As Europe rides through a technology revolution, capital market firms in the region approach digitalisation with equal measures of apprehension and excitement.
FREMONT, CA: Interrelated factors of technological advances, regulations, and market sentiments are shaping the present and the future of capital market firms in Europe. The wide spectrum of businesses that come under the umbrella term of capital markets is set to focus on different sets of digital capabilities to expand operations and enhance profitability. However, there has been consistency in trends that highlight the popular adoption of certain advanced technologies. Some of these technological trends, along with how capital market companies have interpreted them are mentioned in this article.
• Increased Investments in Digital Capabilities
One of the basic requirements for today's capital market firms in Europe is the digital infrastructure. Infrastructure is considered to be the
beginning point of effective digitalisation. Thus, capital market firms across Europe are continuously looking to add to existing digital capabilities and remodel backend, as well as front-end ecosystems. Several surveys have reinstated the fact that capital market companies are driving up investments to achieve optimised technological assets.
• Favoured Adoption of AI, ML and Data Analytics
European capital market companies, when asked by a surveying team to rank the preference of technologies, opted for AI, Machine Learning, and data analytics. The value that these modern technologies add to capital market trading and investing practices are significant. Technologies are giving capital market operations the edge of intelligence. From predictive analytics to smart reconcilliation, every fundamental process has become smoother and more accurate.
• Rapidly-Scaled Automation
Many trading practices in leading stock trading companies are already being run on pre-coded programmes. These abilities are set to get smarter, as well as automated. Automating trading gives traders the ability to respond immediately to dynamic changes in the capital markets. Thus, European companies are now able to address the issue of market volatility and among the top global performers in stock trading and investment banking.
Thus, advanced technologies are becoming the determinants of the European capital markets’ development.