Crossroad between banking, regulations and technology
by Sinan Gabel
(an invited talk at the DSL4EE workshop, 2011)
After a presentation including a computer demo we will have a common discussion & a session in groups.
Technology is playing an increasingly important role in banking, for example, within the area of trading and capital markets. A challenge for a bank is to utilise technology to gain a competitive advantage while retaining cost-efficiency & transparency for bank-internal and bank-external purposes including regulatory purposes, for example for pricing and risk management of financial instruments. It will be explained in broad terms, with examples, why we today are standing at an important crossroad between banking, regulations and technology.
A short computer demonstration will be used to illustrate how smart even simple and well-known methods can be utilised for otherwise complicated pricing and risk management of financial instruments: The message is therefore that what is needed are not necessarily immensely advanced and complicated technology (it may be so) but really to find and utilise those useful methods that still can take full advantage of technology – including the continuously faster execution speeds of computers – in a way that not only accommodates the needs of tomorrows banking business but also, in a sense, drives it! With this background the presenter would like the audience to discuss whether DSL’s, maybe coupled with other “building blocks” such as for example oral & visual communication aides, could be one such successful new idea/technology for banking.