There is growing pressure on financial institutions to continually innovate to improve customer engagement. Therefore, established banks and FinTech firms are turning to artificial intelligence (AI) to drive Intelligent Automation, which is expected to spur a new wave of streamlined operational process. The ability to analyze customer data and to extract deep customer insights will help firms identify hidden patterns in data, generate customer insights from large volumes of data, and create actionable strategies to create products with a strong value proposition. Because customer data is a tremendous asset for capital markets’ organizations, information security is critical. To ensure that compliance regulations are well managed and used to drive business goals, more organizations are turning to data-driven compliance.

1. Top-10 Trends for Capital
Markets 2019
November, 2018

2. Capital Markets Trends 2019| November 2018 © 2018 Capgemini. All rights reserved. 2
Information Security
Outdated Rule-based
Fraud Detection
High Rate of Error in
Evaluation
Source: Capgemini Financial Services Analysis, 2018
AI and ML will Play a Major Role in Handling Cyber-Crimes in
the Future
AI and ML will help institutions overcome
several key challenges including detecting
financial fraud
Unstructured data with no
Insights
Delayed Alert Mechanism

3. Capital Markets Trends 2019| November 2018 © 2018 Capgemini. All rights reserved. 3
Real-time Access to Unified
Data
Reduced Infrastructure Costs
Adoption of cloud services will drive down
technology and infrastructure costs and
free up funds for business processes and
revenue generation
Cloud Will Drive Operational Efficiency and Help with Strategic
Decisions
Source: Capgemini Financial Services Analysis, 2018

4. Capital Markets Trends 2019| November 2018 © 2018 Capgemini. All rights reserved. 4
GDPR is Prompting a Deeper Dive into Data Governance and
Management
Potential Loss of Reputation
Keeping user data secure
Penalties for Non-Compliance
Managing increasing volume of data
Enabling data portability
24/7 Access to data to all stakeholders
Source: Capgemini Financial Services Analysis, 2018

5. Capital Markets Trends 2019| November 2018 © 2018 Capgemini. All rights reserved. 5
Drive Higher Investment Returns Predict Probability of Trade Failure
Intelligent Automation Transforms Trade Functions
Risk Management Tool Suggest Corrective Actions
ML can quickly analyze large datasets to
mitigate risk and drive higher returns for
firms
Source: Capgemini Financial Services Analysis, 2018

6. Capital Markets Trends 2019| November 2018 © 2018 Capgemini. All rights reserved. 6
Enabling Technological Changes
Changing Regulatory Environment
Reduce Expenses
Mitigating Risk
Microservices Improve Firm Agility and Workflow
Source: Capgemini Financial Services Analysis, 2018

7. Capital Markets Trends 2019| November 2018 © 2018 Capgemini. All rights reserved. 7
Changing Consumer Behavior
Legacy Systems
Increasing Costs
Regulatory Changes
The rise of platformification makes it imperative
for capital market firms to move from build to buy
side to meet customers’ growing needs.
Platformification Will Generate New Customers and Revenue
Streams
Source: Capgemini Financial Services Analysis, 2018

8. Capital Markets Trends 2019| November 2018 © 2018 Capgemini. All rights reserved. 8
Run complex models in lesser
time
Suggest best portfolio with any
given risk level
Improve financial forecasting
and risk analysis
US$5-10
billion
per year
Quantum computing
industry is projected to
generate revenues in
the range of US$5-10
billion every year
Quantum Computing to Revolutionize the Capital Markets
Operating Model
Source: Capgemini Financial Services Analysis, 2018; Nasdaq, “Quantum Computing: What It Is, And Who the Major Players Are,” Prableen Bajpai, March 26, 2018, https://www.nasdaq.com/article/quantumcomputing-
what-it-is-and-who-the-major-players-are-cm939998

9. Capital Markets Trends 2019| November 2018 © 2018 Capgemini. All rights reserved. 9
Operational Risk
RegTechs will help firms create an integrated
risk management system which will aid to
evaluate risks in various functions of the
organization
Compliance Risk
RegTechs Will Boost Compliance and Risk Mitigation
Capabilities
Source: Capgemini Financial Services Analysis, 2018

10. Capital Markets Trends 2019| November 2018 © 2018 Capgemini. All rights reserved. 10
RPA Enhances Business Process Effectiveness
97%
growth in
2017
The RPA software market
grew 97% in 2017 and is
expected to grow
between 75-90% in 2018
Efficient Operating ModelRisk Management
Regulatory Compliance Technology Infrastructure
Source: Capgemini Financial Services Analysis, 2018; Everest Group, “Enterprise Adoption of RPA Exceeds 100% Growth in 2017, Buoyed by New Buyers of All Sizes, Industries”, July 23,
2018, https://www.everestgrp.com/2018-07-enterprise-adoption-rpa-exceeds-100-growth-2017-buoyed-new-buyers-sizes-industries-everest-group-press-release-46088.html

11. Capital Markets Trends 2019| November 2018 © 2018 Capgemini. All rights reserved. 11
Limited Scope for Manipulation
Reduced Time to Settle Trade
Reduced Discrepancy in Trade
Smart contracts will lead to substantial
improvements in compliance, cost-efficiency and
accountability for capital market firms.
Smart Contracts Boost Trade Settlement Efficiency
Source: Capgemini Financial Services Analysis, 2018

12. Capital Markets Trends 2019| November 2018 © 2018 Capgemini. All rights reserved.
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