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Leveraging Next-Generation Technology to Drive Profitable Growth.
Traders Magazine Online News, October 11, 2017
Broadridge Financial Solutions, in conjunction with Greenwich Associates, has issued a report - Pathways to Profit: Leveraging Next Generation Technology to Drive Profitable Growth - that examines the impact that cloud computing, artificial intelligence, and distributed ledger technology will have in driving new revenue and cost savings opportunities for capital markets firms.
The report notes that while each has the potential to drive opportunities for new sources of revenue and cost savings, financial institutions are challenged to invest and find the expertise to realize the full potential of disruptive capabilities.
Broadridge and Greenwich start by stating capital markets firms globally are in a better position to invest in their future than at any time since the 2008 global financial crisis. With rising interest rates, stronger economic prospects, growing profits, and buoyant stock markets, banks can invest in new technologies to secure their future.
At the same time, they are struggling to achieve a return on equity that is higher than their cost of capital. To overcome this challenge, banks have the opportunity to harness the promise of new technologies to reduce costs by mutualizing key functions so they can focus on growth that drives shareholder value.
To understand how capital markets firms are dealing with this challenge and opportunity, Broadridge and Greenwich Associates surveyed executives at capital markets firms to learn more about their strategies to grow revenues while improving efficiency. We found firms are still grappling with the costs and challenges of regulatory compliance and legacy systems. They believe that new technologies will drive opportunities for new sources of revenue and cost savings, but they are concerned that they do not have sufficient resources and expertise to realize the potential of these opportunities. In these dialogues, executives talked about three new technologies in particular that are driving change:
1. Cloud computing which provides the opportunity to reduce costs, increase speed, and improve client experience
2. Artificial intelligence (AI) machine learning and robotics, which can enable firms to further automate and evolve middle- and back-office processes
3. Distributed Ledger Technology (DLT) which has the potential to be a unique disruptor of current business processes, revolutionizing everything from stock exchanges to proxy voting.
For thhe full report, please click here
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