15 August 2022
Global Investment Strategy UK offers a range of prime broking services to both corporate clients and individual investors. This includes everything from payment services to trade execution, corporate finance, clearing and safe custody, and more. The introduction of cutting-edge technology, often including artificial intelligence, together with the human touch, has created the perfect business scenario.
Whether looking at execution only trading in worldwide markets, clearing services or a range of other prime broking services, automation and technology are constantly helping to reduce costs. Every pound invested into new technology creates potentially significant cost savings in the future, funds which can be reinvested into prime broking services. While some investors may have been concerned about reducing the “human touch”, this is still available for those who require practical assistance and guidance.
In any business, long-term client relationships are built on trust and understanding, and the financial sector is no different. Although there is a time and a place for automation, artificial intelligence must never overtake one-on-one broker-client relationships. In many ways, this offers the best of both worlds, a fully automated service for those who require little additional assistance while help is at hand as and when needed. It can take many years to build a trusting relationship with clients, but this can be ruined in a moment, pushing over automation, lacking that human touch or when clients begin to see themselves as simply another number.
Those who have been involved in financial markets for some years may remember the CREST system introduced by the London stock. This was, to all intents and purposes, the first move towards electronic trading with stock held in electronic format, with the option of a share certificate if required. While it is safe to say that elements of prime broking services and clearing services today are unrecognisable from those of the 80s and 90s, the backbone is still the same, client trust in their broker.
Investment in new technology by those offering prime broking services can be a delicate balancing act. Over automation removes the human touch, while a lack of automation could keep costs artificially high. Here at Global Investment Strategy UK, we are acutely aware of these challenges, and while maintaining constant investment in new technology, we strive to maintain essential client-facing services. Much of the latest technology relates to clearing services, execution-only trading and the prompt settlement of transactions. However, it is fair to say all areas of the industry have been impacted by new technology.
While there is a very close relationship between new technology and artificial intelligence, not all new technology in the financial industry has an element of artificial intelligence. Whether looking to carry out prompt and accurate know-your-client checks or anti-money laundering obligations, artificial intelligence does have a role to play. The use of new technology in clearing services allows assets to be held around the globe by trusted third parties. These are available for settlement of transactions in an instant, reducing settlement times and making funds more promptly available. We work with a range of tier-1 safe custody and clearing services, injecting an additional degree of trust into our client relationships.
Automation and especially the use of artificial intelligence is an integral part of any business today. However, it is the ability to balance the introduction of new technology while maintaining client-facing services which make our prime broking services so popular. It is also important to note that the regulators are fully aware of new technology in the industry, regulating the use of elements such as artificial intelligence.
Financial services, particularly prime broking services, have always had a strong element of personal contact with clients. Automation and the use of artificial intelligence should be seen as a means of reducing operating costs, allowing additional investment into the business and enhancing services provided. They do not and should not replace client facing services.Back to News