The post-trade industry is experiencing a significant shift, primarily driven by advancements in digital assets and artificial intelligence (AI). Recent insights from Citi’s “Securities Services Evolution” whitepaper highlight the growing influence of tokenization, accelerated settlements, and AI-driven automation on trade processing. As market participants adapt to these transformations, small and medium-sized businesses (SMBs) in particular should consider how they can leverage these technologies to optimize their operations.
According to Citi’s survey of 537 market participants, including custodians, broker-dealers, and asset managers, there’s an optimistic projection that by 2030, up to 10% of market turnover could take place through tokenized assets. Central to this transition are bank-issued stablecoins, which enhance collateral efficiency and facilitate fund tokenization. Notably, the Asia-Pacific region is spearheading this adoption, encouraged by robust retail interest in cryptocurrencies and supportive regulatory frameworks for digital assets.
AI technologies are poised to further streamline processes in the post-trade landscape. A striking 86% of firms in the survey are testing AI applications for client onboarding, particularly beneficial for asset managers, custodians, and broker-dealers. Additionally, 57% indicated they are piloting AI for post-trade processes. The emphasis on developing speed and automation in these processes is paramount, particularly as the industry anticipates transitioning to a T+1 settlement cycle—a standard that requires trades to be settled one business day after they occur.
For SMB leaders considering how to integrate automation into their operations, starting with a few targeted steps can yield significant efficiency gains. First, evaluate current workflows to identify repetitive tasks suitable for automation. Common areas that can benefit from AI integration include client onboarding, data reconciliation, and transaction tracking. Next, explore automation platforms like Make or Zapier. These tools provide user-friendly interfaces for creating workflows without extensive coding skills.
Once you’ve identified the tasks to automate, set clear objectives for your automation efforts. For instance, if you aim to automate client onboarding, begin by creating a checklist of the essential information you need from clients and any follow-up actions that must take place. With platforms like Zapier, you can set triggers based on client responses that automatically populate your CRM or initiate communication with clients.
Next, implement a step-by-step approach to developing and testing these workflows. Start with a small pilot project; for example, automate the onboarding process for a single product or service. Monitor the process closely, tracking metrics such as time saved, error reduction, and client satisfaction. Gather feedback from your team and adjust the automation as necessary to address any unforeseen challenges.
Another critical aspect of integrating automation is ensuring that your team is well-informed and fully trained on the new processes. Providing comprehensive training sessions can ease the transition, making sure employees understand both how to use the tools and the benefits of the new system. Continuous learning and adaptation are vital, as the landscape for AI tools and automation is ever-evolving.
After launching your pilot, analyze your results carefully. Assess both the qualitative and quantitative impacts of automation on your business. Consider the time savings or cost reductions achieved through increased efficiency and decreased error rates. Additionally, reflecting on employee feedback can offer insights that may lead to further improvements. If the pilot proves successful, you can gradually expand automation to other processes within your organization.
However, it is vital to recognize the associated risks. While automation can provide substantial benefits, issues such as data privacy, compliance, and potential system failures must be carefully managed. Ensure that your automated processes adhere to industry regulations, particularly when dealing with sensitive client information. Regular audits and updates are necessary steps to mitigate risks and maintain the integrity of your systems.
The anticipated ROI from integrating AI and automation into your workflows can be substantial. By enhancing efficiency, improving accuracy, and reducing operational costs, your SMB can foster a more agile and responsive business model. Moreover, with the broader market landscape shifting towards digital assets and AI-driven services, proactively embracing these technologies can better position your business to capture new opportunities and remain competitive.
In conclusion, as the post-trade industry evolves, SMB leaders should consider the actionable pathways to implementing automation through AI tools such as Make and Zapier. By methodically evaluating current processes, setting clear goals, training staff, and managing risks, businesses can harness the power of automation to drive efficiencies and enhance service delivery.
FlowMind AI Insight: Embracing automation is not just a trend but a necessary evolution for SMBs in today’s fast-paced marketplace. By leveraging AI tools, businesses can streamline operations, reduce costs, and ultimately enhance their competitive edge.
Original article: Read here
2025-09-02 14:26:00