Capital markets are under pressure to do more with less. As trade volumes surge and regulatory demands intensify, firms can no longer afford the inefficiencies of manual processes and fragmented data. The path forward is clear: digital transformation, powered by intelligent automation and AI, is essential to unlocking scalable operations and reducing risk.
To understand how the industry is responding, Xceptor partnered with Coalition Greenwich to survey 70 senior leaders across global capital markets. The findings reveal a growing recognition that operational efficiency isn’t just a goal, it’s a competitive advantage. But while the ambition is there, execution is still catching up. Here, we’ll explore the key insights from the study and what they mean for firms like yours looking to future-proof operations and scale your data transformation solutions.
The Case for Digital Transformation in Capital Markets
To deal with increasing amounts of data, and the need for increased operational efficiency, digital transformation strategies are becoming top of mind. In fact, nearly 90% of survey respondents believe investment in digital transformation in capital markets will improve operational efficiency and drive data transformation and simplicity.
However, despite the appetite, many organizations cite challenges of digital transformation adoption, including:
- Lack of organizational support: Less than a third say digital transformation is broadly supported by their firm or leadership team.
- Legacy systems: Integration with old systems is one of the common challenges of digital transformation, causing resistance and/or high cost.
- Multiple tools: Up to 5 different platforms are used to cover asset classes, as 95% of respondents say no single platform can cover them all, creating complexity and siloed systems.
These three areas of contention then bring in another fundamental challenge, and barrier, to adoption – cost and return on investment (ROI). However, while the adoption and transformation to digital operations can be costly, there is a not-so-hidden cost in standing still.
The Cost of Inaction
The study uncovered that the amount of manual data management happening is still high. Regulatory reporting (80%), client onboarding (79%), and reconciliations (77%) are cited as the highest manual interventions carried out by teams.
As a result, respondents reported that their teams spend up to a few hours having to remediate such issues and exceptions, taking them away from high-value strategic work.
Not only does manual remediation cost teams time, but businesses money. A staggering number of respondents who took our survey cited having to put aside up to 5% of annual capital as a remediation reserve, demonstrating the growing need to look at data transformation solutions.
Data as a Driving Force & the Role of AI
With such high cost and inefficiency attached to manual management becoming unsustainable, capital markets firms are turning to technology to streamline operations. Adoption is building as over half (58%) have taken steps to improve data capture in the last year, and, of those who haven’t, 57% said they plan to do so in the next 12 months. This shift reflects a growing recognition that automation of data is the foundation for scalable, future-ready operations.
At Xceptor, this is something we see every day. Many of our clients come to us challenged by fragmented systems, inconsistent data formats, and time-consuming manual processes. We help them transform these challenges into opportunities – automating data ingestion, validation, and transformation across the trade lifecycle. Whether it’s regulatory reporting, reconciliations, or client onboarding, our platform ensures data is streamlined, accurate, and ready for action.
When it comes to AI technology, despite growing awareness of its potential, firms are more cautious. According to our study, only 33% are already using AI in some capacity and a further fifth (23%) plan to adopt it in the next year. The goals in doing so; automate manual tasks, enhance workflows, and unlock more strategic opportunities.
Operational Efficiency Begins with Smart, Accurate Data
In capital markets, operational efficiency isn’t just about doing things quickly – it’s about doing them smartly. As this study demonstrates, firms are increasingly recognizing the need for smarter, scalable operations, and that the key to achieving this lies in how well their data is managed.
At Xceptor, we aim to help organizations move beyond manual workarounds driven by fragmented data by automating data ingestion, transformation, and validation. As a result, we enable you to build intelligent workflows to better manage risk, cut costs, and reduce manual intervention, leaving your teams to focus on high-value tasks. Whether it’s regulatory reporting, reconciliations, confirmations, or tax processing, streamlined data operations are the foundation for long-term success and operational efficiency.
To see how your peers are approaching digital transformation strategies, where the biggest opportunities are, and how AI is shaping the future of operations, download the full report.
Or get in touch with a member of our team to see how we can help you can streamline your services.