Morgan Stanley - Digital transformation strategies

Morgan Stanley - Digital transformation strategies

Summary

This report provides insight into Morgan Stanley's fintech activities, including its digital transformation strategies, its innovation programs, its technology initiatives, its estimated ICT budget, and its major ICT contracts.

Morgan Stanley (MS) is a provider of financial services. The company provides institutional securities, wealth management, and investment management services through its subsidiaries. Solutions under institutional securities and wealth management consist of lending, investment banking, sales and trading, brokerage and investment advisory, wealth and financial planning, banking and retirement planning, and insurance. The investment management portfolio offerings include private market investment solutions covering asset classes such as private credit, private equity, infrastructure, and private real estate markets.

In November 2023, Morgan Stanley Investment Management (MSIM) introduced Morgan Stanley Next Level Fund, L.P. with $50 million of capital commitments. Corporate partners in the fund include Hearst, Microsoft, Walmart, Altria, Ten Figures Ventures, and Phalanx Impact Partners. The fund focuses on investing in companies operating in sectors including technology, consumer/retail, financial technology, healthcare, consumer products and media and entertainment. In addition to capital, each portfolio company will benefit from access to the global resources and capabilities of the corporate partners in the Fund.

Morgan Stanley introduced its Inclusive Ventures Lab accelerator in 2017, to support financial inclusion and enable technology startups to access funding, investors, and resources as well as scale their business. The program is led by female and multicultural entrepreneurs and offers a curated curriculum for startups including financial and sales strategy, marketing and branding, and expert led private sessions. As of January 2024, 69 companies have participated in the lab.

Scope

Morgan Stanley is utilizing AI and machine learning to improve its wealth and asset management operations and other operational processes. It is using machine learning to understand its clients’ needs and drive actionable insights. Morgan Stanley has deployed machine learning algorithms to optimize content creation through personalized offerings using the Lucidworks Fusion platform. In a bid to increase the prospecting success of its financial advisors and empower them to answer complex customer queries across multiple platforms, the bank is using Yext platform, to create and manage the business pages and digital presence of its financial advisors.

In November 2023, Morgan Stanley Investment Management (MSIM) introduced Next Level Fund ($50 million). As a part of MSIM’s $200 billion alternative business, it plans to invest in early-stage technology and technology-enabled companies that are operating in the sectors including technology, consumer/retail, financial technology, healthcare, consumer products and media and entertainment.

Morgan Stanley launched its Global In-House Center (GIC) in India to support the group’s global businesses across institutional securities, wealth management, and investment management. For wealth management, the team developed its proprietary technology, Next Best Action, which leverages machine learning and predictive analytics technologies to offer customized investment strategies and enhance client engagement.

Reasons to Buy

• Gain insights into Morgan Stanley's tech operations.
• Gain insights into its tech strategies and innovation initiatives.
• Gain insights into its technology themes under focus.
• Gain insights into various product launches, partnerships, investments, and acquisition strategies.