How technology innovation is disrupting the Capital Markets industry and redefining the future.
said reducing costs & inefficiencies were key drivers for the adoption of technology
believed overall budget for strategic change such as emerging technologies was sufficient
expected to have advanced data & analytics capabilities embedded in five years’ time
believe new technologies will merge business & IT roles & become more tech enabled
The Capital Markets Bank of the future will be technology enabled. Innovation in Capital Markets is an imperative to help firms survive in the short term, to streamline where needed, and to thrive looking further forward. Existing operating models and continued use of legacy technologies will not help firms sustain their businesses in the long term.
Together with the Association for Financial Markets in Europe (AFME) we carried out research and interviewed with representative banks of AFME’s Technology and Operations Committee, and supplemented this with input from our PwC SMEs. As a result of this research, the report sets out our shared understanding of the emerging technology trends and priority areas for investment, the emerging barriers to change, and a vision for the ‘Investment Bank of the Future’.
The report, Technology and Innovation in Europe’s Capital Markets highlights the need for the industry to embrace innovative technologies quickly to remain competitive, as technology remains one of the biggest opportunities to address industry challenges and drive future growth. The report also highlights four technologies with the potential to drive this transformation and create Investment Banks which are automated, data-led, open and agile.
Robotics Process Automation (RPA) or Intelligent Automation (IA) was identified as an additional technology that, although is currently used mostly for tactical remediation and remains cost-effective, it is expected to receive significant investment and be used for more strategic process efficiency improvement initiatives in the future.