Technology has been said to be hitting firms like a firehose attempting to fill a teacup. Difficult to say the least and almost impossible to capture everything.
In a new report from FIS, “The Hunt for Growth Across the Sell Side,” the consultancy said that looming regulatory changes and the rapidly increasing need for new technology, sell-side firms are feeling the pressure on all sides. Less than a thirdof banks andonly a fifthof broker-dealers say their existing technology infrastructure is fully optimized for growth.
In their latest report shared here with Traders Magazine, this sell-side specific study is filled with interesting insights into the state of the industry including:
– Sell-side firms are optimistic about the market outlook but51%of firms fear their technology and operations function cannot support their growth plans.
– 52%of sell-side institutions will prioritize new customer acquisition for growth; margin improvement is also a clear priority.
– Sell-side firms will need greater agility to drive growth amid continued political and regulatory uncertainties.63%of firms warn the regulatory burden remains a significant hindrance to their organization’s growth plans over the next 12 months.
– 30%of firms see regulatory risk as the biggest barrier to accelerating innovation.
