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The financial markets industry is divided over the extent of fundamental change. Extent of Fundamental Change (Percentage of Survey Respondents 1 ). n=54. Note: 1 Question asked: To what extent do you believe there will be fundamental change in your business
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The financial markets industry is divided over the extent of fundamental change Extent of Fundamental Change (Percentage of Survey Respondents1) n=54 Note: 1Question asked: To what extent do you believe there will be fundamental change in your business Source: Face-to-face interviews; IBM Institute for Business Value analysis
Greed, incentives and lack of accountability are perceived to be the largest cause of inertia, while regulation and shifts in client behavior are expected to drive change Drivers of Inertia (Percentage of Survey Respondents1) Drivers of Change (Percentage of Survey Respondents2) n=54 n=54 Note: 1Question asked: What are the largest drivers of inertia?; 2What are the largest drivers of change? Source: Face-to-face interviews; IBM Institute for Business Value analysis
Regardless of whether executives expect fundamental change, most believe returns will shrink Industry Returns (Percentage of Survey Respondents1) n=54 Note: 1Question asked: What will industry returns look like in the future? Source: Face-to-face interviews; IBM Institute for Business Value analysis
The top three concerns are uncertainty about value propositions, keeping up with data and regulation What keeps you awake at night? (Percentage of Survey Respondents1) What is our value proposition? Keeping up with data volumes Regulation – how to get around it Regulation – transparency n=54 Note: 1Question asked: What keeps you awake at night? Source: Face-to-face interviews; IBM Institute for Business Value analysis
The top three most cited strategic initiatives include exploiting data, creating multi-asset class platforms and collapsing silos Top Strategic Initiatives (Percentage of Survey Respondents1) Initiatives that improve client focus Initiatives that streamline the operating model n=54 Note: 1Question asked: What are your top three strategic initiatives over the next three years? Source: Face-to-face interviews; IBM Institute for Business Value analysis
Client initiatives are focused on exploiting data and creating multi-asset class offerings while streamlining initiatives are focused on rationalizing systems and analyzing risk / reward tradeoffs across the enterprise Client Focus Initiatives (Percentage of Survey Respondents1) Streamlining Operating Model Initiatives (Percentage of Survey Respondents1) n=54 n=54 Note: 1Question asked: What are your top three strategic initiatives over the next three years? Source: Face-to-face interviews; IBM Institute for Business Value analysis