The Capital Market Trends in the Wake of COVID-19

The Capital Market Trends in the Wake of COVID-19

Capital Markets CIO Outlook | Friday, December 03, 2021

Beyond demonstrating operational resilience, two added outcomes that surfaced in 2021 because of the pandemic are — remote work acted to accelerate innovation in the capital markets business, and the need to strengthen governance via automated capabilities to derive insights from global trade, position, and risk data.

Fremont, CA: The pandemic profoundly impacted global communities. The need for social distancing further impacted every dimension of our daily lives, from how we work to socialise with family, friends, and colleagues. Overall, the broader capital markets segment has responded favourably to this global health crisis. In addition to holding up to pandemic related economic disruptions, such as record market drawdowns, volumes and volatility, capital markets carried on without any significant problem – a testimony to industry resilience.

Beyond demonstrating operational resilience, two added outcomes surfaced in 2021 because of the pandemic: remote work acted to accelerate innovation in the capital markets business, and the need to strengthen governance and automated capabilities accelerated for deriving insights from global trade position and risk data. It also acted to highlight weaknesses around specific manual processes not apt to remote working situations. Shoring up such vulnerabilities has become a priority with an increased industry focus on improving operational resilience.

Four technologies that stood out in having the highest potential to transform the investment banking industry in 2021 are — cloud computing, artificial intelligence (AI) and machine learning (ML), and robotics process automation (RPA). Although the industry has been on the fast track to adopt these transformative capabilities over the past many years, the industry has not yet adopted them at scale. The primary constraints limiting the pace of adoption include the continuous support and maintenance of legacy IT infrastructures, pressure on bottom-line returns, and continuous regulatory alterations.

Weekly Brief