The future of asset servicing shaped by three disruptive technologies
Robotic process automation, blockchain and cognitive systems
A huge wave of technology disruption is heading toward the asset servicing industry. Within a five-year timeframe, robotic process automation (RPA), blockchain and cognitive systems will drive dramatic change and have a profound, lasting impact on service providers' operations.
We believe that these disruptive technologies offer enormous potential for asset servicers in creating efficiency, reducing risk and improving quality of service to clients. It has been suggested that automation alone could reduce headcount in the asset servicing industry by 60-70 percent while also achieving a cost savings of approximately 30-40 percent.
The report 'The future of asset servicing shaped by three disruptive technologies' describes where we believe these impacts will be felt most, and outline actions that asset servicers can take to ensure they can ride the wave of technology disruption without being consumed by it. The report also illustrates use cases on how leading asset servicing providers are deploying disruptive technologies to transform their business.
Some benefits of the disruptive technologies include:
- Robotic Process Automation (RPA) can automate high-volume repeat tasks such as trade processing, reconciliation, reporting, and tax so that human forces can refocus on more valuable and rewarding areas.
- Blockchain can significantly reduce the volume of paperwork involved in asset servicing, and make the trading process more efficient and cost effective for the business, as well as to the client.
- Cognitive technology has huge transformational potential. Asset servicing providers can leverage analytics and cognitive computing to develop trade algorithms that make predictions based on historical data, and learn how to respond to changing markets.