Tag: Risk & Uncertainty

Banking Excellence & Financial Innovation

Global Banking Trends: Q1 2025 Insights

Indrajit Roy Choudhury

The latest BIS International Banking Statistics reveal significant trends in global finance for Q1 2025. Cross-border bank credit reached a record $34.7 trillion, driven mainly by a 14% growth in lending to non-bank financial institutions (NBFIs). Emerging markets received $100 billion in new credit, reflecting investor confidence. Additionally, foreign currency credit grew, with notable increases in euro credit. Analysts should reassess risk models and monitor economic fundamentals and geopolitical factors for sustained growth.

Reflections, Ideas & Perspectives

Lost in Space: A Lesson in Patience & Perseverance

Indrajit Roy Choudhury

Sunita Williams and Barry Wilmore found themselves stranded in space for 286 days after expecting a short mission aboard the ISS. They faced isolation and uncertainty yet adapted and persevered while contributing to scientific research. Their experience highlights that everyday setbacks, like delays and rejections, are minor compared to significant challenges. Patience, endurance, and problem-solving are essential qualities to cultivate for overcoming life's challenges.

Cybersecurity, Compliance & Risk Intelligence

The Cloud Data Catastrophe: Adarsh Developers and the ₹150 Crore Wake-Up Call

Indrajit Roy Choudhury

Bengaluru's Adarsh Developers filed a complaint against AWS for alleged data deletion causing ₹150 crore losses, emphasizing the importance of data management in cloud computing. This incident underlines the shared responsibility model, where cloud providers secure infrastructure, while customers must protect their data. Key lessons include the necessity of backups, access control, disaster recovery plans, and understanding service agreements to mitigate risks in cloud environments.

Banking Excellence & Financial Innovation

The Collapsing Giants of Trade Finance: Fraud, Oversight, and the Vulnerability of Non-Bank Lenders

Indrajit Roy Choudhury

The recent insolvencies in the trade finance industry, notably the collapses of Stenn and Kimura, have raised serious concerns about the sector's inherent risks, including fraud and poor oversight. Stenn's downfall stemmed from allegations of money laundering, while Kimura's exit was strategic amid market pressures. These events, reminiscent of Greensill's 2021 failure, highlight the need for improved oversight and transparency to safeguard the industry’s future and prevent further crises.

Banking Excellence & Financial Innovation

The Boston Tea Party: A Timeless Lesson in Supply Chain Disruption

Indrajit Roy Choudhury

The Boston Tea Party in December 1773 exemplified the impact of supply chain disruptions, highlighting their role in historical movements and modern commerce. Today's global supply chains face challenges from pandemics, natural disasters, and cyberattacks. Emphasising resilience, businesses must diversify suppliers, optimise inventory, adopt technology, assess risks, and strengthen partnerships to navigate future uncertainties effectively.

Banking Excellence & Financial Innovation

Understanding Managing General Agents (MGAs) and Their Role in International Trade

Indrajit Roy Choudhury

Managing General Agents (MGAs) are vital in international trade, bridging insurance companies and clients with specialized expertise in underwriting, claims management, and policy issuance. They offer tailored solutions for risks like marine transit, trade credit, and political risks, enhancing business continuity and compliance amidst complex global regulations. MGAs provide essential support for risk management in global commerce.

Cybersecurity, Compliance & Risk Intelligence

The Digital Underground: Cybercrime and Money Laundering in Southeast Asia

Indrajit Roy Choudhury

A recent United Nations report has revealed that criminal networks in Southeast Asia are increasingly exploiting encrypted messaging platforms to facilitate large-scale illegal activities, including trading hacked data, cybercrime tools, and laundering money through unlicensed cryptocurrency exchanges. Organised crime syndicates, particularly from China, are using these platforms to operate fraud schemes that generate billions of dollars annually. The report also highlights the use of advanced technology such as deepfakes and artificial intelligence to innovate cyber-enabled fraud. Despite increased legal scrutiny, these platforms remain a hub for illegal transactions due to their lax moderation and privacy-focused design.

Technology Trends & Competitive Advantage

Digital Tokens vs. OTPs: Singapore’s New Approach to Secure Banking

Indrajit Roy Choudhury

The Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS) are replacing one-time passwords (OTPs) with digital tokens for bank account access starting in November. This move aims to enhance security by prompting users to authenticate transactions through app-generated prompts and eliminating OTP vulnerabilities. However, users should remain cautious of phishing tactics.

Reflections, Ideas & Perspectives

The Mirage of Easy Money: A Cautionary Tale

Indrajit Roy Choudhury

In today's digital age, it's easy to be lured by enticing investment opportunities, but not all that glitters is gold. A cautionary tale from a friend's experience with an online investment group highlights the need for vigilance. Scammers create illusions of success, use fake testimonials, and prey on the desire for quick profits. Advice for retirees: verify authenticity, beware of high returns, stay skeptical of messages, and seek professional advice.

Cybersecurity, Compliance & Risk Intelligence

The Silent Breach: A Lesson in Cybersecurity

Indrajit Roy Choudhury

In the peaceful town of Brooksville, Brooksville Savings Bank fell victim to a cyber breach orchestrated by a skilled hacker, "ShadowPhantom". The breach, initially unnoticed, resulted in significant financial losses and jeopardized customer data security. Following the discovery, the bank took rigorous measures to rectify the situation, improve security, and raise awareness about cybersecurity.