Commentaries and insightful analyses on the world of finance, technology and IT.

October 1, 2015

The value of financial utilities

There is straightforward value in financial service providers delegating mundane non-core activities to an emerging set of financial utilities. That was the key takeaway from my first post.

But financial utilities have the potential to enable a range of benefits extending beyond mere "chore-broking". For instance, they can deliver significant cost reduction, which in our own experience, could be as high as 60 percent of the cost per trade. More importantly, utilities enable banks to shift to a variable cost model where pricing may be linked to simple transaction volume, or to more complex business outcome-related metrics. Going forward, there is a huge business opportunity in such gain-share models.     

By taking on the stewardship of non-core activities, financial utilities enable banks to hone focus on pure business-generating activities such as sales, marketing, relationship management, bank-specific pricing, risk management and value-adding services. Banks are free to concentrate on building competitive advantage by accelerating time to market, improving service delivery and enhancing quality of output. Once the utility model reaches maturity, banks will also be able to simplify their technology architecture by leveraging "bank-in-a-box" standardized workflows.

As the utility model evolves, expect to see a variety of formats - from the inclusive and comprehensive SWIFT model to lighter 'single platform-single bank' variations. We will also see strategic variations in the way these utilities are conceptualized, developed and deployed. There is already the cooperative bank-driven strategy that created Clarient. Then there is also the possibility that a single institution will take on the onus of development and then offer it to the larger ecosystem. Or a third-party technology vendor might offer the technical backbone directly to a leading market player like say, DTCC. New utility models could even emerge from partnerships between technology service providers and leading product vendors.

But irrespective of the variations in partnership and structure, every utility will eventually be ratified on its ability to enable productive collaboration between all stakeholders including banks, product vendors, market infrastructure players, leading technology companies and probably even regulators. But given the fact that most regulators are still circumspect about how much utilities should be allowed to do, especially in areas like compliance and risk management, it will be interesting to see how their future unfolds.

We'll talk about that in my concluding post.

September 24, 2015

The rise of financial utilities

Successful banks typically run a tight ship, constantly on a quest to wring out some more cost and performance efficiency from already optimized operating models. In recent years, that traditional diligence has been pushed to its limit by the general economic gloom and consequent pressure on returns and revenues.  

Accordingly, more banks are now taking their efficiency scalpels to the realm of regulation and compliance at a time when the cost and redundancies involved in complying with KYC, AML and ever increasing regulation is coming under intense scrutiny. This is leading to the creation of entities like Clarient, a client data and documentation utility launched by a clutch of Wall Street banks together with the DTCC (Depository Trust & Clearing Corporation) that acts as a centralized hub for internal onboarding services and also helps banks manage a range of regulatory requirements towards KYC, FATCA, EMIR and Dodd-Frank. Other prominent examples include KYC registries from Thomson Reuters and SWIFT, which itself has more than twenty participating banks.

Interest in these industry utilities continues to rise. In fact, many of our financial services clients - especially mid-tier institutions with relatively higher costs per trade - have expressed interest in co-creating utilities for centralizing post-trade process servicing, KYC/onboarding, reconciliation etc.

The role and relevance of an entity that aggregates and abstracts common, undifferentiated activities into a packaged, readily consumable service is fairly obvious. By centralizing important but non-core and standardized functions, financial institutions can improve savings, transparency and control. More importantly, they can also become more agile in responding to the frequently changing dynamics of the regulatory regime.

We believe that over the next three to five years, utilities will evolve into a central role within the financial services industry. After all there is definitive value in the fundamental premise of releasing banks from the chore of non-core activities. But what about the role and value of financial utilities beyond that basic promise?

That's in my next.

September 7, 2015

Flip a Bit

A coin has two faces and which one shows up when it is flipped depends on probability. In a normal, unbiased coin, each side has a 50% probability of showing up. However, if we shift our attention to the coins that are in vogue and live only in computers, that is, bitcoins - we would observe that here, the probability of seeing the other side of the underlying technology used in bitcoins is substantially less than half.

The main technology used and talked about is the block chain. The goal of this technology, simply put, is to remove, as much as feasible, the people, their influence, and their interference from the methods of transferring money, contracts, data, and all such information where ownership knowledge is important.

