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Top-10 Trends in Capital Markets 2019

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There is growing pressure on financial institutions to continually innovate to improve customer engagement. Therefore, established banks and FinTech firms are turning to artificial intelligence (AI) to drive Intelligent Automation, which is expected to spur a new wave of streamlined operational process. The ability to analyze customer data and to extract deep customer insights will help firms identify hidden patterns in data, generate customer insights from large volumes of data, and create actionable strategies to create products with a strong value proposition. Because customer data is a tremendous asset for capital markets’ organizations, information security is critical. To ensure that compliance regulations are well managed and used to drive business goals, more organizations are turning to data-driven compliance.

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Top-10 Trends in Capital Markets 2019

  1. 1. Top-10 Trends for Capital Markets 2019 November, 2018
  2. 2. Capital Markets Trends 2019| November 2018 © 2018 Capgemini. All rights reserved. 2 Information Security Outdated Rule-based Fraud Detection High Rate of Error in Evaluation Source: Capgemini Financial Services Analysis, 2018 AI and ML will Play a Major Role in Handling Cyber-Crimes in the Future AI and ML will help institutions overcome several key challenges including detecting financial fraud Unstructured data with no Insights Delayed Alert Mechanism
  3. 3. Capital Markets Trends 2019| November 2018 © 2018 Capgemini. All rights reserved. 3 Real-time Access to Unified Data Reduced Infrastructure Costs Adoption of cloud services will drive down technology and infrastructure costs and free up funds for business processes and revenue generation Cloud Will Drive Operational Efficiency and Help with Strategic Decisions Source: Capgemini Financial Services Analysis, 2018
  4. 4. Capital Markets Trends 2019| November 2018 © 2018 Capgemini. All rights reserved. 4 GDPR is Prompting a Deeper Dive into Data Governance and Management Potential Loss of Reputation Keeping user data secure Penalties for Non-Compliance Managing increasing volume of data Enabling data portability 24/7 Access to data to all stakeholders Source: Capgemini Financial Services Analysis, 2018
  5. 5. Capital Markets Trends 2019| November 2018 © 2018 Capgemini. All rights reserved. 5 Drive Higher Investment Returns Predict Probability of Trade Failure Intelligent Automation Transforms Trade Functions Risk Management Tool Suggest Corrective Actions ML can quickly analyze large datasets to mitigate risk and drive higher returns for firms Source: Capgemini Financial Services Analysis, 2018
  6. 6. Capital Markets Trends 2019| November 2018 © 2018 Capgemini. All rights reserved. 6 Enabling Technological Changes Changing Regulatory Environment Reduce Expenses Mitigating Risk Microservices Improve Firm Agility and Workflow Source: Capgemini Financial Services Analysis, 2018
  7. 7. Capital Markets Trends 2019| November 2018 © 2018 Capgemini. All rights reserved. 7 Changing Consumer Behavior Legacy Systems Increasing Costs Regulatory Changes The rise of platformification makes it imperative for capital market firms to move from build to buy side to meet customers’ growing needs. Platformification Will Generate New Customers and Revenue Streams Source: Capgemini Financial Services Analysis, 2018
  8. 8. Capital Markets Trends 2019| November 2018 © 2018 Capgemini. All rights reserved. 8 Run complex models in lesser time Suggest best portfolio with any given risk level Improve financial forecasting and risk analysis US$5-10 billion per year Quantum computing industry is projected to generate revenues in the range of US$5-10 billion every year Quantum Computing to Revolutionize the Capital Markets Operating Model Source: Capgemini Financial Services Analysis, 2018; Nasdaq, “Quantum Computing: What It Is, And Who the Major Players Are,” Prableen Bajpai, March 26, 2018, https://www.nasdaq.com/article/quantumcomputing- what-it-is-and-who-the-major-players-are-cm939998
  9. 9. Capital Markets Trends 2019| November 2018 © 2018 Capgemini. All rights reserved. 9 Operational Risk RegTechs will help firms create an integrated risk management system which will aid to evaluate risks in various functions of the organization Compliance Risk RegTechs Will Boost Compliance and Risk Mitigation Capabilities Source: Capgemini Financial Services Analysis, 2018
  10. 10. Capital Markets Trends 2019| November 2018 © 2018 Capgemini. All rights reserved. 10 RPA Enhances Business Process Effectiveness 97% growth in 2017 The RPA software market grew 97% in 2017 and is expected to grow between 75-90% in 2018 Efficient Operating ModelRisk Management Regulatory Compliance Technology Infrastructure Source: Capgemini Financial Services Analysis, 2018; Everest Group, “Enterprise Adoption of RPA Exceeds 100% Growth in 2017, Buoyed by New Buyers of All Sizes, Industries”, July 23, 2018, https://www.everestgrp.com/2018-07-enterprise-adoption-rpa-exceeds-100-growth-2017-buoyed-new-buyers-sizes-industries-everest-group-press-release-46088.html
  11. 11. Capital Markets Trends 2019| November 2018 © 2018 Capgemini. All rights reserved. 11 Limited Scope for Manipulation Reduced Time to Settle Trade Reduced Discrepancy in Trade Smart contracts will lead to substantial improvements in compliance, cost-efficiency and accountability for capital market firms. Smart Contracts Boost Trade Settlement Efficiency Source: Capgemini Financial Services Analysis, 2018
  12. 12. Capital Markets Trends 2019| November 2018 © 2018 Capgemini. All rights reserved. A global leader in consulting, technology services and digital transformation, Capgemini is at the forefront of innovation to address the entire breadth of clients’ opportunities in the evolving world of cloud, digital and platforms. Building on its strong 50-year heritage and deep industry-specific expertise, Capgemini enables organizations to realize their business ambitions through an array of services from strategy to operations. Capgemini is driven by the conviction that the business value of technology comes from and through people. It is a multicultural company of 200,000 team members in over 40 countries. The Group reported 2016 global revenues of EUR 12.5 billion. About Capgemini Learn more about us at www.capgemini.com This message contains information that may be privileged or confidential and is the property of the Capgemini Group. Copyright © 2018 Capgemini. All rights reserved. People matter, results count.

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