Banks are sitting on a lot of data. More than most other institutions in fact, but that data is siloed and difficult to extract, let alone utilise. Incredibly, many European and U.S. banks’ technology stacks are still based on 1970s, if not ‘60s, mainframe computer systems that are product, not customer-based.
The problem is particularly acute in the FICC (Fixed Income, Currencies and Commodities) market, which is further constrained by tight regulations, high fixed costs and a fragmented market structure.
So how can these institutions catch up with current data insights, tech flexibility and a great user experience, whilst being pressurised by margin erosion and a highly regulated, competitive environment?
Mosaic Smart Data
Founder CEO Matthew Hodgson and his team are bringing a data-driven AI platform to FICC organisations that need to harness their huge data reservoirs intelligently. Being able to refine this raw data and distil it into meaningful ‘Smart Data’, where value can be extracted in the form of actionable insights to service and predict their clients’ needs, is a significant challenge that all market participants face.
Mosaic Smart Data’s solution cleanses, normalises and enriches raw transaction data. It provides a consolidated real-time view and analysis across the flows of internal transaction in a language financial market professionals can understand. Users are alerted to opportunities and threats as well as actionable insights specific to sales and trading functions, management and compliance. As a result, FICC traders are able to view in real-time the whole FICC business including transaction volume, pricing and margins across the entire organisation by client, channel and geography.
The Future of Money
Our Future of Money investment team at Octopus Ventures aims to discover the pioneers at the forefront of the banking and data analytics revolution. Mosaic’s successful harnessing of Smart Data represents the kind of leap forward that is changing the way FICC, and more broadly, banking institutions operate. It is already being used by some of the biggest tier one market players amongst investment banks and is expected to expand to buy-side firms, custodians, ECN’s, exchanges and regulators in the near future.
AI is now impacting every sector, but none more so than finance. The fact that the biggest AI deal yet seen (S&P Global’s acquisition of Kensho for $550 million) came out of Wall Street and not Silicon Valley speaks to this. Flexible and agile technology stacks are no longer a luxury for the banks who want to survive the next decade. Aside from the tech sector itself, banks and other financial services are the early adopters of AI. Our investment in Mosaic is a clear play in a world of digitally smart, agile and data driven banking. Now Mosaic’s presence in the sector is furthering the influence of Smart Data in the market.
We are delighted to have the opportunity to back Mosaic Smart Data, alongside a group of other respected and expert investors including JP Morgan and CommerzVentures. We look forward to playing a part in supporting Mosaic’s exciting, revolutionary future.