Issue 30
May 2025
Welcome to the MBA's News Digest!
Dear readers,
Banks that leverage GenAI technology stand to benefit significantly – provided they also consider its limitations and risks.
Want to improve cyber risk management? Rethink how it’s measured. The good news? A shift is already underway.
Liquidity management: events like the collapse of Silicon Valley Bank serve as a stark reminder of potential scenarios, if neglected.
Best wishes,
The MBA team
Slow burning progress: recent developments across UK digital assets
15 April 2025
‘In March, UK Finance co-hosted a cross-industry roundtable on the UK’s forthcoming direction for stablecoin regulation and organised Deep Dive sessions on wholesale CBDC (wCBDC). We’ve also been engaging with senior officials at HM Treasury, the Bank of England (BoE) and FCA on current developments across cryptoassets, stablecoins and the Digital Pound. The Digital Innovation Summit 2025, our flagship event on 24 June, will feature interactive breakout sessions on new forms of digital assets and money with leaders across the sector. As the UK progresses much of the work outlined in this blog, it seems to be increasingly clear that all of these developments should be consolidated into one central strategy for digital assets (owned by HM Treasury, the Competition and Markets Authority (CMA), DSIT and HMRC).’
The cyber risk blind spot: why measurement needs to evolve
14 April 2025
‘Yet, despite its importance, how we measure and communicate cyber risk has barely evolved in decades. Many organisations still rely on subjective scoring systems or broad-brush heatmaps, which, while simple, fail to provide the level of insight needed for meaningful business decisions. If we want to improve how cyber risk is managed, we need to rethink how it’s measured. The good news? A shift is already underway. Cyber risk quantification (CRQ) is enabling organisations to translate cyber threats into financial terms, aligning cyber risk management with business strategy and investment decisions. But while the theory is compelling, the real challenge is in execution: how do we make CRQ meaningful and practical for decision-makers?’
How to spring clean customer databases to drive growth
10 April 2025
‘To collect accurate customer data at the onboarding stage it’s best to use an address lookup or autocomplete service. Such tools deliver correct address data in real-time by providing a properly formatted, correct address when the user starts to input theirs. This approach also cuts the number of keystrokes required by up to 81 per cent when entering an address, speeding up the onboarding process, improving the whole experience, making it significantly more likely that the user will complete a purchase or application. Similar tools can accurately collect email addresses, telephone numbers and names at the first point of contact.’
Navigating the new realities of liquidity risk in banking
4 April 2025
‘History teaches us that many bank failures arise not from a lack of capital but from liquidity crises. Events like the collapse of Silicon Valley Bank and past global financial crises serve as a stark reminder of what can happen when liquidity management is neglected. By adopting a proactive and unified approach to risk and regulatory metrics, banks can ensure greater transparency, enhance investor trust, and enable early detection of liquidity risks, an essential tool for identifying and mitigating liquidity risks before they become critical.’
Successful GenAI implementation is not a sprint, but a strategic transformation process
25 April 2025
‘Generative artificial intelligence (GenAI) is transforming the financial sector. Banks that leverage this technology stand to benefit significantly – provided they also consider its limitations and risks. A recent expert report by the Swiss Bankers Association (SBA) outlines various aspects and application examples to establish optimal conditions for the use of GenAI in banks.’
Principles for the Management of Credit Risk
30 April 2025
‘The Committee has revised its principles for the management of credit risk (Credit Risk Principles). These principles provide guidelines for banking supervisory authorities to evaluate banks’ credit risk management processes in four key areas: (i) establishing a suitable credit risk environment; (ii) operating under a sound credit-granting process; (iii) maintaining an appropriate credit administration, measurement and monitoring process; and (iv) ensuring adequate controls over credit risk.’
Keeping Europe safe means keeping up with corruption and financial crime threats
23 April 2025
Two recent EU publications underscore the central role of corruption and money laundering in enabling organised crime and threatening security – and how essential it is to invest more in efforts to investigate, seize and confiscate criminal assets. Europol’s 2025 Serious and Organised Crime Threat Assessment (SOCTA) painted a sobering picture of how organised crime is “evolving at an unprecedented pace”, with corruption and money laundering as key enablers.’
The Stablecoins offer opportunities – and present challenges for the Swiss financial centre
30 April 2025
‘The Swiss Bankers Association (SBA) today published a comprehensive expert report on the topic of stablecoins. The report analyses the potential implications of Swiss banks issuing stablecoins – and draws a clear conclusion: a regulated, trusted Swiss franc stablecoin could represent a strategic project for the future of banks, the economy and society.’
Relaxed regulatory oversight spurs bank-crypto activity
30 April 2025
‘The Reserve Bank of India has introduced a new framework allowing banks and NBFCs to directly sell stressed assets to investors through special purpose entities, aiming to broaden the distressed debt market. This initiative introduces resolution managers to maximize asset recovery, while lenders must incrementally provision for securitized notes. ARCs may face increased competition, particularly for mid-sized and retail loans.’
Post Office and UK banks agree to extend cash access service
1 May 2025
‘The UK Post Office has finalised a new five-year agreement with banks and building societies to maintain cash services across the country. The deal ensures that millions of individuals and small businesses will continue to have access to essential banking services. It will take effect from January 2026 and run through to December 2030. The arrangement, called ‘The Banking Framework’, was introduced in 2017. The new deal allows customers from 30 different financial institutions to withdraw and deposit cash, check balances, and deposit cheques at their local Post Office. This initiative was designed to safeguard access to cash in communities, in the face of increasing closure of bank branches amid customers’ digital shift.’
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