How often do we hear and use the phrase "Time flies"? It is one of those idioms that holds true. In Einstein's Theory of Relativity, he discovered that time is relative and depends on the observer's frame of reference. It has already been a month since I started my journey at Celent in Tokyo, and from my perspective as an observer, time has passed surprisingly quickly. However, the activities and events during this time have been impactful. From day one, I have had the privilege of participating in multiple client calls and engaging in thoughtful conversations. It has been amazing to witness the wide range of topics that clients are interested in and how closely they align with our research agenda at Celent.
One client raised the topic of enterprise data management in capital markets and corporate banking. Through follow-up sessions, we discovered that financial institutions in Japan have been heavily investing in data collection across their organizations. They are now exploring how to leverage this data to derive actionable intelligence for their organizations and clients. We discussed organizational frameworks, strategies, and execution, as well as technology tools and architecture. There is a genuine need for organizations to understand various data management and data analytics solutions within specific financial services domains.
The topic of GenAI and its specific use cases in banking, capital markets, and wealth management has come up several times. Japanese clients are no different from clients in other parts of the world; they seek real-world approaches to improve decision-making, problem-solving, and to develop intelligent and innovative solutions that provide higher value propositions to their customers. One firm is explicitly looking for GenAI models that can incorporate near or real-time data to produce more accurate outcomes.
As GenAI continues to capture every organization's attention and become a major investment field, firms have started to inquire whether banks are still investing in Blockchain/DLT solutions. According to Celent's 2023 Survey on IT Priorities and Strategy, Blockchain and DLT are among the top five priorities for banks, the wealth management industry, and both the sell-side and buy-side for capital markets. One client, a technology services firm, has expressed that Blockchain/DLT solutions should bring game-changing efficiencies, especially in capital markets' trade matching, settlement, and reconciliation processes. They constantly seek vendors with a proven track record in implementing these solutions. With a range of existing rates, FX, and collateral management solutions, it is undeniable that more solutions will transform the financial services industry in the coming years.
Another topic of increasing focus is open banking, Banking-as-a-Service (BaaS), and specifically, how to monetize APIs. Drawing from my experience in FX and transactional services, particularly in payments and transactional FX, I have been able to share my views on what banks can do with API strategies when strong collaboration between different businesses takes effect. I am looking forward to writing a report on FX and its application across different client-facing channels, business models, and API partnerships, where the role of technology is indispensable.
An interesting conversation arose with another technology company on how banks can support the startup community and the role that technology platforms play. The company we spoke to is tasked with helping a prominent local bank re-platform its digital services and improve inclusivity for startup companies.
Additionally, this firm is exploring ideas for building ridesharing services for truck drivers and incorporating them into the corporate banking digital platform. This has raised interesting questions - should banks lead these initiatives and open their own platforms, or should banking capabilities be embedded within service providers' ecosystems? On a related topic, Celent recently published a case study on Silicon Valley Bank, showcasing how it reimagined the onboarding process for startup ventures.
As for what's next for me, the passage of time will undoubtedly be relative, and I will be taking on the role of a navigator, slowly paving the way to help our clients uncover insights. On the research frontline, my current research focus is the cross-border payments landscape, recent industry trends, and challenges. If you are looking for ways to optimize your services, build a new platform, or seek advice on where to start or new ideas, please contact Celent.
