Technology and regulation are often posed as adversaries. Technology symbolizes markets, enterprise, and growth, while regulation represents government, bureaucracy, and limits to growth.

Significant global regulatory change has impacted the business and revenue of capital markets firms. Business models, product offerings, risk management, and capital requirements are all under review. The current landscape has created an opening where firms who develop innovative new strategies can create competitive advantage while those who do not risk falling behind.

In a recent virtual roundtable on the benefits and challenges around the adoption of emerging technologies, Vanguard, one of the world's largest investment companies discussed how capital markets firms might evaluate such technologies with the view to creating a competitive advantage.

Carol Dow, principal of Vanguard Information Technology, said that she sees opportunities to take advantage of technology innovations to enhance their service model. She said that they see cloud computing-infrastructure-, platform-, and software-as-a-service-as a key technology initiative. “This will enable IT to lower its capital expenses through more efficient utilization of hardware and software infrastructure, and reduce its labor costs through the self-servicing and automation of the environment provisioning and deployment processes.”