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How IT Transformation Benefits Capital Markets?

By CIOReview | Wednesday, July 1, 2020

Cloud, AI, mobility, and blockchain have generated new demands, new forces, but also new opportunities to transform legacy IT landscapes.

FREMONT, CA: In recent weeks, capital markets have been thrown into turmoil by the pandemic outbreak, the chaos that will likely continue to impact capital markets for the foreseeable future. As the businesses enter a critical period for banks, they need to innovate solutions to control the enhanced risk associated with a market relying on economic rather than monetary and navigating a movement in a regulatory framework.

This new issue comes as global banking groups are still struggling to recover from the global financial panic in the gone years. The average profitability for banks was on the rise. Before the markets were thrown into pandemic turbulence, nearly one-third of investment banks carried an unsustainable cost structure.

Having lesser systems drastically minimizes unnecessary information duplication, operational risk and the ultimate costs. It enhances the capacity and velocity at which organizations can adapt to transformation, especially when it comes to regulation. Consolidation improves the level of automation and control, encouraging banks to see the entire impact of trading decisions quicker, offering a competitive edge and operational efficiency. One flexible platform permits users to prepare for challenges and grow tomorrow. Streamlining access to the capital markets value chain enriches the digital services that banks can offer to the clients.

Monitoring the activities, assets, and functions on a single platform need a robust, scalable, and resilient architecture designed to integrate computer-intensive calculations, in real-time, together with high-throughput processing and productive automation capability. The advanced technologies must be leveraged to enable better performance, openness, elasticity, and a minimized total cost of ownership. Cloud deployment, agile and DevOps principle adoption make this a reality.

The target model enables banks to strike the right stability between both standardizations across several areas eligible to streamlining and flexibility driven by the need for differentiation and the singularity of the internal bank ecosystem. It should be developed and implemented in a way that enables financial institutions to maximize the opportunities to standardize while leaving the necessary openness where required to retain a competitive edge.

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