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Capital Markets

Investment banking

Bend the cost curve. Enhance client experiences. Implement new operating models: These are three imperatives for next-gen investment banking.

What’s going on

On an industry level, core Investment banking revenues were largely flat for years through 2019 and, following a brief pandemic-related surge, started to decline. Meanwhile, costs are rising, driving firms to reinvent. Any successful firm of the future will require a digitally enabled operating model to keep costs low while offering enhanced experiences to clients and employees. As many investment banking functions still require costly human interventions due to regulatory complexity, legacy technology, and challenges around data, firms need to address change across the entire organization

Digitizing sell-side offerings

Firms are looking for opportunities to transform the traditional counterparty relationship with the buy-side to create more durable client relationships from electronic trading to risk and post-trade management.

Enhancing the client experience

An array of new technologies could help smooth client journeys, from trading to the entire client lifecycle. Automation, for example, is already eliminating email-based workflows and supporting some Know-Your-Customer and Anti-Money-Laundering tasks.

Redesigning the operating model

Firms are taking a fresh look at their range of products, businesses, geographies and customers so they can focus on areas where they have a competitive advantage.

Using interconnected data and analytics

More and more investment banks are eliminating the requirement for high-touch efforts in the trade lifecycle by building portals to interact digitally with their clients. This could bring together various touchpoints across risk, clearing, reconciliations, settlement and custody.

What you can do

Use data and technology to deliver new value across sales, customer relationship management and support.

Implement trading architectures that can drive new revenue streams and shorten time-to-market for new products.

Set up a flexible operations function to support your business strategy with data-driven insights.

Address regulatory requirements, enhance the risk function and align legal entities to your strategy to create resilient businesses.

Create new business capabilities by implementing flexible and scalable technology structures using cloud, AI and data.