July 3, 2017
As subsets of financial markets, capital markets are integral parts in producing monetary output in economies globally, through which debt or equity-backed securities are bought and sold. Capital Markets are specifically differentiated as the midterm and long term markets in which money is provided for longer than a year. Naturally, in accordance with their vitality and magnitude of holdings, players such as retail investors, mutual funds, commercial banks, and governments have significant roles in the ecosystem.
In the years ahead, capital markets and investment banking are expected to see the increase of attention and development employing innovative technologies. Technology serves as a key driver of value migration in the capital markets industry. While speed, informational advantage, efficient customer flow, and effective use of proprietary capital have always been essential aspects of a profitable market-making business, the way these elements are implemented is changing dramatically.
To demonstrate the current state of capital markets, and explore the whole spectrum of applications and main game changers, the LTP Team introduces the report on the Innovation in Capital Markets Technology, which covers the latest trends in capital markets technologies and profiles of emerging FinTech companies leading these trends.
Some of the key takeaways from the Innovation in Capital Markets Technology report:
1. Global investment banking revenues are falling by nearly 4% annually, accompanied by even bigger dips in fixed income, currencies, and commodities.
2. The average ROE for the world’s leading investment banks have slipped to nearly half as much as the typical 10%-12% cost of equity for an investment bank.
3. The future of capital markets looks brighter with companies aggressively innovating to effectively integrate technology in the market and a 12% increase in revenue distribution for Capital Markets expected by 2020.
4. A powerful ecosystem of companies is contributing to the growth and evolution of capital markets through Robotic Process Automation (RPA), Big Data Analytics, Artificial Intelligence, Distributed Ledger Technology, and the Internet of Things (IoT):
Moreover, the report covers technologies offered by such leading innovators across sectors as:
In full, the report contains the following elements: