During my recent visit to the Snowflake Summit, my anticipation for futuristic insights on the intersection of technology and data was exceeded. As we collectively move forward in this space, three key themes emerged that could have a significant impact on financial services and market infrastructure:
First, native applications are going to change how we think about data warehouses. Native applications will create more streamlined access to enrich, enhance, and visualize data, all securely housed under one roof. As a result, financial services could benefit from increased data liquidity and a more streamlined data processing within Snowflake’s data cloud. The Snowflake Native App Framework, announced at the conference, will offer an ecosystem that sits atop Snowflake’s data cloud which will give firms the ability to package and deliver capabilities alongside their data. For DTCC, this presents an opportunity, as we see native applications as the future of streamlined software delivery, data access and visualization. We are pioneering alongside industry leaders such as Capital One Software, Goldman Sachs, and Informatica in building applications within this environment which will deliver new capabilities and enhancements to our clients.
Second, accessing software through an app will present new opportunities for financial market participants. For example, it could eliminate the need for separate sets of software and make collaborations with smaller software providers more feasible. It could also provide avenues for entities like DTCC to broaden outreach, for instance, through our liquidity optimization app to assist clients in streamlining margining and liquidity management.
Third, artificial Intelligence (AI) is going to revolutionize financial services and change how market participants derive value from data. For example, the introduction of AI – and the introduction of capabilities that can read and translate content from a document into a database - is of particular interest. For those few middle/back-office functions still relying on manual processes for communication, this could be a game-changer. Automating this process could minimize errors, lead to fewer trade fails, and ensure smoother workflows, especially considering the current move towards shortened settlement cycles.
At the conference, Snowflake highlighted a partnership with Nvidia in the AI space which enables users to use Nvidia’s compute platform to craft custom large language models (LLMs) with data from Snowflake. Imagine a ChatGPT model, continuously evolving its answers based on newly updated data. Not only does this allow customization power in users' hands, but it also helps to ensure proprietary data security within the Snowflake platform.
Reflecting on DTCC's own collaboration with Snowflake, as detailed in my colleague Christopher Walsh’s recent article, I'm reminded of how instrumental this partnership has been. I also have a deep appreciation for the value of robust data processing and analytics in risk management.
As we mark our 50th anniversary, our commitment at DTCC remains unwavering: to unlock unmatched value for our clients through data and technology. As we continue our partnership with Snowflake and explore new frontiers, we are excited about the vast possibilities of creating an even more dynamic and client-centric platform. The financial sector's evolution is intrinsically linked to how we harness and apply emerging technologies and how we leverage the power of data. For entities like DTCC, this journey is about continuous innovation, and I'm eager to see what's next on the horizon.