So does this mean the technology, which is considered to be faster, cheaper, and more secure than other transaction methods, be only restricted to bitcoins? That has never been the case with anything of such importance, and it is not going to be this time either; new and more interesting uses of this technology are not only being ideated, but put to use as well. Take a guess what a Goldman Sachs-funded start-up working on block chain, would be used for? If you thought bitcoins, you thought wrong. The start-up tracks and protects the U.S. dollar using block chain technology.

Likewise, from music streaming, currency tracking, to a failsafe voting system, block chain is finding use in a legion of ways, in almost every industrial landscape. In fact, a mini-industry has started taking shape around this technology. In the first half of this year, $375 million has been raised by start-ups whose business model is based on the use of bitcoins and its underlying technology. The amount of $375 million is in half a year is actually 10% more than what was raised by starts-up with similar models in whole of last year.

But road to glory is never strewn with flowers, on the contrary it is usually filled with thorns. Keeping true to this rule, not all is rosy with blockchain technology, as it is still being considered a risky bet at best. There are technology and perceptional issues that are preventing block chains from becoming ubiquitous. One must also consider the vested interests, such as those of the retail banks that stand to gain from the processing delays and other inherent inefficiencies of current system. Blockchains are likely to wipe out the delays in processing as well as the profits banks gain from differences in fees and interest and other such lacunae but it would be arduous fight before industry as a whole and banks in particular concede to real-time processing technology.

In spite of such impediments, the march to popularity has started and over time, blockchain is sure to find more adopters, and this, in all likelihood, would start a virtuous cycle of more adopter, more technology, and more convenience, leading back to more adopter. It would be interesting to see if the underlying technology, i.e. blockchain, become more popular than overlying service i.e. bitcoins. My guess is as good as yours, so till the clarity is reached flipping the bitcoin to bring in more and interesting use to what underlies it should continue.

September 4, 2015

Cross-Border Regulations' Coherence - a hype or need of the hour?

- by Ashima Uppal and Mayur Bansal

Regulations are essentially the prescribed ways of conduct in an otherwise un-organized environment. They are the binding rules that bring harmony, and set standards for every participating entity to follow.  But, what if the surrounding environment is so different across the globe, it starts to reflect a discord between the rules of different areas?

This question aptly points to the current state of financial regulations across the globe in which - the liquidity of OTC (over-the-counter) markets is majorly divided between the US and non-US funds. Third country CCPs (Central Counterparties) have found it difficult to gain European Commission recognition under the EMIR (European Market Infrastructure Regulation). Additionally, non-EU trading institutions have faced the delay of equivalence being given under MiFID I. It is not only the capital markets, but also the banking structural reforms that have differing national and regional approaches. This is making the markets prone to the risk of fragmentation, reduced competition, and reduced number of diversified sources of funds .

These differences in the regulations may also pose as a hurdle for the developing economies. They might reduce developing countries' access to global capital markets, adversely affecting their growth prospects. The variance between regulations are majorly a result of the distrust between the regulators, high complexity of the new rules, and inconsistent implementation processes which surface due to differences in legal and political models. There have been various appeals to bring consistency in the regulations across boundaries, for which reaffirmations have also been provided by global leaders on platforms like the G-20 summit. The major showstoppers, however, are the unilateral approaches and un-synchronized implementation of rules that have impaired the global approaches from bringing harmony across regulations.

Although the issue of incoherent rules affects every region and jurisdiction, it is the Asia-Pacific and other emerging markets that face most difficulty in regulatory arrangements. The disagreements between the US and EU regulators have delayed the development of the regulatory frameworks of APAC countries. APAC countries want their regulations to be consistent with the global regulations. To get to that stage, APAC countries have to draft their regulations so broadly that they can accommodate both US and EU regulations. For instance, Australian regulators allowed the derivatives players in Australia to adhere either to the US, or the European approach. The APAC region also has various US and EU organizations as major players, which makes it difficult for the APAC countries to choose one regime to comply with.

With the growth of the global economy, APAC countries are gaining importance in the international markets and are becoming the growth-drivers of the world. The issue of regulations' disjointedness needs to be addressed. A more harmonized market environment needs to be developed to fuel international growth.

September 3, 2015

Advancing beyond analytics

In today's world, knowledge is power, and anyone who can harness this power is going to have an edge over the others in every single way. This knowledge comes from information, which in-turn is processed data. Today, we have several means to collect or gather data, but how well we can use that data depends on how well we analyze it. Over time the data collection, as well as the approaches to analytics have evolved.

