Before the pandemic, themes that were driving technology demand in the capital markets were regulatory compliance and cost-cutting.
Technologies in demand in the capital markets in recent years were Big Data, AI/ML, Blockchain, and Cloud Computing.
Even amid the global economic gloom, the capital markets were not uneventful. As per S&P Global, the global bond issuance is expected to be 16% higher in 2020 compared to 2019 amid record-low interest rates and markets flooded with liquidity. As per data from the World Federation of Exchanges, the value of share trading globally registered a 49.74% increase in H1 of 2020 compared with H2 of 2019. Exchange-traded derivatives volumes were up 23.4% when compared with H2 2019, reaching a record 21.72 billion contracts traded.
Cost pressures, exacerbated by COVID-19, likely to accelerate automation initiatives as banks cut headcounts rapidly.
Technology implementations due to compliance requirements such as the Second Markets in Financial Instruments Directive (MiFID2) and the Fundamental Review of the Trading Book (FRTB) likely to be sources of demand for companies providing technology to the capital market sector. The companies providing automation of compliance processes are already attracting a higher amount of venture funds. Technology providers focusing on Data Analytics, AI/ML, IaaS and Biometrics, etc. are expected to gain from the trends.
Another important factor is the rapid adoption of work-from-home culture. A significant portion of the firms may opt for a permanent work-from-home or a hybrid work culture. This shift is likely to increase demand for cloud transformation services.
Even though many financial services firms may cut IT spending for a few quarters, compliance automation, cost-cutting initiatives, and cloud transformations will continue to create demand for capital market technology providers.
Uneak White's Personal Brand Exploration Presentation
Emerging Tech for Capital Markets (B2B)
1. Going Forward on Indian Urban Mobility by Sam Ghosh 19th July 2020
2. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview
Executive Summary
● Before the pandemic, themes that were driving technology demand in the capital markets were regulatory compliance and cost-cutting.
● Technologies in demand in the capital markets in recent years were Big Data, AI/ML, Blockchain, and Cloud Computing.
● Even amid the global economic gloom, the capital markets were not uneventful. As per S&P Global, the global bond issuance is expected to be
16% higher in 2020 compared to 2019 amid record-low interest rates and markets flooded with liquidity. As per data from the World Federation
of Exchanges, the value of share trading globally registered a 49.74% increase in H1 of 2020 compared with H2 of 2019. Exchange-traded
derivatives volumes were up 23.4% when compared with H2 2019, reaching a record 21.72 billion contracts traded.
● Cost pressures, exacerbated by COVID-19, likely to accelerate automation initiatives as banks cut headcounts rapidly.
● Technology implementations due to compliance requirements such as the Second Markets in Financial Instruments Directive (MiFID2) and the
Fundamental Review of the Trading Book (FRTB) likely to be sources of demand for companies providing technology to the capital market
sector. The companies providing automation of compliance processes are already attracting a higher amount of venture funds. Technology
providers focusing on Data Analytics, AI/ML, IaaS and Biometrics, etc. are expected to gain from the trends.
● Another important factor is the rapid adoption of work-from-home culture. A significant portion of the firms may opt for a permanent
work-from-home or a hybrid work culture. This shift is likely to increase demand for cloud transformation services.
● Even though many financial services firms may cut IT spending for a few quarters, compliance automation, cost-cutting initiatives, and cloud
transformations will continue to create demand for capital market technology providers.
Technologies in demand Use Cases and Players Going Forward
3. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Technologies in demand Use Cases and Players Going Forward
Global Capital Markets Overview
Global Capital Markets Overview
4. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview Technologies in demand Use Cases and Players Going Forward
Global Capital Markets Overview: Issuance
● The total capital market issuance stood at US$21.55 trillion in 2019, ~97% in long-term bond issuance.
Source: SIFMA
5. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview Technologies in demand Use Cases and Players Going Forward
Global Capital Markets Overview: Issuance: Bonds
● US represents more than 1/3rd of global long-term bond issuance, followed by China and the EU.
Source: SIFMA
6. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview Technologies in demand Use Cases and Players Going Forward
Global Capital Markets Overview: Issuance: Equities
● US represents more than 1/3rd of global equity issuance, followed by Japan, China, and the EU.
Source: SIFMA
7. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview Technologies in demand Use Cases and Players Going Forward
Global Capital Markets Overview: Trade: Equity
● As of the end of Q2 2020, the value of trades in equities amounted to US$31.61 trillion. Value of share trading registered a 49.74%
increase in H1 2020 compared with H2 2019. Although, Q2 2020 registered a 10.3% decrease globally from Q1 2020.
