Challenges for investment banks 2017 (Part 2): Aggressive Cost Reductions

Beat Monnerat, Senior Managing Director of Financial Services for Asia Pacific; Owen Jelf, Senior Managing Director for Capital Markets; Accenture

Cloud-based services and the increasingly pervasive "Everything-as-a-Service" model could also influence how banks approach their operating models and IT systems. By identifying opportunities to purchase services and/or work within the fintech ecosystem, organisations can discover new ways to provide IT and operational services.

The new digital ecosystem
It is essential that financial services institutions understand and leverage rapidly maturing digital technologies to drive efficiency gains instead of using backward-looking benchmarks that underestimate the need for -- and potential value of -- change.

C-suite executives should focus on fintech partnerships to supplement their offerings and increase efficiency; big data and predictive analytics to enable greater customer insight and responsiveness, and artificial intelligence to automate complex tasks that involve non-structured data and require learning algorithms. They should also wrap their brains around the potential for distributed ledger technology to deliver efficiency in areas such as cross-border payments, liquidity management, collateral management, syndicated loans, trade finance and securities settlements.

Above all, investment banks should also -- from an overall business perspective -- strike a balance between enhancing the existing core today and investing in what is new.

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