Last week I had the opportunity to attend the annual SIFMA operations and technology conference in beautiful San Diego.

It was inspiring to hear perspectives from top financial services firms and learn about the advocacy initiatives SIFMA is leading on behalf of the industry.

The program was packed with insightful sessions on how firms are implementing tech advancements, improving operations, and navigating regulatory change. The new T+1 settlement transition certainly stole the spotlight in many sessions. Plus, a keynote from Giants legendary quarterback Phil Simms provided a refreshing, and hilarious, take on leadership and commitment.

Here are a few key takeaways that resonated with me:

The Experience Age.

It’s a different era in wealth management. Firms are setting themselves apart based on the seamless experiences they can provide their customers, investors, and partners.

There is a market infrastructure of the future, where data is key. Clients will expect to consume data directly, without having to access a portal. This requires considerations around data quality, security, processes, and entitlements — and a platform to handle the orchestration.

Firms that are willing to embrace new technologies and look to partners that can help them to accomplish these new approaches will be best positioned.

Operational Resilience and the AI intersect.

Regulations for financial institutions, including the Digital Operational Resilience Act (DORA), are requiring additional attention to risk management, governance and response.

Dennis Mackey, Head of Data Management at State Street, provided insightful perspectives on the topic, alongside John Trapani of Appian. Dennis emphasized the importance of showing regulatory parties they are good at risk management, it’s happening reliably, and the standard operating procedures (SOPs) are in place in the event of a critical incident. 

Dennis Mackey continued on to share how Artificial intelligence (AI) use cases can support operating models and reduce risk, including leveraging AI for:

• Legal contracts to spot red flags in clauses, reducing legal resource needs and cycle time  

• Sales optimization to put the right products in front of clients at the right time 

• Invoice reconciliation to reduce potential billing errors  

• Customer service teams to provide virtual chat assistance and commentary 

To pilot AI use case areas, there should be considerable attention placed on data quality and establishing guardrails for compliance teams to be comfortable with AI approaches. 

Modernizing Asset Transfer.

Within the new accounts process and associated activities, there is a large amount of automation that is still possible to improve transfers and client experience. Brokers and dealers are subject to more regulations, which has brought about standardizations. However, for banks, trusts, and insurance companies there is resource-intensive manual work still required for teams. 

Clients are sensitive to account transfer cycle times, as funds are not available to access during this time. Modernization is needed to drive down the multi-day cycle time to process requests and changes. This includes reducing the amount of paper required, such as physical checks, original paperwork signatures, and steps in reclaims. The uptick in fraud is also a concern in the new accounts space. 

Industry initiatives are underway to improve the Automated Customer Account Transfer Service (ACATS) and companies are looking to technologies that can help improve their processes. 

Embracing Automation.

For those looking to employ these strategies and embrace a low-code approach to automation, I highly recommend considering the Appian platform. Zimpatica experts are here to advise and help you navigate your implementation journey, and beyond.

Thank you to everyone I met at the conference for making my first SIFMA conference a wonderful experience. I can't wait to reunite next year, and to hear about all the advancements and progress made.

Jenna Harvey

VP of Business Development 

Zimpatica

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