VIDEO | From AI and DLT to cloud and quantum computing, the fireside chat with SEB’s Göran Fors, Niklas Nyberg, and Ulrika Possung was one that covered a little bit of everything technology. One of the last sessions of PostTrade 360° Copenhagen, it presented two conclusions: despite the buzz, client interest is piqued only if the new tech can bring value to them, and old tech has value, too.
The session was sponsored by SEB.
According to Niklas Nyberg, SEB’s Head of Institutional Global Custody, clients aren’t as interested in implementing AI within their own operations as they are in how providers such as SEB can use AI to bring value to them. “It’s more about what we can do within our business to provide solutions that would benefit them – that’s their great interest,” he says.
Ulrika Possung, Head of Portfolio Solutions, agreed, saying, “Will clients be happier if we use AI? They will if they see a tangible effect; they will not if it’s just used for our internal purposes.”
Think outside the box
Similarly with DLT, investors are expecting benefits that could differentiate the technology from what was available before. “The questions we get from the investors show that they’re not interested in investing in plain vanilla instruments that we’ve converted into some type of the digital thing,” Niklas Nyberg shares.
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“What they’re interested in are new types of assets – and what that could be is limited only by your imagination. Everything from traditional alternative funds, to closed-end funds converted into tokenised funds that could evoke interest and potentially trigger secondhand market trading – that’s interesting. It could be tokenised car fleets, or book loans – things that they cannot easily get access to today where there could be liquidity.”
Not out with the old
Despite the buzz surrounding new technology, Ulrika Possung cautioned against abandoning solutions that currently exist. “There’s not only new technology but also old technology current technology that there’s still so much to do about,” she points out. “There’s been so much work going on, but most people still a lot of manual tasks.”
Mentioning the session titled “T+1 – Global opportunities, threats and how you can future proof for T+0” from the first day of the conference, she cited Tobias Bergholdt, Head of Derivatives and Collateral at Nykredit Portefølje Administration, who spoke about how collateral could be “used more efficiently”. “It was not very long ago when everything was communicated through emails,” she recalls. Now, “settlement is nearly instantaneous”.
“However there’s more to do. We are still struggling with coupons for instance – making sure that those settle on collateral accounts as they should – and there are so many more examples. So it’s not only new technology that we’re looking at. We need to continue with the old technologies that we have as well.”
The panellists were:
Niklas Nyberg,Head of Institutional Global Custody, SEB, and
Ulrika Possung, Head of Portfolio Solutions, SEB, moderated by
Göran Fors, Deputy Head of Investor Services, SEB.
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