The orthodox approaches (such as query and reporting) of business intelligence (BI) were found to be lacking in coming up with insights required for the present day industry. Thus, an alternative was found in sophisticated quantitative methods such as statistics, descriptive and predictive data mining, simulations, and optimization. This new approach to analytics was an advancement over the traditional methods, in the form of organization, coherence, effectiveness, and accuracy in the insights. Thus, the field of advanced analytics was born - as with all other things - out of the necessity to achieve perfection beyond the current methods.

Organizations are attracted towards advanced analytics as it helps them gain insights and improve decision making. Along with this, it also helps them to detect frauds, optimize the next best offer for customers, and in maintenance activities using predictive methods.

In the financial industry, there are multiple examples of the use of advanced analytics. Case in point - the Nordic Danske Bank relies on advanced analytics from Dell Statistica to be able to provide quick and accurate services to its customers, 24/7. In a highly competitive industry like banking, customers are not happy to be served with just traditional "bankers' hours" of 10 a.m. to 3 p.m. They want to be pampered with not only 24/7/365 access to their accounts, but also services such as transactions, loans and alerts. To provide such services, the financial industry was forced to use a variety of analytical models; and it is this increasing adoption of analytics that gave the advancement of analytics a push.

Consider the following fact to gauge the momentum of the advancement of analytics - over 72% of analytics initiatives which have been announced by banks over the last couple of years have been for advanced analytics.

Before we get too gung ho about the above figure, we must remind ourselves that so far, the major focus of advanced analytics has been only on descriptive capabilities. However, portfolios of analytics capabilities of all sectors, such as banking, are slowly-but-surely being extended to predictive and prescriptive analytics, from just descriptive analytics.

What does this hold for solution providers? A reputed research firm says that advanced analytics is a top business priority. This is further confirmed when we consider the fact that within BI, advanced analytics is the fastest growing segment, and has surpassed $1 billion in 2013 itself. Financial services have been at the forefront of this growth and are likely to remain so for at least next 5 years. Banks have been using predictive analytics and cognitive computing - which are types of advanced analytics - to discern unsavory transactions before they can have any impact on the banks and their customers.

A cursory glance at history would tell us that the advancement of technology is not a steady curve. There are plateaus, upward spurs, and sometimes reversals as well. Let us wait and watch how things move in this particular space.

Robo-advisers: Terminator or Transformer?

In recent times, Robo-advisers are in the limelight. Robo-advisers are in no way related to the Terminator or the Transformers movie series. You never know though - looking at the sudden interest in robo-advisers, it may turn out to be a blockbuster. Now, who are these robo-advisers? 

Robo-advisers are a class of financial advisers that provides automated (algorithm-centered) investment services. As part of their offerings, robo-advisers can handpick investment portfolios (allocate), rebalance portfolios (automated rebalancing), and offer tax-loss harvesting. Robo-advisers offer personalized portfolio services through top-quality digital (online and mobile) channels, at a reduced cost.

The likes of Wealthfront, Betterment, and other robo-advisers have been successful in attracting funding from Private Equity firms, Venture Capital funds, and strategic investment arms of banks. For instance, in the beginning of 2015, Betterment was able to raise $60M in a new round of funding, while Wealthfront raised $64M in the last quarter of 2014. This funding is in addition to what they have already been able to raise. Robo-advisers have not only attracted funding, but also the attention of battle-hardened financial service industry players to robo-advising. These traditional players have taken different routes (like partnership, own service, acquisition, etc.) to enter the enticing robo-advising space. For instance, Charles Schwab formally launched its own robo-advising service - the Schwab Intelligent Portfolios in the first quarter of 2015. Fidelity partnered with Betterment to create a tool for Fidelity's registered investment adviser clients, while Blackrock has acquired FutureAdvisor, a robo-adviser. Also, in recent times, big players like Merrill Edge and Wells Fargo have also announced their plans to join the robo-adviser race. This is just the beginning of a new trend of traditional players exploring the robo-advisers space more closely.

These new launches and announcements are clearly pointing towards a trend that robo-adviser is here to stay and they are entering main-stream. For now, the robo-adviser cannot definitely replace the traditional financial advisers, but traditional firms cannot completely ignore the robo-advisers' easy to use, low-cost, digital advisory services. They are a compelling selling proposition to the new age millennial and mass-affluent population. For the traditional financial advisory industry, robo-advising can certainly be a value-added service offering to target a niche audience. 

