Benefits of AI-Powered Capital Market Software Solution

Investing in the capital market is not just done on trading floors anymore. With new AI-powered software, people can trade from anywhere, anytime.

In this COVID-19 crisis, when so many people are sick or stuck at home, it's a good opportunity for those who can work to invest in themselves. And banks and financial firms with AI capital market software by investing their time into work that matters.

What is Capital Market?

Capital markets are the exchange system platform that transfers capital from investors who want to use their extra capital to businesses that need funds to finance different projects or investments. The different types of capital markets software products include:

• Equity securities or stocks and shares of stocks
• Debt securities such as bonds and security notes
• Foreign exchange (forex) such as trading various fiat currencies
• Commodities or shares in an exchange-traded fund (ETF)
• Derivatives like futures contracts exchange, hedging, and over-the-counter (OTC)

What are the Benefits of AI-Based Capital Markets Software Solution?

1. Detects Anomalous Trading Behavior

Using a risk and compliance monitoring system, an investment firm can monitor deviant behavior in trading patterns to simultaneously update the bank's risk and compliance team.

Math labs (MLR) unique data pattern is designed to implement an anomaly-analysis framework to pinpoint suspicious traders based on highlighted behaviors. It also identifies consistent old anomalies vs. newly monitored behavior.

2. High-quality of AI-based interaction

High-quality and personalized AI-powered conversations give customers a better user experience. It reduces the need to fill out forms, online search tools, and the need for additional staff. The capital market solution is storing and analyzing sales and trading conversations to better forecast client needs and improve the effectiveness of conversations.

3. Less Time Wrangling and Cleaning Data

Capital market companies spend a significant amount of money investing in different capital markets software to ensure efficiency and cost-efficient processes in the trading processes.

With AI-powered tools like natural language processing (NLP), employees can instantly find substantial insights in unstructured data to spot patterns in numerous documents. It may help firms to dig some meaningful findings that investment managers were previously not aware of.

4. Controlling Risk and Managing Compliance

For investors, the financial management industry is heavily regulated, and the capital market sector is no exception. Capital market experts must adapt to the changes when real-time investing matters. These changes can be overwhelming in our challenging times.

Financial institutions can use AI-powered compliance and regulatory tools to comply with continuously changing regulatory frameworks.

AI-focused compliance and risk control rules also build trust and increased transparency between traders and capital market firms.

5. Buy-Side Potentials

Capital market software solutions help financial institutions and banks consolidate AI-based research processes. The processes involve searching for investment opportunities, evaluating sell-side research, and verifying client information and data.

Analysts can use AI recommendations when doing portfolio research and recommending investment strategies. It also provides projection and insight into customers' habits to achieve client-focused services.

6. Sell-Side Potentials

Capital markets firms can use AI to automate and track companies of interest and financial-related news feed across different sources. The newsfeed gives information and educates the analysts on what's relevant to them.

Machine learning (ML), on the other hand, helps analysts monitor markets, automate tracking of companies, look for unstructured data of investment opportunities, and create a list of potential private equity firms.

7. Cloud-based Fixed Income Trading

As part of AI technology, a cloud-based solution makes broker-dealers identify natural counterparties using real-time and historical trading data. High-yield corporate bonds are now traded digitally that wasn't popularly invested before. It resulted in faster speed and efficiency to provide clients with better trading options.

8. Reconciliation Procedures and Break Management

AI-powered capital markets solution adds intelligent reconciliation control and break-management processes. ML algorithm automates and improves matching rules, identifies matching problems, and suggests a resolution to every transaction. It leads to fewer manual investigations, faster decision-making, and more time for functional and crucial activities.

Key Takeaway: The Role of AI in Capital Market Solution

Capital market firms are upgrading their business with the help of an AI-powered capital market solution. AI unlocks insights for a better decision-making process for financial firms and banks. It also enables firms to make better-informed decisions on time.

AI is beneficial in keeping an eye on key performance indicators like analyzing data, predicting market movements, providing insightful analytics and alerts, and giving dashboards for clients and analysts.

Click here to know how our team helps you with developing AI-based capital market software.

Hexaview Technologies partners with a diverse network of clients in attaining customer-centric and user-friendly capital market software. To know how AI-based capital market solutions can benefit your business, schedule a demo with us at [email protected].