• Securities Services, Technology

    Unleashing the potential of AI in securities services

June 2021

Artificial intelligence (AI) is fast becoming an essential tool for the post-trade securities services and custody industry. As an increasing number of participants look to deploy the emerging technology to improve a wide range of processes, this Guide provides an introduction to AI in the field, including a rundown of use case examples, insight into important governance considerations and a series of key recommendations to ensure best practice is followed

Artificial intelligence (AI) continues to unlock new growth opportunities and competitive advantages for a diverse range of organisations and their stakeholders – and is being used for everything from better understanding of diseases to creating a fairer, more robust financial market. This paper explores how AI is being used in one specific area of financial services: post-trade securities services and custody, where the technology is already being deployed for three broad purposes:

  • To identify historical trends;
  • To discover up-to-the-minute trends using real-time data and analysis;
  • To predict future trends using a mix of both historical and real-time data. 

While the scope of possible applications for AI technology in this space is not yet fully explored, a number of compelling use cases have already emerged, including refining client segmentation and avoiding settlement failures. The benefits include speed, efficiencies and other improvements to the existing settlement lifecycle, as well as new roles and employment opportunities for those that implement and maintain the AI technology. 

Tapping this transformative potential of AI, however, requires careful thought and preparation. As digital applications become more powerful and widespread, good governance and effective controls will play an increasingly important role. 

This Guide is intended to help industry participants – from broker dealers and global custodians to asset managers – best navigate this emerging landscape to better harness the full value of AI. It shines a spotlight on the following topics:

  1. AI in securities services
  2. AI use cases
  3. Learning types, algorithms and governance
  4. Key recommendations and conclusions

To read the full Guide, please click the Download button below

Unleashing the potential of AI in securities services (pdf) Download white paper