Great report from BCG on the impact of digital on I-Banking. The report suggests that partnerships with traditional technology vendors, as well as the creation of industry-wide utilities, will play a key role in the process. In particular, the report argues that in theory, every duplicative effort – from compliance to post-trade processing -- can be digitised and managed by cross-banking groups.
In a study published on Monday called Global Capital Markets 2015: Adapting to Digital Advances, analysts warn that digital technology is giving newcomers access to vast amounts of data, shifting the balance of power away from investment banks. Banks have historically relied on proprietary data to control the capital markets value chain from origination to trading. This, though, is under threat from improvements in processing power, which enables information to flow to non-bank entities, BCG analysts warn.