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IBS Journal Supplement: Treasury & Capital Markets

Amidst all of the hype and activity around retail-oriented digital banking, it is sometimes easy for industry watchers to ignore the treasury and capital markets (TCM) sector. It can appear that the main focus for innovation is elsewhere. The suppliers seldom change, albeit they reduce in number through M&A, and many of the business pressures look little different from one year to the next.

However, such a superficial view would be wrong, as anyone who works in the TCM space will be only too aware. Today’s lower margins and heightened regulation mean there is a great deal of pressure to change. It means the emphasis is on reduced costs and better risk and liquidity management, in its different forms.

The interesting question is, what form will the change take? The rationalisation of systems has been something of a constant theme, even back to pre-2008, but this has become more pressing because of the cost drivers.

More sweepingly, there is a belief that utilities will have an important role to play, with a number of vendors and banks setting out their stalls. Does it make sense for everyone to maintain their own infrastructures when it comes to the operational side of the business? Can shared platforms take out larger swathes of costs than is the case with sequential internal improvements?

The jury is out and those with long memories might not be holding their collective breath. Such utilities have come and gone in the past. Often, they claimed healthy ‘pipelines’ almost up to the day they closed. The problem didn’t seem to be in generating interest, it was in getting people to finally make the leap. Outsourcing always sounds fine in theory but it is a major decision that is hard to reverse. Only if the drivers and proposed solutions are sufficiently strong will the theory turn into reality in the TCM space this time around.

The latest issue of our free Treasury & Capital Markets Supplement features:

Market Overview: Rationalisation of systems, internal and external utilities, and better use of data are flavour of the day in a low margin treasury and capital markets sector, but there are fewer suppliers left to provide solutions after the consolidation of the last few years.

Case Study: The OPEC Fund for International Development (OFID) has been undergoing a major digital transformation in the last few years to support its complex project and loan management operations and the associated payments. Working with SAP and Fundtech, plus a range of services partners, a lot has been achieved.

Vendor Watch: Paris-based Login SA provides a pre-trade treasury solution that goes hand-in-hand with Oracle FSS’s Flexcube. The relationship is a strength but also a weakness.

What is the IBS Journal Supplement?

Each issue of our flagship monthly IBS Journal includes a Supplement, dedicated to a specific area of banking technology. The Supplements are part of the IBS Journal subscription.

IBS Journal Supplements cover a wide range of subjects pertinent to the financial technology industry worldwide. They include detailed case studies, analysis, interviews and other feature articles.

Each publication features independently researched and compiled material, with no advertorial or contributed articles. All articles are written by IBS, and we believe that this dedication to quality is unique among publications in the banking/financial services technology space.

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