Tech = Revenue Advantage For Capital Markets
For the past few years, particularly since the financial crisis, the mantra for the development and implementation of enterprise level technology within capital markets has largely focussed on cost savings and compliance.
Both of these remain very important, particularly if the direct cost based ROI on implementing new technological solutions can be easily assessed and quantified and there is a direct requirement for compliance that is not being met.
However, with the intense level of cost-cutting that has already taken place, with a meaningful number of new technology partnership relationships that have been established by financial services organisations over this time (which all require an investment of time and resource to maintain and continually assess), and the rigour of a heavy compliance burden already been established, financial services organisations are looking for more when assessing new technology platforms to partner with.
In particular, as banks balance sheets have been repaired, capital levels built up and revenue growth amongst the more successful franchises has returned, financial services firms are focussing on implementing technology solutions that can improve relationships with their client base, help them find and service new clients, monetise latent assets such as data in order to generate revenue growth.
In the primary capital markets world, it is now clear banks have realised that apart from the obvious cost and regulatory benefits technology can bring within primary markets execution, there is a definitive opportunity to improve the relationship with issuer clients through technology. The provision of better quality and more structured information about their own deals in real time, especially around investor feedback, is something that can actually improve revenue generation through getting more deals or better positions within syndicates for deals. We, ourselves, have spoken with issuers (especially serial issuers like PE firms) and they love the idea of Issufy being utilised to improve the depth and quality of feedback being collated.
HSBC’s MyDeal own initiative in this space, which is starting to let them gain more market share, is a case in point. Issufy has created a platform that is available to right use now, which can also be used on a syndicate wide basis (to improve collaboration where needed), and which has strong optionality in the form of allowing you to give your investors direct connectivity to your deals to further improve efficiency if you want to.
Contact us on info@issufy.com if you are an issuer or bank / broker that wants to improve your revenue profile and improve client relationships at the same time as improving efficiency and regulatory compliance.
