An industry in flux looks to the future
A decade after the financial crisis, the capital markets industry looks as profitable as ever. But, while the industry as a whole creates around $1 trillion in revenue and over $100 billion in economic profit each year, Accenture’s latest analysis shows the distribution of this profit within the industry is far from equal.
While many buy-side and market infrastructure players are highly profitable, on the sell-side, the field has split. Some investment banks (a few very large, and many mid-sized and small players) are creating shareholder value, while other sell-side players can’t say the same.
Moreover, cost structures across the entire industry are highly fragmented—to an unsustainable degree—making the industry prone to future disruption.