Human and Machine — Rise of the Cyborg: The Cycle of Voice Trading

by Brad Bailey, July 12, 2016
Industry Trends
Global

Abstract

This report looks at the changing face of the voice trading channel and how it is reacting to major shifts in business model, strategy, and technology.

Technology, with the hand of regulation, has been at the heart of the digitalization of the market with a particular emphasis on leveraging data, analytics, and process automation. The voice channel will be managed for effectiveness by leveraging new technology such as advanced voice technologies, machine learning, AI, and other tools to merge human and machine abilities.

“We see the voice trader remaining, but merging more seamlessly with augmenting technology,” says Brad Bailey, a research director with Celent’s Securities and Investments practice and author of the report. “Voice is the major channel for risk transfer in many asset classes globally, yet it lacks the digitalization and automation that are pervasive in electronic trading channels. Furthermore, the bulk of voice interactions are not leveraged to their full potential. Advances in voice technology will change that in the coming years.”

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

2

Introduction

3

 

Morphing with the Machine

3

 

Key Drivers Driving the Voice Channel

6

 

So Why Am I Speaking to This Person?

10

Voice Technology Landscape

12

 

General Voice Technology

13

 

Key Trends Driving Voice Technology in the Capital Markets

14

 

Different Types of Voice Technology in the Capital Markets

14

 

Communication Technology

15

 

Market Engagement

17

 

Voice Analytics

17

 

Voice Archiving

19

 

Biometrics

19

Selected Capital Market Vendors

20

Conclusion

21

 

Challenges for Implementing Advanced Technologies

21

Leveraging Celent’s Expertise

23

 

Support for Financial Institutions

23

 

Support for Vendors

23

Related Celent Research

24

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