The Dawn of Open Platforms in Capital Markets
Opportunity to transform the market landscape in Japan and APAC
Key research questions
- How are market participants tackling innovation?
- What is the awareness level of open platforms and the state of initiatives in progress?
- What are the expectations for open platforms? What future developments do they portend?
To understand the state of next-generation technology trends in capital markets, Celent regularly conducts online surveys and interviews with financial institutions and IT vendors. More than 50 financial services and IT professionals participated in the 2019/ 20 Celent survey on open platform trends in capital markets. This report includes an overview and analysis of those survey results and is the eighth installment in a series on the securities technology revolution.
Coming to grips with COVID-19 has been the common and defining experience of 2021. This new reality is prompting a fundamental rethinking of all aspects of life and society that transcend capital markets and the financial sectors. This affects businesses that run the gamut from retail, medical, and education and impacts all aspects of life. Change and volatility in the market are moving at formerly unimaginable speeds, and the ultimate endpoint and scale remain unclear. Amid this, one conviction remains firmly intact: technology will continue to drive innovation.
Market participants in Japan and the Asia-Pacific Region are accelerating new and emerging technology initiatives. Celent’s most recent survey of next-generation technology in Japan’s capital market found that a majority of respondents were actively assessing new technologies: 90% of respondents were evaluating robotic process automation, 80% artificial intelligence and machine learning, 70% distributed ledger technology and blockchain, and 75% cloud technologies. It is safe to say that the time is ripe for rolling out new technologies with commercial applications.
Celent has consistently put forth various innovation models in the context of understanding and leveraging the promise and proliferation of new technologies in capital markets. The concept of open platforms tackled in this report is no exception. In Celent’s past series of reports on the securities settlement revolution, Celent addressed a paradigm shift in capital markets infrastructure and digital capital markets, modular financial services, and the idea of sourcing models for system architecture and IT management. These proposals were framed in the context of an inescapable and impending tectonic shift in business models fueled by API financial services and the microservice-driven software engineering revolution. As explored in this report, open platforms are similarly aligned with past themes and embody the concept of technology precipitating a change in capital markets.