Top 4 Technology Trends Revolutionizing Capital Markets

Top 4 Technology Trends Revolutionizing Capital Markets

Capital Markets CIO Outlook | Wednesday, July 31, 2019

Technology can assist capital market companies in handling exemptions from trade and mitigating risk without compromising on yields.

FREMONT, CA: Financial institutions are increasingly under pressure to innovate continuously to enhance customer engagement. Consequently, established banks and fintech companies turn to Artificial Intelligence (AI) to drive Intelligent Automation, which is anticipated to spur a new wave of streamlined operating method. The capacity to analyze client information and extract profound client insights will assist companies to identify hidden trends in data, produce client insights from significant amounts of data, and develop actionable approaches to create high-value proposition goods. Read on!

Intelligent Automation

Capital markets have made comprehensive attempts over the years to automate their business tasks, but recent times, the focus has shifted from robotics to smart automation. AI and machine learning (ML) are used by capital market companies to optimize business processes and post-trade operations. With the changing company setting, more and more companies are adopting methods of implementing and using automation and AI to transform big data lakes into processed, helpful information.

RPA: Enhancing Business Process Effectiveness

Robotic Process Automation (RPA) generates value by liberating human participation to provide extra strategic job ability. With capital markets companies facing operational inefficiencies and decreased profitability driven by higher regulatory expenses, they invest in fresh ways of using RPA to drive lucrative projects. An early-moving benefit can imply extra income to the tune of millions of dollars in today's extremely competitive setting.

Cloud: Driving Operational Efficiency and Strategic Decisions

Capital market companies face financial challenges such as low-interest rates, stringent laws, and high-margin-pressure enhanced capital requirements. Cloud technology adoption is accelerating among capital market companies, with organizations expanding cloud expenditure to access new business-critical information sources to make better business choices.

Smart Contracts to Boost Trade Settlement Efficiency

Smart contacts are the next major development wave in distributed ledger technology and have the ability to change the execution of trading on capital markets drastically. Smart contracts with DLT can carry out real-time payment procedures and eliminate intermediaries providing settlement and depository tasks. Smart contracts will assist regulators in improving transaction transparency, a significant concern among investors.

Global capital markets will assist businesses and governments to raise capital, help investors find yields and access them, and help them handle economic hazards. But the way these results are delivered is likely to alter dramatically, profoundly affected by fresh paradigms of technology and working models that are digitally led.

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