Is the Time Right to Bring Your Capital Market Workflow Online
By Pradip Seth, Founder, ExchangeConnect.
The pandemic propelled the pace of digitization. With remote workspaces becoming transcendent and technologies getting deeply embedded into the lives of every capital marketing professional, shifting capital market workflow online became incumbent. Why? Let’s see!
Digital channels have been transforming the capital market landscape for the past two decades. Across the arenas of functions and products, virtually nothing has been left untouched. Capital markets serve as venues where investments and savings are channeled between those who require capital and those who have capital. To improve the transactional efficiencies and make capital market workflow seamless, individual and business entities are moving their market infrastructure online.
Should you bring your capital market workflow online? The answer is in a big “YES” nod.
Over the past few years, the capital markets have witnessed significant advances in data and automation in the areas of integration, management, and analytics. But, now, the shift is substantial. Currently, bringing capital market workflow online is essential to increase operational efficiencies and streamline business capabilities.
COVID-19 deciphered the value that digitization can provide in capital markets
Digitizing operations in the capital markets has always been tremendously beneficial. However, COVID-19 threw a spotlight on markets’ ability to predict trends and mitigate risks while fostering better communication. Digitization has accelerated the trend to a contactless world connected more by data and less by physical channels. Within the capital markets, several instances can illustrate how digital mediums can enable a smooth resumption of finances as usual. These include:
- Handling the fund flow as usual without any interruptions
- Delivering information on corporate and individual actions and data on cash positions
- Controlling digital signatures for asset documentation
Faster, leaner and well-positioned operations can bring benefits to the overall markets, and a digital roadmap can help to make workflows seamless.
Perks of shifting online
#1 Better efficiency and connectivity
Digitizing documents and data is unexciting on the surface because people see violations and breaches before they see opportunities. Besides, investing in IT infrastructure isn’t cheap as well. But, moving to digital channels can make information flow easy. One can accelerate the exchange of data down to seconds and automation can eliminate the error-prone transcriptions. This massively benefits the market liquidity. When digital connectivity is used to streamline manual processes like handling payment, trade settlements, etc. the automation can benefit the administrators as well as the market members.
#2Reshaping functions
By integrating connectivity with data access, one can pave the way for bigger transformation capabilities. The ESG considerations can get a new dimension, and one can have better control over the market. Starting from instantaneous transactions to monitoring investments and trading without any interferences, everything can become possible within a snap of fingers when capital market workflows are moved online.
#3 Seamless access to data
By making data more accessible with machine-to-machine processing and other digital assets, real-time monitoring can be enabled. Using Application Programming Interfaces or APIs, now data can be directly ingested while adhering to the compliance standards. This eliminates the turnaround time and creates huge potential for investors.
The bottom line
Moving capital market workflows online can provide enterprises and individuals with more granular access to market functionalities. It can create opportunities for everyone in the market who wishes to innovate and grow. By automating large-scale operations the digital channels are promoting better transparency as well. The opportunities are limitless and so are the perks of switching to the digital transformation of capital markets. Instead of hesitating about the minute drawbacks, focus on the positive side and embrace the change. Trading and finance will become effortlessly straightforward for you.