What Defines a Modern Capital Market CIO?

What Defines a Modern Capital Market CIO?

By Capital Markets CIO Outlook | Wednesday, September 23, 2020

 Capital MarketThe technological churn is driving several transformations in capital market firms and adding several dimensions to the strategic role of CIOs.

FREMONT, CA: The role of a CIO in a capital market firm is shifting gradually in accordance with the requirements of the organization. In the pursuit of digitalization, capital market firms are eager to adopt advancing technologies under the leadership of CIOs. Traditionally, CIOs assumed the duty of directing the IT strategy of companies and managing the infrastructural decision-making. With technology becoming omnipresent and finding direct application in every department, the role of CIOs is also expanding. Today, the segregation between financial and technological teams in capital market firms is reducing, paving the way for greater involvement of CIOs in core operational aspects.    

Curating Technologies and Directing Digitalization: The Expert Visionary

The development in data analytics, artificial intelligence, machine learning, cloud computing, blockchain, and other such technologies has several implications for capital market firms. From improving decision-making to enhancing investor experience, advanced and innovative tech-based solutions are proving to be disruptive. In the process of adopting these solutions, capital market firms often face the obstacles of complexity. Thus, CIOs in these companies are now reconsidering the existing systems and reorganizing the technology infrastructure. One of the chief duties of capital market CIOs today is to equip their companies with innovative yet dependable IT strategies. Previously, capital market CIOs just had to introduce and enable the implementation of new technologies. Now, they need to build a smooth path for the transition between legacy systems and modern capabilities. Ideally, capital market CIOs have to be at the forefront of technological developments so that they guide their company towards investing in the right set of applications.

The new-age capital market CIOs apply their expertise to help their companies discover new avenues for operational improvement. CIOs are at the helm of plans for rapid digitalization, driving the resources, and overseeing investments in technologies. Technological insight is not sufficient for such a versatile role; industry knowledge coupled with foresight is also mandatory. Thus, the role of CIOs in capital market firms is becoming business-oriented even as their primary tasks of managing technology infrastructure persist.

Optimizing Business Decision-Making: The Knowledgeable Advisor

Understanding technology from the perspective of application in capital markets makes the role of a CIO challenging. Internal and external sources of data have expanded, making it a vital resource for the capital market firms, and leveraging this data effectively enables CIOs to step into the shoes of business-decision makers. CIOs are harnessing technology to enhance their prowess in leading capital market firms towards new opportunities.     

Be it embracing automation or data analytics, CIOs are providing not just leadership and insights but are also looking into the functional aspects of the technology. Thus, CIOs in capital markets are today capable of addressing questions like how automation impacts trading performance, how analytics simplifies portfolio assessment, what are the market risks that AI can detect, and so on. Apart from that, CIOs have to keep a tab on the aspects of security and compliance as both now come under the purview of technology. Thus, the CIOs are also security and compliance advisors. 

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Additionally, CIOs in capital market firms are directly involved in enhancing customer experience since technology is at the core of modern engagement and communication tools. Thus, CIOs, as technology leaders and decision-makers, are now establishing themselves as the chief drivers of change in capital market firms. 

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