How Digitization is Driving Bank M&A and Improving Performance

whitePaper | August 1, 2022

The Office of the Chief Accountant (OCA) is pleased to present the August 2022 edition of the Bank Accounting Advisory Series (BAAS). The BAAS expresses the OCA’s interpretations of accounting topics relevant to national banks and federal savings associations (collectively, banks or institutions, unless otherwise specified). We hope that you find this publication useful and that it continues to be a practical resource for bankers and examiners. The BAAS is updated annually to address ongoing accounting questions, newly issued and updated accounting standards, and emerging issues observed through March 31. Consistent with prior editions of the BAAS, the 2022 update does not focus on questions related to the impact of the Coronavirus Disease 2019 (COVID-19) and does not reflect policy statements and rules issued in response to the COVID-19 pandemic. COVID-19 policy statements and rules address specific challenges and are not intended to be used by analogy in non-COVID-19 situations.

whitePaper | November 30, 2021

In writing this Discussion Paper, “A Proposal for Digital Banks in India: Licensing & Regulatory Regime”, we are pleased to have collaborated with Black Dot Public Policy Advisors as the knowledge partner. Mr Mandar Kagade, Founder Principal at Black Dot made valuable contributions in developing this Discussion Paper. Ms Shehnaz Ahmed of the Vidhi Centre for Legal Policy acted as external expert reviewer of the Discussion Paper and offered detailed comments and inputs. We acknowledge her valuable contribution. We are also grateful for the support and inputs from the Department of Financial Services, Ministry of Finance, representatives of public sector banks including the State Bank of India, and Sabyasachi Upadhyay, Associate, NITI Aayog. Useful insights were also obtained from the deliberations in the conference, “Neo-banking for Business: The Future of Digital Banking”, especially Mr Sopnendu Mohanty, Chief Fintech Officer, Monetary Authority of Singapore. They are gratefully acknowledged. Last but not the least, the inputs offered by the fintech sector stakeholders who were approached for inputs in the course of drafting this Discussion Paper is acknowledged. NITI Aayog would endeavour to continue with the stakeholder consultation in evolving policy dialogue.

whitePaper | March 14, 2022

The writing is on the wall. Disruptive technologies, evolving consumer behaviors and expectations, innovative new entrants, and a shifting regulatory landscape are all drivers behind the modernization of payments and banking. Current legacy systems are no match for these drivers of change, creating a predicament for financial institutions (FIs) who want to future-proof payments but face time and budget constraints.

whitePaper | July 3, 2022

Founded in 1896, Barclays is among the world's oldest banks and enjoys the patronage of some of Europe's most profitable corporations. In 2021, Barclays claimed over 48 million customers, amassed over its 120+ year history. On the other hand, Revolut is a UK neobank that has acquired over 15 million account holders in less than a decade since its founding. These numbers are illustrative of a larger shift in the global banking system, with agile, digitally empowered financial service providers making inroads into mainstream banking territory. Currently, traditional banks, with their large product and service portfolios and legions of loyal customers, still hold the lion's share of the European banking market.

whitePaper | September 15, 2022

Consumers have long used credit instruments to purchase goods and services. In recent years, a fast-growing alternative to credit cards has emerged in a number of developed economies around the world, including in the United States. This alternative is marketed as “Buy Now, Pay Later” (BNPL).

whitePaper | August 18, 2022

Intercompany accounting is integral to the assignment of the profits of domestic and global enterprises. It also has a significant bearing on the effective tax rate of the group. Intercompany accounts therefore must be calculated accurately, accounted for and settled in a timely manner, and tagged properly so intercompany liabilities and profits can be eliminated when results are consolidated. Many of the most common hurdles to an efficient and effective intercompany process can be traced to low levels of process automation, lack of access to a single source of the truth, and decentralized and inconsistent practices. By adopting best practices and reducing the need for manual intervention, account-to-report organizations can not only reduce the cost of the process, but also improve its effectiveness.