Technology Trends in the Australian Capital Markets

by Hua Zhang, May 28, 2015
Asia-Pacific

Abstract

IT spending in Australia’s capital markets is growing slowly. However, deregulation and internationalization provide opportunities for both financial institutions and technology vendors.

For reconciliations, the major spending will be in international reconciliations, auto consolidation/matching, and single reconciliation application across all aspects. For back office processing, the major spending will be used for putting in back office technology to enable value-added services, such as portfolio allocations among clients. For post-trade analytics, compliance and increasing emphasis on analytics are the major drivers.

In the report Technology Trends in the Australian Capital Markets, Celent examines market size, regulation, drivers, and customer segmentation.

“International vendors can focus on tier one, tier two, and international financial institutions, because they have the internationalization requirement, and will adopt international vendors’ systems,” says Hua Zhang, an analyst with Celent’s Asian Financial Services group and author of the report. “Cloud-based solutions are acceptable, because there already are some cloud-based and BPO applications in the securities industry, such as algorithmic trading and investment analysis systems.”

This report provides an overview of technology trends in Australia’s capital markets, as well as regulatory, business, and customer trends.

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 a wholly-owned subsidiary 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

1

Capital Market Trends

2

 

Asset Distribution of Financial Institutions

2

 

Asset Class Trends

3

Regulations

5

Drivers of Technology

6

 

Post-Trade Analytics

6

 

Reconciliations

7

 

Back Office Processing

9

Technology Trends by Industry Segment

10

Conclusion

11

 

Recommendations for Vendors

11

Leveraging Celent’s Expertise

12

 

Support for Financial Institutions

12

 

Support for Vendors

12

Related Celent Research

13

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