Smart data also presents internal opportunities, as it can be used to boost employee productivity across the board. Metrics and data streams specific to each role can be configured to drive a dashboard that individuals can use to prioritise and streamline their workflow, by using automated and prioritised task alerts. Users therefore only see what they need to see in order to maximise their productivity. Furthermore, they will be able automate far more of their current routine tasks, so they can maximise the time they spend on value added activities that will drive overall FICC profitability.
The opportunity to boost FICC productivity with smart data also goes beyond just client facing roles. New technology such as intelligent automation is seen as essential for driving efficiency and minimising unnecessary cost throughout the FICC business6,7. Trade allocation, settlement, reconciliation and exception handling, corporate actions dissemination etc are all areas where inefficiencies can be removed in this way. But this is only possible when smart data and the right tools are available to help accomplish this.
Capabilities like this are obviously valuable for the conventional client servicing model, but new opportunities are arising in FICC that could further boost their importance. Research by Opimas suggest that cost pressures could see ~20% of large (defined as AUM >USD50bn) asset managers outsourcing part of their trading desk activity by 20225. For smaller asset managers, the figures are even more striking: for managers with USD10bn under management Opimas estimates that ~10% will outsource their trading desk completely, while a further ~30% will outsource some of their activities.
A FICC business armed with smart data and analytics will have a major competitive edge when trying to capture this business, as it will be able to demonstrate its ability to tailor its outsourcing services to a highly granular and client-specific level.
Furthermore, the inherent flexibility of a FICC business that has implemented smart data and analytics means that it is able to offer exceptional service to buyside clients of all size. So smaller clients that were previously difficult to service cost-effectively are now fully accessible. For some FICC businesses this might open up a completely new and profitable client demographic, as well as improving the servicing and profitability of existing clients.