Blockchain adoption held back by internal processes
A number of disruptive technologies have the potential to
radically change how derivatives markets operate but internal procedures are
holding back adoption at financial institutions, a recent whitepaper by FOW has
found.
The whitepaper, which was produced following a private forum
of 10 leading individuals from banks, brokerages and trading companies, covered
big data, the distributed ledger and machine learning.
The forum discussed how big data has already made an impact
on operations within derivatives markets but as usage grows, banks could have
the potential to analyse their entire portfolios in real time and offer dynamic
funding options to clients to balance the bank’s positions.
The whitepaper explores the development of machine learning
and genetic programming, not just in the front office for trading strategies
but in the back office to spot trade break patterns and increase efficiency.
It also examines the likely growth of blockchain technology
in the form of distributed ledgers arguing that smaller permissioned ledgers
will soon replace some internal processes within financial organisations.
While the potential for new technologies is huge, the
whitepaper found that adoption rates of new technologies are being held back by
internal processes within financial institutions.
These include outdated procurement processes and a lack of
facilities to trial new technologies.
With installation and adoption times and costs slashed by
software-as-a-service distribution, the economics of investment in new
technology is changing and to take advantage, firms need to adapt.
To download the free whitepaper, visit: http://bit.ly/1iEYGQD
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