If 2011 was about revolution, then 2012 is about evolution. Regulatory requirements, especially the Dodd-Frank Act, have shifted the investment banking industry into an entirely new environment. Investment banks must identify ways to deliver acceptable returns on equity, adapt internally to retain competitive advantage, better serve their clients and leverage maximum benefit from their existing resources.
Five priorities for investment banks
At Accenture, we believe that investment banks should focus on five key priorities in this new landscape:
1. Be informed and decisive. To secure market share and drive revenue, banks must understand pricing levers, as well as bundle high-value offerings with essential client services.
2. Know your top clients. Banks must identify their clients’ priorities, then factor and influence pricing accordingly.
3. Be ready to manage complex operational change. Opportunities in emerging markets mean that investment banks must develop cross-business capabilities, integrate technology across products and functions, and effectively train employees in operations and middle-office teams.
4. Focus on technology. In today’s market, banks have one shot at winning business, and their technology must be able to support buy-side requirements from day one.
5. Think global, not local. With limited resources, banks must leverage maximum benefit from their investments. We recommend a global approach, especially where technology investments are concerned.
In short, banks must move beyond mere compliance. The new trading environment is highly competitive, and banks must be positioned and prepared to take advantage of opportunities when they appear.
Download Challenge 2: Living with the New Trading Environment (pdf; opens in a new window).