Source: WFE
8. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview Technologies in demand Use Cases and Players Going Forward
Global Capital Markets Overview: Trade: IPO
● The number of new listings through IPOs and investment flows through IPOs fell sharply by 36.5% and respectively by 42.7% when
compared to the end of 2019. Although, as per an EY report, Q3 2020 was the most active third quarter for IPO activities in the last 20
years by proceeds and the second-highest third-quarter by deal numbers. So, IPO activities recovered after Q2 2020.
●
Source: WFE
9. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview Technologies in demand Use Cases and Players Going Forward
Global Capital Markets Overview: Trade: Derivatives
● Exchange-traded derivatives volumes were up 23.4% when compared with H2 2019, reaching a record 21.72 billion contracts traded.
Source: WFE
10. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview Technologies in demand Use Cases and Players Going Forward
Technologies in demand
11. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview Technologies in demand Use Cases and Players Going Forward
Technologies in demand: Big Data Analytics
● IBM: “Big data analytics is the use of advanced analytic techniques against very large, diverse big data sets that include structured,
semi-structured and unstructured data, from different sources, and in different sizes from terabytes to zettabytes.”
● Marlin & Associates: “~22% of financial services firms are now utilizing Big Data”.
● The primary use of Big Data in capital markets is for Customer Analytics.
Big Data Artificial Intelligence Blockchain Cloud Computing
12. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview Technologies in demand Use Cases and Players Going Forward
Technologies in demand: Artificial Intelligence
● IBM: “Artificial intelligence enables computers and machines to mimic the perception, learning, problem-solving, and decision-making
capabilities of the human mind.”
● Marlin & Associates: “Autonomous estimates that AI-based applications will allow for $1 trillion in annual cost savings by financial
institutions by 2030 across the Front, Middle and Back-Office globally”
● Front Office: Reducing headcounts through automation.
● Middle Office: KYC/AML, compliance, authentication, and data processing.
● Back Office: Automated underwriting and collection systems.
Big Data Artificial Intelligence Blockchain Cloud Computing
13. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview Technologies in demand Use Cases and Players Going Forward
Technologies in demand: Blockchain
● IBM: “Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business
network.”
● Blockchain has various applications though cryptocurrencies are most talked about.
● Some other use cases for Blockchain in capital markets are KYC, digital identity management, reporting & compliance, clearing &
settlement, etc.
Big Data Artificial Intelligence Blockchain Cloud Computing
14. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview Technologies in demand Use Cases and Players Going Forward
Technologies in demand: Cloud Computing
● IBM: “Cloud computing, often referred to as simply “the cloud,” is the delivery of on-demand computing resources—everything from
applications to data centers—over the internet on a pay-for-use basis.”
● Cloud is the foundation of digital transformation.
Big Data Artificial Intelligence Blockchain Cloud Computing
15. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview Technologies in demand Use Cases and Players Going Forward
Use Cases and Players
16. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview Technologies in demand Use Cases and Players Going Forward
Use Cases and Players: Established Players
Established Players Emerging Players
Source: Marlin & Associates
17. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview Technologies in demand Use Cases and Players Going Forward
Use Cases and Players: Emerging Players: Use Cases
Established Players
Front
Office
Middle
Office
Back
Office
Emerging Players
Exchange / Trading Platform Portfolio Management Hedge Fund Tech
Alternative Data Business Intelligence Market Data Platform
Clearance and
Settlement
Cap Table
Management
Communication
Software
AML/KYC
ChatBots /
Virtual
Assistants
Financial
Services
Software
Risk
Compliance
Monitoring
18. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview Technologies in demand Use Cases and Players Going Forward
Use Cases and Players: Emerging Players: Use Cases: Players
Established Players
Front
Office
Emerging Players
Exchange / Trading Platform Portfolio Management Hedge Fund Tech
Company Name Country Details
Trumid USA
Trumid Market Center, the company's electronic trading platform, provides corporate
bond market professionals with direct access to anonymous and counterparty-disclosed
liquidity.
IEX Group USA
IEX is an equity trading venue owned exclusively by buy-side investors, including mutual
funds, hedge funds, and family offices.
Orchard Platform USA
Orchard Platform has built a centralized marketplace where loan originators and
institutional investors can come together to explore and evaluate opportunities for
funding, buying, and selling loans.
19. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview Technologies in demand Use Cases and Players Going Forward
Use Cases and Players: Emerging Players: Use Cases: Players
Established Players
Front
Office
Emerging Players
Exchange / Trading Platform Portfolio Management Hedge Fund Tech
Company Name Country Details
Confluent USA
Confluent offers a streaming platform based on Apache Kafka that enables companies to
easily access data as real-time streams.
Opera Solutions USA
Opera Solutions provides advanced analytics software solutions that help organizations
extract actionable insights from Big Data at scale.
CAIS USA
CAIS is a financial technology platform providing the independent wealth channel with
access to alternative investments.
20. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview Technologies in demand Use Cases and Players Going Forward
Use Cases and Players: Emerging Players: Use Cases: Players
Established Players
Front
Office
Emerging Players
Exchange / Trading Platform Portfolio Management Hedge Fund Tech
Company Name Country Details
Clearpool Group USA
Clearpool Group is a trading software and execution innovator for an evolving equity
market microstructure. Acquired by Bank of Montreal
Alphaclone USA
AlphaClone enables users to access alpha-generating stock ideas and investment
strategies.
21. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview Technologies in demand Use Cases and Players Going Forward
Use Cases and Players: Emerging Players: Use Cases: Players
Established Players
Middle
Office
Emerging Players
Alternative Data Business Intelligence Market Data Platform
Company Name Country Details
Dataminr USA Dataminr is an artificial intelligence platform for real-time event and risk detection.
Earnix Israel
Earnix is a software platform for pricing analytics and optimization used by insurance
and retail banking organizations.
Second Measure USA
Second Measure analyzes billions of anonymized credit card transactions to answer
real-time questions on consumer behavior.
22. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview Technologies in demand Use Cases and Players Going Forward
Use Cases and Players: Emerging Players: Use Cases: Players
Established Players
Middle
Office
Emerging Players
Alternative Data Business Intelligence Market Data Platform
Company Name Country Details
Addepar USA
Addepar is a wealth management platform that specializes in data aggregation,
analytics, and portfolio reporting for investment advisors.
MX Technologies USA
MX is a company that enables financial institutions to gather, enrich, present, and act on
data.
Q4 Canada
Q4 is a SaaS platform that provides communication and intelligence solutions to investor
relations professionals.
23. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview Technologies in demand Use Cases and Players Going Forward
Use Cases and Players: Emerging Players: Use Cases: Players
Established Players
Middle
Office
Emerging Players
Alternative Data Business Intelligence Market Data Platform
Company Name Country Details
AlphaSense USA
AlphaSense is an AI-powered business insights platform that is transforming the way
companies uncover insights and make critical decisions.
Kensho Technologies USA
Kensho combines natural language search, graphical user interfaces, and secure cloud
computing to create a new class of analytics tools. Acquired by S&P Global
Xignite USA
Xignite provides cloud-based financial market data distribution solutions to fintech
companies and financial services providers.
24. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview Technologies in demand Use Cases and Players Going Forward
Use Cases and Players: Emerging Players: Use Cases
Established Players
Back
Office
Emerging Players
Clearance and
Settlement
Cap Table
Management
Communication
Software
AML/KYC
ChatBots /
Virtual
Assistants
Financial
Services
Software
Risk
Compliance
Monitoring
Company Name Country Details
Ripple Labs USA
Ripple provides one frictionless experience to send money globally using the power of
blockchain.
Paxos USA
Paxos is a regulated financial institution building infrastructure to enable movement
between physical and digital assets.
D-Wave Systems Canada
D-Wave Systems designs and manufactures quantum computing and superconducting
electronics.
25. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview Technologies in demand Use Cases and Players Going Forward
Use Cases and Players: Emerging Players: Use Cases
Established Players
Back
Office
Emerging Players
Clearance and
Settlement
Cap Table
Management
Communication
Software
AML/KYC
ChatBots /
Virtual
Assistants
Financial
Services
Software
Risk
Compliance
Monitoring
Company Name Country Details
Carta USA
Carta is building a global ownership management platform to help companies, investors,
and employees manage their equity.
Global Shares Ireland
Global Shares provides employee share and option administration and equity consulting
services.
Capshare USA
Capshare is a web application that helps businesses manage their stock and assets on
one organized platform.
26. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview Technologies in demand Use Cases and Players Going Forward
Use Cases and Players: Emerging Players: Use Cases
Established Players
Back
Office
Emerging Players
Clearance and
Settlement
Cap Table
Management
Communication
Software
AML/KYC
ChatBots /
Virtual
Assistants
Financial
Services
Software
Risk
Compliance
Monitoring
Company Name Country Details
Symphony Communication Services
Holdings
USA Secure team collaboration platform.
Cloud9 Technologies USA
The company intends will enable the company to grow its business to meet industry
demand.
MindLink UK MindLink provides business critical collaboration enabled through Enterprise Chat.
27. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview Technologies in demand Use Cases and Players Going Forward
Use Cases and Players: Emerging Players: Use Cases
Established Players
Back
Office
Emerging Players
Clearance and
Settlement
Cap Table
Management
Communication
Software
AML/KYC
ChatBots /
Virtual
Assistants
Financial
Services
Software
Risk
Compliance
Monitoring
Company Name Country Details
Verafin Canada
Verafin offers fraud and AML detection platform that helps detect, investigate, and report
money laundering and financial fraud. Acquired by NASDAQ.
Onfido UK Global identity verification and authentication company
Fenergo Ireland
Fenergo provides client lifecycle management software solutions for financial
institutions.
28. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview Technologies in demand Use Cases and Players Going Forward
Use Cases and Players: Emerging Players: Use Cases
Established Players
Back
Office
Emerging Players
Clearance and
Settlement
Cap Table
Management
Communication
Software
AML/KYC
ChatBots /
Virtual
Assistants
Financial
Services
Software
Risk
Compliance
Monitoring
Company Name Country Details
Kasisto USA Kasisto's enables financial institutions to service, engage, and acquire customers.
Avaamo USA Deep learning Virtual Assistant Platform for the enterprise
Personetics Technologies USA
Personetics Technologies offers a predictive interaction solution for financial institutions
to deliver personalized customer experiences.
29. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview Technologies in demand Use Cases and Players Going Forward
Use Cases and Players: Emerging Players: Use Cases
Established Players
Back
Office
Emerging Players
Clearance and
Settlement
Cap Table
Management
Communication
Software
AML/KYC
ChatBots /
Virtual
Assistants
Financial
Services
Software
Risk
Compliance
Monitoring
Company Name Country Details
UiPath USA
UiPath designs and develops robotic process automation and artificial intelligence
software.
Plaid USA
Plaid provides companies the tools and access needed for the development of a
digitally-enabled financial system. Acquired by VISA.
InvestCloud USA
First-class, digital solutions, pre-integrated in the cloud. Modular platform. Beautifully
designed client experiences.
30. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview Technologies in demand Use Cases and Players Going Forward
Use Cases and Players: Emerging Players: Use Cases
Established Players
Back
Office
Emerging Players
Clearance and
Settlement
Cap Table
Management
Communication
Software
AML/KYC
ChatBots /
Virtual
Assistants
Financial
Services
Software
Risk
Compliance
Monitoring
Company Name Country Details
nCino USA Ncino is a cloud-based bank operating solution for the financial services industry.
Kyriba USA
Kyriba offers SaaS-based treasury solutions that enable treasury departments to plan for
market volatility, regulation, and opportunities. Acquired by Bridgepoint.
Ayasdi USA
Ayasdi offers a machine intelligence platform that helps organizations gain
transformative advantage from big data
31. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview Technologies in demand Use Cases and Players Going Forward
Use Cases and Players: Emerging Players: Use Cases
Established Players
Back
Office
Emerging Players
Clearance and
Settlement
Cap Table
Management
Communication
Software
AML/KYC
ChatBots /
Virtual
Assistants
Financial
Services
Software
Risk
Compliance
Monitoring
Company Name Country Details
Chainalysis USA
Chainalysis is a blockchain analysis company providing data and analysis to government
agencies, exchanges, and financial institutions.
OpenGamma UK
OpenGamma is an analytics company dedicated to reducing the costs of trading
derivatives.
Elliptic UK Elliptic makes cryptocurrency transaction activity more transparent and accountable.
32. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview Technologies in demand Use Cases and Players Going Forward
Going Forward
33. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview Technologies in demand Use Cases and Players Going Forward
Forces at Play
Capital
Market
Players
Regulatory
Requirements
Cost Pressure
Funding
Environment
Rise in Security
Issuance
Forces at Play Impact
Work From
Home
Rise of
Electronic
Trading
34. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview Technologies in demand Use Cases and Players Going Forward
Going Forward: Forces at Play: Rise in Security Issuance
● A low interest rate environment and markets awash with liquidity pushed bond issuance to a record highs.
