As the business of capital markets financing and collateral management has grown in prominence, it has also grown in complexity. There is now widespread recognition that the business of collateralized financing is the engine that drives capital markets, without which nearly nothing else can happen. At Finadium, we have responded by expanding our fintech research and consulting activities. Here’s why we are making this move.
Finadium’s research and consulting work has always recognized technology as a critical component of the capital markets business process. With complexity and transparency has come innovation and opportunity. For example, our March research report speaks to how innovation in both the business of capital markets and the technology environment are creating new greenfields opportunities for both financial firms and technologists. In this report, we analyze the implications of the fact that banks and financial institutions are starting to look more like fintech firms, while fintech firms are starting to look more like banks.
This convergence of market approach and participation has led us to launch a new research subscription program that flips the perspective from business to technology: Finadium Fintech Focus. Fintech focus is written by product development professionals and technologists for our technology and product peers: like them, we’ve been in the business of building, buying, selling and managing capital markets technology.
The new report series answers real-world questions like: What are the technical implications of important business innovations? How can new and innovative technologies find a place within the capital markets topology? Where are the opportunities for internal capital markets technology teams as well as commercial vendors? What does all the noise and data really mean when it comes right down to building supporting technology? The series provides financial company innovation teams, fintech firms, product managers, technologists and solution architects research and thought leadership that looks at these questions from the central core of capital markets: liquidity, credit and capital financing.
With this context, our first report, published in January 2017, looks specifically at the technology problem and opportunities of best execution in securities finance under MiFID II. The report lays out an example architectural schematic showing data points, and a functional system model for solving the problem.
Our second report provides an insider’s insights into the myriad ways in which global banks design, implement and manage their systems architecture. What are they trying to accomplish and how? What are the trade offs that must be made between cost, efficiency and effective solutioning? How does a consultancy or vendor recognize their place within a bank’s technology infrastructure, and best position their solutions to meet the client’s environment?
Our third report looked at one specific business opportunity, private indemnification markets for securities lending indemnification. We blocked out the operations and technical business case for how a non-bank indemnification facility would function.
We are interested in your feedback – how can our Fintech Focus series work for you?
To discuss or learn more, please contact the following Finadium team members:
North America: Rick Stinchfield at rstinchfield@finadium.com or Mike Ross at mross@finadium.com
Europe and Asia: Martin Walker at mwalker@finadium.com