The Coronavirus crisis will serve as a catalyst for transformation initiatives, driving adoption of operating models that are more automated, increasingly data driven and supported by technologies such as cloud, machine learning and distributed ledger.

This is according to a new report from consultancy Capco exploring the future of capital markets, which pointed out that despite some benefits from short-term market volatility and trading volume spikes, specific risk management and operational risk challenges will become evident and there will also be challenges to economic returns across the industry.

In terms of digital transformation, many firms were already attempting to reduce costs, increase efficiency and scalability, and bolster cyber security.

“We expect the crisis to give renewed impetus - and indeed acceleration - to these transformation efforts, including a reassessment of global captive resilience operating models,” read the report. “This could be described as a ‘new normal’, where an individual firm’s operations are more automated end-to-end (and are more data-driven and cloud-based), relying less reliant on manual processes and servicing from global captive centres.”

Murray Longton, principal consultant at Capco, commented: “Consolidation, enhanced digitisation and enhancements to risk management will all be key features of the transformation ahead.

“This is the moment to reassess and reimagine operating models through new technology and new ways of working, tapping into the cost and risk benefits offered by automation, digital enablement, data insights and next-level operational resilience.”

The paper concluded that the winners that emerge from this period of global misfortune will be those industry players that recognise and embrace this digital transformation opportunity.

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