Most capital markets professionals in the U.S., U.K. and Europe would like to consolidate all their communications channels into a single platform to simplify correspondence, minimize security risks and ensure regulatory compliance.
Capital markets professionals rely on an ever-expanding array of communications tools, including traditional telephone calls, mobile phones, email, text, WhatsApp, WeChat, SMS, LINE, and many others.
“The proliferation of communications channels has complicated daily workflows for financial professionals, while also introducing new risks and recordkeeping burdens associated with security and regulatory compliance,” says Audrey Costabile, Senior Analyst for Coalition Greenwich Market Structure & Technology and author of Federated Business Communications: The Only Path Forward.
Technology providers have created products to resolve many of the issues caused by the explosion of communications channels. Federation allows for the aggregation of existing channels, while providing secure, compliance-enabling communication with clients that need to meet regulatory and recordkeeping requirements—all through a single platform.
Most financial market professionals use between one and 10 communications channels, with some employing up to 30. In the asset management industry, more than 70% of professionals participating in a recent Coalition Greenwich study say their firms have implemented a single, federated platform to integrate these channels. However, adoption rates vary considerably in other parts of the financial services industry.
For example, only 39% of financial advisors say their firms have adopted a single interface for business communications. Adoption also varies widely by geography. In the U.K., 72% of research respondents say their firms have consolidated communications into a single platform; in the EU, the adoption rate is only 37%.
“Firms that allow employees to conduct business through many discrete communications channels could be exposing themselves to considerable risks,” says Audrey Costabile. “Of course, actions by the regulators play a significant role in motivating financial service firms to adopt aggregated solutions, but, from a business and client experience perspective, streamlining communications channels is a competitive differentiator for firms willing to embrace the technology.”
Federated Business Communications: The Only Path Forward analyzes the communications channels used by professionals in the financial advisory, insurance, hedge fund, and asset management industries. It examines current usage of centralized communications channels, reviews the benefits of aggregated platforms, and documents the strategies firms in the U.S., U.K. and Europe are using to implement federated technology to improve communication.
Source: Coalition Greenwich
