Tech-led Metamorphosis of Capital Market

Sam Fried

Read Article By Pradip Seth, Founder & CEO, S-Ancial How much of a change is normal and how much of it is startling? What is the exact degree at which a big change becomes radical? And how does it impact places which are ever changing such as capital market which […]


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By Pradip Seth, Founder & CEO, S-Ancial

How much of a change is normal and how much of it is startling? What is the exact degree at which a big change becomes radical? And how does it impact places which are ever changing such as capital market which is so robust and so exhaustive? Where change is not only welcome but also expected at a high frequency as markets are far from stagnancy. So, when any wave disrupts the functioning (in a good way off-course) in a way that it is completely changes the way things work in that particular regime, we all may agree to say that this is transformation happening. Obviously, it will not happen in one day, but nobody is going anywhere.

Capital Market Trends
Due to the data centric nature of Capital markets where high volume of data gets generated on daily basis, it indeed is a huge task to collect and process this data. Many analysts and financial executives find data sorting and processing is one the most time consuming and cumbersome task. There is a need of an integrated platform where the data can get collected and processed and it ready to use. This will save so much of efforts and thus increase the efficiency.

The unmet need of tech-integration always existed in capital market functions such as advanced trading strategies, complex processing and stricter timelines for reporting; which can be addressed now. Capital markets are gradually embracing data science as it is much required there since they generate huge volumes of data through trading, transactions and operations. technologies like Hadoop, Spark, and others have enabled to get an integrated view of structured and un-structured data.

Though the kind of value technology is offering is accelerating the revolution, there are still many companies using data strategies from the past. It is only a matter of time they realize how crucial Data science and AI are for them in order to stay afloat and relevant.

Technology Adaptation
The latest disruption is led by adaptation of advanced technologies such as data analytics, which comprises Big Data, Artificial Intelligence (AI) and other Machine Learning strategies. More and more businesses today are riding the Data analytics bandwagon with the prime objective of deriving insights from stockpile of data into an actual business edge. The bottom-line is profitability, which can be achieved by decreasing cost or increasing efficiencies, or both. applying analytical insights to captured data will provide a 360-degree view of it and further help in revenue generation, meeting compliance or risk requirements and cost reduction and operational efficiency. Data science can identify patterns and trends that inform the next best course of action.

This development will change the way things work forever, the way smartphones have changed the user patterns, we have a hub of applications be it Zomato, Uber, ibanking, Zoom, body stats, Google Maps and so much more just one touch away. There is no way going back to the old nokia 1100 handset. Similarly, when an analyst can process the heaps and mounds of data in minutes and be able to find some useful insights, there will only be a way forward. Advanced data analytics can be utilized to identify clients who contribute maximum revenue. It can also identify client behavioral trends and thereby offer personalize services.

Conclusion
Capital markets’ history of utilizing cutting-edge technology now includes the use of artificial intelligence to open new doors. For your organization, ML and AI should not be an afterthought, but the source of foresight and planning. Specifically, it means building a strong infrastructure for data analysis, planning the structure of internal teams that will use data and artificial intelligence, and using flexible, cloud-based tools to optimize results.
Change is the only constant in Capital market which thrives on it. In order to maintain its ever-evolving nature this data led transformation may be the first but certainly it won’t be the last one.

If you have an interesting article / experience / case study to share, please get in touch with us at [email protected]

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Tech-led Metamorphosis of Capital Market

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