Since the installation of first transatlantic undersea cable, trading technology providers were tasked with simple mandates: Deliver information faster, from as many sources as possible and help investors and market operators to make better decisions and implement them quickly.
Banks are one of the greatest engines for generating data: daily, they collectively produce petabytes of transactions, prices, risk metrics, customer information….
A decade after the financial crisis, the buyside (asset managers, hedge funds, institutional investors and large corporates) have changed at least as much as the investments banks that serve them.
Over the past decade, both the environment in which CIBs operate and the rules that they need to abide by have drastically changed.
What originally started as ‘electronification’ – the automation of external-facing, front-office processes and workflows – has become much more pervasive, and it now encompasses the entire value-chain.
The so-called digital transformation of the ways in which investment banks operate as businesses overall began more than one decade ago. However, not all of the technology that banks needed in order to fully realise this transformation has always been readily available, and the last five-to-10 years have seen a significant rate of growth in the data processing and analytics needed to realise ideas that have been gestating for some time.