Technology - Roll of Honour

BNP Paribas

Technology includes both trading technology and also the ability to use technology to support operations and enhance client workflows and hence productivity. Across all respondents it is clear that there is a high regard for electronic trading technology offered by the largest prime brokers. These providers also for the most part are major providers of algorithmic trading and indeed prime brokers clients were the early adopters of these services when they were first made available. The average score on this question was 6.19 but among the top ten prime brokers it was much higher. By contrast brokers fared less well when clients were considering the integration into their workflow. As in some other areas, the Leading clients who have greatest interest were by some margin the least satisfied. Even among the largest providers scores were relatively disappointing. Comments suggested that clients were happier with progress made in equities, but other asset classes performed less well. Across all questions the results were solid but not as good as Client Service for example. BNP Paribas scored much better than the Survey average on all four questions. Its scores from its core North American clients were exceptional and suggest a high level of satisfaction.
In terms of priorities there was a clear difference between what clients care about from service providers and what might prompt them to change suppliers. In terms of existing providers, Technology was not a significant consideration. Less than one in forty responses suggested that Technology was a #1 consideration. It was not even in the top twelve aspects of service by this measure. It seems clear that whatever shortcomings may be faced, they have been adapted to and clients are more or less happy to live with them. In looking at factors that might promote the idea of change however, Technology was more important. It gained one in sixteen of mentions. This may seem modest but is half as many as Client Service, the single biggest factor. Overall Technology ranked eighth. While this by no means makes it a driver of likely change, it does suggest that consideration of Technology will be a meaningful factor in any assessment. Obviously its strong scores will help over time, but BNP Paribas like other providers can only do so much to win business through technological innovation.
Questions Score W/O Anomalies
Overall level of satisfaction with technology 5.895.63
Usefulness to your fund(s) of workflow tools 5.925.61
Reliability of electronic trade execution services 6.195.91
Ease of access to post-trade data 6.055.79

In terms of direct client comments, these are fewer in number than in other categories. For smaller clients for whom trading is less critical reporting is also an outcome of technology that is key to clients. Among comments received for BNP Paribas were:
“Very user friendly reporting”
“Very satisfied with asset reporting.”
Technology was mentioned as a clear strength by a number of BNP Paribas clients, though it is also clear that some clients see room for further improvements.
The scores show that providers can do well with Technology in any one of a number of areas, and use that as a springboard to a more generalised perception of excellence. However, the gains to be achieved in terms of new business will remain modest in the absence of any unique new breakthrough, whether in trading or reporting.