Scaling solutions for capital markets

Rhyming with capital markets’s own long-term goals, cap-market platforms and other fintechs focused on this sector keep their own growth priorities front and center. Doing so requires keeping a pulse on shifting trends and concerns within capital markets, while also anticipating upcoming needs and pushing the needle.

Blending tech, branding, and compliance, fintechs successfully scaling in this space solve for three variables:

Deploying AI thoughtfully

AI has seen public attention rise dramatically since the launch of ChatGPT—but artificial intelligence has been used in finance for decades. As Vall Herard, CEO and Co-Founder of Saifr, told The Financial Revolutionist, finance-focused artificial intelligence started in the form of “old-fashioned regression econometrics.” 

Financial and capital markets have moved beyond that form of AI, leveraging the benefits of automation to synthesize large amounts of data to generate actionable insights. We should also expect generative AI to help make ancillary tasks more efficient, such as compliance-related documentation, generating marketable and sales-friendly returns on investment for potential clients.

Expanding capital’s capabilities

Moving into new forms of capital can also help capital market platforms ride surges of interest in order to scale. However, doing so can be a double-edged sword, especially if new forms of capital—such as private-market fundraising or crypto-based capital—have yet to be fully regulated.

Hedging potential losses means these platforms should diversify their portfolios—identifying sales opportunities and other vectors for growth that can complement others. For larger platforms, this may mean moving into both public and private markets, for instance, or potentially expanding into several geographies.

Eyeing new demographics

Finally, scaling requires identifying new, relevant audiences. Partnership networks can be a promising way to carry out these priorities by bringing together professionals who more tangentially operate in capital markets, such as lawyers and accountants.