Leading Tech Trends in the Capital Market Industry

By Rouven Bergmann, CFO, SAP North America

Rouven Bergmann, CFO, SAP North America

The New Era of Cloud Computing

The cloud’s limitless opportunity has truly begun a new era of business operation across industries, including the capital markets sector. Its flexibility and ease-of-use allows for technology decisions to be made not just by CIOs and the IT department, but also directly by line of business executives. Executives in capital markets can now utilize the realtime power of the cloud to identify emerging risks, make faster decisions, and anticipate market trends. We anticipated the disruptive nature of the cloud at SAP, and coupled this agility with the computing power of SAP HANA, the company’s enterprise business solution that optimizes the cloud for business use. Especially when dealing with finance, it is critical for IT to be fully aligned with business goals to ensure teams are collaborating and aligned. Embracing the cloud is important in this sector because it provides that nimble platform needed to create greater data transparency to ultimately gain better than ever control over processes for managing cash , liquidity and risk.

IoT for Capital Market

The internet of things—including the cloud, big data and mobility— has completely altered how we do business. This newfound networked connectivity presents a unique opportunity to capture operational data at the source to identify and predict future opportunities and risks, such as the impact of market volatility on your liquidity position. The Internet of Things is forcing CIOs in capital markets to rethink how they balance their time, priorities and resources. For example, the security of IT infrastructure remains a top priority for CIOs everywhere, but now, they are uniquely placed to be strategically closer to capital markets than ever before, and have a greater impact on the company’s vision and finances. With more devices obtaining key pieces of data from capital markets worldwide, the greater the opportunity for CIOs in the industry to deliver value to the overall business.

Big Data Analytics as a Critical Technology

Being a financial leader is all about making the most of the information available, so it’s a natural extension for Big Data to be a critical technology to impact the industry. Big data presents a fantastic opportunity to capital markets that, once realized, will make the adoption of strategies around it a priority for securities firms and the like. Making the most of an organization’s available data can provide greater insight and control over complex processes for managing cash flow and anticipating risks. It can also automate transactional processes and support real-time analytics. In addition to simplifying internal processes, big data analytics can also be used to help support client service efforts and provide a new level of customized service. Big data analytics provides securities firms with the ability to enter into financial reporting, driving innovation within the business and in particular together with the CFO to truly change how the company operates. To help increase adoption rates, it’s up to companies like SAP to help those in the sector find the right way to manage existing and shared data resources.

CIOs in Today’s Capital Markets Sector

The role of the CIO is one that is changing drastically across all industries. Particularly for CIOs in today’s capital markets sector, one of the biggest changes we have noticed is that there is a much bigger need to collaborate closely with CFOs. As CFO at SAP, I definitely value my relationship with the CIO and am consistently looking at ways to add value to our working relationship. To help in timely reporting and quarterly accounting, among other new responsibilities, CIOs are now expected to anticipate changes in capital markets, reduce the complexity of managing infrastructure and ensure IT investments are optimized effectively. Because innovation is so closely linked to overall company success, the role of the CIO is arguably more important than ever before.

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