The combination of a depressed world economy and tougher regulation will make the financial markets rally to IT in order to underpin more risk-averse business strategies, according to a report by analyst Ovum.
It predicts that regulatory compliance in particular will place further IT investment requirements on participants, with risk analytics (covering market, credit, operational, and a new dimension, liquidity risk) becoming key. In particular, companies will harness emerging ‘in-memory’ technology capabilities to handle the kinds of volumes of data at the speeds required for intraday risk management and reporting.
The buy side will focus on client servicing as investor returns wane in 2013, making reports on how portfolios are performing more transparent, frequent, and readily accessible, with a big push into enabling access from mobile devices, for instance.
In an effort to drive cost out of its business, the sell side is predicted to increase the automation and optimise post-trade operations, with cloud services becoming a serious option for a number of functions.
“With 2013 comes a lot of challenges for the financial markets, with both the buy and sell sides of the industry turning to greater use of technology as the solution,” said Rik Turner, senior market analyst, financial services technology, Ovum. “The buy side is looking to lower its dependence on brokers with heavy investment into front-end services as it looks to retain a much less faithful client base, while the sell side looks to underscore its complex multi-asset strategies with greater product accounting.”
The US money market fund reforms came into effect in 2016 and are already dramatically shaping US fund industry with investors flooding out of prime funds and into government securities. While the reforms are similar, they are not the same. GTNews interviews Yeng Bulter, global head of the cash business at State Street Global Advisors on the differences.
There are various ways for financial institutions to benefit from advanced technologies and business models provided by FinTech's. Whether a business' approach is radical or incremental, data management can help a company to increase their return on investment, argues André Casterman, INTIX.
Tim de Knegt, strategic finance and treasury manager for the Port of Rotterdam, discusses how he is using blockchain, the challenges he will face in his role of treasury over the next 12 months and the advice he would give to someone starting out their career in treasury.
Due to the low interest rate environment and Basel III regulation many corporate treasurers, who may have in the past been very reliant on the banking sector to provide them with cash management solutions, have been forced to explore alternative options as banks have been refusing short dated cash deposits.