Collaboration and the use of an open platform must be a top priority for banks and asset management firms in 2018 if they want to accelerate innovation and embrace big data and cloud technologies.
At our Enterprise Technology Forum in London, which brought together over 50 senior executives from financial services and partner technology firms, the discussion focused on two related technologies: The Cloud and Big Data.
These are not new, but they are increasingly being applied by financial firms to solve real problems.
To get an understanding of how quickly the businesses we work with are moving in this area, we asked when they expect to have the majority of their market data infrastructure in the cloud. The results were mixed:
- 23% expect to reach this point within two years
- 28% expect to take three to four years
- 40% expect to take five or more years
- The remainder responded they would reach this point within a year.
Personally, I think we’ll move faster than this.
As companies become more confident in security and start to experiment, the power of the cloud will have its own self-fulfilling momentum.
For Thomson Reuters, the cloud is a natural transition as it’s another mechanism to deliver our content to customers.
Priorities for 2018
One of the biggest learnings for the financial services industry next year will be the importance of collaboration, especially given the increase of regulation and the implementation of MiFID II.
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Understanding the power of collaboration, and that no one company can be a closed system and end-to-end provider of everything, will be important for organizations to embrace.
Industries today that have been able to keep up with the pace of change in an economically viable way have done this through an open platform and through collaboration.
The platform business models that have adopted an open, collaborative approach have started to transform markets, but there is still a lot to do before most organizations fully embrace this concept.
Thomson Reuters is deeply committed to the power of the open platform.
Our goal is to use our open platform and business model to bring the fintech ecosystem to financial markets and increase the level of innovation that we can achieve in partnering with technology.
Using data to drive business
At the forum event, much was said about the need for dialog between technologists and business people in order to drive top-line revenue growth, as well as to look at ways to reduce costs.
Data is a huge asset for businesses, and many aren’t realizing its true value.
The competitors of the future will be the businesses that recognize the unrealized value they are sitting on and use the cloud and big data to unlock that value.
Research from McKinsey predicts that banks could earn an extra US$350 billion of profit by 2025 using new technology such as artificial intelligence, big data analytics and the cloud.
Businesses that get their data strategy right and use cloud and big data tools will benefit most from the huge business opportunities these technologies enable.
Importance of innovation
Financial services has always embraced technology and moved quickly to innovate and provide value for customers. But the pace of change has accelerated.
— Debra Walton (@DebraAWalton) October 19, 2017
One of the reasons the industry is so excited about the cloud is the ability it provides to experiment and collaborate quickly. The event attendees told us that innovation and agility were two of the key drivers for firms’ cloud migration strategy.
There is clearly a lot of experimentation taking place.
And it is clear that many businesses, like ourselves, are embracing partnership as a way to accelerate innovation.