12 McKinsey Company Different use cases are applicable for different player

12 mckinsey company different use cases are

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12 McKinsey & Company Different use cases are applicable for different player groups SOURCE: McKinsey Trade facilitation/ execution Internal enablers relevant for all parts of the value chain Internal support functions Information technology Market data and technology based services Settlement and Custody Clearing 6b Procurement analytics 6c Talent optimization 6a IT productivity 6d [email protected] and robotics 2d Contract terms risk analytics 3a Payment instruction fraud detection 4e Reference data aggregation 4b Real time shareholder/trader insights 4c Best execution compliance 4d Premium data feeds 4f Industry-specific data verticals 4g SME passport 5b System breakdown prediction 5a ‘Fat finger’ protection 5c Market surveillance for fraud detection 4h ID services repository 2c Margin call prediction 4a Sentiment indicators 1a Trading Market liquidity prediction 1b Implicit cost of trading 2a Bond collateral liquidity prediction 2b Automated credit rating Technology infrastructure Information services Custody and settlement Clearing Security services Use cases Highest potential Potentially relevant Lower potential Revenue Risk Enablers Costs Value lever in focus INDICATIVE NOT EXHAUSTIVE
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13 McKinsey & Company SOURCE: McKinsey Digital and Analytics in CIB Roundtable, May 2017 Lead generation and sales effectiveness Next generation exposure management 18% 2% Opening internal risk systems to clients New predictive signals for trading/market making alpha Real time balance sheet and liquidity management Trade and Trader surveillance 18% 4% Self-service research tools Automated pitch books and other routine analytics Other Legal contracts, reconciliations and breaks management 2% 16% 4% 22% 14% 2% Based on votes from senior digital CIB executives at 20 institutions Lead generation and sales, B/S management, new trading signals, and surveillance are most compelling data and analytics use cases in capital markets
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