POMDPs: Who Needs them?
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Most sell-side financial institutions consider their front office a key point of differentiation. Trading value and information in mdps this end, they invest heavily in proprietary technology to create an advantage. But it may not be sustainable; some shared technology utilities could make their investments obsolete. We look at the trends spurring firms to rethink their client-facing technology and suggest that single- and multi-dealer platforms can co-exist at the same institution.
These days, far more customers want basic and low-cost products. An all-encompassing SDP has value, but this option may not be enough to maintain client brand loyalty.
As capital markets evolve, investment banks are rethinking their client-facing platform strategies. Most financial institutions will benefit from a hybrid platform that mixes single- and multi-dealer apps.
But the right combination will differ for each firm based on its own unique capabilities and trading value and information in mdps positioning. To determine the proper mix, we recommend a three-step process:. This approach will enable trading value and information in mdps to focus on areas where they do add real value using an SDP. It also makes the most of their technology investments in a competitive market. Most financial institutions will benefit from a hybrid platform that mixes single- and multi-dealer apps see figure below.
Alberto Corvo Partner Tel: PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC network.
Each member firm is a separate legal entity. Overview Most sell-side financial institutions consider their front office a key point of differentiation. The rise of utilities like MDPs These days, far more customers want basic and low-cost products. Download To share or not to share: To determine the proper mix, we recommend a three-step process: Deconstruct your existing delivery platform into constituent apps and evaluate the fit gap of each app against SDP and MDP profiles.
Set priorities for remedial actions. Of further interests Devil in the data: How banks can improve data management One step ahead: How banks can anticipate what customers will want next Making omnichannel work: Where risk, efficiency, tech, and customer experience meet Stepping into the cockpit: