COVID-19 and Custody: The catalyst for digitization?

5 Direct Custody and Clearing | COVID-19 and custody: The catalyst for digitization? The second has been the varying opportunities provided by Application Programming Interfaces (APIs) to improve integration between our and client systems, drive efficiency gains and act as a contingency mechanism which has allowed us to open new servicing models across our business. Potential deployments include online data dissemination, reporting and accepting trade instructions. GI: Did digitization suit some clients more than others? BM: Part of the momentum for the shift to APIs came from the benefits around contingency mechanisms. These have been most fully embraced by those clients whose contingency processes did not lend themselves well to dealing with the initial phases of the COVID-19 crisis. To them, the benefits of APIs in creating genuinely robust firm-to-firm (F2F) connectivity, were particularly compelling. Most of our clients have realized significant productivity gains, in addition to substantive risk mitigation as we transitioned into a more digital environment. However some clients, markets and functions are clearly more advanced than others in terms of their digitization journey. Many had previously underestimated those benefits, and the dramatic progress in recent months has demonstrated the return on investment of digitization initiatives and opened their eyes to other areas or key processes that may benefit from a focus on automation. Our clients have been able to optimize their own contingency and digitization processes by leveraging our investment in this area. GI: How will the COVID-19 crisis shape the future direction of travel for the sector? BM: COVID-19 has dramatically changed all of our perceptions of what’s possible. A year ago, no-one would have believed that the entire industry would process its highest volume days, across multiple markets globally, during a period of unprecedented volatility while 80-90% of our staff were working from home.