Technology-driven efficiencies in financial markets

Sisällysluettelo: Erkki Liikanen A central bank's view on technology based efficiency and productivity in the financial markets9 Päivi Heikkinen - Kari Korhonen Introduction 15 Matti Pohjola ICT, productivity and economic growth: what will be the next wave? 23 Robert DeYoung The limits of information technology: how much will the banking industry change? 35 Jacob A Bikker - Jaap W B Bos Recent developments in efficiency and performance of European banks 47 Jukka Rosenberg IT-outsourcing as a strategic choice85 Bo Harald Second phase of electronic banking - significant contributor to efficiency in society at large 97 Päivi Heikkinen Convergence of the business processes of corporate customers and financial institutions 119 David Breden Managing operational risk in a continuously changing environment 129 John Trundle Managing operational risk in Euroclear 141 Tim Beck Rating agency's approach to operational risk - case of Fitch 151 Päivi Heikkinen - Kari Korhonen Editors' concluding comments 173 Tiivistelmä: The purpose of this publication is to highlight the potential for improved efficiency with intelligent use of information and communication technology (ICT).The publication is composed of several articles that discuss the potentials of ICT in the financial markets, and the dimensions of ICT usage in both improving business processes and risk management.The articles are based on presentations of the Conference on Technology Driven Efficiencies and Risks in Financial Markets, which was arranged by the Bank of Finland in November 2005. The European economy is in need of improved productivity.This applies also to the financial sector.Labour productivity can be promoted by intelligent use of general purpose technology.In the financial industry this means extensive use of ICT.The concept of e-banking refers to highly automated straight through processed financial transactions, multi-channel services, and integration of financial services into companies' business operations.By improving efficiency, the application of technology also promotes competition, better customer service, and growth.Solutions for macro-level problems can be found at the micro level. The use of ICT in re-engineering processes and in creating new financial products and delivery channels alters the risks in the financial sector.Functions become dependent on ICT, and the technologies used are the main source of vulnerability.At the same time, ICT gives the industry new tools to manage both traditional and new risks. Key words: financial markets, technology, ICT, e-banking, payment and settlement systems, structural changes, efficiency, risks, oversight, supervision