Even though capital markets technology helps the industry achieve measurable results, many organizations still need help to implement and ultimately achieve those elusive results. We took the chance to discuss the advantages of using Salesforce Implementation Services for Capital Markets, the difficulties in implementing technology for capital markets firms, and some innovative solutions to those problems in partnership with Revel Stark, Director of Business Development at Innovative Capital Commercial.
Challenges of Capital Markets' Digital Transformation
Numerous constraints, including outdated, cluttered system architectures and bureaucratic approaches to processing data, have long slowed the digital revolution of the capital markets. The biggest challenge with integrating capital markets CRM software is figuring out how to alter these legacy systems, which are frequently aging ones. However, this is merely the very beginning.
We spoke with Revel Stark, who had collaborated closely with the AwsQuality team on Salesforce Marketing Cloud Implementation a new CRM system to enable their loan offices to accept more clients, complete more loans, and ultimately generate more revenue to more clearly define some of the fundamental concerns surrounding digital transformation in capital markets.
Here is his explanation for the resistance to change among capital markets.
Data Protection
Companies in the capital markets work with a variety of data. For example, on the trading side, they have access to a wide range of trade and price data for equities, rates, credit, derivatives, etc. The data they host on payments, credit cards, lending, mortgages, default rates on business loans, trade finance, etc., is more significant.
Such information must be carefully preserved as it is very important. Additionally, suppose safety measures should be addressed during the initial planning stages. In that case, the firm will be exposed to some serious cybersecurity dangers, which would undoubtedly undo all the good changes that the digital transformation had previously brought.
Therefore, the only practical alternative for capital markets organizations looking to upgrade their legacy systems is adopting a solution with high data security adaptability and collaborating with a responsible CRM expert who would immediately identify system weaknesses.
Integration Issues with Existing Applications and New Technology
Typically, strongly coupled programs, databases, and devices are used in capital markets activities, which leads to close dependencies that are challenging to unravel. Many of these various tools can legally be replaced by a single CRM system or software with characteristics specific to the business, while others cannot be abandoned.
Organizations must often find ways to update outdated systems so that newer digital platforms and technologies can more easily interface.
This can be accomplished by connecting all current systems into a cohesive ecosystem that automatically gathers data and pre-populates forms and documents. Alternatively, it can be as easy as adding new interfaces to existing systems to provide them with the necessary data.
In any case, such alterations result in high up-front Salesforce Implementation Companies costs and continuing maintenance expenditures, virtually eliminating any hope of internal support from businesses. So even if the software were provided for free to capital market firms, integrating new technologies without enough technical resources would still be a challenge.
Regulation Restrictions
Regardless of their benefits, regulations are expensive for businesses to follow. Furthermore, as social structures or legal frameworks governing digital technologies frequently advance more quickly, uncertainty regarding their application raises even more serious issues.
Even though 14% of capital market companies think that automating regulatory compliance increases profitability, regulatory restrictions impede capital markets technology development.
How to Increase the ROI of Capital Markets Technology?
In addition to the difficulties mentioned above, firms who seek to use technology must also consider the measurement standard of return on investment (ROI). What must be done to increase the likelihood of obtaining a strong return on investment for this technology?
Suppose you approach technology implementation in that way. In that case, capital markets leaders will have much more to do in terms of change management: they will need to change procedures, add or remove positions or entire departments, and, most importantly, educate their staff about the long-term advantages so that they will be able to take advantage of the new platform and help you achieve the ROI you're after.
