Fintech and the future of securities services

Abstract

Looking ahead, financial markets will continue to undergo profound changes,
owing in no small part to the perpetual growth of knowledge sharing and
globalisation that has helped to define the millennium years. For
securities-services providers, the pace of this change will accelerate with
increased consolidation, pervasive regulatory mandates, as well as greater
technological innovation. Indeed, the rapid expansion of financial technology
services — or fintech — will play a lead role in this ongoing evolution, as
the emergence of newer, more disruptive vehicles such as blockchain
streamline the business of custody, clearing, settlement and other post-trade
operations as never before. Along the way, providers will find it necessary
to have an increasingly multi-global as well as multi-local presence;
meanwhile, resources like capital, li­quidity and collateral will continue to
be closely monitored, compelling providers to be more selective while
focusing on growth and market expertise. In an increasingly competitive and
globalised environment, innovations such as blockchain’s decentralised master
ledger could serve as a stepping stone to a far more streamlined
securities-services business in the years to come.