While the fintech revolution continues accelerating the pace of change, we’re pursuing innovative technologies that can help us maximize the value we deliver to clients.
Here are five ways we are using technology to drive down post-trade processing costs and enhance the safety and security of the global financial marketplace.
Artificial Intelligence/Machine Learning (AI/ML)
In 2017, we incorporated AI and ML to enhance our Mutual Fund Profile II service, reducing the time it takes to process and update the mining of data from prospectuses and other documents filed within the U.S. SEC’s EDGAR system. This helps clients make sense of the overwhelming volume of data in mutual fund prospectuses.
Future Lens: We are currently working on an initiative to develop a platform for a centralized location to apply AI and ML to data already collected, which will allow teams to quickly obtain insight from data.
In February 2020, we launched the API Marketplace, which provides a central location for APIs developed by DTCC, streamlining access to services and improving the user experience. Our first API launched in the Marketplace is Risk Management as a Service, a service that leverages data and standards to provide clients with a detailed view of their risk position.
Future Lens: Additional APIs for other products and services are in development, including one that will help clients to submit, update, and query new and existing claims against Corporate Action events. Future APIs will be launched later in 2020 and beyond.
We have worked closely for 8 years with CSPs to provide cloud capabilities that meet DTCC’s stringent requirements for security, resiliency and recovery. We currently use AWS for select business processes, and other CSPs and SaaS providers for email, collaboration tools, and solutions supporting our corporate functions.
Future Lens: We will continue to strategically leverage cloud for targeted business opportunities that can provide benefits to us and our clients, including realizing capital efficiencies, improving time to market and introducing new capabilities.
Distributed Ledger Technology (DLT)
Since 2015, we have been working with the industry to evaluate the best uses of DLT and have published multiple industry white papers, conducted a DLT benchmark study, and launched a transformative initiative for our Trade Information Warehouse to move it from a mainframe application to the cloud and establish a private permissioned distributed ledger network for derivatives.
Future Lens: Project Ion and Project Whitney are our latest efforts to examine the potential use of DLT, asset digitalization and other emerging technologies. Project Ion seeks to build on our successful efforts over the past several years to further optimize the settlement process in the public markets. Project Whitney considers opportunities to provide increased levels of digitalization throughout the private market asset lifecycle.
Robotics Processing Automation (RPA)
Over last few years, DTCC been leveraging RPA internally in select opportunities to improve quality and efficacies while reducing costs. In 2019, we integrated RPA software into our GTR service to support new client onboarding processes as well as certain client account amendments. The software automates the client onboarding process by pulling data from client-provided documents, retrieving publicly available information regarding the potential client, and sending that information back to the GTR service to establish an account. With RPA, we have been able to increase the accuracy of account information. In fact, manual processing errors have been reduced by 58%.
Future Lens: Over time, RPA could help mitigate risk by, for example, reducing manual error rates, speeding up processes for clients by highlighting exceptions earlier in the process, and adding a level of consistency that simplifies the onboarding life cycle.