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Technological Innovations Reimagining Capital Markets

By CIOReview | Thursday, July 25, 2019

Digitalization has become an essential aspect in the modern world, and capital markets industry like any other is transforming to meet this need of the hour. 

FREMONT, CA: The capital markets industry has started to realize the need for the digital transformation of their business. The institutions across the globe are using cutting edge technologies, including blockchain, machine learning, and robo advisors, as they make digitalization an essential part of their business. Capital markets firms are embarking on this journey through the following drivers.

• Automation

Automating pro­cesses significantly reduces operational costs, risks, and other overheads. It not only speeds up customer experience but also allows firms to scale their activities significantly.  Automation in investment management will fuel the massive shift towards robo-advisors and systematic investments.

• Artificial Intelligence (AI)

AI(Artificial intelligence) mimics human problem-solving and decision-making processes. It is allowing capital marketers to operate more efficiently, reduce fraud, explore new revenue streams, and investigate data sets hidden in their databases. AI-powered robotic process automation will eliminate basic tasks, enabling humans to focus on higher-value activities. The more data consumed by AI tools, the better the results are.

• Blockchain

It is a game-changer for the entire capital markets industry. Blockchain makes costly, complex, manual behavior obsolete and leads to a faster, more efficient, transparent, and correct market infrastructure. This massive value released goes towards cost savings in financial services firms and makes finance more affordable and accessible, increasing investors’ returns. Blockchain is not just disruptive but well foundational.

• Cloud Technology

Storing data in the cloud facilitates financial services firms with the rapid deployment of computing resources that boost efficiently according to their business goals and growth. Some cloud storage options are secure and compliant with all existing regulations. It is no surprise that cloud is considered the necessary tool for the majority of financial institutions.

Capital market firms need to rethink and come up with new business models and offerings to survive in the competitive market. To this end, an effective digital strategy driven by innovative technologies is required. This will help capital marketers succeed in the long run.