The next power couple: AI and data are taking over from Taylor Swift and Travis Kelce
30 October 2024
Darren Crowther, head of securities finance solutions at Broadridge, explores how AI and data are becoming the dominant duo in the banking sector by solving complex problems and enhancing operations
Image: stock.adobe.com/nurman
In the world of celebrity power couples, few have recently generated as much buzz as Taylor Swift and Travis Kelce. Their whirlwind romance, blending pop music royalty with NFL superstardom, has captivated the public’s imagination and dominated headlines. However, as intriguing as their dynamic is, another power couple is steadily making its way into the spotlight, one that is reshaping entire industries and altering the future of finance: artificial intelligence and data.
AI and data are more than just technological tools; together, they are a synergistic force that is redefining how businesses — particularly in the capital markets — operate. In the same way that Taylor Swift’s influence reaches across industries from music to fashion, AI’s capabilities extend across various sectors, revolutionising operations and strategies. This is all achieved via the backbone of quality and depth of data being made available.
The game-changing duo
Before diving into specifics, it is crucial to understand why AI and data are considered the new power couple. Like any effective relationship, their strength lies in how they complement and enhance each other’s capabilities. Data, often referred to as ‘the new oil’, provides the raw material that fuels AI algorithms. It is the massive amounts of data generated from transactions, trading and client behaviour, market trends, and more that give AI the context and information it needs to function.
On the flip side, AI’s ability to process and analyse vast datasets at extraordinary speeds turns data into actionable insights. AI technologies such as machine learning (ML), natural language processing (NLP), and deep learning allow computers to ‘learn’ from data, improving their predictions, recommendations, and problem-solving abilities over time. This is particularly crucial in industries like capital markets, where speed, accuracy, and the ability to predict trends are paramount.
In short, AI provides the intelligence, while data provides the knowledge base. Together, they are driving a fundamental shift in how industries operate, particularly in finance, where the ability to analyse vast amounts of data in real time is a game-changer.
Securities finance: An industry primed for disruption
In capital markets, AI and Data have proven to be transformative. High-frequency trading, predictive analytics, and algorithmic trading are all areas where AI is being utilised to gain an edge. These systems analyse huge volumes of market data, identify patterns, and make trades in fractions of a second — far faster than any human could.
One area of finance that is particularly primed for disruption by AI and data is securities finance. Securities finance, which includes securities lending, repo transactions, and collateral management, is a critical component of the global financial system. However, it is also a highly complex and data-intensive area, making it a perfect candidate for AI-driven innovation.
Traditional systems for managing securities finance have often been fragmented and siloed, with different participants in the market using their own systems and processes. This lack of standardisation can lead to inefficiencies, delays, and even operational risk. Moreover, as regulatory requirements become more stringent, firms are under increasing pressure to ensure that they have a clear and accurate view of their securities finance operations.
Leading the way in data and AI innovation
Broadridge has recently launched Tradeverse, a data management platform designed to streamline and enhance the use of trading activity data. Tradeverse functions as a sophisticated data lake, consolidating and simplifying data from various Broadridge platforms supporting front office, securities finance and post-trade among others.
Using Broadridge’s BRx data model, it offers a unified and harmonised view of data, which can be quickly integrated and accessed across different platforms. The platform’s flexibility is further demonstrated by its ability to incorporate data from third-party applications, making it a versatile tool in a multi-vendor environment.
One of Tradeverse’s key advantages lies in its ability to serve as a foundational element for a range of AI-driven initiatives at Broadridge. By centralising access to high-quality, real-time trade lifecycle data, Tradeverse facilitates the development of AI applications such as OpsGPT. These applications rely heavily on consistent and comprehensive data, and Tradeverse eliminates the need for separate data sources, reducing overlap and increasing efficiency.
Furthermore, Tradeverse supports multi-asset data management and operates in real time, subject to the speed of data publication from source systems. Its cloud-native architecture, currently utilising Snowflake, ensures scalability and adaptability to future database technologies.
All of these capabilities will allow Broadridge to bring improvements in workflow processing and bring operational efficiencies into the securities finance arena.
Looking ahead, Tradeverse is set to become the cornerstone of Broadridge’s data strategy. While existing systems will continue to operate, Tradeverse represents the future of data access and will be the basis for new capabilities within the Broadridge ecosystem.
With a roadmap for expanding data sources, including Broadridge’s securities finance and collateral solutions, and ongoing AI and analytics developments, Tradeverse is positioned to significantly advance the role of data in financial services.
Conclusion
Just as Taylor Swift and Travis Kelce capture the world’s attention with their celebrity power, AI and data are capturing the attention of industries worldwide, particularly in finance. In capital markets, banking, and securities finance, AI and data are working together to solve complex problems, enhance efficiency, and drive innovation.
