Promising 2022 Technologies for the Capital Markets
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Promising 2022 Technologies for the Capital Markets

By CIOReview | Tuesday, September 13, 2022

Numerous analysts believe banks are adopting disruptive technologies to optimize business operations, increase revenue, and generate sustainable returns.

FREMONT, CA: No longer is it optional to remain abreast of the capital markets technology trends that will define 2022 and beyond. The rate of transactional activity remained constant throughout 2021, and analysts do not anticipate a slowdown for the remainder of 2022. Ninety-two percent of Deloitte's 2022 Future of M&A trends survey respondents anticipated that deal volume would increase or remain the same over the next 12 months. With the increase in transactions, the workforce has become more dispersed and remote. As work-from-anywhere becomes the norm in the future, companies have increased their investments in computer software and technology.

Increased reliance on technology for managing deals, relationships, and pipelines has also elevated the importance of transparency. At all stages of the dealmaking process, but particularly during the origination phase, candid conversations encourage investor participation. With more deals to source in a shorter time, there is simply no room for superficial interactions.

Some capital markets technology trends have risen to the forefront as a result of increased deal volume, the adoption of remote work, and the emphasis on building transparent relationships within the financial services industry:

Technology Must Be an Integral Part of Company: Software and purpose-built technology have merged into every aspect of society, expanding from an investment perspective and fundamentally altering how we collaborate. Today, technology is the most critical factor in successfully competing for deals, enabling professionals to move swiftly, remain organized, and exert lasting influence. Partner-driven capital markets firms have complex requirements, so their objectives and workstreams cannot be tracked and acted upon using disorganized, disconnected spreadsheets.

Regardless of organizations' size or investment strategy, they require software that can align and accelerate workflows, transactions, processes, and data. Simply put, technology is the fuel that drives every business. Businesses will not be able to enhance their intellectual capital if they do not invest in technology.

Every aspect of dealmaking is fundamentally enabled by technology, from business development to fundraising and investor relations to identifying potential conflicts of interest. When working on these strategic dealmaking initiatives on the road, it is essential to maintain constant visibility into the swift deal processes. The deal, relationship, and fund intelligence should be readily accessible offline. Using technology to enhance companies’ unique methods of operation is no longer a competitive advantage; it is now a requirement.

Data Equals Power

Using technology to extract data to generate actionable insights daily is certainly not a new trend, but activating its use to earn digital trust is crucial to gaining a competitive edge in the current market. Regardless of an organization's size, structure, or market, deploying dedicated data management and third-party integration solutions assists dealmakers in concentrating their efforts and achieving success.