● As per S&P Global, global bond issuance to be 16% higher in 2020 compared to 2019. Bond issuance to decline by 3% in 2021.
● As per an EY report, Q3 2020 was the most active third quarter for IPO activities in the last 20 years by proceeds and the second highest
third-quarter by deal numbers.
Forces at Play Impact
35. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview Technologies in demand Use Cases and Players Going Forward
Going Forward: Forces at Play: Regulatory Requirements
● After 2008, Capital Markets are facing more and more regulatory scrutiny. U.S. Banks have paid out more than $200bn since the Great
Recession of 2008.
● Two recent major pieces of regulation - the Second Markets in Financial Instruments Directive (MiFID2) and the Fundamental Review of
the Trading Book (FRTB) both require collection and interpretation of data.
● Apart from that, GDPR, PSD2, and other regulations are putting forward varied regulatory challenges.
Forces at Play Impact
Source: Marlin & Associates
36. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview Technologies in demand Use Cases and Players Going Forward
Going Forward: Forces at Play: Cost Pressure
● Investment Banks are under intense pressure to reduce costs. Major capital market firms worldwide are reducing headcount at an
accelerated pace. n January 2020, Goldman Sachs announced a plan to strip out some $1.3bn in costs over the next three years.
● Technology is getting implemented for cost-cutting. COVID-19 has exacerbated the trend.
● At the same time, the banking and financial services industry’s global spending on IT and information security is expected to decline by
5.6% as per Gartner.
Forces at Play Impact
Source: Bloomberg Quint
37. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview Technologies in demand Use Cases and Players Going Forward
Going Forward: Forces at Play: Work from Home
● As with other industries, financial services firms were forced to make their employees work from home.
● A significant portion of the firms may opt for a permanent work-from-home or a hybrid work culture.
● The cost pressure likely to work as an incentive for the financial services firms to opt for work-from-home culture.
Forces at Play Impact
38. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview Technologies in demand Use Cases and Players Going Forward
Going Forward: Forces at Play: Electronic Trading in on the rise
● Electronics trading has gained access to almost all asset classes from equities to bonds to derivatives.
● Marlin & Associates: “The COVID-19 crisis has propelled the upward march toward electronification, even in markets that have
traditionally resisted it. The growth of electronification in standardized interest rate swaps has been dramatic, growing from 20% to 70% in
just three years, driven largely by jurisdictions that have mandated trades to be centrally cleared (e.g. Dodd-Frank in the U.S. and EMIR in
the European Union)”.
● Financial Times report says that there was a dramatic shift to electronic bond trading during trading touching 77% in June 2020 from 50%
in the previous years.
Forces at Play Impact
39. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview Technologies in demand Use Cases and Players Going Forward
Going Forward: Forces at Play: Funding Environment
● The number of deals in the sector recovered in Q3 2020 while total funding recovered in Q2 itself.
● Compliance related use cases are attracting funds.
● CB Insights: “57% of funding from the space’s Series C rounds in Q3’20 went to companies automating compliance processes such as
KYC/AML checks. Series C rounds are typical of companies that have started to find product-market fit.”
Forces at Play Impact
Data: CB Insights
40. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Global Capital Markets Overview Technologies in demand Use Cases and Players Going Forward
Going Forward: Impact
● Even amid the global economic gloom, the capital markets were not uneventful. As per S&P Global, global bond issuance to be 16% higher in 2020
compared to 2019 amid record-low interest rates and markets flooded with liquidity.
● Cost pressures, exacerbated by COVID-19 likely to accelerate automation initiatives as banks cut headcounts rapidly.
● Technology implementations due to compliance requirements such as the Second Markets in Financial Instruments Directive (MiFID2) and the
Fundamental Review of the Trading Book (FRTB) likely to be another source of demand for companies providing technology to the capital market
sector. The companies providing automation of processes are already attracting a higher amount of venture funds. Technology providers focusing on
data analytics, AI/ML, IaaS, and Biometrics, etc. are expected to gain from the trends.
● Another important factor is the rapid adoption of work-from-home culture. A significant portion of the firms may opt for a permanent work-from-home or
a hybrid work culture. This shift is likely to increase demand for cloud transformation.
Forces at Play Impact
41. Emerging Tech for Capital Markets (B2B) by Sam Ghosh 26th December 2020
Thank You