Disparity in Technology Investment between Sales and Trading

HighTechnology budgets at Institutional Broker-Dealers have in general been disproportionately focused on the trading side of the business, leaving the sales side with limited technology innovation. This is not to say that much of the technology built doesn’t benefit salespeople. Much of it facilitate the sales workflow, especially when dealing with order tracking, capital, and market data. What has been missing is a meaningful investment in tools that do three things: 1) provide more (and more relevant) client information to salespeople in a consolidated and timely manner; 2) analytic solutions that serve up algorithmically driven insights that can help salespeople better engage clients and provide differentiated service; 3) new ways for salespeople to interact with information and systems, like alerts and mobile solutions.

Consolidated Client Information

Client information at most banks is comprised usually of core client data (addresses, key contacts), internal control data, trade and production data, plus any client interaction data (meetings, calls) that the firm happens to captures. For the later, some firms are disciplined at capturing every interaction, but most only capture parts. There is, however, a great amount of information that can be very useful for salespeople in their dealings with clients. Many salespeople actually spend a significant amount of their time digging through varied internal systems, Bloomberg, Reuters, and the web to find pieces of relevant data that they can use, much of which could be served up in a more consolidated and automated fashion, commingled with basic client information. When looking at a client in their client system or CRM, they could also have client fund holdings and performance data, trends in names or sectors clients are interested in, research readership, and social media data (such as Twitter feeds). For organizations offering multiple asset classes, providing a salesperson relevant activity data from other asset classes can be invaluable, such as providing Equity salespeople data on a client’s corporate bond trading activity.

Analytic Solutions

Sales & Trading organizations have been investing hundreds of millions of dollars in algorithmic analytic and trading technologies. Some of that discipline (and investment capital) should be leveraged to provide more timely and automated insights to salespeople. Specific types of movements in securities or sectors that might interest specific clients, movements in other areas that might be correlated to client interests, and general behavior of different client segments of which a particular salesperson’s clients might fall into. This would give salespeople lot of processed information that provides differentiated insights to offer clients or help better manage a book of clients.

New Ways to Interact with Client Information

A good institutional salesperson in any asset class is skilled at collecting and synthesizing information quickly, either to provide relevant information to their clients or to help them strategically manage their client coverage. Creating efficient ways of getting pertinent information quickly is the key to success. Development of intelligent alerts is one way to serve up relevant activity, analysis and trends. They can simply be an alert that someone else in another product group called on that same client. The more robust the analytical solutions (from point 2) that are in place, the smarter and more relevant the alerts could be, such as a spike in trading for given client segments after a particular event or research published. With current mobile technology, these types of alerts and analysis can be delivered and actioned upon very quickly.

There is a big opportunity for Sales & Trading organizations to greatly differentiate themselves if the right level of investment is made on the Sales side of the organization. This is going to become more critical as innovation in trading technology becomes less and less differentiated across competitors and new regulations constrains the way trading revenue is achieved.

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