How Capital Markets are transforming by Leveraging AI and ML...

How Capital Markets are transforming by Leveraging AI and ML Technologies

By Capital Markets CIO Outlook | Monday, September 21, 2020

A large number of positive comments are emerging from trend observers in the modern capital markets. Recent studies have indicated that the global financial services industry may gain an additional USD 512 billion in revenue through intelligent automation.

Fremont, CA: Modern capital markets are primarily reliant on extensive usage of multiple electronic, digital, computational, and connectivity technologies. This is very suitable to the industry's nature as capital markets generate large volumes of data regularly. As a result, participants like commercial banks, central banks, insurance operators, and hedge funds leverage cutting-edge technologies to process market data. Some participants have developed Artificial Intelligence (AI) and Machine Learning (ML) technologies to automate trading processes. Meanwhile, some participants have opted for custom-designed algorithms to create recommendations for clients to hold or trade in various asset classes. Such technologies also empower market participants to generate powerful insights into modern capital markets' workings.

Top 10 Capital Markets Tech Solution Companies in Europe - 2019A large number of positive comments are emerging from trend observers in the modern capital markets. Recent studies have indicated that the global financial services industry may gain an additional USD 512 billion in revenue through intelligent automation. This includes a combination of robotics process automation (RPA), artificial intelligence (AI), and business process optimization applied cohesively to achieve business objectives. Market experts have also noted that AI-based tools and process optimization techniques are being leveraged for automation in financial markets.

ML technologies and deep learning algorithms are creating the foundations for Robo Advisors. These are designed to process vast volumes of market information and develop insights to guide customers and clients. These advisors will allow capital market participants to perform market research, remove the guesswork from capital market operations, and assist various operators in stock trading activities. Besides, robo advisors can select investments and build diversified investment portfolios for their clients. Further, these versions of machine learning software automatically execute changes to assets to align a client's portfolio to a target allocation.

New versions of AI and ML technologies will likely mate cognitive capabilities with automation technologies. They may also augment human intelligence in executing a variety of capital market operations, promoting self-learning, and improving decision-making. In time, these technologies may evolve sufficiently and gain the ability to deliver outstanding client experiences by providing curated real-time information and hyper-personalization.

See also: Top Artificial Intelligence Solution Companies

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