Smart data is the new currency
Within the fintech sector, the field of data analytics has quickly become the new opportunity in financial markets. This comes at a time when banks are beginning to recognise the competitive advantage that can be gained from partnering with specialist technology vendors.
However, challenges persist. Whilst electronic trading has generated a torrent of transaction data, the industry currently lacks the necessary processing tools for effective aggregation, standardisation and analysis.
Compliance with new and emerging regulatory requirements relies on effective standardisation of data, but forward-thinking banks are now going the extra mile and leveraging this standardised data to perform analytics and gain the insight they need to drive a growth in revenues.
This has become crucially important to sell-side firms at a time when strategy differentiation by market, client type or geographical region is becoming common practice as a means to achieve unique competitive advantage.
Furthermore, market fragmentation, as a result of the proliferation of electronic venues, has effectively fractured liquidity and trading volumes in some markets, rendering the standardisation of trade data more challenging.
Only by gaining control of an abundance of available data and deriving actionable intelligence will banks be able to focus on identifying new opportunities and generate the highest returns in the markets they choose to compete in and be able to navigate the new regulations and business and operational challenges ahead.
The pace of change in the field of data analytics is rapid. As technology vendors continue to work towards providing easy-to-use tools that can be quickly integrated into existing systems, it is the ability to harness predictive analytics based on historical patterns that remains at the cutting edge. For a FICC-trading bank, this could provide answers to questions such as: Which clients am I anticipating seeing in the market today? Or, what products do I think clients will likely be trading?
The business advantages that can be harnessed by predictive analytics are significant and will act as a differentiating factor in performance. In a recent Harvard Business School article, leading academic and analytics guru Thomas Davenport argued that we are now entering the era of Analytics 3.0, where its predecessors were Business Intelligence (1.0) and Big Data (2.0). It has been predicted that by 2017, firms with predictive analytics in place will be 20% more profitable than those without.
As the FICC trading ecosystem continues to evolve, sell-side institutions must focus on how to apply technology at the intersection of trading, regulatory compliance and operational efficiency to gain an enterprise-wide view of data that enables them to maintain and grow market share within a profitable client universe. The entrepreneurship and financial creativity of yesteryear, which is being restricted by regulatory codes of conduct led by global government agencies, can only be replaced by the granularity of understanding that intelligent data analytics delivers.
Mosaic Smart Data delivers the insight and real-time intelligence that FICC market participants need to harness their data intelligently, increase business opportunities and meet regulatory requirements.
Our cutting edge technology enables banks to turn the tide of decline and transform information to intelligence. Our vision is to empower financial market professionals with usable, data-driven tools and enable them to ask the questions they need answered and receive results in a highly graphical enterprise-wide format.
Our MSX platform aggregates multiple sources of transaction data into a singular resource, enabling financial institutions to build a comprehensive view of client, counterparty and prime broker trading activity and meet regulatory requirements
MSX is delivered as a cost-effective modular solution and has been designed to be as agile and flexible as possible, enabling straightforward and rapid implementation and integration with existing technology and processes.
In what has become a challenging market and regulatory environment for all, cutting-edge data analytics technology holds the key to a change in FICC fortunes. Banks must now act fast and leverage the cutting-edge technology available to them to drive growth and turn the tide of decline.