Transforming LegacyTech
Introduction
Introduction from S&P Global Market Intelligence
Essential Intelligence is critical to our customers across the financial spectrum. Our team of experts deliver leading data and technology solutions covering 99.95% of the world’s markets with trillions of transactions processed via our software solutions, managed services and powerful workflow and technology solutions, to streamline front-to-back-office operations. We serve our customers with integrated offerings, a global footprint, and increased collaboration across teams by combining world class execution, a growth mindset, and our unique expertise and passion for building innovative and connected solutions. Our Corporate Actions and Securities Processing solutions consists of a powerful combination of enterprise technology and managed data services that help financial institutions across all capital market segments in their asset servicing and post trade processing. We are delighted to partner with the Value Exchange, Digital Asset and The Network Forum on this global industry benchmarking study of 126 capital market firms to address the key industry pain points for digital transformation and how firms need to continually evaluate both their operational and technology infrastructure to ensure they are positioned to service the digital needs of their clients.
Introduction from Digital Asset
Digital Asset partnered with the ValueExchange, and other industry-leading technology and services firms, including the Network Forum and IHS Markit (now S&P Global), to conduct a comprehensive study of 126 capital market firms covering equities, fixed income, and derivatives segments. This research addresses industry pain points, where transformation is taking place in capital markets, and how firms are replacing outdated systems. As capital markets and the entire financial services industry enter an era of fundamentally new paradigms for technology, transactions, and asset types, we must address the elephant in the room — legacy tech still permeates the majority of financial services. This is a reality that will slow time-to-market for new products and ultimately add significant risk to the world’s largest organizations as more nimble competitors get to market quicker. This report uncovers the low hanging fruit for change across the value chain. For example, the ValueExchange found that the average system age for banks and brokers ranged from nine to 16 years. Additionally:
- Average core system age for banks/brokers: 13 years
- Average clearing and settlement system age for bankers/brokers: 16 years
- Average corporate actions system age for bankers/brokers: Nine years
- Average position keeping system age for bankers/brokers: 12 years
The ValueExchange goes into significant detail around the pain points experienced by various market segments, but a major callout from every survey participant was how the initiatives to update legacy technology would not be incremental, but rather transformational. Organizations are taking action to uproot older systems to reflect the rapidly changing landscape for financial products and services. With the right approach, a digital transformation of financial services is possible without starting from scratch, depleting resources from internal teams, and incurring high amounts of technical risk from implementing a new platform. Finding a platform that supports how the enterprise functions day-to-day, while improving cross-boundary transactions that honor the underlying system privacy and integrity is the key to updating legacy systems.
Introduction from The Network Forum
This report covers many of the themes that our community are facing – and some of these key themes we will be covering at TNF’s Annual Meeting in London in June 2022.
Human Capital, T+1, Driving Digital Change, Corporate Actions and How to Drive the Right Change within an organisation are all topics that we face together and are delighted that this report gives some hard data to reference.
