In a recent article, the International Securities Services Association (ISSA) wrote they believe there will be a significant acceleration on the adoption of three specific technology capabilities: Application Programming Interfaces (APIs); Robotics Process Automation (RPA); and public cloud.
From a technology perspective, the recommendation of ISSA’s New Norm working group, led by co-chairs from HSBC and UBS, is to embed lessons learned from operating businesses during the COVID-19 pandemic into future operating models. This should be achieved by reviewing and rethinking existing digital transformation programs across the full value chain of activities, critically reviewing costly and manually intensive – but non value-adding – activities and adopting new ways of remote and resilient working into Business as Usual (BAU) capabilities.
Disruptive scenarios around crisis events are no longer seemingly unlikely paper-based exercises, but very real events in the industry’s collective memory, which it is believed will – and must – encourage cross-industry cooperation and improvements in operational processes. ISSA is considering forming a working group to discuss the specific topic of Operational Resilience in more depth and would appreciate any feedback from members.
Most in the industry already know the challenges that the Securities Services business faces. The pandemic, though, has brought these starkly into the spotlight. This is therefore a defining moment for the industry. If the key players come together – and act now – there is an opportunity to drive forward and effect real change. If they don’t, there is the risk of having the same discussions in another five years.