Technology moves fast, and the latest solutions for issuing financial instruments such as structured products represent a big leap in their ability to improve efficiency and profitability.
Below you can read about the benefits and features of some of the latest technology in this area.
Fintechs move fast
In the context of the current economic instability across Europe, and the rest of the world, the ability of fintechs to survive and thrive will, of course, depend on their financing and cashflow. But, above all, it will depend on their ability to deliver a solution that offers convenience, efficiency, and increased profitability for their target customers. That is, after all, the power of any fintech – harnessing technology to enhance, transform, and disrupt.
Here at United Fintech, our aim is to bring the best fintech tools, products, and solutions together in one place to help financial institutions get ahead of the digital transformation curve. TTMzero is one such company. A fintech offering RegTech and CapTech solutions, TTMzero combines state-of-the-art technology and in-depth knowledge of capital markets to help their customers automate and scale their financial instrument lifecycle management.
“Structured product issuance (and everything that goes with it) is an area where technology can really improve what’s there – and, of course, the same goes for other financial instruments too,” says Simon Ullrich, Founder and Managing Partner at TTMzero. “As many of the stages involved are dependent on data inputs and rules-based, they’re crying out to be automated so that issuers can manufacture products quicker, more accurately, and at a lower cost – and focus their own efforts elsewhere. It’s an area where, used correctly, machines can easily complement and significantly enhance a human team’s work.”
The benefits for issuers of structured products
For anyone operating on the sellside, incorporating the latest technology into issuance processes can unlock many benefits, including:
- The ability to identify and tailor financial instruments to client needs through real-time data sharing and connectivity
- The ability to automate each stage of the issuance process, bringing key benefits, including:
- Short time-to-market for new payoff structures and new distribution countries
- Accuracy and compliance with the latest regulatory requirements
- Lower production and maintenance costs
- Reduced operational risks
- Improved data quality
However, given how quickly technology develops, software that’s even just a couple of years old can quickly become outdated. Issuers who are able to identify the right new solutions and replace legacy platforms can gain an edge on the rest of the market by enhancing and expanding their offering. The latest financial security issuance automation technology allows issuers to serve demand for structured products better, faster, and at higher profit margins.
Simon Ullrich says: “Issuers of structured products typically want to increase speed and volume while minimizing risk. Our Financial Instruments Automation Platform makes it possible for them to increase turnover, lower production costs, and issue products much faster in response to demand or necessity because of new regulatory requirements. Ultimately, it means they can scale their issuance process in a way that isn’t otherwise possible.”
What areas of structured product issuance can the latest technology improve?
The TTMzero platform focuses on delivering an end-to-end solution for the issuance process, allowing for faster launches of new products by digitizing and automating the processes for securities and OTC trades. It’s an effective plug-and-play solution for significantly shorter time-to-market.
1. Regulatory document automation
One of the most important requirements for issuing any financial instrument is, of course, compliance with the appropriate regulations. For structured products, this means producing final terms, term sheets, and Key Information Documents (KIDs).
Fully automated document creation and management can be a significant improvement to the issuance process, with machines able to produce the documentation more accurately and quickly than their human counterparts – ensuring not just efficiency but bullet-proof compliance with MiFID II and PRIIPs regulations.
2. Automated production of product key figures
Similarly, the generation of product key figures can be automated to ensure efficient and risk-free compliance with requirements from the regulator and distribution network.
3. Automated listing and filing
As well as listing the securities with exchanges, the TTMzero platform offers data distribution to a broad network of datahub providers and can automate filing with clearing houses, national regulators, and data vendors. The highly adaptable software seamlessly fills the gap between financial institutions’ infrastructure and third-party providers.
4. Automated daily updates
All the required daily updates of documents and files can be automated, meaning issuers can deploy resources in other areas.
5. Automated cashflow management
Cashflow management is another area where automation can add significant value. By using smart contracts, the software can ensure optimal cashflow.
6. Automated risk management and market making
With automated tools, it becomes much easier for issuers to manage risk and offer a liquid secondary market.
7. Automated middle-office processes
From valuation to regulatory capital requirements, the software automates middle-office processes, lowering costs and making it possible to scale your activity.
8. Automated recommendation algorithms
Issuers are able to distribute their products to a wide retail customer base and guide potential customers to the most suitable products thanks to the platform’s personalized recommendations.
Transform your issuance process with the latest automated tools
At United Fintech, we’re on a mission to bring you the best new fintech tools and platforms – all in one place. TTMzero offers a RegTech automated solution that can help put you at the forefront of the market.
The TTMzero Financial Instruments Automation Platform enables financial product providers to take advantage of fully automated processes for security issuances, lifecycle management, and regulatory documehttps://unitedfintech.com/ttm-zero/ntation, reporting, and filing. It can help you unlock scalable growth.
Learn more about the TTMzero platform for issuing structured products here, or book a call with one of our experts to find out how it could work for you.