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Financial Services Review | Friday, October 28, 2022
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The capital market operating models are undergoing a multi-dimensional transformation to favour formidable growth in the market venture.
FREMONT, CA: The COVID-19 pandemic triggered lockdown conditions, causing market turbulence and transforming the world into a multidimensional perception. As a result, the existing norms have likely dissolved, paving the way for an evolutionary future with societies urged to adapt critically. Hence, ideologies like the transformation of operating models, technology, and the future of work have been widely proposed in recent times. However, the key marketing forces are only a part of these evolving changes, as several other scenarios are paving significant contributions to escalating the market technology in the future.
For instance, it instigates the passing storm where relatively successful management has begun to outshine in sectors, coinciding with the pre-pandemic scenario. Yet, it accumulates a set of reverberations unfavourable to lower and middle-income individuals and communities. whereas it facilitates the venture of a good company by adopting huge responsibilities post-crisis by both economic and social means. That is, large corporations and the wholesale financial services industry’s role to favour the public response often stimulates the development of much more socially engaged-stakeholder capitalism.
Meanwhile, capital market technologies are emerging as lone wolves owing to the increased adoption of isolationist policies by governments. Developed as a result of the protracted pandemic period, the venture was followed by spurts of volatility and an extended global recession, often leading to insufficient global coordination. Similarly, the technology market is likely to experience a sunrise in the east as the effective response and recovery trajectory normally accelerates the relative importance and influence of East Asian nations.
The underlying industry forces are driving crucial impacts all across the capital markets institutions as per the potential scenarios in encounters. As a result, a significant alteration in both operating models and technology is highly noted, with enforcing implications and key challenges in the capital markets. A rapid transformation in technology is likely to occur, conceiving the rising potential challenges for institutions to favour robust navigation amidst the surging disruption. That is, irrespective of the hazardous effects of the pandemic, technology-oriented investments are gaining momentum for sustainable growth of revenues and an improvised margin across the asset classes.
Moreover, deploying effective collaborations in the markets, communicative platforms, and remote working technology has become crucial in recent years as the adoption of technology by investment banking and advisory teams is surging to favour virtual roadshows and sales pitches. Alongside this, nearly 50 per cent of the workforce is highly captivated by Gen Y and Z, who generally anticipate a seamless experience across multiple channels or platforms, self-service capabilities for transaction initiation, and managing payments. To remain at the forefront of the capital market business, however, initiating these various innovations frequently necessitates technological assistance such as AI, enhanced NLP, and quantum computing.