empowering the back office: the five-year outlook for broker-dealers
Post on 24-Jan-2017
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EMPOWERING THE BACK OFFICEThe Five-year Outlook for Broker-dealers
Based on research byFIS and Lantern Insights
TODAY
REGULATION REMAINS A KEY CONCERN
35%
65%YES
NO
All data is sourced from July 2016 survey of 40 back-office executives by FIS and Lantern Insights
Two-thirds of respondents believe increased regulation will severely impact their business in the next 24 months
WILL REGULATION CHANGE THE BACK OFFICE’S REVENUE MODEL?
SAY
YES
65% 65%20%
15%
HOW?
INCREASED COMPLIANCE COSTS
REDUCED COMMISSIONS
NEW REVENUE MODELS
THERE ARE WORRIES ACROSS THE BOARDWhich area of regulation concerns you the most?
Data privacy Tax Trade trans-
parency
Capital re-quirements
Differences b/w domestic and global rules
Solvency and liquidity
Reporting Other
40%
23%
10%8% 8%
5% 5%3%
BUT …REGULATION WON’T
ALWAYS BE TOP OF MIND
THE FIVE-YEAR OUTLOOK
WHAT WILL SUPPLANT REGULATION?
Fintech start-ups
Automation
Outsourcing
Cybersecurity
Execution algorithms
Mobile services
Regulatory compliance
Multi-asset technology
Blockchain
14%
31%
36%
55%
20%
36%
30%
15%
33%
43%
44%
21%
27%
30%
36%
10%
46%
43%
25%
43%
18%
50%
28%
60%
38%
67%
Which of the following trends do you think will be most important to your business over the next five years?
1st most important 2nd most important 3rd most important
THE BACK OFFICE IS ALSO FOCUSED ON GROWTH
30%
25%
18%
15%
13%
Market expansion will get the biggest increase in investment by 2020
MARKET EXPANSION
CUSTOMER EXPERIENCE
DISRUPTIVE TECHNOLOGIESFOR COMPANIES
REGULATORY COMPLIANCE
TALENT MANAGEMENT
THE TECHNOLOGY-DRIVEN BUSINESS
ARE BROKER-DEALERS BECOMING TECHNOLOGY-DRIVEN BUSINESSES?
SAY YES85%
WHY OR WHY NOT?Budget is the biggest constraint
IF YES IF NO
We have an ongoing technology training program
We have staff with the latest skills
We have the latest technology
30%
35%
35%
Budget constraints
Legacy technology
Skills shortage
17%
33%
50%
We have the latest technology
We have an ongoing technology training
program
We have staff with the latest skills
Legacy technology
Budget constraints
Skills shortage
THE PERSONAL IMPACTHow 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 working with new departments or across silos
I'm having to do more myself
I'm worried about new competitors
I'm expecting to change roles more often
I'm starting to use new sources of data
I'm automating repetitive tasks
I'm learning how to use new technology
5%
8%
13%
20%
20%
20%
40%
43%
45%
WHAT DOES THIS MEAN FOR YOU?
Regulation – especially data privacy – is still
keeping me up at night. And it will have a significant
impact on my revenue model.
Technology will play an important role, whether I’m
learning new systems or automating tasks.
Budget is the biggest constraint on my firm’s ability
to become a technology-driven business.
WHAT’S YOUR FIVE-YEAR
OUTLOOK?
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