APAC CIO Outlook
  • Home
  • CXO Insights
  • CIO Views
  • Vendors
  • News
  • Conferences
  • Whitepapers
  • Newsletter
  • Awards
Apac
  • Agile

    AI Healthcare

    Artificial Intelligence

    Aviation

    Bi and Analytics

    Big Data

    Cloud

    Cyber Security

    Digital Infrastructure

    Digital Marketing

    Digital Transformation

    Digital Twin

    Drone

    Internet of Things

    Low Code No Code

    Networking

    Remote Work

    Smart City

    Startup

    Unified Communication

    Wireless

  • E-Commerce

    Education

    FinTech

    Healthcare

    Manufacturing

    Pharma and Life Science

    Retail

    Travel and Hospitality

  • Dell

    IBM

    Microsoft

    Salesforce

    SAP

  • Cognitive

    Compliance

    Contact Center

    Corporate Finance

    Data Center

    Data Integration

    Digital Asset Management

    Full Stack Development

    HR Technology

    IT Service Management

    Managed Services

    Procurement

    Proptech

    RegTech

Menu
    • Capital Market
    • Compliance
    • IBM
    • Big Data
    • Unified Communication
    • Digital Infrastructure
    • Data Center
    • Salesforce
    • MORE
    #

    Apac CIO Outlook Weekly Brief

    ×

    Be first to read the latest tech news, Industry Leader's Insights, and CIO interviews of medium and large enterprises exclusively from Apac CIO Outlook

    Subscribe

    loading

    THANK YOU FOR SUBSCRIBING

    • Home
    • Capital Market
    Editor's Pick (1 - 4 of 8)
    left
    Tech Strategy for Capital Markets and Other

    Jeff Roberts, CIO, HFF

    Transformations in Financial Technologies

    Jacob Sorensen, CIO, Bank of the West

    Innovations in Market Surveillance and Monitoring

    Dr.John Bates, CTO, Intelligent Business Operations & Big Data, Software AG

     Capital Markets Firms Looking for Low Friction Solutions

    Vic Winkler, CTO, Covata

    From the Chief Information Officer to the Chief Innovation Officer : Leading the Digital Transformation

    Bjoern Goerke, CIO, SAP AG

    Interconnected Trust - The Digital Economy's Renewable Energy

    Rocky Scopelliti, Director at Optus Futurologist & Author, Youthquake 4.0

    Five Benefits of Open APIs + Marketing Automation

    Mark Bantique, Vice President, Head of E-Commerce, Security Bank Corporation

    Digitisation of Capital Markets

    David Heathcote, Global Head of Debt Advisory, KPMG

    right

    Why Buy-Side Needs to Step Up to the Potential of Technology Innovation

    Ranjit Tinaikar, MD, Advisory & Investment Management, Thomson Reuters

    Tweet
    content-image

    Ranjit Tinaikar, MD, Advisory & Investment Management, Thomson Reuters

    The pendulum has clearly been swinging in favor of the buy-side (made of fund manufacturing and distribution professionals in Asset / Wealth Management firms) away from the sell-side (made of primary and secondary markets professionals in Investment Banks) since the  financial crisis of 2008. As profit pools and talent shifts to thebuy-side, will it take the lead in capital markets by adopting technology innovations? Managing retirement funds and investment plans is indeed an onerous responsibility that, if done right, can make a significant difference to individuals, institutions and the overall economy. It is therefore, not surprising, that the buy-side may adopt a conservative view on innovations such as hosting portfolios on data cloud services, using social media to inform investment decisions, or joining open communities.

    "A Hedge Fund following retail stocks got market signals ahead of consumer sentiment reports by tracking satellite pictures of traffic density in retail malls"

    However, as the pace and level of complexity in managing assets has been speeding up with new regulations, increasing difficulty in beating investor benchmarks, and increasing margin pressures—the imperative for the buy-side to take a more proactive view to adopting technology innovations is becoming ever more pressing. There are at least four themes around which the buy-side can take a more proactive approach to adopting technology innovations.

    Search for Alpha:

    ETFs are fast eating into the market share of Mutual Funds as actively  managed funds find it increasingly difficult to justify their expense structures based on  performance against benchmarks. The search for “alpha” is intensifying for all. As a result, fund managers will increasingly need insights beyond raw data to make their investment decisions. These insights  may be derived through access to unique content sets or analytics. For example, text mining analytics that scan SEC Filings, News and Research, when combined with the power of traditional financial models can significantly improve ability to predict  credit performance of a company.
    A database that not only provides details on a particular corporation but also its suppliers and distributors could significantly enhance an analyst’s ability to estimate earnings. In one case, a Hedge Fund following retail stocks got market signals ahead of consumer sentiment reports by tracking satellite pictures of traffic density in retail malls! The potential of adopting Big Data and Analytics on the buy-side is immense.