It's too early to predict whether Robo-advisers will be the Terminators of the traditional financial advisors or the Transformers, who provided the necessary boost to the industry. Only time will tell. I am watching this space with keen interest. How about you?

August 20, 2015

Identity Controls Access; Access Provides Opportunities

-by Kuljit Singh and Mayur Bansal

The fact of who or what, a person or a thing is, is a definition of identity; which simply indicates a confirmed way of identifying a person. And one of the reasons for having, or giving an identity, is to help the person get what is his / hers, or what he / she deserve; that is, help the person have "access" to his / her things. But, in a world where fakes and counterfeits are everywhere, why should identity be an exception? And the identity becomes the victim, most often, in the virtual world. Banks have always been a Holy Grail for hackers, and one of the routes to get to that Holy Grail, has been assuming others' identities (euphemism for identity theft).

This fascination of hackers has thrown a challenge to banks - to ensure that only the right people get the right access, to the right resources. And further ensure that they do the right thing with those rights and resources. The management of this conundrum is called Identity Access Management (IAM). The reason banks or financial institutions need IAM is because any breach, dereliction, or plain neglect, can have cataclysmic consequences in the form of revenue loss, higher operating costs, and damaged reputation.

For instance, a malware called "Carbanak," which allowed hackers to surreptitiously install spyware on more than 100 banks' computer systems, has said to cost banks $1 billion - apart from the reputation and credibility lost, not only of targeted banks, but also of the industry as a whole.

So, in the game of one-upmanship, where hackers try to outdo banks' security, and the banks' efforts to keep the interferences from hackers to a minimum - if not obliterate it completely - the technology companies completely sided with banks. They have also been acting as guardians of the financial galaxies, by coming up with new ways and systems to verify people using PINs, passwords, fingerprints, voice, retina, even veins and other biometric sensed identifications. These technologies not only check the infringements by hackers, but at the same time, provide confidence to customers, and keep their faith in the entire banking system intact.

The cases in point - ING Bank is introducing voice-activated mobile payments, and many banks in Brazil are using veins to identify a person. Similar biometric systems have been adopted by many others.

With the combination of biometrics for identification, and security features for robustness, technology has been trying to retain the faith of customers in their banks and other financial institutions. This, in turn, has helped tide-over the heavy weather that was created by hackers.

Since hackers are not going away anytime soon, protecting the interests of banks, governments, and customers, will continue to be a field full of action for the foreseeable future. If we want to put a dollar-value to this opportunity, the MarketsandMarkets report on Identity Access Management estimates that the IAM market will grow to be US $18.3 billion, by 2019. This is an opportunity for us to train hard, and attain excellence, as true leaders do.

August 12, 2015

Pressure for Some, Opportunities for Others

-by Kuljit Singh and Mayur Bansal

Even though the crisis first started in 2007, the aftereffect is being felt even now. The major player or anti-player (as some banks feel it to be), which has emerged from all this is an entity called the regulators, which seems to be the keystone holding the entire edifice of financial services together.

In a broad sense, what the regulators have been trying to achieve is to decrease the areas of disingenuous liberties of the banks, and increase the resilience of the sector as a whole. To achieve the former, limit on how far banks can use internal models to manipulate calculation of capital for credit and market risk is being sought by regulators. Such less-than-honest use of internal models by banks have drawn a lot of flak from both regulators, and investors. To achieve the aim of resilience, regulators are pushing banks for macro-prudential measures such as higher capital, leverage, and liquidity requirements to enhance resilience of banking sector.

The case in point is the European Commission (EC), with around 39 different regulatory reforms and policies, which has been at the forefront in devising policies to stabilize, and make the markets more transparent. Some of the major areas covered are: Capital Markets Union, Banking Union, Prudential Requirements for Banks, Retail Financial Services, MiFID, and Accounting.
The US brought changes in its regulatory structure to make up for deficiencies identified in the 2008 financial crisis through Dodd-frank, and Consumer Protection Act 2010.

Then there are those regulations whose jurisdiction is global - BASEL for example.

