New Trends for Quantitative Finance in Banking – Broader Prospects for MFE Students

Featuring the

New Trends for Quantitative Finance in Banking

- Broader Prospects for MFE StudentsLionel Xavier
Global Head of Capital and Liquidity Management
Standard Chartered Bank

Lionel Xavier is Global Head of Capital and Liquidity Management in Standard Chartered Bank since 2012. He is responsible for planning and analytics across the Group. In this capacity, Lionel advises top management and businesses on portfolio risk-return optimisation and conducts bank-wide stress testing activities. His current interest is the integration of risk-finance-treasury management through metadata, machine-based learning and visual analytics. Prior to his current role, he piloted Standard Chartered capital and balance sheet management committees (2007-2012) through the global financial crisis, Basel regulatory reforms and the digital transformation. Lionel started his career in banking as a financial modelling analyst for large infrastructure projects (1994-1996) before taking successive functions in client coverage, credit approval (1996-2000; Beijing) and mergers and acquisitions (2000-2003; London). Lionel later served as corporate strategist for the Chairman’s office of Samsung (2003-2006; Seoul) where he oversaw business development for insurance, hotel and engineering businesses. He has been based in Singapore since 2006.

Overview

• Industry Context: The banking environment ten years after the Global Financial Crisis
  • The aftermath of the crisis – big regulations, little RoE
  • Winners and losers – reversal of fortune for the universal banks, the home host issue
  • A typology of strategy – 2, 4 or 6 business models for the future?

• Organisational Trends: Driving forces in today and tomorrow’s bank financial risk management
  how regulation, digitalisation and professionalization are changing organizations
  • Regulations – alignment of planning with scenario analysis, integrated business and risk
  • Metrics – moving banks from income- to resource-driven model
  • Operations – data and processes alignment, validation and lines of defences
  • Efficiency – balancing cost-saving with an inflation of new external requirements

• Operational Transformation: The rise and rise of quantitative finance in multiple decision channels
  where does financial engineering resources and skill sets are making an impact? And where they don’t?
  • Credit risk models – the industry of design, construction, validation and recalibration
  • Business volumes and margins (PPNR) – the US example on how to build strong models
  • The convergence of risk and performance – the use of EVA and its challenges

• Attributes to succeed as MFE alumnus in the banking sector:
  • The Gordian knot of specialisation vs. generalisation
  • Business practice makes financial risk management better
  • Communication, communication, communication