Service providers are the glue for ecosystem development in capital markets

• In our HFS Top 10 Capital Markets Services 2022 – Leaders and Formidable Challengers studies, we asked the 19 participating service providers to identify their most critical third-party tools and software partners. Their responses revealed a mix bag of hyperscalers and industry-specific ISVs.
• Industry-specific ISVs. Murex, Temenos, Finastra, Avaloq, and NICE Actimize were among the most frequently identified partners for our study participants:
  • Murex’s cross-asset platform offers integrated treasury, trading, and investment capabilities for the sell-side.
  • Temenos is best known as a core banking capability provider, but the firm also offers solutions for wealth, asset management, and asset servicing.
  • Finastra was created from the merger of Misys (a provider of financial operations software) and D+H (a provider of global payments and lending technology); it offers a range of solutions for treasury and capital markets and investment management.
  • Avaloq offers wealth management products and Business Process as a Service (BPaaS) services.
  • NICE Actimize is an anti-financial crimes solution specialist.
• Bubbling under: Adenza (formerly known as Calypso, a provider of end-to-end trading, treasury, risk management and regulatory compliance solutions), Pega (a low-code platform for AI-powered decisioning and workflow automation), and Salesforce (a customer relationship management platform).
• The rising importance of hyperscalers. As our recent DVP on the needs of capital markets firms showed, cloud is critical on the road to modernization. Therefore, the role of hyperscalers such as AWS, Microsoft and Google (GCP) have become an indispensable element of the ecosystem of services and solutions delivered to capital markets enterprises.

The Bottom Line. Service providers are the glue for ecosystem development in capital markets

As capital markets modernize their applications and technologies, the compounding power of AND is key – through both collaboration and co-opetition in ecosystems of shared purpose. Service providers are increasingly the glue in these ecosystems – bringing together and often orchestrating best-fit third-party partners.

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