Apart from the regulatory pressures, banks also have to deal with variety of economic and commercial factors, including the weak economic environment, low interest rates, market over-capacity, strong competition, technological change, low margins, and high cost bases.

The bank's model is based on building strong synergies between the commercial and operational side of the business. However, these regulatory pressures are disturbing the synergies, especially among universal or cross-border banks, rendering their strategic assumptions obsolescent, thus requiring change in the business model. The main aims that are being sought by these models are just the right mix of return, capital and liquid resources along with acceptable degree of resolvability.

One of the major underlying component of all these aims put forth by the new model is cost reduction. This is why investments in IT by banks in the long run, could help in improving income through increasing services to the customers, by containing risk and providing security in the cyber space which would make the entire system robust and would encourage confidence in all stakeholders. Banks should also be able to benefit from centralized and streamlined infrastructure platforms which are able to support myriad and complex business and customer propositions, through in-house solutions or by help from vendors/service providers.

To achieve their goals, banks are pursuing different paths or strategies, but in each one of them, the role of technology is indisputable. Going forward, as banks try to steer their way through the maze of regulations, and other pressures, technology service providers would find many opportunities. Hence, for the technology providers there is plenty of hay to be made, and the sun is going to shine for a long while.

Next generation IT for banking - Challenges and way forward

The bank of the future will be very different to the bank of today, thanks to a variety of factors - technology changes, client needs, regulatory pressures and new competition - which will transform the way banks operate and respond to business imperatives.

Today's Bank
Even today, banking is largely aligned with organizational business structure. While this worked in the past, emerging trends suggest a need for deeper thinking in organizing the business applications that drive competitive advantage, in building the banking shared services utility model.
Exclusivity of services and confidentiality of information have always been valued by the industry, and associated expenses treated as an inevitable cost of doing business, which banks charged back to the end customer, who didn't mind paying because the banking returns were adequate. This meant banks had little reason to optimize their cost structures, which took a back seat to service availability and support in driving IT decisions.

The Changing Paradigm
We believe the bank of the future should focus on the following dynamic areas:
1.Products - constantly evolve to cater to demographic/regulatory/technology changes
2.Channels - accelerate digitization and integration to provide single view to clients
3.Operational - rejig internal systems, processes and governance model for agility and adaptability to changing market dynamics
4.Technology - watch out for new challengers and also opportunities to serve clients with differentiated offerings

Bank of the Future
Heightened competition and the pressure to optimize service costs for larger clients drove banking organizations towards outsourcing and offshoring. Leading analysts, such as Gartner and Tower Group, have estimated that 30 to 50 per cent of IT functions is outsourced  . Over the past ten years, banks have made significant cutbacks in fixed costs, while increasing the variable component to become more business-agile. Also, they have mostly moved away from individual-based programming and supporting applications to service level agreement-based development and support.
However, the past two years have really changed the landscape of the IT organization within the financial services industry. In the interconnected world, information exclusivity does not last long enough to be advantageous. Banks need to increasingly redefine their IT systems to support business initiatives to respond to emerging competition from non-banking businesses, such as telecom and retail. 

Destination IT
There's a new thinking in the IT organization. Changing market dynamics and the predictability   of IT applications for various business needs, is leading to the creation of shared service utilities across functions. Still early-stage, these concepts can enable IT organizations to become more efficient while rendering superior support to business. We believe banks must explore the opportunity to reshape the IT organization to lead such industry changes by examining:
•The practicability of building a shared service organization across business units: Shared services within certain functions of single Lines of Business (LOB) bring some benefits, but also pose issues in cross-border trade on account of varying regulation. Building cross-LOB supporting services is yet to be understood in detail. Typically, organizations are wary of disturbing a working process, preferring to wait for first movers to succeed before making radical changes to the IT organization.
•Significant challenge in aligning mindset among diverse teams across LOBs:   Consolidating services based on utility requires broad consensus among a diverse set of business stakeholders, and a leaner organization. While this may force unpopular decisions,  consensus is necessary to mitigate the risk of disruption. 
•Difficulty in analyzing cost benefit: Rebuilding legacy platforms supporting various business processes, consolidating databases, migrating applications and reorganizing message flows, and changing downstream application interfaces is difficult to conceptualize and analyze from a cost-benefit perspective. This is further complicated by the choices available today. Given the scale of change, decision makers are finding it hard to justify a future case based on current realities. Since some decisions are forward looking, quantifying their outcome is  difficult, and they may need a leap of faith to happen. 

