Automating document-intensive workflows, improving data consistency and reducing operational delays could reshape how structured products are analysed, distributed and serviced, but the quality of the client experience remains central to competition.
Artificial intelligence (AI) could streamline structured product workflows, improve cross-issuer data analysis and make customisation more practical, while operational efficiency and post-trade service remain important sources of differentiation, according to a panel at SRP Americas.
AI could be very, very good at anything that either scans a large amount of data or does some complex analysis - Karim Faraj, Bloomberg
Joseph Simon, executive director, investment solutions sales at BBVA, moderated the discussion with Karim Faraj, global head of instruments, pricing and quantitative analytics at Bloomberg; Frederic Gautier (pictured), head of ultra-high-net-worth solutions at Merrill Lynch; and Ryan Hall, global head of issuer relations at Luma Financial Technologies.
Left to right: Joseph Simon, BBVA; Frederic Gautier, Merrill Lynch; Ryan Hall, Luma Financial Technologies; and Karim Faraj, Bloomberg
The panel examined where AI and automation could have the greatest near-term impact, how technology could support more tailored solutions and what will distinguish firms as the structured products ecosystem becomes more connected.
Immediate gains
AI’s near-term value lies in processing information and automating complex workflows across the product lifecycle, according to the panellists.
Faraj said AI could be particularly effective when dealing with large datasets, complex analysis and multi-step processes.
“AI could be very, very good at anything that either scans a large amount of data or does some complex analysis, or can involve very complex workflows,” he said, adding that AI could help clients find and interpret information while making the underlying sources available for users to review the analysis.
Hall identified document processing and the standardisation of information across issuers as practical applications. While pricing and idea generation have advanced, he said, less visible operational tasks remain time-consuming.
“Some of the less sexy parts of the flow are where it’s had the most value, kind of around reading the documents that no one else wants to read,” Hall said.
Parsing term sheets and normalising issuer data could help advisers build a clearer picture of portfolio exposures without relying on manual spreadsheets. Such tools could also make it easier to compare products and identify risks across holdings.
Left to right: Frederic Gautier, Merrill Lynch and Ryan Hall, Luma Financial Technologies
Gautier highlighted the operational challenges facing wealth managers, particularly in servicing ultra-high-net-worth clients. Outdated infrastructure can complicate trade settlement and cash management, creating friction beyond the initial product selection and execution.
Tailored advice
The panellists distinguished meaningful customisation from simply increasing the number of bespoke products available. Technology could make tailored solutions more practical by handling calculations and repetitive tasks, leaving advisers more time to focus on client needs.
Gautier said the human element remained central to the wealth management process.
“The human capital part, which at the end of the day is more about advice and guidance when you’re sitting on the wealth side,” he said.
Hall argued that automation should remove friction from the process rather than replace the client relationship.
“We ultimately want to replace every other part of the process with AI and tech,” he said.
Faraj said flexible analytics and AI could help tailor analysis to individual client preferences and portfolio requirements. Giving users access to the underlying data and assumptions would also allow them to scrutinise the results rather than rely solely on an AI-generated conclusion.
Left to right: Joseph Simon, BBVA and Frederic Gautier, Merrill Lynch
The discussion pointed to a potential role for AI in making structured products easier to analyse and manage, although the benefits depend on the quality of the underlying data and the effectiveness of the surrounding workflows.
Differentiators
As technology platforms connect more issuers and distributors, access alone may become less of a differentiator. Hall argued that issuer responsiveness and the quality of post-trade service would remain important in winning and retaining business.
He pointed at “responsiveness in competitive situations and high value tickets” as well as “post-trade behaviour”.
Timely notifications, clear documentation and reliable bids can influence an adviser’s experience long after a product has been issued. These operational details therefore have implications for commercial relationships as well as back-office efficiency.
Faraj said firms that use technology to streamline processes and reduce costs could be better positioned to compete for capital across asset classes. Gautier also stressed the importance of understanding a wider range of client strategies and requirements.
Looking ahead
In the closing round, the panellists outlined different expectations for how the market could evolve by 2030.
Faraj expressed hope that the market would become more democratised, while Hall anticipated that structured-product concepts would become more familiar to mainstream investors.
Left to right: Joseph Simon, BBVA; Frederic Gautier, Merrill Lynch; Ryan Hall, Luma Financial Technologies; and Karim Faraj, Bloomberg
Gautier focused on the speed of execution, predicting a significant reduction in the time between pricing and execution.
“I think time compression is going to be massive,” he said, noting that AI’s impact will extend beyond product design and pricing.
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