Banks have traditionally invested in front-end innovation to cater to evolving consumer needs, often leaving back-office aspects lagging. One potential area of improvement is post-execution operations, where the need to maximize capital efficiency and mitigate operational risk is driving automation of existing heavily manual processes.

This strategy brief explains how banks can leverage emerging fintech to modernize post-operations and legacy systems, such as:

  • Enhancing clearing and settlement processes using distributed ledger technology
  • Speeding up collateral and margin management through robotic process automation and natural language processing
  • Utilizing artificial intelligence to reduce errors in reconciliation