Despite challenges, capital markets firms are focused on growth. That’s the main message we heard from the capital markets respondents in the recent Accenture High Performance Finance Study. Last week, I shared two of the key findings from our survey. This week, I’ll conclude my series by revealing three additional findings.
Finding 3: Firms share a strong aspiration to migrate to a more enterprise-wide approach to regulatory management
Almost one-quarter of capital markets firms say their risk, finance and operations organizations are siloed with limited governance over regulatory reporting processes. Fast forward two years and this proportion is expected to fall to just 10 percent as firms address these issues. How will they do it? An enterprise-wide approach is expected to become more prevalent, letting companies manage new regulations more efficiently.
Finding 4: Complexity is a key challenge
Capital markets firms face spiraling complexity both internally and externally, while under pressure from shareholders to grow revenue streams, increase market share and maintain margins. High-performing businesses must find ways of managing this complexity—standardizing and optimizing processes to streamline and simplify the organization is one way.
Finding 5: Key aspects of transformation remain a real challenge for capital markets institutions
Many capital markets firms have recently undertaken radical cost reduction exercises while also responding to a barrage of regulatory change. Managing multiple transformation programs is a significant organizational pressure. In fact, more than half of the respondents we surveyed—52 percent—say that managing the change process is one aspect of business transformation that they find most challenging.
Strong cost pressures are not going anywhere in the capital markets industry. So, how can firms respond? CFOs will have a key role to play in ensuring a balance between growth and realignment, and companies will increasingly need to migrate to a more enterprise-wide approach to regulatory management.
I hope you enjoyed this two-part series. To learn more, read: