From Charles Darwin to David Packard, there’s been much said about organisms and organizations adapting to change—rather than ignoring their new environments. Framed by disruption and uncertainty, the “old” ways of working are becoming less nostalgic and more of a case study. Business and economic models are evolving today faster than ever before; it’s a time where the marathon is becoming a sprint—one where shaping your response is less reliant on the legacy and more on the outcome.
The same can be said for the capital markets industry today. Our Capital Markets Vision 2022, driven by conversations with industry leaders and backed by our empirical research, delivers a framework for transitioning your company from the marathon mindset to sprint execution, segmented by three key themes:
#1 Shaping the new by defining who you are and who you want to be:
- How will investment products, distribution and servicing be transformed?
- What’s the role for artificial intelligence?
- How do we industrialize capital markets financing and corporate treasury services?
- What does a digitally transformed client front end look like?
- What’s in store for liquidity provisions, trading platforms, and risk management platforms?
- How will post-trade efficiency be enhanced?
#2 Operating in the new by playing to your strengths and playing to win:
- How should risk and compliance be transformed?
- How will attracting, retaining and nurturing talent change?
- What’s the best way to press ahead with data-driven management?
- What’s the ideal location strategy for the years ahead?
- Where should an organization be making its technology investments?
- In a world of constant change, what does a flexible and resilient infrastructure look like?
#3 Journey to the new by making changes and making them real:
- How can a company manage a legacy business while pivoting to the new?
- What’s the right operating model to translate scale into advantage?
- When does it make sense to downsize into a profitable niche?
The message is simple, the reality is stark: every capital markets firm should expect to have its business and economic models significantly and fundamentally challenged in the years ahead. The time to start planning for this disruption is now.
To learn more, read Capital Markets Vision 2022.