In Conclusion
Banks building a business-aligned, real-time responsive technology landscape to support next-generation banking should take the following dimensions into consideration:
•Lower cost of transactions and higher operational efficiencies - through services standardization and harmonization of the lifecycle managed across processes  .
•Leveraged data management through proper lifecycle management - enabled through enhanced dashboards, minimum error, and complete visibility into banking relationships with customers and suppliers.
•Enhanced risk management services - through proper alignment of risk servicing infrastructure enabling a consolidated view of various risks across entities, accounts and geographies.
•Adaptation of "Single Customer View" - with a complete and accurate customer warehouse. Provisioning an organization-wide standard of customer data for representation, access, control and governance improves cost and operational efficiencies.

Along with simplifying application architecture and supporting infrastructure, banks must address the key issue of mapping raw data from source systems into an appropriate canonical representation that downstream applications will consume as they are provisioned. Thanks to Service Oriented Architecture and Batch Integration mechanisms, today's technology is up to these challenges.

August 10, 2015

Risk Technology: Let the CAT out of the bag

Today's banks are facing a common challenge across the globe: mounting technology costs and increasing compliance requirements. New organizations are surfacing at every nook and corner to disrupt normal life through violence, and are being funded heavily to conduct global attacks. Due to the way the banks have operated so far - coupled with the macro conditions globally - a need has arisen for tighter controls and more stringent compliance requirements. Everyone talks about the cost aspect all the time; this blog will focus on the transformation approach banks need to take in enterprise risk technology. A cross-talk within LOBs would definitely be successful in catching the big fish that currently operate outside of the radar.

The need to focus on risk management and better compliance requirements, arises from the growing fraudulent activities the world over, and the demand for illegal fund placement to feed the current crop of terror networks. The need of the hour for all financial institutions is to, at the least, talk internally across the boundaries of LoBs. Let each of them take their CATs out, that is, Customer information, Account information, and Transaction information. Bring these three attributes centrally and imagine the possibilities of obtaining Predictive, Behavioral, and Business analytics which can out-pattern any application in the world. Let's take a look at the individual components of this CAT -

1. Customer information: Each LoB holds its own System of Records to capture customer information, and their core attributes like party key, bank-assigned unique numbers, name, address, and home and work details. Most of the times, the LoBs do not talk to each other and tend to hold back this information.

2. Account information: Each LoB holds some specific account attributes, like associated owners, which are never cross-reconciled across the LoBs. This leads to missed accounts when trying to sieve them through various rule based scanners.

3. Transaction information: This is the most critical of the three and perhaps the most immature part across organizations. The fraudulent minds take advantage of this vulnerability within the bank technologies and are able to successfully siphon off the money,  pass through undetected during scanning, or are able to place and direct the illegitimate funds to feed the weeds. Not even the big banks of the world have a mature LoB-wide transaction scanning with reasonable SLAs to take informed decisions. By the time something fishy is identified, they have missed the bus by a long while.

Like all problems, these security issues have a solution too; the need of the hour is for all these CATs to be out on a single hub, reconciled and analyzed, and then discussed upon as a first layer of security checks. This hub should handle the billions of daily transactions (the average volume for big banks ranges between 40-50 billion transactions, everyday) of various forms from various LoBs, reconcile the involved parties and accounts across transactions in order to get the complete picture, and then assign them risk ratings in order to get a clear classification of High-Medium-Low Risk customers, and their relationships with the bank.

Coupled with Predictive and Business analytics, this can work wonders and truly help investigation teams - within and outside the banks - tighten the fund movements, and curb the illegitimate fund placements and fraudulent activities.

This system of LoBs letting their CATs out of their bags, with a clear understanding and good coordination between them, will go a long way in curbing funds to undesirables the world over. However, most of the banks and LoBs currently operate in silos; which results in divided information with no real connection to establish a concrete risk profile. Many transactions pass under the radar and end up funding wrongdoers across the world. Only a well-connected kitty party of these CATs, across LoBs, will mitigate the risk these financial institutions run, at present, by failing to catch the suspicious transactions and parties, and paying penalties for their failures. More than improving the loss liabilities of banks, this system would directly impact the moral system of the people by cutting the financial pipeline to the malignant networks and rings around the world.