As investors seek higher yields, many
are turning to exempt markets – the
large and less stringently regulated
market attracting sophisticated
investors seeking higher risks and
higher rewards, while allowing issuers
to be freed from cumbersome
While the broader low-yield bond
environment has made exempt markets very attractive to investors, the
market itself is at a pivotal moment
due to serious structural challenges.
;e ;nancial industry is being greatly
impacted by the role of ;ntech.
Technological innovations arontribut-ing to the development of more
e;cient processes and are o;ering
solutions to many of the structural
problems that stand in the way of
growth. In exempt markets, where
participants are decentralized and
often cannot a;ord to build their own
technology infrastructure, the problems are intensi;ed. ;e lack of
connectivity and transparency is more
severe in exempt markets due to
limited technological penetration. As
such, ;ntech o;ers solutions that can
have signi;cant impact for those who
are willing to adopt new technologies
and business processes.
In a heterogeneous environment such
as the exempt market, ;ntech o;ers
standardization and automation. As in
the broader capital markets, many of
the processes and procedures that are
required to raise capital are currently
being performed in a highly manual
and extremely laborious manner. ;is
has led to the existence of disconnected players in the marketplace,
which serves as an obstacle to growth.
Exempt market dealers and quality
issuers accessing exempt markets to
raise capital are having di;culty as
accredited investors do not have the
ability to e;ciently discover and
pro;le their investment opportunities.
THE POWER OF DIGITAL CONNECTIVITY.
THE TIME IS NOW.
The financial industry is being greatly impacted by the role of fintech.