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Digital capital markets

Redefining the way buyers and sellers are being connected.

Many financial assets remain dependent on intermediating institutions to connect buyers and sellers. However, many new platforms have emerged that redefine how buyers and sellers are connected, allowing demand (borrowers) and supply (lenders) to be more readily and objectively «discovered» by counterparties. These platforms are levelling the playing field, making markets more liquid, accessible and efficient.

Key trends

new market platforms

New market platforms

big data

Big data

AI

Artificial intelligence

Implications

Pressure to differentiate offering.

As the ability to fulfill customer transaction needs is commoditized, financial intermediaries face more pressure to differentiate their offering.

Negotiating power diffused.

With both counterparties gaining improved transparency into market demand and supply, pricing can become more efficient.

Growing importance of advisory.

As the counterparty discovery and negotiation process becomes standardized, intermediaries’ ability to effectively advise the client will be key.

Two key questions

1

What value will intermediaries offer HNWIs to prevent the erosion of their businesses by direct access to counterparties via market connection platforms?

2

How will intermediaries differentiate from one another as improved information flow and trading connections standardize the process of finding counterparties for their clients?

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