The imperatives of the modernization journey
Sell-side firms in capital markets are experiencing a huge uptick in the volume and complexity of demands and issues reported by enterprise buy-side clients, such as asset managers, hedge funds, private equity, and corporate treasurers. On top of that, the COVID-19 outbreak has jolted the entire capital markets industry, adding to the headwinds confronted by sell-side services.
That means incumbent sell-side firms, such as broker-dealers and researchers, are under intense pressure to reinvent how they serve enterprise clients today—with a strong emphasis on digitization and customer experience. Otherwise, they risk losing customers to emerging fintech disruptors.
To solve this, sell-side firms must first acknowledge that issues faced by their enterprise customers emanate across the trading life cycle, starting with customer onboarding and transaction processing and extending all the way through settlement and reporting. Investment banks, therefore, must think holistically and long-term about how to modernize their client-facing technology functions to transform the experience of their enterprise clients.
Once sell-side banks identify the short- and long-term business imperatives of the modernization journey, the transformation should be built on the bedrock of a robust, nimble, and scalable architecture to sustain the ever-changing dynamics of capital markets. To guide them through this endeavor, sell-side banks need to establish clear success criteria, such as:
- Access to a 360° real-time view of client account information
- Actionable analytics and visualization capabilities
- Flexible, customer-centric solutions with low cost of operation and enhancement
- Targeted and relevant research and digital content
- Scalable microservices-based architecture
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