As demonstrated by Broadridge Tradeverse and the industry wide interest in AI and data — we are seeing the start of a fundamental shift in how the financial industry operates.
In the end, while celebrity power couples may come and go, the partnership between AI and data is here to stay.
AI and data are more than just technological tools; together, they are a synergistic force that is redefining how businesses — particularly in the capital markets — operate. In the same way that Taylor Swift’s influence reaches across industries from music to fashion, AI’s capabilities extend across various sectors, revolutionising operations and strategies. This is all achieved via the backbone of quality and depth of data being made available.
The game-changing duo
Before diving into specifics, it is crucial to understand why AI and data are considered the new power couple. Like any effective relationship, their strength lies in how they complement and enhance each other’s capabilities. Data, often referred to as ‘the new oil’, provides the raw material that fuels AI algorithms. It is the massive amounts of data generated from transactions, trading and client behaviour, market trends, and more that give AI the context and information it needs to function.
On the flip side, AI’s ability to process and analyse vast datasets at extraordinary speeds turns data into actionable insights. AI technologies such as machine learning (ML), natural language processing (NLP), and deep learning allow computers to ‘learn’ from data, improving their predictions, recommendations, and problem-solving abilities over time. This is particularly crucial in industries like capital markets, where speed, accuracy, and the ability to predict trends are paramount.
In short, AI provides the intelligence, while data provides the knowledge base. Together, they are driving a fundamental shift in how industries operate, particularly in finance, where the ability to analyse vast amounts of data in real time is a game-changer.
Securities finance: An industry primed for disruption
In capital markets, AI and Data have proven to be transformative. High-frequency trading, predictive analytics, and algorithmic trading are all areas where AI is being utilised to gain an edge. These systems analyse huge volumes of market data, identify patterns, and make trades in fractions of a second — far faster than any human could.
One area of finance that is particularly primed for disruption by AI and data is securities finance. Securities finance, which includes securities lending, repo transactions, and collateral management, is a critical component of the global financial system. However, it is also a highly complex and data-intensive area, making it a perfect candidate for AI-driven innovation.
Traditional systems for managing securities finance have often been fragmented and siloed, with different participants in the market using their own systems and processes. This lack of standardisation can lead to inefficiencies, delays, and even operational risk. Moreover, as regulatory requirements become more stringent, firms are under increasing pressure to ensure that they have a clear and accurate view of their securities finance operations.
Leading the way in data and AI innovation
Broadridge has recently launched Tradeverse, a data management platform designed to streamline and enhance the use of trading activity data. Tradeverse functions as a sophisticated data lake, consolidating and simplifying data from various Broadridge platforms supporting front office, securities finance and post-trade among others.
Using Broadridge’s BRx data model, it offers a unified and harmonised view of data, which can be quickly integrated and accessed across different platforms. The platform’s flexibility is further demonstrated by its ability to incorporate data from third-party applications, making it a versatile tool in a multi-vendor environment.
One of Tradeverse’s key advantages lies in its ability to serve as a foundational element for a range of AI-driven initiatives at Broadridge. By centralising access to high-quality, real-time trade lifecycle data, Tradeverse facilitates the development of AI applications such as OpsGPT. These applications rely heavily on consistent and comprehensive data, and Tradeverse eliminates the need for separate data sources, reducing overlap and increasing efficiency.
Furthermore, Tradeverse supports multi-asset data management and operates in real time, subject to the speed of data publication from source systems. Its cloud-native architecture, currently utilising Snowflake, ensures scalability and adaptability to future database technologies.
All of these capabilities will allow Broadridge to bring improvements in workflow processing and bring operational efficiencies into the securities finance arena.
Looking ahead, Tradeverse is set to become the cornerstone of Broadridge’s data strategy. While existing systems will continue to operate, Tradeverse represents the future of data access and will be the basis for new capabilities within the Broadridge ecosystem.
With a roadmap for expanding data sources, including Broadridge’s securities finance and collateral solutions, and ongoing AI and analytics developments, Tradeverse is positioned to significantly advance the role of data in financial services.
Conclusion
Just as Taylor Swift and Travis Kelce capture the world’s attention with their celebrity power, AI and data are capturing the attention of industries worldwide, particularly in finance. In capital markets, banking, and securities finance, AI and data are working together to solve complex problems, enhance efficiency, and drive innovation.
As demonstrated by Broadridge Tradeverse and the industry wide interest in AI and data — we are seeing the start of a fundamental shift in how the financial industry operates.
In the end, while celebrity power couples may come and go, the partnership between AI and data is here to stay.
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