Big bets on Bitcoin post-election news and AI adoption the new normal

• Crypto spikes back in the headlines: You would have to be hiding under a rock to miss this biggest news in November with Bitcoin surging to new all-time highs, nearing the $100,000 mark following Donald Trump's election victory and his pro-crypto policies. ? ?

• Europe buckling up for faster settlements: ESMA's final report proposes a synchronized T+1 transition for the EU on October 11th, 2027, mirroring the UK's likely time frame. This long runway minimizes disruption for cross-border markets and acknowledges the complexity of the European landscape. While the US switch was significant, the sheer number of countries, CCPs, CSDs, and time zones in the EEA presents a steeper climb. One key question remains: how will ESMA handle the existing CSDR penalty framework in a T+1 world? A temporary suspension of fines and a hold on regulatory tweaks seem like sensible options during this critical implementation phase.?

• Boots off banking moves in Italy: UniCredit, a major Italian bank, has recently made a bid to acquire Banco BPM, another Italian bank. ?This move would make UniCredit the largest bank in Italy, surpassing Intesa Sanpaolo. However, Banco BPM has rejected UniCredit's offer, citing an inadequate price and potential job cuts. ?This proposed takeover has sparked discussions about the future of the Italian banking sector and its potential impact on the country's economy.?

• Outsourced managed services support due to scale: Allied Research’s latest report reveals a proposed rise in IT and cloud computing outsourcing projects with the Managed Services Market Projected to Reach $594.8 Billion. The report highlights the surge in demand for services, coupled with the increasing adoption of cloud computing solutions by businesses. Additionally calling out the need for cost-effective managed services solutions, rising data security concerns and the reduced on-site availability of managed services could impede market growth. ??

What we hear from our Clients?

• AI is moving to the mainstream: Artificial Intelligence (AI) continued to embed itself within the financial services industry. Banks are leveraging AI-powered tools for enhanced risk assessment, fraud detection, and personalized customer experiences. Asset managers are employing AI algorithms for portfolio optimization, predictive analytics, and algorithmic trading. Everyone is using 2024 as the testing ground before scaling with maturity in 2025.?

• Mergers and acquisitions shaping the industry: Consolidation continued to be a prominent theme in the banking and asset management sectors. Several high-profile mergers and acquisitions news announced, driven by the need for scale, cost reduction, and diversification. Integration plans are adding complexity to already time strained transformation projects. ?

?What's new with Gresham?

• Time for your data wake up call! If you missed it this month our latest report is out now. We surveyed 200 senior data decision-makers working in financial services across the UK and US and found that while rising data volumes and the demand for real-time accessibility are driving budget increases, many firms are struggling to effectively monitor and manage these growing expenses. ?

• Julian Trostinsky shared his thoughts on Data Modernization with strategies on how to lean into the trend in your organization. Read or listen to the blog in full on our website Transform Financial Operations with Data Modernization Strategies?

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