Fortune Favors the Brave: The Five-year Outlook for Broker-Dealers
Transcript of Fortune Favors the Brave: The Five-year Outlook for Broker-Dealers
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FORTUNE FAVORSTHE BRAVETHE FIVE-YEAR OUTLOOKFOR BROKER-DEALERS
BASED ON RESEARCH BYFIS AND LANTERN INSIGHTS
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TECHNOLOGYIS LEADING TO FUNDAMENTAL CHANGES IN BROKERAGE
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AT THE HUMAN LEVEL
34%
66%
21%
18%61%
Technology may start to replace large number of human analysts or enable skilled people to make quicker, smarter and more informed investment decisions.
Do you expect technology to replace or augment human analysts?
Do you expect algorithms to undertake an increased
share of trading and transactional activities in your
business?
All data is sourced from a July 2016 survey of 150 broker-dealer executives by FIS and Lantern Insights
YES
NO ReplaceAugment
Neither
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AT THE COMPANY LEVELIt is becoming easier, cheaper and more secure to integrate outsourcing andto use technology to deal with new regulations and exploit new markets.
Expect automationto impact their business
75%
25%
78%
22%
78%75%
Considering outsourcing at least one of the front, middle and back offices
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AT THE INDUSTRY LEVELThe pressure to reduce costs and the imminent introduction of stricter regulations, higher capital and leverage ratio requirements are driving firms to consider new strategies, models and ways of working.
Expect regulations to significantly change their revenue model
Expect increased regulation to severely impact their business
over the next 24 months
76%
24%
70%
30%
76%70%
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CHANGE IS INEVITABLE
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Electronification
Automation and outsourcing
Disruptive companies and technologies
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THERE’S APERSONAL
EFFECT TOO
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HOW IS TECHNOLOGY CHANGING YOUR PLANS FOR THE NEXT FIVE YEARS WITHIN YOUR BUSINESS?
None of the above
I'm expecting to work longer hours
I'm having to do more myself
I'm working with new departments or across silos
I'm worried about new competitors
I'm expecting to change roles more often
I'm automating repetitive tasks
I'm starting to use new sources of data
I'm learning how to use new technology
5%
11%
16%
18%
19%
22%
39%
42%
47%
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SO, WHAT’STHE ANSWER?
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EMBRACE CHANGE
Review your risk management,
business models and operations according to modern realities
Align your business strategy across all of your
activities
Identify which areas, roles and tasks
are suitable for being outsourced and which must remain in-house
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SIMPLIFY, CONSOLIDATE
AND MODERNIZE
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FORTUNE FAVORS THE BRAVE
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