Opting for managed services for non revenue-generating activities and implementing scalable cloud computing power will be key differentiators in terms of financial services firms’ ability to compete in the digital age, according to a white paper published today by Celent, a global research, advisory, and consulting firm, and Torstone Technology, a leading provider of post-trade securities and derivatives processing.
The white paper cites an urgent need to devote resource to modernising post-trade systems which are often defined by legacy technology and siloed operations that require significant manual intervention, making it a critical source of inefficiency and operational risk. As revenue streams are challenged by an uncertain geopolitical landscape and growing competition, post-trade operations are coming under scrutiny for reducing costs, boosting margins, and improving return on equity.
The Celent paper, which features extensive research based on interviews with leading industry practitioners, provides key observations which can serve as a roadmap for firms looking to bring inefficient operations to the modern digital age:
Commenting on the research findings, Brian Collings, CEO, Torstone, said: “Continued industry and regulatory change in the marketplace is putting significant pressures on financial firms. The ongoing need to reduce costs, achieve greater control, minimise risk, ensure compliance, and drive operational efficiency has seen an increasing number of market participants partnering with technology firms that can provide highly automated, scalable and flexible solutions. The Celent white paper certainly serves to highlight that growing trend.”
According to Arin Ray, Senior Analyst, Celent and author of the paper: “Improving automation levels in post-trade will require modernizing back office systems with new technology based on latest standards and frameworks, and simplifying the complex patchwork of systems accrued over the years. New technology such as cloud, process automation, and engagement models such as managed services will be important levers for improving efficiency in the next phase of this journey.”