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How Have DCM Fintechs Evolved in 2022?

As the thought leaders from debt capital markets fintech come together at Event Radars’ panel discussion exploring the “Impact of Technology on Debt Capital Markets”, our CEO, Sotiris Manderis, considers the early stages of this gear change for capital markets.

Start up or scale up, where is DCM fintech in 2022?

In most sectors, especially those with a heavy dose of regulation, onboarding and adopting new technologies, even those that immediately add value and generate multiple efficiencies, is difficult and takes time.

Across DCM, the challenges and pain points are equally complex. Within banks onboarding new technologies takes longer than it should. Often, it is not even in the hands of the desk who are keen to make their lives easier. Even though procurement processes have improved in the last few years they still haven’t adjusted for the most effective onboarding of fintechs solutions. It goes without saying that financial institutions must make sure they are buying a secure, well-structured digital solution. For issuers, the desire is hot though justifying additional costs in an already tight environment is not easy.

So, where are we today? 2022 has definitely seen a shift in mindset. The need for technological innovation is now firmly established. Bookrunners have already got a taste for the new generation tools from multiple fintechs creating strong momentum and adding to the pace of change. Some people reflect that change has been slow in debt capital markets – but what’s important to note is that this is a nascent industry in terms of innovation. Provider and DCM market participants are all hungry for perfect solutions now that deliver value – but maturity takes time.

Looking forward, what can we expect?

  • As fintechs mature, there will be increased case studies from early adopters evidencing value creating even more momentum and further engagement from market professionals.
  • A joined up approach from across DCM fintechs keen to improve onboarding and adoption of new systems
  • More effective engagement with issuers who will reinforce the “pull’ of the market need

As many people know, especially within the fintech community, it takes many years to become an overnight success!

To quote Steve Jobs “Simple can be harder than complex. You have to work hard to get your thinking clean to make it simple. But it’s worth it in the end because once you get there, you can move mountains.”

The Finsmart Team