MODULE 1 Flashcards
is the intricate framework that binds together international financial institutions, economies, and regulatory systems, orchestrating their interactions.
Global Finance
Global Finance essential functions:
- facilitating international trade and investment
- managing financial risks
- establishing mechanisms for resource collaboration.
Global Finance encompasses a comprehensive system of
- financial institutions
- economies
- regulations designed to facilitate international trade
Identified trends in global finance include cryptocurrency, open banking. ESG concerns, global financial system reform, Al, financial planning etc.
Global Finance
faces challenges such as an unbanked population, low financial literacy, high intermediary costs, and centralization and inequality.
Global finance
It covers exchange rates, trading, financial regulations, and investments, analyzing investment patterns, production, consumption, and trade dynamics shaping the global economy.
Global finance
These activities are influenced by factors such as international trade, FDI, exchange rates, and global financial markets and are impacted by technological advancements, economic conditions, geopolitical events, and regulatory frameworks.
Global Finance
are crucial in providing global services, facilitating capital flow, risk management, and cross-border resource allocation through international financial markets, currency markets, stock exchanges, and bond markets. Moreover, this has implications for the balance of payments, exposing nations to risks like political unrest, regulatory shifts, controls over foreign currencies, and uncertainty about property rights and investments.
Financial organizations
TRENDS USED IN GLOBAL FINANCE
- Open Banking and Digitization
- ESG and Inflation Concerns
- Geopolitical Tensions and Integrated Business Planning
- Global Financial System Reform
- Al and Financial Planning
- Global Financial Safety Net
The evolution of financial services via _________ molds global finance, enabling streamlined, customer- centric financial engagements for the future.
Open Banking and Digitization
______ worries dominate global finance, shaping the agendas of CFOs and finance leaders and steering their focus and strategic priorities.
ESG and Inflation Concerns
Increasing _____ prompt swift economic shifts, demanding organizational agility, while comprehensive ______ emerges as vital amid global inflation and supply chain disturbances.
Geopolitical Tensions and Integrated Business Planning
There’s a push for ______, targeting climate change, biodiversity, and sustainable development. The aim is to modernize the system to tackle these interconnected issues.
Global Financial System Reform
Al boosts finance, enhancing accuracy to frequent business planning amid geopolitical tensions and global economic shifts, fostering adaptability and accuracy.
Al and Financial Planning
Consensus exists for crucial financial sector reforms to support growth, allocate resources efficiently, and mitigate future failures.
Global Financial Safety Net
ISSUES IN GLOBAL FINANCE
- Unbanked Population
- Low Financial Literacy
- High Intermediary Costs and Slow Transactions
- Climate and Sustainable Development Challenges
- Centralization and Inequality
- Regulation and Supervision
Billions of individuals worldwide do not have access to financial services and institutions, leaving them unbanked.
Unbanked Population
Global financial literacy levels remain inadequate, creating difficulties for individuals and businesses engaging in international financial endeavors.
Low Financial Literacy
Challenges like high intermediary costs and slow transactions impact the efficiency of global financial interactions.
High Intermediary Costs and Slow Transactions
Reforming the global financial system to tackle climate change, biodiversity, and sustainable development entails modernizing it to address these issues.
Climate and Sustainable Development Challenges
The concentrated nature of the global financial system has led to issues like increased inequality and limited financial service access.
Centralization and Inequality:
Revamping financial regulations and supervision is crucial to enable the sector to allocate resources efficiently.
Regulation and Supervision
serves as the vital link. that intertwines global economies. fostering seamless trade and investment interactions among them
Global finance
IMPORTANCE OF GLOBAL FINANCE (6)
Interconnectedness
International Trade and Investment
Complex and Dynamic Field
Shaping the Global Economy
Financial Literacy and Access
Reform and Resilience
is the act of integrating digital technologies and strategies to optimize operations and enhance personalized experiences.
Digital transformation in banking
are undergoing major digital transformations in order to meet the needs of new customers and existing customers seeking a more tailored and individualized banking experience through digital channels.
Traditional banks
must take on a digital transformation strategy that puts customer experience first by analyzing, interacting, and understanding customer needs.
Banks and financial institutions
WHY IS DIGITAL TRANSFORMATION IN BANKING IMPORTANT?
- modernize their banking strategies
- customers are seeking digital approaches to managing their accounts and seek personalized product experiences, transparency, and security, all in real-time
KEY FACTORS DRIVING DIGITAL TRANSFORMATION
Customer Journey
Modernized infrastructure
Data analytics
Security measures
Digitization
TECHNOLOGY USED IN FINANCIAL INSTITUTIONS
Application programming interfaces (APIs)
Cloud computing
Al and machine learning (ML)
Internet of Things. (IoT)
Blockchain
WHAT IS THE DIGITAL TRANSFORMATION PROCESS?
- Establish business objectives
- Evaluate your current technology
- Align scope and customer needs
- Assess priorities
- Present business case
Action item: Create a list of priority objectives to start and then tailor that list as the bank or financial institution leaders see fit.
Establish business objectives
Action item: Be clear about your processes. List out which processes are necessary for your transformation, while also considering constraints including cost and timeline.
Evaluate your current technology
Action item: Make a plan so that you are targeting consumers more likely to use digital services. Ensure that your data is working for your business needs. Marketing teams can have a much more targeted approach once these consumers are identified and understood.
Align scope and customer needs
Action item: Write out your objectives; list out ways in which you can enable your institution to make incremental changes at first. Early wins, even small ones, help with transformation buy-in and momentum.
Assess priorities
Action item: Prepare your presentation for key stakeholders. Be prepared to defend the transformation needs you have found and laid out.
Present business case
BENEFITS OF DIGITAL TRANSFORMATION IN BANKING
- More customer-focused investment banking
- Easier compliance
- Access new clients
- Enhanced security
- More personalized banking
KEY PLAYERS IN GLOBAL FINANCE AND ELECTRONIC BANKING
- Commerzbank’s Strategic Initiative for Cross-Border Payments
- Visa’s Al-Powered Fraud Prevention Solutions
- Modern Treasury’s Professional Services for Payment Infrastructure
- Deutsche Bank’s Singapore Dollar Bond Issuance
- Technological Innovations Impacting Payment Systems
