-of-the-box, nimble, disruptive thinking only comes with a finely tuned skill set combined with relevant hands-on industry experience of a specialist firm like ours.
The usual suspects when it comes to strategic advice and transformation services, e.g. the likes of global management consulting firms and technology vendors do not have the required depth of understanding of what actual problems need solving to efficiently serve clients in the financial industry. Too often standardised solutions are applied to client specific problems.
Our advantage is our ability to attract top talent with a passionate interest in financial risk management combined with advanced knowledge in technology and mathematics. For junior talent, we represent a credible opportunity to indulge in a knowledge-driven early career path, and for senior talent, the inflexibility caused by the cogs of bureaucracy of large firms is simply not attractive.
The business idea is to offer superior risk management solutions based on our ability to combine in-depth expertise within the fields of financial markets, technology and mathematics. By improving the risk management capabilities of our clients, we ultimately benefit the end customers of the financial institutions we partner with.
Simply put - we want to improve the world’s risk management capabilities.