The ground under investment research is shifting
The investment research landscape is changing radically. MiFID II and other regulations are rewiring the rules for investor protection. Financial institutions are being forced to rethink how they do business. The new client-focused regulatory environment is having a lasting impact on the way research is produced, consumed and charged for.
In fact, research shows around 80% of investment banks and asset managers are rethinking their business strategy in response to regulatory changes.
At the same time, firms are having to adapt to a very different set of requirements caused by global COVID-19 disruption on top of the preexisting challenges of new market entrants, cost pressures, and radically different client expectations. They must review their investment research processes and output, acquiring the ability to sense and respond to what researchers, sales teams, clients, and regulators expect and demand.
Embrace MiFID II compliance as a platform for growth
Accenture’s view is that financial institutions should treat MiFID II-era compliance not as a burden but as an opportunity for transformation and growth. For many, this calls for a digital transformation of infrastructure, process and client experiences.
By creating a flexible, efficient, future-ready investment research ecosystem, firms can meet regulatory requirements, manage risk, reduce costs, deliver delightful experiences, and start unlocking new pools of value in the post-COVID and post-MiFID world.
The benefits of this user-centric approach include:
Meeting elevated client expectations by increasing transparency and improving research outputs.
- Increasing revenue over the long term through more client-friendly products and services.
- Reducing costs by rationalizing operations and digitalizing workflows: especially important as economies struggle to adapt to global COVID-19 disruption.
- Centralizing investment research infrastructure to promote data quality and provide opportunities for cross-selling.
Let’s reimagine research together
Adapting to the post-MiFID II and post-COVID-19 era will require extensive planning and effort in the short term. In doing so, it’s vital to be able to see the bigger picture. Firms need a clear destination to anchor their transformation journeys: a North Star vision for their future investment research business and operating models.
By viewing the transformation of investment research through a human-first lens, putting a laser focus on user needs, using streamlined digital technologies and platforms, firms won’t only be strengthening their compliance with MiFID II. They’ll also be building a connected research ecosystem that delights users, deepens relationships with clients, and supports new growth for the business as economies rebound from the COVID-19 pandemic.