    Productivity Through Consumerisation of User Experience:

    As margins compress, the productivity of the most critical resource on the buy-side—the investment professional—becomes even more critical. The investment professional’s desktop is still chained to legacy solutions from the 1980s. A lot could be gained from adopting similar innovations to those brought by Google, Apple and Facebook and others to the consumer world. A portfolio manager in London commented that he was unable to test the full range of his ideas because it was so hard to access the data, perform the analysis and view the output. What if all  of this could be done in 30 seconds? What if you didn’t even have to remember the command to execute this—what if you could use natural language? The application of search engines and interactive navigation to data analysis is immense. It could significantly improve productivity of investment professionals.

    Mobile Workflows:

     Mobile solutions are not only a matter of convenience but increasingly critical to improving investment performance. An analyst following the auto sector said, “We will actually go meet the auto dealers in Shanghai to understand growth trends. However, while we are going mobile, we don’t see a single solution that is truly seamless across mobile and desktop devices.” It is indeed time to unshackle the user from the desktop as workflows become increasingly mobile. Most mobile solutions today enable passive viewing of content. The next wave is toward mobile solutions that enable investment activities like order management and provide collaboration tools for validating and building models.

    Open Collaboration and Community: While the use of messaging technology between the buy-side and sell-side is well  established, it is mainly between the trading communities on both sides, primarily using closed architecture messaging  platforms. Buyside firms are, appropriately, compliance-sensitive around use of messaging services. The demand for compliant messaging solutions is ever increasing and communication controls for both one to one messaging and chat rooms are a key part of the industry requirements for messaging tools. Messaging is just one of many tools used for collaboration. A regional bank in Spain has recently developed a  social media solution for its wealth advisors that not only enables improved engagement with their customers and prospects, but is also compliance enabled to control, capture and archive all relevant interactions. Most importantly, the buy-side community can play a big role in adopting open messaging standards that give them choice around levels of participation in messaging communities. Capital markets today have access to open collaboration solutions that allow buy-side firms to choose the messaging application and how much of their directory information they would like to expose, while participating seamlessly in global communities. The sell-side will follow the buy-side in their choice of collaboration solution. The buy-side can lead the way.

    The sell-side has led many of the technology innovations in capital markets ranging from trading algorithms, industry connectivity solutions and low latency platforms. The time may just be right for buy-side technology to step up.

    tag

    Financial

    Big Data

    Wealth Management

    Order Management

    Weekly Brief

    loading
    Top 10 Capital Market Tech Solution Companies - 2019

    Featured Vendors

    BAM Fintech

    Sam Leung, Co-founder & CIO and Terence Goh, Co-founder & CEO,

    Arkratos Blockchain Solutions

    Ashish Srivastava, Senior Vice President

    ON THE DECK

    Capital Market 2019

    Top Vendors

    I agree We use cookies on this website to enhance your user experience. By clicking any link on this page you are giving your consent for us to set cookies. More info

    Read Also

    Future-Proofing Data Center Designs with a Dash of Innovation

    Future-Proofing Data Center Designs with a Dash of Innovation

    Kevin Miller, Principal, Digital Management, Aurecon
    How Agile Adapted In A Covid-19 World

    How Agile Adapted In A Covid-19 World

    Beth Schmidt, Director, It Delivery And Agile Operations, Markel
    Agile Mindset in a Nutshell

    Agile Mindset in a Nutshell

    An Interview With Samuel Calan, Head Web Frontend, Raiffeisen Switzerland
    Agile Delivery of Semiconductor Facilities

    Agile Delivery of Semiconductor Facilities

    Manuel Magg, Project Director, Exyte
    For a Smarter City: Trust the Data, Ignore the Hype

    For a Smarter City: Trust the Data, Ignore the Hype

    BRAD DUNKLE, DEPUTY CIO, CITY OF CHARLOTTE
    How to Create and Implement Scalable Digital Solutions for Smart Factory

    How to Create and Implement Scalable Digital Solutions for Smart Factory

    MARKO YLI-PIETILÄ, HEAD OF SMART OPERATIONS, STORA ENSO (HEL: STERV)
    What it Takes to be a 21st Century Public Safety Provider!

    What it Takes to be a 21st Century Public Safety Provider!

    Ned Pettus, Jr., Ph.D. Public Safety Director, The city of Columbus, Ohio
    Introducing Smart City Solutions into Highly Regulated Municipal Environments

    Introducing Smart City Solutions into Highly Regulated Municipal Environments

    Nelson Gonzalez, Assistant It Director/Ciso, City Of Coral Gables
    Loading...

    Copyright © 2022 APAC CIOoutlook. All rights reserved. Registration on or use of this site constitutes acceptance of our Terms of Use and Privacy and Anti Spam Policy 

    |  Sitemap |  Subscribe |   About us

    follow on linkedinfollow on twitter follow on rss
    This content is copyright protected

    However, if you would like to share the information in this article, you may use the link below:

    https://capital-market.apacciooutlook.com/cxoinsights/why-buyside-needs-to-step-up-to-the-potential-of-technology-innovation-nwid-886.html