Growth strategies diversify
To deal with this new reality and achieve the growth they desire, sell-side firms must take three actions:
Take a smarter approach
to risk
Sell-side firms say cyber and fraud risk is their biggest operations and technology challenge. They also face market uncertainty as countries rebuild at different speeds and policymakers diverge across regions.
More than a third of firms are investing in RegTech in the next 12 months to improve their competitiveness. And the smart ones are choosing solutions that incorporate artificial intelligence (AI) – because that gives you the visibility you need to meet new risk and compliance demands while controlling costs.
Top operations and tech challenges
1
Rising cyber and fraud risks
2
Market uncertainty/volatility
3
Logistical and security challenges
of remote working
Top strategies to maintain competitiveness
1
Investing in RegTech to strengthen cyber
and fraud defenses
2
Supporting development and scaling
of customized products
3
Adopting AI to expand data usage
Find flexibility in the cloud
Sell-side firms expect to increase their reliance on managed services as they seek a more flexible and scalable operating model. But the cloud isn’t one size fits all. They’re turning to the private cloud for risk management and compliance management – and the public cloud for trading and post-trade processing.
Increase agility with Business Process as a Service (BPaaS)
BPaaS continues to grow in significance among sell-side firms: 88% are increasing their reliance on it for one or more functions over the next 12 months.
BPaaS enables sell-side firms to access expertise in a scalable, flexible way. This means they can quickly respond to sudden changes in the market and act on opportunities before the competition.
For which activities does your organization
expect to increase its reliance on BPaaS over the
next 12 months?
30%
Compliance management
28%
Trading
28%
Middle office
