2010 Trends to Watch: Financial Markets Technology

Overview 2
CATALYST 2
SUMMARY 2

analysis 4
BUSINESS TRENDS AND TECHNOLOGY ENABLERS 5
REGULATORS WILL REQUIRE BANKS TO CONCENTRATE ON TRANSPARENCY AND RISK 5
Transparency, frequency and action will be the focus of developments in risk reporting 6
Liquidity and counter-party risk have become central regulatory objectives 7
Risk management will extend from reporting to governance, incentives and operations 8
TRANSACTION BANKING WILL ENJOY A RENAISSANCE, AND WILL NEED TO OFFER PRODUCT AND DELIVERY INNOVATION 9
Corporate treasury demand for liquidity management will spur innovation in cash pooling and receivables services 9
Banks will direct investment to online portals, with a focus on usability, automation and bank account management 10
WEALTH MANAGEMENT WILL REMAIN STRATEGIC, ALTHOUGH THE OFFSHORE SECTOR WILL STRUGGLE 11
The wealth management landscape will change, with mid-tier players set to benefit from the turmoil 11
The offshore wealth management market will struggle in 2010 as secrecy benefits recede 12
ACTIONS 14
TECHNOLOGY RECOMMENDATIONS FOR INSTITUTIONS IN THE FINANCIAL MARKETS SECTOR 14
Control and flexibility of business processes will require the move to a central BPM approach 14
Cost management tactics need to tackle application as well as infrastructure consolidation 14
IT investment needs to cover front office to support relationship managers, as well as online 15
RECOMMENDATIONS FOR PROVIDERS OF TECHNOLOGIES AND SERVICES 15
Vendors need to highlight architecture and technology strength in addition to functionality 15
An upturn in IT spending is not expected until 2011; vendors need to spread out costs 16
Asia Pacific will have more influence on decision-making, with Hong Kong and Singapore key hubs 16
APPENDIX 17
DEFINITIONS 17
METHODOLOGY 17
FURTHER READING 17
LEAD AUTHOR 17
CONTRIBUTING AUTHORS 17
OVUM CONSULTING 18
DISCLAIMER 18